Chapter 1

A corporate strategy is developed once a company has decided what business it is in and has created a mission statement. (T/F)

True

Typically once a company has decided what business it is in and expressed that in a mission statement, the firm then develops a _____. a. corporate strategy b. marketing plan c. logo d. brand name e. vision

a. corporate strategy

Which of the following describes the personal value equation of a customer? a. Value = Benefits offered + [Price − Hassle] b. Value = [Price + Hassle] + Benefits received c. Value = Price − [Benefits offered + Hassle] d. Value = Benefits received − [Price + Hassle] e. Value = [Price − Hassle] + Benefits received

d. Value = Benefits received − [Price + Hassle]

A service-dominant logic means engaging in practices that do not diminish the earth's resources. (T/F)

False

According to the American Marketing Association, marketing consists of five component (T/F)

False

Because their activities do not generate monetary benefits for the organization, non-profit organizations do not employ marketing. (T/F)

False

Ethics require companies to actively seek to improve the lot of others. (T/F)

False

Exchanging involves getting offerings to the consumer in a way that optimizes value. (T/F)

False

Good marketing focuses primarily on making a profit for the corporation. (T/F)

False

Good social marketing induces consumers to buy products so that companies can increase their profit. (T/F)

False

Market-oriented firms seek to satisfy customers' needs at the expense of making a profit. (T/F)

False

Marketing careers in product development involve meeting with customers, determining value, proposing offerings, and making sure that the customer is satisfied. (T/F)

False

Marketing is the interface between producers and distributors. (T/F)

False

Marketing strategists use the corporate strategy, combined with an understanding of the market, to create the mission statement of the firm. (T/F)

False

The value of an offering is determined by the company marketing it. (T/F)

False

A mission statement that reflects a production orientation is based on the premise that success is due to great products and that simply creating supply will lead to demand. (T/F)

True

For-profit companies can be categorized by the nature of their customers. (T/F)

True

Government agencies engage in marketing activities. (T/F)

True

Marketing activities, such as developing a marketing strategy, do not occur separately from the rest of the company. (T/F)

True

Marketing benefits society by promoting a higher quality of life in two ways: through job creation and through consumers' ability to make more informed decisions. (T/F)

True

Marketing has changed from a static set of four Ps to a set of processes that engage marketing professionals as well as many others in the organization. (T/F)

True

Marketing is defined by the American Marketing Association as 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. (T/F)

True

One of the components of marketing involves the process of collaborating with suppliers and customers to create offerings that have value. (T/F)

True

Personnel in marketing research are responsible for studying markets in order to understand what strategies or tactics might work best. (T/F)

True

Successful communication in today's marketplace assumes dialog in which consumers can interact directly with the company. (T/F)

True

The company's strategic plan and the marketing plan both begin with a focus on customers. (T/F)

True

The determination of value will vary for each customer. (T/F)

True

The focus of marketing has changed from a mix of product, price, place, and promotion to an emphasis on creating, communicating, delivering, and exchanging value. (T/F)

True

The four Ps fail to capture all the activities of marketing. (T/F)

True

The marketing concept requires that marketers seek to satisfy customer wants and needs. (T/F)

True

Value is what the customer gets out of the purchase and consumption of the company's offering. (T/F)

True

Which is the correct association between the AMA's definition of marketing and the corresponding element of the marketing mix? a. Creating offerings -> Product b. Communicating offerings -> Product c. Delivering offerings -> Price d. Exchanging offerings -> Place e. Providing offerings -> Profit

a. Creating offerings -> Product

_____ refers to the actual transportation and storage of materials and products. a. Logistics b. Product orientation c. Product placement d. Value e. Direct marketing

a. Logistics

Martin has incorporated several features customers have suggested into a new model of his company's vacuum cleaners. Martin is involved in which of the following areas of the marketing profession? a. Product development b. Marketing research c. Event marketing d. Direct marketing e. Sales

a. Product development

In marketing, _____ involves collaboration with suppliers and customers in order to generate offerings of value to customers. a. creating b. exchanging c. promoting d. communicating e. delivering

a. creating

Personnel in _____ are responsible for studying markets and customers in order to understand what strategies or tactics might work best for firms. a. marketing research b. merchandising c. advertising d. direct marketing e. sales

a. marketing research

A _____era refers to an approach to business that recognizes that consumers want value no matter how it is delivered, whether it's via a product, a service, or a combination of the two. a. service-dominant logic b. one-to-one c. price-driven d. selling e. demand-based

a. service-dominant logic

Organizations and functions that mine, make, assemble, or deliver materials and products from manufacturer to consumer are referred to as _____. a. the supply chain b. the marketing planners c. the value equation d. the marketing environment e. the logistics channel

a. the supply chain

Which activity would be considered part of the communicating component of marketing? a. An online ordering form b. A salesperson trying to sell products door-to-door c. Moving the product from the distribution center to a retail location d. Working with suppliers e. Providing a warranty

b. A salesperson trying to sell products door-to-door

The Elliott Corporation decides to exhibit its products in an industry trade show. Which marketing activity is the company performing? a. Creating offerings b. Communicating offerings c. Delivering offerings d. Exchanging offerings e. Providing offerings

b. Communicating offerings

As part of an organization that works to raise awareness about the environment, Beth's work involves creating flyers and pamphlets that provide information about global warming and climate change. Which of the following areas of marketing is Beth engaged in? a. Sales b. Non-profit marketing c. Product development d. Merchandising e. Direct marketing

b. Non-profit marketing

Tom and Jim go to the same sushi bar and order the same entrée. Tom feels that the sushi is terrible and over-priced. Jim enjoys the sushi and decides to regularly patronize the restaurant. Which of the following statements about Tom and Jim is true? a. Jim is not a good judge of sushi. b. Tom and Jim derived different values from the same entrée. c. Tom likes sushi more than Jim. d. Tom and Jim derived the same value from the entrée. e. Tom was incorrect in judging the value of the entrée.

b. Tom and Jim derived different values from the same entrée.

Which of the following examples best illustrates the marketing concept? a. A mail-order company begins using less expensive packing material to increase profits per sale. b. A manufacturing firm opens a new distribution facility closer to the factory. c. A catering firm decides to expand its hours of operations to better serve working mothers. d. An automobile manufacturer installs a new assembly chain that increases output by 20 percent. e. A food company puts nutritional information on its packages in accordance with government regulations.

c. A catering firm decides to expand its hours of operations to better serve working mothers.

_____ refers to a philosophy that focuses on competing through product innovation. a. Market orientation b. Product development c. Product orientation d. Product differentiation e. Selling orientation

c. Product orientation

How might a marketer increase a consumer's personal value equation? a. Decrease the benefits offered and associated with the exchange b. Increase the price associated with the exchange c. Reduce the hassle and increase the benefits associated with the exchange d. Increase the hassle and the price associated with the exchange e. Decrease the hassle and the benefits offered with the exchange

c. Reduce the hassle and increase the benefits associated with the exchange

Which of the following represents good marketing? a. Focusing on production because increased supply will drive up demand. b. Making an offering that encourages poor choices so consumers will buy again. c. Yielding a positive value for the consumer and a profitable transaction for the company. d. Offering value to customers at the expense of profit for the company. e. Trying to sell goods or services which do not offer any value to customers.

c. Yielding a positive value for the consumer and a profitable transaction for the company.

Opponents argue that marketing costs do not benefit society. Marketers counter this by stating these costs result in the creation of _____. a. better products b. lower prices c. better informed consumers d. less government supervision e. more competition

c. better informed consumers

When designing a marketing plan, companies should start with _____. a. the supply chain b. profit goals c. customers d. marketing research e. competitive analysis

c. customers

Telemarketers call consumers at their homes to sell their products. This is an example of _____. a. product development b. advertising c. direct marketing d. event marketing e. non-profit marketing

c. direct marketing

Rhonda owns a small publishing business. She recently implemented a policy that mandates the use of recycled paper to publish all books. In this instance, Rhonda is engaging in _____. a. nonethical business practices b. service-dominant logic c. sustainability d. product differentiation e. merchandising

c. sustainability

Tom goes to the department store and buys some detergent. Which component of marketing does this describe? a. Delivering b. Promoting c. Communicating d. Exchanging e. Creating

d. Exchanging

Which element of the marketing mix would involve delivering offering to a retail store where they may be purchased? a. Profit b. Product c. Price d. Place e. Promotion

d. Place

Tony's work involves meeting with potential customers, determining their needs, and offering products that may meet those needs. He also keeps tabs on those customers to ascertain their level of satisfaction and obtain feedback. In which of the following areas of marketing does Tony work? a. Merchandising b. Marketing research c. Digital media d. Sales e. Non-profit marketing

d. Sales

_____ refers to a philosophy that products must be pushed through selling and advertising in order for a firm to compete successfully. a. Production orientation b. Product orientation c. Market-oriented d. Selling orientation e. Service-dominant logic

d. Selling orientation

Bill lives on a farm. If Bill wants to buy an iPad, he would have to drive six hours to the nearest city that has an Apple Store. According to the personal value equation, which of the following statements would be true, if Bill were to buy an iPad? a. The benefits received from purchasing the iPad would decrease. b. The value of the iPad, as determined by Bill, would increase. c. The price of the iPad would increase. d. The value of the iPad, as determined by Bill, would decrease. e. The hassle for purchasing the iPad would be low.

d. The value of the iPad, as determined by Bill, would decrease.

Marketing strategists use the corporate strategy and mission combined with an understanding of the market to develop the company's _____. a. profit goals b. sustainability c. value d. marketing plan e. merchandise

d. marketing plan

According to the personal value equation, which of the following would cause the value of an offering to decrease? a. An increase in benefits received and a decrease in hassle. b. A decrease in price and an increase in benefits received c. An increase in price and a decrease in the benefits received d. A decrease in both price and hassle e. An increase in hassle and a decrease in benefits received

e. An increase in hassle and a decrease in benefits received

_____ refers to a belief that the way to compete is a function of product innovation and reducing production costs, as good products appropriately priced sell themselves. a. Product orientation b. Selling orientation c. Market-oriented d. Marketing concept e. Production oriented

e. Production oriented

Which element of the marketing mix would include advertising and sales? a. Profit b. Product c. Price d. Place e. Promotion

e. Promotion

Which marketing career involves meeting with customers, determining value, proposing offerings, and making sure that the customer is satisfied? a. Marketing research b. Merchandising c. Advertising d. Direct marketing e. Sales

e. Sales

According to the AMA's definition of marketing, _____ is a component of marketing which involves describing offerings and learning from customers. a. delivering b. creating c. exchanging d. innovating e. communicating

e. communicating

If the U.S. Department of Homeland Security mails free packaging guidelines to airline travelers, it is: a. engaged in marketing as a for-profit company. b. not engaged in marketing because they are a government agency. c. not engaged in marketing because travelers are not charged for the guidelines. d. engaged in marketing to specific individuals but do not offer value. e. engaged in marketing as a non-profit organization.

e. engaged in marketing as a non-profit organization.

When non-profit organizations try to convince people that global warming is a real threat, it is an example of _____. a. logistics marketing b. event marketing c. production orientation marketing d. value marketing e. social marketing

e. social marketing