Chapter 1
Approximately what percentage of civilian workers in the United States performs marketing activities?
a) 25 to 33 percent
Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?
a) An information system to determine customer needs
Which of the following companies is the best example of a service marketer?
a) FedEx
Which of the following statements describes the best use of the Internet by a marketer?
a) Gain information.
_________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit.
a) Implementation
For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?
a) One-half
When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix?
a) Price
A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines?
a) Product, price, distribution, and promotion variables
The Jackson Hewitt company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, it should adopt which of the following philosophies?
a) The customer is always right.
Which of the following best describes the acceptance of the marketing concept by American organizations?
a) The marketing concept has yet to be fully accepted by all organizations.
Which of the following statements about marketing environment forces is correct?
a) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
Which one of the following statements by a company president best reflects the marketing concept?
a) We have organized our business to make certain that customers get what they want.
The marketing concept is
a) a management philosophy.
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they
a) affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix.
Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix.
a) distribution
The forces of the marketing environment include
a) political, legal and regulatory, sociocultural, technological, economic, and competitive.
Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool.
a) promotional
SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD's
a) target market.
The primary value that a marketer expects to receive from a customer in an exchange relationship is
a) the price charged for the product.
______ is the degree to which an exchange helps achieve an organization's objectives.
b) Effectiveness
_________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance.
b) Marketing control
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?
b) Promotion
U.S. Electric, the maker of a highly innovative xenon light bulb, finds that it has excess inventory. The firm increases its advertising budget by 50 percent and doubles its sales staff. This company is operating as if it were in which of the following orientations?
b) Sales
The marketing concept is best defined as
b) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals.
The marketing concept is a management philosophy that affects
b) all efforts of the organization.
The marketing concept affects
b) all organizational activities.
Managing customer relationships requires identifying patterns of ___________ and then using that information to focus on the most promising and profitable customers.
b) buying behavior
The product variable of the marketing mix can include all of the following except
b) consumer perception of the product price.
Marketing is the process of
b) 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.
Long-term relationships with profitable customers is the key objective of
b) customer relationship management.
Marketing knowledge and skills
b) enhance consumer awareness and help provide people with satisfying goods and services.
A market orientation is an organization-wide effort that includes all of the following activities except
b) focusing on the marketing department only.
A physical product you can touch is a(n)
b) good.
Initiatives intended to improve an organization's positive impact on society and the natural environment are called
b) green marketing
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets
b) ideas.
A target market
b) is a specific group of customers on whom a company focuses its marketing efforts.
A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing.
b) marketing environment
A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ___________ that influence(s) the firm's strategy.
b) marketing environment
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
b) relationship marketing.
Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. 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
b) the best way to distribute his products.
StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about
b) the marketing environment.
Distribution, price, promotion, and product are all elements of
b) the marketing mix.
For an exchange to occur, four conditions must exist: first, two or more individuals, groups, or organizations must participate, and each must possess "something of value" that the other desires; second, the exchange must provide a benefit or satisfaction to both parties; third, each must have confidence in the promise of the "something of value" held by the other; and fourth,
b) to build trust, parties to the exchange must meet expectations.
If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?
c) $1,000
Which of the following is not an example of the implementation of the marketing concept?
c) Burger King reduces the labor costs to produce its sausage-egg biscuits.
______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges.
c) Efficiency
Which of the following is essentially an uncontrollable factor in developing a marketing mix?
c) Government regulations
American Express implements a program of calling its current cardholders to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?
c) Market
The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also
c) achieve the organization's goals.
A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on
c) creating and maintaining satisfying exchange relationships.
The marketing mix is built around the
c) customer.
Changing the hours of operation for a service business involves the _____ component of the marketing mix.
c) distribution
Consumers buying products online have dramatically affected the ___________ variable of the marketing mix.
c) distribution
The marketing unit can be organized by ________.
c) functions, products, regions, types of customers, or a combination of all four.
Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to
c) increase customer value.
When Wonder introduced a new bread made with white whole wheat in response to customer demand, it was following which of the following philosophies?
c) marketing concept
Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is
c) monetary price.
Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike.
c) product
According to the marketing concept, an organization should try to
c) provide products that satisfy customers' needs and allow the organization to achieve its goals.
Kashi Heart to HeartTM cereal is aimed at people concerned about their heart health. These people represent the Kashi
c) target market.
The equation a buyer applies to assess a product's value is
c) value = customer benefits - customer costs.
In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?
d) $7.50
Which of the following is most likely to be an idea marketer?
d) Abuse counselor
Which of the following would not be a customer cost considered in determination of product value?
d) Benefits received in the exchange for the products
Marketers often speak of the "controllable" variables in the practice of marketing. Which of the following is not considered one of the controlled variables?
d) Competition
Which of the following scenarios involves the distribution element of the marketing mix?
d) Deciding whether or not to have retail outlets in addition to a website
If McDonald's runs a promotion advertising Big Macs for $1.50, it must ensure that each of the company's restaurants has sufficient staff and product on hand to handle expected demand. This relates to which of the following marketing management activities?
d) Implementation
When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?
d) Marketing concept
The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange?
d) Provision or transfer of goods, services, or ideas in return for something of value
The definition of marketing implies that ______ should receive benefits from exchange relationships.
d) both customers and businesses
The marketing environment is best described as being
d) dynamic and changing.
Customer relationship management (CRM) begins its focus on customers with
d) information.
Marketing managers strive to develop a marketing mix that
d) matches the needs of the target market.
When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix.
d) product; promotion
From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation.
d) sales
The three basic forms that a product can take are
d) services, ideas, and goods.
During the Industrial Revolution demand for manufactured goods was
d) strong.
Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here?
e) Exchange
Scott, 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?
e) Monetary price
A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities?
e) Planning
Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship?
e) Satisfaction for both the buyer and seller
Which of the following best characterizes the forces of the marketing environment?
e) The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.
e) Value
The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to
e) create a responsible approach to developing long-term relationships with customers and society.
The focal point of all marketing activities is
e) customers.
In managing customer relationships, the three primary ways profits can be obtained are by
e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
Marketing activities
e) help sell an organization's products and generate financial resources for the firm.
Organizations should define themselves not according to the products they produce but according to
e) how they satisfy customers.
The Church of the Latter Day Saints has used advertising for many years to market its
e) ideas.
Marketing management is defined as a process of
e) planning, organizing, implementing, and controlling marketing activities.
Making modifications to packaging or brand names involves the _____ component of the marketing mix.
e) product
As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation.
e) production
The element of the marketing mix used to increase awareness of a product or company is
e) promotion.
The marketing concept focuses on
e) satisfying customers' needs in a way that helps to achieve organizational objectives.
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)
e) service.
Marketing activities are
used by all sizes of organizations including for-profit, nonprofit, and government agencies.
