Marketing Management Chapter 1

Which characteristic about millennials is the least accurate? A) They favor content over authenticity. B) They are brand loyal. C) They are highly connected through technology. D) They wish to be part of a company's development process. E) They seek ethical companies to work for.

A) They favor content over authenticity.

Which of these is a macro-level environmental trend in business that affects marketing? A) a shift to digital and social media approaches to marketing communication B) the emphasis on internal stakeholders C) CEOs being held more responsible for assessing marketing productivity D) the view of marketing as an investment instead of a cost E) the quantification of marketing objectives and results

A) a shift to digital and social media approaches to marketing communication

When the text states that marketers need to create tools for ongoing, meaningful measurement of marketing productivity, it is referring to the need for A) accountability. B) responsibility. C) subjectivity. D) visibility. E) identification.

A) accountability.

Marketing often doesn't get the "respect" it deserves as a professional field of study, primarily because: A) compared to other business functions, it has had few useful metrics to measure its performance impact. B) people generally don't understand what marketing is or what it does. C) marketing is all about the emotion and less about facts. D) marketing positions tend to pay less than other business functions. E) it fails to impact the bottom line of the company and isn't factored into executive decisions.

A) compared to other business functions, it has had few useful metrics to measure its performance impact.

Clarissa and her mother are both in marketing positions. Clarissa's job is satisfying to her primarily because it gives her a flexible schedule and pays well so she can take vacations with her friends. Her mother chose a job that provides health benefits and structured work with regular hours. This demonstrates how shifts in________ can influence work life versus family life. A) generational values and preferences B) information power from marketer to customer C) product glut and customer shortage D) buying power from customer to marketer E) competitive influences

A) generational values and preferences

Companies that promote sustainability practices like Starbucks, which has a recycling program, or General Electric, which makes environmentally-sensitive products, are practicing________ marketing. A) green B) predictive C) affiliate D) shotgun E) one-to-one

A) green

Today customers have limitless access to facts about companies, products, competitors, other customers, and even detailed elements of marketing plans and strategies. In the context of change drivers impacting the future of marketing, this reflects the shift A) in information power from marketer to customer. B) to demanding return on marketing investment. C) in generational values and preferences. D) to distinguishing Marketing (Big M) from marketing (little m). E) to product glut and customer shortage.

A) in information power from marketer to customer.

Which area of business is highly public and readily visible outside the confines of the internal business operation? A) marketing B) finance C) manufacturing D) operations management E) human resource management

A) marketing

Sharon's manager asked her to identify, track, evaluate, and provide key benchmarks for improvement in her marketing department. To do this, Sharon used A) marketing metrics. B) market research. C) the marketing mix. D) market creation. E) strategic marketing.

A) marketing metrics.

An offering today is considered to be the________ in the marketing mix. A) product B) price C) promotion D) place E) policy

A) product

The 4Ps of marketing refer to A) product, price, place, and promotion. B) policy, production, plan, and preference. C) promotion, plan, place, and procedure. D) price, policy, program, and position. E) place, production, provision, and plan.

A) product, price, place, and promotion.

Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T. This is an example of the________ orientation. A) production B) selling C) marketing D) customer E) relationship

A) production

Appropriate and effective marketing metrics must be designed to identify, track, evaluate, and provide key benchmarks for improvement. In the context of change drivers affecting the future of marketing, this reflects the shift A) to justifying the relevance and payback of the marketing investment. B) to product glut and customer shortage. C) to distinguishing Marketing ("Big M") from marketing ("little m"). D) in generational values and preferences. E) in information power from marketer to customer.

A) to justifying the relevance and payback of the marketing investment. B) to product glut and customer shortage.

________ 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) Accounting B) Marketing C) Manufacturing D) Finance E) Economics

B) Marketing

Bridgit loved her old car, but she decided it was time for a new one. She went to the dealership and picked one out, and paid for it with her trade-in and cash. This is an example of A) purpose-driven marketing. B) an exchange. C) a production orientation. D) product differentiation. E) one-to-one marketing.

B) an exchange.

Independent Manufacturers keeps an in-house database of its customers, their buying history, and their preferences so it can better meet customers' needs and gain their loyalty. This demonstrates the use of A) one-to-one marketing. B) customer relationship management. C) differentiation orientation. D) sales orientation. E) exchange.

B) customer relationship management.

Ming Yue's tailoring business works around the needs of the customer by providing hours of operation that vary throughout the week, including some evening and weekend hours. It could be said that Ming Yue's business is A) differentiated. B) customer-centric. C) market-oriented. D) product-oriented. E) socially responsible.

B) customer-centric.

What clearly distinguishes your product from those of the competition is A) orientation. B) differentiation. C) organization. D) relationships. E) development.

B) differentiation.

Which action element is required for successful Marketing (Big M)? A) aligning all internal organizational processes and systems around the product B) ensuring that everyone in an organization understands the concept of customer orientation C) finding somebody at the lower level of the firm to consistently champion this Marketing (Big M) business philosophy D) remembering the fact that the marketing department is where Marketing (Big M) takes place E) creating market-driven, not market-driving, strategies

B) ensuring that everyone in an organization understands the concept of customer orientation

Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's website. Bryan is practicing the central tenet of marketing called A) value. B) exchange. C) growth. D) sustainability. E) power.

B) exchange.

Relationship-oriented firms tend to A) be driven by meeting a quarter's financial projections. B) keep and cultivate their profitable current customers who are highly satisfied with the firm's offering. C) constantly invest in new customers that come with unknown return on investment. D) often lose great customers and scramble to replace the associated lost revenue. E) focus primarily on increasing sales through catchy and entertaining advertisements.

B) keep and cultivate their profitable current customers who are highly satisfied with the firm's offering.

In order for Marketing (Big M) to succeed, firms should create________ strategies. A) predatory pricing B) market-driving C) diversification D) vertical integration E) market-driven

B) market-driving

A small business spent a large amount of time determining its brand image and how it would deliver its message to its customers. These are elements of A) Marketing (Big M). B) marketing (little m). C) strategic marketing. D) the supply chain. E) stakeholder relations.

B) marketing (little m).

Manjit's job is to measure, manage, and analyze marketing performance to maximize marketing effectiveness and optimize return on marketing investment. Manjit is practicing A) financial metrics. B) marketing analytics. C) economic analysis. D) marketing metrics. E) budget analysis.

B) marketing analytics

To significantly enhance customer choices, Levi combines flexible manufacturing with flexible marketing. Customers may visit the Levi's clothing website or some company-owned stores and order a pair of jeans that will be made especially for them. Levi's has adopted a________ orientation approach. A) market B) mass customization C) differentiation D) product E) relationship

B) mass customization

In the context of the marketing mix,________ today is largely regarded in relationship to the concept of value. A) product B) price C) promotion D) place E) policy

B) price

In the context of the 4Ps of the marketing mix, high-tech media options like cell phones and the Internet have had a huge impact on A) product. B) promotion. C) people. D) position. E) price.

B) promotion.

The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of the________ orientation. A) production B) sales C) marketing D) customer E) relationship

B) sales

After a recent 140-day strike, the union members in California went back to work at area grocery stores. The union negotiated raises, better health care benefits, and a one-tier pay scale. The union may best be described as a(n) A) governmental body. B) stakeholder. C) vendor. D) customer. E) management group.

B) stakeholder.

The core marketing concept characteristics of an organization-wide customer orientation and long-run profits are________ in nature. A) objective B) strategic C) ethical D) operational E) subjective

B) strategic

In the context of change drivers impacting the future of marketing, marketing (little m) is also known as________ marketing. A) pro-social B) tactical C) strategic D) predatory E) green marketing

B) tactical

In order for Marketing (Big M) to succeed, it must be championed by A) the sales force. B) top management. C) middle management. D) frontline personnel. E) everyone in the organization.

B) top management.

Why did production capacity utilization began to decline around the end of World War I? A) Firms that had dominated their respective industries before the war maintained their positions due to lack of competition. B) High entry barriers prevented new companies from entering into the market place. C) Financial markets placed more pressure on firms to continually increase sales volume and profits. D) Financial markets were becoming less sophisticated. E) Capacity had been decreased greatly for the war.

C) Financial markets placed more pressure on firms to continually increase sales volume and profits.

________ refers to approaches that drive the market toward fulfilling a whole new set of needs that customers did not realize was possible or feasible before. A) Green marketing B) Tactical marketing C) Market creation D) Market orientation E) Marketing mix

C) Market creation

Strategic marketing refers, in part, to A) a firm's internal focus on production and customer satisfaction. B) working with competitors, when appropriate, and with suppliers. C) a long-term, firm-level commitment to investing in marketing. D) making an unwavering commitment on which customers to serve. E) studying promotion, distribution, delivery, and production

C) a long-term, firm-level commitment to investing in marketing.

A misconception about marketing is that it is A) relevant to everyone. B) no more inherently unethical than other business areas. C) all about selling. D) highly visible by nature. E) highly public.

C) all about selling.

Making a change in any one of the marketing mix elements will A) leave the other elements unchanged. B) have a negative effect on a similar element. C) also change the other elements. D) require the firm to introduce new products. E) require an increase in promotion.

C) also change the other elements.

A consumer products company makes a cleanser for the hospital and nursing home market that is guaranteed to kill 99 percent of staphylococcus germs, a major concern for medical facilities. Unlike the competition, this company is not interested in pursuing the consumer market. In this case, the company has adopted a________ orientation. A) market B) mass customization C) differentiation D) relationship E) product

C) differentiation

The Girl Scouts introduced a cookie finder app in 2013. In the context of change drivers impacting the future of marketing, this reflects the shift A) to product glut and customer shortage. B) in power from marketer to customer. C) in generational values and preferences. D) to distinguishing Marketing (Big M) from marketing (little m). E) to justifying the relevance and payback of the marketing investment.

C) in generational values and preferences.

In Wiersema's book, The New Market Leaders, he identifies six new market realities. Which of these is included in the list? A) competitors fade away B) few secrets are open secrets C) innovation is universal D) information appreciates E) hard times make easy growth

C) innovation is universal

Peter Drucker, the father of modern management, believed that marketing A) should be a separate function within the business. B) is the business as seen from an internal point of view. C) is the whole business as seen from the customer's point of view. D) is not the central dimension of the entire business. E) should be considered just as a "department" in an organization.

C) is the whole business as seen from the customer's point of view. D) is not the central dimension of the entire business.

Companies that conduct a great deal of research to learn how they can successfully put the marketing concept into practice most likely have a________ orientation. A) production B) selling C) market D) research E) differentiation

C) market

In 2000, Samsung manufactured the first cell phone with a built-in camera. Before that, people just used their cell phones to make and receive calls. Samsung fulfilled a need that consumers didn't know they had through A) green marketing. B) tactical marketing. C) market creation. D) market orientation. E) the marketing mix.

C) market creation.

Of all the business fields, ________ is generally the most visible to people outside the organization. A) financial management B) accounting C) marketing D) information technology E) operations management

C) marketing

The Bazooka brand of candy revamped its package inserts by changing from comic strips to quizzes and brainteasers that direct kids to digital content. In the context of change drivers impacting the future of marketing, this reflects the A) shift to product glut and customer shortage. B) shift in information power from marketer to customer. C) shift in generational values and preferences. D) shift to distinguishing Marketing (Big M) from marketing (little m). E) shift to justifying the relevance and payback of the marketing investment.

C) shift in generational values and preferences.

Many marketers today are more focused on________, or the bundles of benefits from an offering that solve a problem or fill a need of a customer, than they are on products. A) customizations B) returns on investments C) solutions D) stakeholder returns E) promotion

C) solutions

Marketing (Big M) is also known as________ marketing. A) pro-social B) tactical C) strategic D) green E) operational

C) strategic

Peter Drucker, the father of modern management, stated that the only purpose of an organization is to A) create products. B) make products affordable and accessible to the majority of the public. C) improve the quality of life for all people. D) create a customer. E) make a profit.

D) create a customer.

The AMA's definition of marketing reflects the view toward marketing activities as focused on A) producing innovative products. B) increasing productivity. C) maintaining relationships with suppliers. D) creating and delivering offerings that have value. E) advertising and selling.

D) creating and delivering offerings that have value.

Purpose-driven marketing, or pro-social marketing, as practiced by the well-known Tom's shoe company, A) is a least preferred marketing strategy. B) is a for-profit part of the business. C) focuses primarily on increasing productivity. D) engages consumers in a meaningful way. E) has no impact on consumers who care about social issues.

D) engages consumers in a meaningful way.

As of 2019, which generational segment is the largest in the United States? A) baby boomers B) the silent generation C) Gen X D) millennials E) Gen Z

D) millennials

The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service as customized as possible is known as A) market orientation. B) pro-social marketing. C) differentiation orientation. D) one-to-one marketing. E) relationship orientation.

D) one-to-one marketing.

Supply chain management is considered to be part of the________ of the marketing mix. A) product B) price C) promotion D) place E) plan

D) place

A medieval knight could not go to the armor maker and pick out a size 44 long suit of armor to protect him in battle. Nor could a person living in the Middle Ages go to the cobbler and get a pair of shoes in a few minutes. This period before the advent of marketing is known as A) Industrial Revolution. B) mass production era. C) Dark Ages. D) pre-Industrial Revolution. E) sales orientation era.

D) pre-Industrial Revolution.

Soria Brothers provides accounting services to small businesses. Before and after tax season, the partners meet with each client company. They send a monthly newsletter to update clients with tax changes. The firm's business practices mainly focus on keeping profitable current customers rather than gaining new customers. Soria Brothers has adopted a________ orientation approach. A) market B) mass customization C) differentiation D) relationship E) product

D) relationship

For successful Marketing (Big M), all internal organizational practices should be aligned around A) profits. B) management. C) manufacturing. D) the customer. E) information technology.

D) the customer.

In the context of change drivers impacting the future of marketing, marketing tactics such as designing the elements of the marketing mix are reflected in the shift A) to product glut and customer shortage. B) in power from marketer to customer. C) in generational values and preferences. D) to distinguishing Marketing (Big M) from marketing (little m). E) to justifying the relevance and payback of the marketing investment.

D) to distinguishing Marketing (Big M) from marketing (little m).

In the context of change drivers impacting the future of marketing, the way a firm looks at strategy and tactics is reflected in the shift A) to product glut and customer shortage. B) in power from marketer to customer. C) in generational values and preferences. D) to distinguishing Marketing (Big M) from marketing (little m). E) to justifying the relevance and payback of the marketing investment.

D) to distinguishing Marketing (Big M) from marketing (little m).

From a customer's perspective, what is defined as a ratio of the bundle of benefits a customer receives from an offering, compared to the costs incurred by the customer in acquiring that bundle of benefits? A) exchange B) strategy C) sustainability D) value E) power

D) value

________ is a central tenet of marketing in which a person gives up something of value to them for something else they desire to have. A) Power B) Sustainability C) Sales orientation D) Customization E) Exchange

E) Exchange

The marketing concept was first articulated in the Annual Report of A) Ford Motor Company. B) AT&T. C) RCA. D) General Motors. E) General Electric.

E) General Electric.

Which statement about marketing is true? A) Unlike most other key areas of business, marketing as a field is not visible by nature. B) Marketing departments "own" an organization's marketing initiative. C) Most aspects of marketing take place behind the curtain of an organization, out of the public's sight. D) Marketing is all about advertising and selling. E) Marketing is no more inherently unethical than other business areas

E) Marketing is no more inherently unethical than other business areas.

For successful Marketing (Big M), customer orientation must be understood by A) an organization's competitors. B) the top management only. C) an organization's suppliers. D) the existing customers. E) everyone in the organization.

E) everyone in the organization.

Customer relationship management (CRM) is designed primarily to A) assess the personality characteristics of target customers. B) identify profitable customers in new markets. C) position products to serve very specific customer groups. D) clearly distinguish a firm's products from those of competitors in the minds of customers. E) facilitate higher levels of customer satisfaction.

E) facilitate higher levels of customer satisfaction.

After World War II, business began to change in many long-lasting ways. What is least likely to have caused this shift? A) advent of readily available mainframe computing capability B) opening up of production capacity dominated for years by war production C) pent-up demand for consumer goods and services after the war D) desperate need to regain a normalcy of day-to-day life after years of war E) focus on sales orientation with the objective of achieving short-term profits

E) focus on sales orientation with the objective of achieving short-term profits

When was the marketing concept introduced? A) after the Civil War B) after World War I C) during the Great Depression D) in the 1980s E) in the 1950s

E) in the 1950s

Microsoft's revolution of the information field and Disney's creation of the modern theme park industry are classic examples of A) marketing mix. B) marketing (little m). C) pro-social marketing. D) green marketing. E) market creation.

E) market creation.

Everything from brand image to the message sales people and advertisements deliver to customer service to packaging and product features to the chosen distribution channel exemplify A) strategic marketing. B) relationship orientation. C) Marketing (Big M). D) sales orientation. E) marketing (little m).

E) marketing (little m).

A local landscaping company works hard to keep and cultivate profitable current customers instead of constantly investing in gaining new customers that come with unknown return on investment. This company has a________ orientation. A) sales B) differentiation C) market D) production E) relationship

E) relationship

In the context of change drivers impacting the future of marketing, marketing (little m) A) is often thought of as strategic marketing. B) almost always takes place at the top level of a firm. C) serves as a core driver of business strategy. D) need not be couched within the philosophy of a firm's Marketing (Big M). E) serves the firm and its stakeholders at a functional level.

E) serves the firm and its stakeholders at a functional level.

Which of these are core marketing concepts? A) supply and demand B) money and time C) skill and expertise D) quality and quantity E) value and exchange

E) value and exchange