Marketing Test Study Guide

By studying marketing, you will learn (a) how businesses use marketing to increase their effectiveness and profits. (b) how new businesses are established. (c) how products are manufactured. (d) why consumers are usually mislead by marketing.

(a) how businesses use marketing to increase their effectiveness and profits.

As consumers increased their standard of living and had more money to spend, the demand for newer and better products (a) increased (b) decreased (c) remained the same (d) varied widely

(a) increased

In order to barter, both parties (a) must want what the other party has. (b) must have money. (c) must travel. (d) must have most needs satisfied already.

(a) must want what the other party has.

Marketing-information management includes (a) obtaining market information to improve decision making. (b) establishing the best price for a product or service. (c) developing an effective sales presentation. (d) improving the efficiency of product delivery.

(a) obtaining market information to improve decision making.

Self-sufficient people have to overcome (a) bartering (b) specialization of labor (c) the need for a variety of goods and services to live (d) all of the above

(c) the need for a variety of goods and services to live

Successful businesses develop an approach to marketing planning that responds to (a) new products (b) trends in the industry (c) the needs of customers (d) every situation

(c) the needs of customers

Each of the functions of an effective business can successfully operate independently of the others. True False

False

The Marketing Concept Era began in the 1950s and continues today. True False

False

True or False: A marketing mix is the blending of three marketing elements—product, distribution, and promotion.

False

True or False: After changing a great deal in the first half of the 20th century, the role of marketing in businesses has remained the same since that time.

False

True or False: Companies that believe in the marketing concept cannot be concerned about the amount of profit they make.

False

True or False: During the Production Era, production processes were very complex and many product choices were available.

False

True or False: During the Sales Era, transportation systems were not well developed.

False

True or False: Marketing activities can be categorized within four functions.

False

True or False: Marketing activities today are completed in much the same way they have always been done.

False

True or False: Marketing has always been an important part of business.

False

True or False: Marketing is particularly important when businesses produce a low-quality product.

False

True or False: Self-sufficient people bartered for goods they needed.

False

Libraries, churches, and community organizations use marketing activities. True False

True

Providing financing to customers to help them with purchasing the organization's products is a marketing function. True False

True

True or False: A business is involved in marketing when it communicates the value of products to prospective customers.

True

True or False: A money system was developed to assist with the exchange process.

True

True or False: All business activities contribute in specific ways to the success of the business.

True

Marketing jobs are found at the lowest and highest levels of a company and are available for people with varied amounts of education and experience. a) True b) False

a) True

The approach to managing marketing activities changes as organizations understand what makes marketing effective. a) True b) False

a) True

When you buy an ice cream cone or a digital camera, you are involved in marketing. a) True b) False

a) True

A location where people bring products to be conveniently exchanged is a a) central market b) crossroads c) stock exchange d) money system

a) central market

Drilling for oil is an activity that can be placed under the ________ function of business. a. production b. operations c. accounting and finance d. management and administration

a. production

Which of the following is not a marketing function? a. production b. distribution c. pricing d. promotion

a. production

Marketing activities and jobs have not changed much over the past 100 years. a) True b) False

b) False

Exchanging products or services with others by agreeing on their values without using money

bartering

The prospective customers a business wants to serve and the location of those customers

market

The creation and maintenance of satisfying exchange relationships

marketing

Blending of the four marketing elements (product, distribution, price, and promotion) by the business

marketing mix

True or False: Marketing activities are completed by profit-making businesses but not by not-for-profit businesses.

False

True or False: Price is the actual cost that a business incurred to produce and market the product.

False

True or False: Credit card companies are directly involved in marketing.

True

True or False: Developing marketing skills can actually help you be a more effective consumer.

True

True or False: During the Marketing Department Era companies increasingly relied on a variety of marketing activities to find ways to expand markets and sell more products.

True

True or False: Marketing can help the business be more profitable by coordinating activities and controlling costs.

True

True or False: Marketing has existed since businesses began exchanging goods.

True

True or False: Marketing includes distribution, pricing, credit, and customer services.

True

True or False: Millions of businesses today have marketing as their main activity.

True

True or False: Specialization of labor results in the production of large quantities of a product.

True

True or False: The marketing concept works well for organizations such as colleges and hospitals as well as for businesses whose goal is to make a profit.

True

True or False: The most successful businesses are the ones that consider customers' needs as they produce and market their products and services.

True

True or False: There are some products that customers just won't buy.

True

Which of the following businesses is directly involved in marketing? a) A freight company b) A law office c) A bank d) all of the listed businesses are directly involved in marketing

a) A freight company

Using high-profile entertainment or news to get people to talk about your brand is called ____________________ marketing. a) Buzz b) Relationship

a) Buzz

In the Production Era, business's only marketing effort was devoted to ____________________. a) Distribution b) Selling c) Creating d) Marketing Concept

a) Distribution

A company that relies on promotion with brochures, advertisements, and public service announcements probably has not adopted the marketing concept. a) True b) False

a) True

Businesses that do not use the marketing concept are more concerned about producing products than understanding customer needs. a) True b) False

a) True

Which business function involves developing, implementing, and evaluating the plans and activities of a business? a. management b. accounting and finance c. marketing d. operations

a. management

Which marketing function involves designing and developing products and services? a. production/service management b. marketing-information management c. pricing d. selling

a. production/service management

The marketing function that involves direct, personal communications with prospective customers in order to assess and satisfy needs with appropriate products and services is: a. selling. b. distribution. c. product/service management. d. promotion.

a. selling.

Merchandising businesses take raw materials and change their form so that they can be used in the production of other products or in the operation of businesses or equipment. a) True b) False

b) False

One of the first efforts of the new marketing departments of the 1950s and 1960s was to reduce the use of advertising. a) True b) False

b) False

Planning is the most important element of the "4 Ps of Marketing." a) True b) False

b) False

Specialization of labor resulted in less of a given product being produced to exchange with other people. a) True b) False

b) False

The primary reason for a business to exist is to provide employment for people. a) True b) False

b) False

When the marketing concept was adopted, marketing became the work of one department—the Marketing Department. a) True b) False

b) False

Which business function involves developing, implementing, and evaluating the plans and activities of a business? a) Production b) Management c) Operations d) Merchandising

b) Management

How many companies in the United States use marketing as their primary business activity? a) Over 10 Million b) Over 4 Million c) About 1 Million d) Less than 500,000

b) Over 4 Million

An emphasis on producing and distributing new products was characteristic of the a) Sales Era b) Production Era c) Marketing Concept Era d) Marketing Department Era

b) Production Era

____________________ marketing focuses on developing loyal customers who continue to purchase from the business for a long period of time. a) Buzz b) Relationship c) Concept

b) Relationship

Being self-____________________ means you do not rely on others for the things you need to survive. a) Reliant b) Sufficient c) Motivated

b) Sufficient

Which marketing function establishes the value of products and services? a. selling b. pricing c. product/service management d. marketing-information management

b. pricing

Which business function involves activities that makes products and services available to consumers and ensure that satisfying exchanges occur? a. management b. production c. marketing d. operations

b. production

When a company decides which delivery service to use to get its products to customers, which component of the marketing mix is being considered? a) Profit b) Product c) Distribution (Place) d) Promotion

c) Distribution (Place)

The ____________________ function establishes and communicates the value of products and services to prospective customers. a) Selling b) Distribution c) Pricing d) Promotion

c) Pricing

Which marketing function develops procedures so customers are able to locate, obtain, and use products and services? a. selling b. promotion c. distribution d. financing

c. distribution

Which of the following is an approach to customer service that gives employees the authority to solve any customer problems? a. the marketing concept b. relationship marketing c. employee empowerment d. social responsibility

c. employee empowerment

Which of the following businesses has marketing as its primary activity? a. accounting firm b. real estate agency c. finance and credit firms d. automobile dealers

c. finance and credit firms

Because it was not always possible to reach agreement on what products were worth so they could be exchanged directly, ________ was/were developed. a. bartering b. central markets c. money systems d. specialization of labor

c. money systems

Merchandising falls under which of the following functions of business? a. management and administration b. accounting and finance c. production d. marketing

c. production

Exchanging products or services with others by agreeing on their values is known as a) Marketing b) Selling c) Promoting d) Bartering

d) Bartering

An approach to customer service that gives employees the authority to solve many customer problems is called a) Relationship Marketing b) Social Responsibility c) Hard Selling d) Employee Empowerment

d) Employee Empowerment

The first step of the marketing concept is to a) Hire a team of talented marketing professionals b) Develop top-quality products or services c) Operate at a profit d) Identify what will satisfy customers' needs

d) Identify what will satisfy customers' needs

The ____________________ function determines the best way to help customers locate, obtain, and use an organization's products and services. a) Selling b) Pricing c) Distribution d) Promotion

d) Promotion

The consequences of not satisfying customer needs may include: a. difficulty in selling products. b. the need for extensive advertising and price reductions to create demand. c. additional marketing expenses that cut into profits. d. All of the above.

d. All of the above.

Which of the following is not an activity that must be accomplished for a business to use the marketing concept successfully? a. Identify needs of customers. b. Develop and market products or services that customers consider better than other choices. c. Operate a business profitably. d. Cut prices and advertise heavily to push unwanted goods.

d. Cut prices and advertise heavily to push unwanted goods.

Which business function represents the ongoing activities designed to support the primary function of a business and keep it operating efficiently? a. management b. production c. marketing d. operations

d. operations

Which marketing mix element includes the methods used and information communicated to purchase and to increase their satisfaction? a. product b. distribution c. price d. promotion

d. promotion

The marketing function that includes the methods used and information communicated to encourage customers to purchase and to increase their satisfaction is: a. selling. b. pricing. c. product/service management. d. promotion.

d. promotion.

The locations and methods used to make the product available to customers

distribution (place)

Using the needs of customers as the primary focus during the planning, production, pricing, distribution, and promotion of a product or service

marketing concept

The actual amount customers pay and the methods of increasing the value of the product to the customers

price

Anything offered to a market by the business to satisfy needs, including physical products, services, and ideas

product

The business function that creates or obtains products or services for sale

promotion

Focuses on developing loyal customers who continue to purchase from the business for a long period of time

relationship marketing

________ is the right blend of product, place, price, and promotion to provide the needs of customers at a profit. a. The marketing concept b. The marketing mix c. The management and administration function d. None of the above

b. The marketing mix

The first step in implementing the marketing concept is: a. satisfy customer needs. b. identify the market. c. develop a marketing mix. d. plan an advertising campaign.

b. identify the market.

Fill in the blank with the best answer: Marketing is the creation and ________ of satisfying exchange relationships. a. implementation b. maintenance c. promotion d. termination

b. maintenance

Which of the following is recognized as both a marketing function and a marketing core standard? a. channel management b. market planning c. risk management d. None of the above.

b. market planning

This marketing function provides security for products, personnel, and customers. a) Selling b) Pricing c) Risk Management d) Promotion

c) Risk Management

The era of marketing in the mid-1900s that had an emphasis on developing many new marketing activities to sell products was: a. the Sales Era. b. the Production Era. c. the Marketing Concept Era. d. None of the above.

d. None of the above.

A location where people bring products to be conveniently exchanged is called: a. the money system. b. a market of specialized labor. c. the bartering store. d. a central market.

d. a central market.

True or False: A new or small business does not need to coordinate its business functions.

False

True or False: Today the biggest challenges facing most businesses is getting the products from the places where they are produced to prospective customers.

False

In the early 1900s, businesses were mostly concerned about producing products that the business believed customers could afford and would purchase. a) True b) False

a) True

In the past, businesses expected customers to take most of the responsibility for completing marketing activities. a) True b) False

a) True

In the development of marketing in business, self-sufficiency progressed to bartering, which progressed to: a. specialization of labor. b. money systems. c. central markets. d. None of the above.

a. specialization of labor.

Businesses that do not use the marketing concept (a) often rely on advertising and promotion. (b) sell more products. (c) are better able to control costs. (d) earn higher profits.

(a) often rely on advertising and promotion.

Central markets were usually located (a) where both producers and consumers lived. (b) where people frequently traveled. (c) where facilities to store products already existed. (d) all of the above.

(b) where people frequently traveled.

In the past, businesses could be successful by (a) producing more products. (b) increasing the amount of advertising. (c) increasing selling efforts for the products. (d) all of the above.

(d) all of the above.

Operations includes (a) obtaining, transporting and storing products. (b) maintaining buildings and equipment. (c) preparing and maintaining paperwork and computerized records. (d) all of the above.

(d) all of the above.

Distribution includes (a) creating a budget for marketing activities. (b) completing research to develop new products. (c) advertising and other forms of promotion. (d) determining the best procedure to be used so prospective customers can locate a product.

(d) determining the best procedure to be used so prospective customers can locate a product.