MKTG 409 - Chapter 1 Quiz

What percent of all civilian workers in the United States perform marketing activities? a. 25 - 33 b. 100 c. 51 - 75 d. 25 - 49 e. 50

a. 25 - 33

Holden, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would NOT be a customer benefit considered in his determination of this product's value? a. Monetary price b. Speed of delivery c. Availability of technical support d. Ease of installation e. Availability of training assistance

a. Monetary price

​Long-term relationships with profitable customers is the key objective of a. customer relationship management. b. e-marketing. c. distribution channels. d. production oriented firms. e. personal selling

a. customer relationship management

Green Hills Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Green Hills' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Green Hills' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. Refer to Scenario 1.1. Green Hills' competitors, the traditional cemeteries, focus on advertising and personal selling of their services. This indicates a(n) ____ orientation. a. sales b. marketing concept c. production d. environmental e. marketing

a. sales

Special K cereal is aimed at people concerned about their weight. These people represent the Special K a. target market. b. consumer advocates. c. marketing mix. d. marketing strategy. e. marketing tactic.

a. target market

You will give the keynote address at the annual meeting of the American Cereal Makers Association. You realize most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what marketing is in order to set the proper context for your speech. ​ You define marketing as: a. the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers. b. the process or practice of calling public attention to a firm's goods and services through communications in print media, social media or other forms of information distribution. c. the process of proving that a product or service offered by an organization meets or exceeds customers' expectations. d. the process of persuading or seeking to persuade a customer or organization to take a preferred course of action. e. the process of speaking or writing in support or defense of a firm's products or services.

a. the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

Which of the following is NOT a condition for an exchange to occur? a. Two or more parties must participate, and each must possess something of value. b. The exchange should provide a benefit or satisfaction to only the buyer. c. The exchange should provide a benefit or satisfaction to both parties. d. The exchange must meet expectations. e. Each party must have confidence in the something of value held by the other.

b. The exchange should provide a benefit or satisfaction to only the buyer.

During the Industrial Revolution, most firms operated using a(n) ____ orientation. a. evolutionary b. production c. market d. sales e. societal

b. production

Amos Holden runs a successful wholesale business that sells equipment to restaurants throughout the Southwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about a. which supplier he should use. b. the best way to distribute his products. c. which market he should target. d. the product he provides to his customer. e. how to effectively promote his business.

b. the best way to distribute his products.

Scenario 1.3 - Use the following the answer the questions. A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for its ability to customize computers to customers' needs as well as the ability to provide quality products through its retail channel. The executive discussed the firm's capabilities regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, HP began forging relationships with retailers such as Best Buy to provide a limited number of computer models in the retailers' stores. In order to fulfill the orders to Best Buy, HP was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, HP was able to shift from a focus on air transportation to over-the-road trucking, which enabled it to cut costs in some areas. As HP shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Best Buy, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. HP's ability to modify its business model by forging relationships with retailers such as Best Buy as well as customer insights has helped the company achieve its revenue and profitability goals. Refer to Scenario 1.3. Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10 days for a "build-to-order" computer and led HP to modify its business model to become a "make-to-stock" manufacturer? a. Competitive b. Economic c. Sociocultural d. Regulatory e. Legal

c. Sociocultural

Sara Lee introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Sara Lee was most likely following the ________. a. retailing concept b. selling concept c. marketing concept d. production concept e. customer concept

c. marketing concept

The element of the marketing mix used to increase awareness of a product or company is a. distribution. b. information. c. promotion. d. price. e. product.

c. promotion

The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a. experience b. good. c. service. d. idea. e. issue.

c. service

​If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities? a. $1,500 b. $500 c. $2,000 d. $1,000 e. $0

d. 1,000

Honda conducts extensive consumer research and discovered that Latinos are reportedly 15% more likely to buy a Japanese auto brand, like Nissan, Honda, or Toyota, than any other group ethnic group. Honda is interested in the Latino market since it represents 20% to 30% of the brands' overall consumers. Due to its extensive use of research and customer insight, Honda has been the top-selling brand for Latinos for over 10 years thanks to effective marketing, like its partnership with the "La Reina de la Cancion" singing competition and an advertising campaign on Spanish-language TV. Based on this information, which orientation best applies to Honda? a. Production orientation b. Environmental orientation c. Target market orientation d. Market orientation e. Sales orientation

d. Market orientation

Green Hills Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Green Hills' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Green Hills' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. Refer to Scenario 1.1. A new website has helped Green Hills' pre-planned funeral business grow. This would come under which of the following marketing mix variables a. Promotion and price b. Price c. Product d. Promotion e. Distribution

d. Promotion

​The definition of marketing implies that ____ should receive benefits from exchange relationships. a. company management b. only the most important customers c. only businesses d. both customers and businesses e. only customers

d. both customers and businesses

​Marketing is the process of a. delivering a standard of living to a society. b. creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. c. promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. d. creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. e. focusing on customers' needs.

d. creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

A market orientation is an organization-wide effort that includes all of the following activities except a. researching customers' needs. b. disseminating marketing intelligence across departments within the organization. c. being responsive to customers' ever-changing wants and needs. d. focusing just on the marketing department. e. generating marketing intelligence for use in the organization.

d. focusing just on the marketing department.

​You believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus should be creating customer value. ​ Which of the following phrases best tells the story of what customer value is? a. "Customer Benefits = Customer Value - Customer Costs" b. "Customer Value = Customer Benefits + Customer Costs" c. "Customer Value = Customer Benefits = Customer Costs" d. "Customer Costs > Customer Benefits = Customer Value" e. "Customer Value = Customer Benefits - Customer Costs

e. "Customer Value = Customer Benefits - Customer Costs

​The marketing mix is built around the a. employee. b. retail outlet. c. product. d. company. e. customer

e. customer

Creating long-term relationships with customers is a key component to surviving and thriving in today's competitive business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where customers can accumulate points and receive discounts or free merchandise. For example, Best Western encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Best Western offers benefits such as upgrades and free room nights based on the number of stays or points a customer has accumulated. This example demonstrates how Best Western is utilizing a. the marketing concept. b. marketing technology. c. competitive insight. d. marketing mix deployment. e. customer relationship management.

e. customer relationship management

To fulfill customer expectations about a seller's future behavior, marketers must a. advertise and sell products. b. maintain favorable relationships with stakeholders. c. tell the truth on social media. d. create, distribute, promote, and price products. e. deliver on promises made.

e. deliver on promises made

The marketing concept focuses on a. achieving the goals of top executives. b. maximizing market share in a way that helps to achieve organizational objectives. c. creating maximum visibility for the firm. d. maximizing sales in a way that helps to achieve organizational objectives. e. satisfying customers' needs in a way that helps to achieve organizational objectives.

e. satisfying customers' needs in a way that helps to achieve organizational objectives.

Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in a. the economic forces of the marketing environment. b. the technological forces of the marketing environment. c. the marketing mix. d. the marketing concept. e. the sociocultural forces of the marketing environment.

e. the sociocultural forces of the marketing environment.