MARKETING CHAPTER 1

A ________ is a good, service, idea, place, or person-whatever is offered for sale in the exchange. A) product B) place C) utility D) benefit E) demand

A) product

Business-to-business marketing represents greater total sales than business-to-consumer marketing.

TRUE

The principles of marketing can apply to people, just as they apply to goods and services.

TRUE

To calculate lifetime value, a company would estimate the amount of money a person would spend with the company over a lifetime and then subtract what it will cost the company to maintain this relationship.

TRUE

A firm has a competitive advantage when it is able to outperform the competition, providing customers with a desired benefit not provided by the competition.

TRUE

Many not-for-profit organizations use marketing principles.

TRUE

Marketers define a need as the difference between a consumer's actual state and some ideal or desired state.

TRUE

The ________ element of the marketing mix informs consumers about products and encourages them to buy these products using forms such as personal selling, advertising, coupons, and publicity. A) production B) place C) price D) distribution E) promotion

E) promotion

Which of the following is an example of a not-for-profit organization that would use marketing principles? A) a fast-food restaurant B) a manufacturer of bicycles C) a software developer D) a theme amusement park E) the local city zoo

E) the local city zoo

The customer orientation maintains that marketers must satisfy customers' needs in ways that also benefit society.

FALSE

The pricing element of the marketing mix always involves monetary exchanges.

FALSE

A ________ is a distinctive group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market. A) market segment B) popular culture C) mass market D) market mix E) market position

A) market segment

Conveniently located vending machines around your college or university campus make it easy for you to buy a soda and a snack between classes. This is an example of the ________ element of the marketing mix. A) production B) place C) price D) profit E) promotion

B) place

________ is the process of thinking strategically about the big picture and where the firm and its products fit within it. A) Crowdsourcing B) Total quality management C) Marketing planning D) Customer relationship management E) Value proposition creation

C) Marketing planning

Which of these statements about mass marketing is true? A) A mass marketing strategy is always preferable to a target marketing strategy. B) The success of any organization's marketing efforts depends on its ability to engage in mass marketing. C) Mass marketing can be cost effective. D) Mass marketing allows marketers to develop products to satisfy the specific needs and wants of specific groups of customers. E) Automakers typically use a mass marketing strategy.

C) Mass marketing can be cost effective.

The first phase of market planning is to ________. A) identify a target market B) calculate production costs C) develop a value chain D) determine a market position E) analyze the marketing environment

E) analyze the marketing environment

Kao Corp., which makes Ban deodorant, invited teenage girls to create an ad that would encourage other girls to buy the product. This program is an example of ________. A) the wisdom of crowds B) the production concept C) the selling orientation D) folksonomy E) consumer-generated content

E) consumer-generated content

A marketer who wants to achieve a competitive advantage over her rivals cannot use the marketing mix to achieve this goal.

FALSE

A value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product itself.

TRUE

By selecting a mass market, a firm risks losing potential customers to competitors who instead try to meet the needs of specific target markets.

TRUE

The elements of the marketing mix are the four Ps.

TRUE

The marketing mix is the marketer's strategic toolbox.

TRUE

Today, it's most likely that companies selling unsought goods will use a selling orientation.

TRUE

A ________ delivered by a product is the outcome that motivates a customer's buying behavior. A) benefit B) demand C) value D) need E) want

A) benefit

Which of the following is a true statement about the four Ps of the marketing mix? A) A decision about one of the Ps affects every other marketing-mix decision. B) Price is always the most important of the four Ps. C) Place is typically the least important of the four Ps. D) The four Ps have little effect on a product's market position. E) The four Ps are used to determine a product's target market.

A) A decision about one of the Ps affects every other marketing-mix decision.

________ utility is the benefit marketing provides by transforming raw materials into finished products, as when a dress manufacturer combines silk, thread, and a zipper to create a bridesmaid's gown. A) Form B) Place C) Time D) Possession E) Price

A) Form

Alex paid for a(n) ________ when he took his car to the carwash to be washed and waxed. A) service B) industrial product C) consumer good D) commercial good E) business product

A) service

Buyers, sellers, investors, and community residents are all considered ________ in a company. A) stakeholders B) shareholders C) consumers D) channel of distribution members E) collaborative consumers

A) stakeholders

In general, companies with a triple-bottom-line orientation are most likely to place a priority on which of the following? A) sustainability B) the production orientation C) the selling orientation D) not-for-profit marketing E) collaborative consumption

A) sustainability

A catalog retailer has identified African-American professionals between the ages of thirty-five and forty-five as the group of customers within the larger market that is a potential market for its products. The retailer plans to direct its marketing efforts toward this group of consumers. The retailer has identified a ________. A) target market B) marketing mix C) product mix D) mass market E) social network

A) target market

Which of the following is the best example of a service? A) the medical examination Jonathon had yesterday B) the sheet music purchased by the piano teacher C) the software Monica purchased from the website D) the cleaning supplies purchased for the veterinarian's office E) the t-shirt you got for running in a 5K race

A) the medical examination Jonathon had yesterday

The total quality management (TQM) philosophy involves all employees in ________. A) customer relationship management B) continuous product quality improvement C) market positioning D) creating sustainability E) increasing the lifetime value of customers

B) continuous product quality improvement

In general, competitive advantage comes from which of the following? A) lifetime value of a customer B) cost advantage or a differential advantage C) consumer-generated content D) crowdsourcing E) social networking and the wisdom of crowds

B) cost advantage or a differential advantage

A(n) ________ provides reasons for customers to pay a premium for a firm's products and exhibit a strong brand preference. A) exchange B) differential benefit C) industrial good D) value chain E) customer lifetime value

B) differential benefit

Which of the following refers to marketing strategies that support environmental stewardship by establishing an environmentally founded differential benefit in the minds of consumers? A) collaborative consumption B) green marketing C) triple-bottom-line orientation D) societal marketing E) corporate citizenship

B) green marketing

An organic farmer has identified three distinct groups who might be interested in his products: vegetarians, people who are concerned about chemicals in their foods, and people who consider themselves innovators and trendsetters. These three groups are examples of ________. A) marketing mixes B) market segments C) product mixes D) mass markets E) market positions

B) market segments

The ________ is a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.

B) marketing plan

Which of the following is an example of a transaction that might occur in business-to-business marketing? A) Maurice buys a new razor on his way home from work. B) The amateur gardener buys a new wheelbarrow. C) The retail outlet buys athletic shoes to sell in its store. D) The professional chef bakes a birthday cake for her son. E) Robyn's mother hires a math tutor to help Robyn pass algebra.

C) The retail outlet buys athletic shoes to sell in its store.

________ maintains that marketers must satisfy customers' needs in ways that also benefit society and are profitable to the firm. A) Value propositioning B) Collaborative consumption C) The societal marketing concept D) A sales orientation E) Green marketing

C) The societal marketing concept

The value chain activity of ________ refers to converting materials into a final product for consumers. A) inbound logistics B) outbound logistics C) operations D) marketing E) service

C) operations

There are several different sports watches for cyclists. When compared to its competitors, the Bike Nashbar watch is the least expensive. The Acumen Basic is the only one designed for older cyclists who prefer a larger display. Sports Instrument is the most comfortable of all the available watches. This describes the ________ of the three sports watches. A) marketing mixes B) mass marketing strategies C) positioning D) consumer orientations E) selling orientations

C) positioning

________ marketing is the marketing of goods and services from one organization to another. A) Distributive B) Consumer C) E-commerce D) Business-to-business E) Target

D) Business-to-business

________ is a decision process in which marketing managers determine the strategies that will help the firm meet its long-term objectives and then execute those strategies using the tools they have at their disposal. A) Total quality management B) Sustainability C) Return on investment D) Marketing E) Crowdsourcing

D) Marketing

Which of the following is LEAST likely to be of growing importance in marketing in the near future? A) mobile marketing B) corporate citizenship C) big data D) a selling orientation E) user-generated content

D) a selling orientation

The trend of consumers renting out their belongings when they are not in use to other consumers who need them for a limited time is called ________. A) e-commerce B) virtual exchange of goods C) the attention economy D) collaborative consumption E) user-generated content

D) collaborative consumption

Marketers develop positioning strategies to ________. A) limit the number of elements of the marketing mix used for one product B) identify the location where the organization will sell its products C) determine the specific means the organization uses to distribute its products D) create a desired perception of the product in consumers' minds in comparison to competitors' brands E) select metrics to determine the effectiveness of marketing planning

D) create a desired perception of the product in consumers' minds in comparison to competitors' brands

The second step in developing a competitive advantage is to turn a distinctive competency into a ________ that is important to customers. A) target market B) service C) marketing mix D) market position E) differential benefit

E) differential benefit

To be part of the ________ for a product, consumers must share a common need that can be satisfied by the product and have the resources, willingness, and authority to purchase the product. A) shared economy B) audience C) value proposition D) marketplace E) market

E) market

A ________ consists of all possible customers in a market regardless of the differences in their specific needs and wants. A) popular culture B) value chain C) marketing mix D) marketing concept E) mass market

E) mass market

A ________ is defined as a market segment on which an organization focuses its marketing plan and toward which it directs its marketing efforts. A) social network B) mass market C) marketplace D) value chain E) target market

E) target market

The promotion element of the marketing mix includes the design of the product.

FALSE

The term "marketing" is synonymous with the term "advertising."

FALSE

The terms market segment and target market represent the same concept.

FALSE

Within the context of the marketing mix, place refers to the availability of the product to the customer at the desired time and location.

TRUE

Ruth Terry is a realtor. In her ads, Terry offers the free use of a moving truck to every customer she helps either buy or sell a house. This free use of a moving truck is an example of ________. A) a benefit B) a demand C) business-to-business marketing D) a need E) the rentrepreneur trend Answer: A

A) a benefit

For an exchange to occur, ________. A) at least two people or organizations must be willing to make a trade, and each must have something the other wants B) there must be one winner and one loser C) someone must make a financial profit D) the item that is exchanged must be a tangible product E) time utility must be created for the purchaser

A) at least two people or organizations must be willing to make a trade, and each must have something the other wants

When Tony rented a loft apartment where he would live for the summer, he acted as a ________. A) consumer B) shareholder C) producer D) marketer E) retailer

A) consumer

A ________ orientation is a management philosophy that focuses on ways to satisfy customers' needs and wants. A) customer B) promotion C) selling D) production E) quality

A) customer

A firm's capability that is superior to that of its competition is referred to as a(n) ________. A) distinctive competency B) added value C) value proposition D) value chain E) social benefit

A) distinctive competency

Which of the following lists the three components of the triple-bottom-line orientation? A) the financial bottom line, the social bottom line, and the environmental bottom line B) the financial bottom line, the social bottom line, and the political bottom line C) the financial bottom line, the cultural bottom line, and the business bottom line D) the value bottom line, the service bottom line, and the business bottom line E) the product bottom line, the service bottom line, and the relationship bottom line

A) the financial bottom line, the social bottom line, and the environmental bottom line

Terrible Tees is an online t-shirt company that invites consumers to enter their t-shirt designs in a monthly contest. All visitors to the site are invited to vote on their favorite design, and at the end of the month, the company produces and takes orders for the t-shirt design with the most votes. This is an example of ________. A) the wisdom of crowds B) the production concept C) the selling orientation D) a folksonomy E) a brandfest

A) the wisdom of crowds

In addition to marketing activities, the ________ includes business functions such as human resource management and technology development. A) value chain B) marketing mix C) utility function D) customer relationship management process E) market position

A) value chain

________ are the tangible products that individuals purchase for personal or family use. A) Consumer services B) Consumer goods C) Value propositions D) Utilities E) Industrial goods

B) Consumer goods

Which of the following is true of Web 2.0? A) It categorized entries according to a strict taxonomy. B) It offered two-way communication between marketers and consumers. C) It was based on the open source model. D) It was based on the wisdom of crowds model. E) It improved as the number of users decreased.

B) It offered two-way communication between marketers and consumers.

________ is the assignment of a product's value, or the amount the consumer must exchange to receive the offering. A) Promotion B) Price C) Benefit D) Need E) Utility

B) Price

________ are intangible products that we pay for and use but never own. A) Consumer goods B) Services C) Industrial goods D) E-commerce products E) Value products

B) Services

A customer's desire for a product coupled with the buying power or resources to obtain that product is called ________. A) benefit B) demand C) need D) utility E) service

B) demand

Shane pulled her car into the gas station just as the fuel gauge dropped below empty. In this example, Shane benefited from the ________ utility offered by the gas station. A) creation B) place C) value D) marketing E) quality

B) place

Which element of the marketing mix is most closely associated with a company's channel of distribution? A) production B) place C) price D) profit E) promotion

B) place

Marketers first identify consumer needs and then provide products that satisfy those needs. This practice is referred to as ________. A) the stakeholder orientation B) the marketing concept C) total quality management D) collaborative consumption E) the marketing mix

B) the marketing concept

________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. A) Demand satisfaction B) Competitive advantage building C) Marketing D) Total quality management E) Value chain management

C) Marketing

In which kind of market would a production orientation be most successful? A) a buyer's market in which supply exceeds demand B) a market in which there are more sellers than buyers C) a seller's market in which demand is greater than supply D) a market that sells only intangible products E) an e-commerce market

C) a seller's market in which demand is greater than supply

Susannah owns a one-bedroom apartment in Manhattan that she posts for short-term weekend and summer rentals on airBnB when she plans to be out of town. This is an example of ________. A) not-for-profit marketing B) institutional marketing C) collaborative consumption D) people marketing E) consumer-generated marketing

C) collaborative consumption

The main activities of value chain members include all of the following except ________. A) bringing in materials to make the product B) converting the materials into the final product C) providing customers with comparative information about competitors' products D) shipping out the final product E) servicing the product after purchase

C) providing customers with comparative information about competitors' products

Companies that have a ________ orientation tend to be more successful at making one-time sales than at building repeat businesses. A) consumer B) marketing C) selling D) societal E) relationship

C) selling

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing future funeral needs, so she must somehow first get their attention. Jolene's firm most likely uses the ________. A) production orientation B) sustainability concept C) selling orientation D) customer orientation E) societal marketing concept

C) selling orientation

Women who rent their wedding gowns instead of buying them and wearing them only once are taking advantage of ________ utility. A) form B) place C) time D) possession E) price

C) time

The ratio of benefits to costs is one way to think of ________. A) sustainability B) profits C) value D) competitive advantage E) distinctive competency

C) value

A ________ is a series of activities involved in designing, producing, marketing, delivering, and supporting any product. A) value proposition B) production orientation C) value chain D) marketing concept E) market position

C) value chain

________ utility is the benefit marketing provides by allowing the consumer to own, use, and enjoy a product. A) Form B) Place C) Time D) Possession E) Price

D) Possession

Social networking is an integral part of which of the following? A) the triple-bottom-line orientation B) lifetime value of a customer C) the value chain D) Web 2.0 E) Web 1.0

D) Web 2.0

The direct financial impact of a firm's expenditure on marketing activities is called the ________. A) value chain B) value proposition C) differential benefit D) return on marketing investment (ROMI) E) utility function

D) return on marketing investment (ROMI)

Which of the following is the industry term for inventory and cash losses from shoplifting and employee theft? A) bait-and-switch B) anticonsumption C) crowdsourcing D) shrinkage E) lifetime cost of a customer

D) shrinkage

1) A ________ is the ultimate user of a good or service. A) stakeholder B) market C) target market D) marketer E) consumer

E) consumer

A new shampoo advertisement on television identifies all of the wonderful benefits the consumer will enjoy when using one company's shampoo as opposed to another company's shampoo. What is this company seeking to convey in this television commercial? A) the product's time utility B) the product's distinctive competency C) the company's production orientation D) the company's marketing segmentation process E) the product's differential benefits

E) the product's differential benefits

A ________ is a desire for a particular product a consumer uses to satisfy a need in a specific way that is culturally and socially influenced. A) benefit B) demand C) value D) utility E) want

E) want

Although having something to eat or drink may be a want, the desire for a specific brand name is referred to as a need.

FALSE

Automobiles, haircuts, tutoring, and lighting fixtures are all examples of consumer goods.

FALSE

An entertainer such as Kenny Chesney, a television show, and a magazine subscription are all examples of products.

TRUE

Ria, a college sophomore, has a YouTube channel and posts short videos that typically have over 50,000 viewers each week. Ria could be described as a microcelebrity.

TRUE

Which of the following is the best example of a consumer good? A) the riding lawn mower purchased by the landscaping company B) the disposable diapers purchased by the new mother for her baby C) the paint purchased by the contractor D) the cookies purchased for the daycare center E) the art supplies purchased for the elementary school art center

the disposable diapers purchased by the new mother for her baby

A sign manufacturer who uses plastic, metal, and neon tubing to create a motel sign has performed the marketing benefit of creating ________ utility. A) form B) place C) possession D) time E) creation

A) form

When companies calculate the lifetime value of a customer they look at ________. A) how much profit they expect to make from a particular customer, including each and every purchase she will make from them now and in the future B) the positive word of mouth about the product that the customer can spread among her family, friends, and acquaintances C) the lifetime expectancy of the product the customer purchased D) the age of the customer to see whether she is likely to live long enough to utilize the product being sold E) the career path of the customer to see if she may move to a different geographic area and no longer purchase from the company

A) how much profit they expect to make from a particular customer, including each and every purchase she will make from them now and in the future

The four Ps are ________. A) price, product, place, and promotion B) price, profit, production, and possession C) product, production, possession, and promotion D) product, promotion, price, and profit E) place, production, process, and profit

A) price, product, place, and promotion

The phenomenon of ________ includes consumers creating their own ads and buying and selling products on eBay. A) the production orientation B) the triple-bottom-line orientation C) consumer-generated value D) socially responsible marketing E) the marketing concept

C) consumer-generated value

After saving a portion of several paychecks, Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want has become a(n) ________. A) need B) necessity C) demand D) exchange E) transaction

C) demand

A(n) ________ occurs when Kirin Albers trades Max Lynch three hours of babysitting Max's three-year-old daughter in exchange for Max fixing the hole in Kirin's porch roof. A) differential benefit B) promotion C) exchange D) collaborative consumption E) virtual trade

C) exchange

When a gap exists between a consumer's actual state and some ideal or desired state, the consumer has a ________. A) benefit B) demand C) need D) value E) utility

C) need

Two teachers purchased art supplies for their classes. One paid $103.45 for eight large boxes of crayons. The other teacher purchased ten identical boxes for $105.55. The second teacher got more for her money because she took advantage of a quantity discount, a reduced price for buying ten or more boxes. Which element of the marketing mix most directly relates to these purchases? A) production B) profit C) price D) place E) possession

C) price

Faruk provides heating and air conditioning equipment for office buildings. He sells ________. A) distributive goods B) consumer services C) consumer goods D) industrial goods E) intangible goods

D) industrial goods

A glitzy shopping mall, a mail-order catalog, a television shopping network, and an e-commerce website are all examples of ________. A) marketing concepts B) value chains C) monopolies D) marketplaces E) strategic business units

D) marketplaces

Chris just landed her dream job but realizes that her college wardrobe is not going to work for her new professional position. In this situation, Chris has a(n) ________. A) benefit B) exchange C) value D) need E) utility

D) need

Nongovernmental organizations are also known as ________. A) consumer organizations B) public organizations C) private organizations D) not-for-profit organizations E) for-profit organizations

D) not-for-profit organizations

A flour producer that identifies its mission as "the milling of fine flour in the most efficient manner possible" most likely has a ________ orientation. A) customer B) marketing C) selling D) production E) new era

D) production

A company that focuses on ________ is concerned with meeting present consumer needs without compromising the ability of future generations to meet their needs. A) the selling orientation B) the production orientation C) total quality management D) sustainability E) return on investment

D) sustainability

Which of the following is part of the product element of the marketing mix? A) a quality discount B) a store coupon C) a newspaper advertisement D) the packaging E) publicity releases

D) the packaging

Seth's mother didn't want to build a climbing wall as a permanent feature in her backyard, but it was certainly convenient to rent one from the company that catered Seth's 12th birthday party. The catering company created both ________ utility when it rented her the climbing wall. A) form and place B) place and creation C) possession and price D) time and place E) creation and possession

D) time and place

Interacting with consumers via portable technology such as smart phones, tablets, and wearable screens is referred to as ________. A) mobile marketing B) social marketing C) societal marketing D) user-generated marketing E) branded marketing

D) user-generated marketing

A ________ is a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased. A) product position B) market segment C) mass market D) value proposition E) target market

D) value proposition

Marketing communication is also referred to as ________. A) production B) selling orientation C) societal marketing D) exchange E) promotion

E) promotion

Service provided to the customer after a purchase is not an activity associated with the value chain.

FALSE

The ________ consists of the tools an organization uses to create a desired response among a set of predefined consumers. A) sharing economy B) market position C) value proposition D) marketplace E) marketing mix

E) marketing mix

All of the following are forms of utility created by marketing processes except ________. A) form utility B) place utility C) time utility D) possession utility E) price utility

E) price utility

BM manager Celia Moore coordinates IBM's long-standing "Reinventing Education" program that involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do. In the process, the program is actually helping to shape a market of significant interest to IBM. "We see the program very much as an investment, rather than handing out money," says Moore. The existence of this program indicates that IBM has a(n) ________ orientation. A) environmental B) financial bottom line C) selling D) production E) triple-bottom-line

E) triple-bottom-line

Green marketing and sustainability are interchangeable terms describing the same concept.

FALSE

Rentrepreneurs are a new trend in business-to-business marketing.

FALSE