MAR3023 Chapter 1: Relationships and Value
Of the 4 Ps, ______ is whatever the buyer gives up in exchange for the product, like money, time, or energy.
price
True or false: The key to a marketing exchange is that both buyers and sellers trade things of value so that each is better off after the trade.
True
What is the most fundamental goal of marketing? A. to satisfy consumer needs and wants B. to develop innovative products C. to achieve sustainability D. to advertise
A. to satisfy consumer needs and wants
The idea that a company should attempt to satisfy its customers' needs while at the same time try to achieve its own objectives is known as ______. A. social responsibility B. customer relationship management C. the marketing concept D. sales orientation
C. the marketing concept
How does having knowledge of marketing and its many applications help an individual? (Select all that apply) A. It can help the individual in career planning. B. It can help the individual be a more informed citizen. C. It can make the individual a better consumer. D. It can help the individual understand world events.
A. It can help the individual in career planning. B. It can help the individual be a more informed citizen. C. It can make the individual a better consumer.
Match the following company slogans to the value strategy they represent. 1. Best Price 2. Best Product 3. Best Service
1. Best Price - "Expect More, Pay Less" 2. Best Product - "Tastes so good, cats ask for it by name!" 3. Best Service - "We treat you right!"
Listening to your customers in order to develop a better product is an example of ______. A. promotion and public relations B. market capitalization C. effective distribution D. effective marketing research
D. effective marketing research
Many successful firms deliver outstanding customer value using which three strategies? A. Best product B. Best service C. Best promotion D. Best price E. Best organizational structure
A. Best product B. Best service D. Best price
Which statement best describes who is involved in marketing? A. Every organization markets in some capacity. B. Marketing can be effective for firms but not for individuals. C. Only for-profit businesses engage in marketing. D. Marketing occurs in the private sector but not in government.
A. Every organization markets in some capacity.
Which of the following is characteristic of marketing in the production era? A. Manufacturers could not keep up with customer demand. B. Personal selling was used to market products. C. Manufacturers focused on continually developing services to complement the offered goods. D. There was an excess supply of product, and the consumer was the king.
A. Manufacturers could not keep up with customer demand.
In the context of customer value, which of the following are considered benefits? (Select all that apply) A. convenience B. production cost C. corporate partnerships D. quality E. after-sale service
A. convenience D. quality E. after-sale service
Marketing is an activity that creates value for customers, clients, partners, and society at large. A firm does this by ______. (Select three answers) A. creating offerings B. selecting markets C. segmenting offerings D. communicating offerings E. delivering offerings F. expanding markets
A. creating offerings D. communicating offerings E. delivering offerings
Product, price, promotion, and place are elements that make up the ______. A. marketing mix B. target market C. marketing strategy D. customer value proposition
A. marketing mix
Firms or agencies that buy goods and services for their own use or for resale are known as ______. A. enterprise customers B. organizational buyers C. profit centers D. ultimate consumers
B. organizational buyers
Deciding whether to advertise to young children online represents a(n) ______ issue for a company. A. experience B. social responsibility C. ethical D. value
C. ethical
A specific group of potential customers toward which an organization directs its marketing program is called a _______ _______. (Enter one word in each blank.)
target market
Match the following types of utility with the correct definition. 1. Form 2. Place 3. Time 4. Possession
1. Form - The production of the good or service. 2. Place - Having the product available where consumers need it. 3. Time - Having the product available when needed. 4. Possession - Making an item easy to purchase.
Match each marketing era to the correct description of the marketing focus during that period. 1. Product era 2. Sales era 3. Marketing concept era 4. Customer-relationship relationship era
1. Product era - Buyers accept virtually any goods because of the relative scarcity of goods. 2. Sales era - Manufacturers can produce a surplus of goods and must find new buyers. 3. Marketing concept era - Organizations should satisfy the needs of consumers while also achieving the organization's goals. 4. Customer-relationship era - Firms seek continuously to satisfy the high expectations of those they serve.
The societal marketing concept combines which two of the following principles? A. Organizations should serve customers in a way that provides for society's well-being. B. Marketers must maintain focus on maximizing profits for shareholders. C. Organizations should satisfy the needs of consumers. D. Marketers should limit distribution of their products to societies whose values mirror their own.
A. Organizations should serve customers in a way that provides for society's well-being. C. Organizations should satisfy the needs of consumers.
Which two of the following are characteristic of the marketing concept era? A. Organizations try to satisfy consumers' needs. B. Organizations strive to achieve the organization's goals. C. Sellers have a tremendous advantage over buyers in the marketplace. D. Consumers have a limited range of products from which to choose.
A. Organizations try to satisfy consumers' needs. B. Organizations strive to achieve the organization's goals.
Which of the following factors is not required for marketing to occur? A. a retail location B. a way for the parties to communicate C. the desire and ability to satisfy these needs D. something to exchange E. two or more parties with unsatisfied needs
A. a retail location
Studying marketing should help you to ______. A. be a more informed citizen when interacting with businesses B. understand the principles of financial leverage C. identify all potential marketing failures before they occur D. care more deeply about environmental causes
A. be a more informed citizen when interacting with businesses
Marketing typically impacts which of the following groups in society? (Select all that apply) A. customers B. regulatory agencies C. shareholders D. suppliers
A. customers C. shareholders D. suppliers
By their very nature, ______ act externally to sometimes expand an organization's marketing opportunities and at other times restrict them. A. environmental forces B. target markets C. value propositions D. marketing mixes
A. environmental forces
A company is debating whether it should sell the information it has on its customers to other organizations. While the firm is within its legal right to do so, this presents a(n) ______ issue for the company. A. ethical B. social responsibility C. experience D. value
A. ethical
Deciding whether to advertise to young children online represents a(n) ______ issue for a company. A. ethical B. social responsibility C. experience D. value
A. ethical
A marketing manager that plans new products to meet consumer needs should ______. A. focus on how the new product will benefit consumers B. focus entirely on creating a new industry C. simply copy the new products of the firm's biggest competitor D. utilize technology to create the most advanced products regardless of what the consumer wants
A. focus on how the new product will benefit consumers
Which of the four Ps represents the activities necessary to get a product to the customer where the customer wants it? A. place B. promotion C. price D. product
A. place
What marketing mix element describes what a buyer exchanges with a seller in order to obtain a product? A. price B. premium C. promotion D. place
A. price
A(n) ______ is good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. A. product B. demand C. bundle D. supply
A. product
In addition to considering its financial profit responsibility, organizations are increasingly shifting focus to areas like which two of the following? A. social responsibility B. government regulations C. ethics D. tax laws
A. social responsibility C. ethics
Today, the standards of marketing practice place an emphasis on ______. A. the interests of consumers B. how to increase production C. promotion over production D. profit needs above consumer needs
A. the interests of consumers
To be considered a part of the firm's market, consumers must have ______. A. an unmet need regardless of the ability to buy B. both the desire and ability to buy its products C. liquid assets, like cash or a savings account D. a way to physically reach the firm's brick and mortar store
B. both the desire and ability to buy its products
A market orientation requires firms to create customer value through ______. A. finding new buyers with aggressive sales tactics B. collecting information about customer needs C. making virtually any products available for sale D. convincing customers that 'wants' are more important than 'needs'
B. collecting information about customer needs
Along with the price paid, benefits such as quality, convenience, on-time delivery, and both before-sale and after-sale service are evaluated by buyers to determine ______. A. the marketing mix B. customer value C. customer utility D. the market orientation
B. customer value
During the sales-oriented era, firms found an answer to their ______ by adding salespeople to find new buyers. A. expensive personal relationships B. excess inventory C. lack of related services D. undesirable products
B. excess inventory
According to Robert M. McMath, what two items will help marketers have a successful product launch? A. producing goods the customer doesn't know they need B. focusing on what benefit the product has for customers C. learning from past mistakes D. spending more on promotion than competitors
B. focusing on what benefit the product has for customers C. learning from past mistakes
During the sales-oriented era ______. A. goods and services were scarce B. manufacturers were able to produce more than consumers were able to buy C. there was little competition between firms and manufacturers enjoyed monopoly power
B. manufacturers were able to produce more than consumers were able to buy
When a company advertises its product in hopes that it will entice consumers to buy the product, the ______ element of the marketing mix is being used. A. price B. promotion C. product D. perception
B. promotion
The hallmark of developing and maintaining effective customer relationships is called ______ marketing. A. identification B. relationship C. partnership D. paired
B. relationship
According to the AMA definition of marketing, who benefits from marketing activities? A. government regulators B. society at large C. partners D. customers
B. society at large C. partners D. customers
What can an organization do to reconcile the different interests of various groups impacting the organization? A. seek to eliminate the interests of the strongest group B. strike a balance between the varying interests of the different groups C. let the groups come up with a solution to reconcile their varying interests D. seek to eliminate the interests of the weakest group
B. strike a balance between the varying interests of the different groups
For marketing to occur, there must be two or more parties with A. an existing relationship. B. unsatisfied needs. C. unrecognized needs. D. a desire to create a relationship.
B. unsatisfied needs.
Which statement supports the idea that good marketing is not an easy task? A. The promotion of new products is being handled by the developers of the product and not the marketing team. B. The number of new products that enter the marketplace each year is relatively small. C. Thousands of new products fail in the marketplace each year.
C. Thousands of new products fail in the marketplace each year.
The four Ps, or marketing mix, are the ______ set of activities that a firm uses to respond to the needs of its target market. A. environmental B. uncontrollable C. controllable D. economic
C. controllable
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term favorable perceptions of the organization is called ______. A. a marketing program B. the societal marketing concept C. customer relationship management D. marketing utility
C. customer relationship management
Social, economic, technological, competitive, and regulatory forces that are mostly beyond the control of the marketer are known as ______ forces. A. absolute B. general C. environmental D. constraining
C. environmental
Many business people believe that marketing should focus on factors other than financial goals, such as ______. A. employee training B. efficient production C. ethics and social responsibility D. return on investment
C. ethics and social responsibility
Manufacturers in the production-oriented marketing era were concerned with increasing ______, not with satisfying needs of consumers. A. distribution channels B. support services C. output D. prices
C. output
Goods, services, and ideas can all be considered ______ in the right circumstances, when consumers exchange something of value for them to satisfy their needs. A. commodities B. tangible C. products D. intangible
C. products
Which of the marketing mix elements is used to communicate with the consumer? A. price B. place C. promotion D. product
C. promotion
TeaTime, a manufacturer of tea, has a new product that is currently only available in stores located in China. Knowing that it has customers around the world, TeaTime advertises the product on its Facebook page and will ship the product to customers via FedEx until the product is made available for purchase in other stores worldwide. In this scenario, Facebook serves as a ______ element and FedEx serves as a ______ element in TeaTime's marketing mix. A. product; place B. product; price C. promotion; place D. promotion; product
C. promotion; place
Environmental forces that shape the nature of an organization's actions include social, economic, technological, competitive, and ______ forces. A. managerial B. relationship C. regulatory D. ethical
C. regulatory
The view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society's well-being is called ______. A. socialism B. altruism C. the societal marketing concept D. social entrepreneurship
C. the societal marketing concept
What is the objective of marketing? A. to create consumer needs and wants B. to satisfy only consumer needs C. to satisfy both consumer needs and wants D. to satisfy only consumer wants
C. to satisfy both consumer needs and wants
People who use the goods and services purchased for a household are known as ______. A. general buyers B. secondary users C. ultimate consumers D. personal buyers
C. ultimate consumers
Ultimate consumers ______. A. are buyers that purchase with the intention of reselling B. are those that adopt new products first C. are the most lucrative segment of an organization's customers D. use goods and services purchased for a household
D. use goods and services purchased for a household
A ________ occurs when a person feels deprived of basic necessities; a ______ is shaped by a person's knowledge, culture, and personality.
need; want
Match the component of the marketing mix to an example of enhancing value for customers through it. 1. Product 2. Price 3. Place 4. Promotion
1. Product - A soft drink company releases a new diet soda. 2. Price - A bank lowers its monthly fees for its checking accounts. 3. Place - A restaurant offers takeout and home delivery. 4. Promotion - A new hardware store uses direct mail postcards to announce its grand opening.
The essence of successful marketing is that firms provide unique value in order to gain ______. A. higher margins B. loyal customers C. price wars D. more shareholders
B. loyal customers
The unique combination of benefits received by targeted buyers at a specific price is known as ______. A. product satisfaction B. the service agreement C. the marketing relationship D. customer value
D. customer value
In marketing, a market is made up of ______. A. products that are diverse but sold in the same store B. products that are similar to one another C. organizations that fit into the same industry D. people with the desire and ability to buy a product
D. people with the desire and ability to buy a product
Especially when compared with the environmental forces, the elements of the marketing mix can be viewed as ______ factors impacting the organization. A. controllable B. static C. convenient D. ethical
A. controllable
Concepts like value and relationship marketing are important in designing an organization's marketing program because such a program is what connects the organization to its ______. A. customers B. shareholders C. investors D. preferred suppliers and distributors
A. customers
What are two goals for a firm that implements an effective CRM program? A. The firm's marketing department will no longer be needed. B. Customers will willingly choose that firm's products. C. Customers will become brand advocates for the firm. D. The firm will be able to eliminate its competition.
B. Customers will willingly choose that firm's products. C. Customers will become brand advocates for the firm.
Which statement supports the idea that good marketing is not an easy task? A. The promotion of new products is being handled by the developers of the product and not the marketing team. B. Thousands of new products fail in the marketplace each year. C. The number of new products that enter the marketplace each year is relatively small.
B. Thousands of new products fail in the marketplace each year.
In many settings, relationship marketing is more effective when there is ______. A. uniform quality and service in product offerings B. personal, ongoing interaction between parties C. frequent changes in product offerings D. preferential treatment for some customers
B. personal, ongoing interaction between parties
Select the elements that make up the marketing mix. (Select all that apply) A. profit B. place C. price D. product E. promotion
B. place C. price D. product E. promotion
Which of the following statements about marketing is TRUE? A. Marketing is fairly foolproof if you know and apply traditional formulas. B. Marketing is generally successful as long as you fund it, and most new products succeed. C. Marketing isn't always easy; thousands of new products fail each year. D. Because marketing is complicated most firms avoid using it.
C. Marketing isn't always easy; thousands of new products fail each year.
Which of the following represents a way buyers and sellers communicate so that marketing can occur for a magazine? A. Organizing the delivery of the magazine to several vendors. B. Purchasing the magazine for the first time. C. Seeing the magazine on display in the bookstore. D. Having the money to buy the magazine.
C. Seeing the magazine on display in the bookstore.
Effective relationship marketing takes place ______. A. during and after a sale, but not beforehand B. only while the customer is in the store C. before, during, and after the sale D. only after the customer has made a purchase
C. before, during, and after the sale
Which is a benefit of effective marketing to society? A. protects world countries from competitive B. increases prices C. improves quality of products and services D. reduces the need for innovation
C. improves quality of products and services
The essence of marketing is that firms gain ______ customers by providing ______ value. A. additional; less B. superior; product-related C. loyal; unique D. the right number of; the right type of
C. loyal; unique
While ______ establishes a firm's mission and objectives, the marketing department supports the goals by helping to provide satisfying products. A. the strategic business unit B. The finance department C. management D. the board of directors
C. management
During the sales-oriented era ______. A. goods and services were scarce B. there was little competition between firms and manufacturers enjoyed monopoly power C. manufacturers were able to produce more than consumers were able to buy
C. manufacturers were able to produce more than consumers were able to buy
When a firm has transcended a production or selling orientation, and attempts to discover and satisfy its customer's needs and wants, the firm is ______. A. price-oriented B. sales-oriented C. market-oriented D. profit-oriented
C. market-oriented
Select the four benefits received by buyers that help to create customer value. A. promotion efforts B. environmental forces C. on-time delivery D. convenience E. quality F. before-sale and after-sale service
C. on-time delivery D. convenience E. quality F. before-sale and after-sale service
Which element of the marketing mix refers to a good, service, or idea that satisfies consumers' needs? A. place B. price C. product D. promotion
C. product
Often there are differing interests among groups internal and external to an organization. How should these be handled? A. The organization must put the needs of shareholders first. B. The organization should fulfill its obligations to employees first. C. The organization must satisfy the customer first and foremost. D. The organization should seek a balance among differing interests.
D. The organization should seek a balance among differing interests.
In addition to an emphasis on consumers' interests, new expectations of marketers now include ______. A. a special focus on growing the organization and creating jobs B. attempts to influence the regulatory process more directly C. a renewed focus on driving shareholder wealth D. consideration of social and environmental consequences of their actions
D. consideration of social and environmental consequences of their actions
A marketing program is a plan that ______. A. identifies one or more specific groups of potential consumers toward which an organization directs its efforts B. defines the unique features and benefits of all of an organization's product offerings C. links the organization to its individual customers and other stakeholders for their mutual long-term benefit D. integrates the marketing mix to provide a good, service, or idea to prospective buyers
D. integrates the marketing mix to provide a good, service, or idea to prospective buyers
A ______ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. A. marketing concept B. customer value proposition C. business plan D. marketing program
D. marketing program
To better understand the needs of prospective customers, marketers use ______. A. corporate entrepreneurship B. customer loyalty C. executive leadership D. marketing research
D. marketing research
Manufacturers in the production-oriented marketing era were concerned with increasing ______, not with satisfying needs of consumers. A. support services B. distribution channels C. prices D. output
D. output
In what ways does effective marketing benefit society? (Select all that apply) A. It provides jobs. B. It raises the standard of living. C. It improves the quality of products and services. D. It reduces competition in world markets.
A. It provides jobs. B. It raises the standard of living. C. It improves the quality of products and services.
In order for marketing to occur, both parties involved must have which two requirements regarding their needs? A. the future ambition to discover an unsatisfied need B. the desire to satisfy a need C. the ability to satisfy a need D. an undiscovered need that could be satisfied
B. the desire to satisfy a need C. the ability to satisfy a need
For which of the following reasons is marketing considered beneficial? (Choose all that apply). A. Marketing creates utility for customers. B. Marketing can enhance competition. C. Marketing can improve the quality of products and services. D. Packaging inherently makes products less expensive.
A. Marketing creates utility for customers. B. Marketing can enhance competition. C. Marketing can improve the quality of products and services.
Jacob is moving from Southern California to Minnesota and is in need of a winter coat. Jacob likes to look fashionable, so he is looking to get a designer coat even though it may not be the warmest option. In this scenario, a winter coat represents ______, and a designer coat represents ______. A. a need; a want B. a want; a need C. a need; an exchange D. a want; an exchange
A. a need; a want
Who benefits from effective marketing? (Select all that apply) A. consumers who buy B. governments that regulate C. organizations who sell D. society as a whole
A. consumers who buy C. organizations who sell D. society as a whole
Your car has a flat tire so you go to the auto shop to have it repaired. At the auto shop, the technician tries to talk you into getting your oil changed, but you refuse this service. What is the most likely reason the marketing exchange of an oil change did not occur? A. Getting an oil change was not properly communicated. B. Getting an oil change was not a need you desired to have fulfilled. C. Only one need can be fulfilled at a time. D. The auto shop did not have the ability to satisfy your needs.
B. Getting an oil change was not a need you desired to have fulfilled.
Select the scenario that illustrates communication in the marketing exchange process. A. While shopping for a prom dress, Namrata decides she needs new shoes to go with it. B. While shopping at the mall, Hadley receives a coupon on her phone from Foot Locker. C. Ned is in need of new running shoes so he goes to the mall to see what is available. D. A new shoe store plans to open in time for Black Friday shopping.
B. While shopping at the mall, Hadley receives a coupon on her phone from Foot Locker.
A company is debating whether it should sell the information it has on its customers to other organizations. While the firm is within its legal right to do so, this presents a(n) ______ issue for the company. A. social responsibility B. ethical C. value D. experience
B. ethical
Which of the following are types of utility received by users of a product? (Select all that apply) A. image B. form C. possession D. performance
B. form C. possession
For marketing to occur, parties involved in the transaction must have which two things? (Select 2 options.) A. Possession of thorough research B. Promotional advertising or other sales tactics C. A way to communicate D. Both the desire and ability to satisfy their needs
C. A way to communicate D. Both the desire and ability to satisfy their needs
Manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale are known as ______. A. intermediate buyers B. secondary users C. organizational buyers D. alternate consumers
C. organizational buyers
Which of the following concepts is of the least critical importance to an organization's marketing program? A. Relationship marketing B. Customer relationships C. Customer value D. Organizational structure
D. Organizational structure
______ marketing connects the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. A. Partnership B. Orientation C. Shared D. Relationship
D. Relationship
Which element of the marketing mix aims to create value for consumers by providing features and benefits to satisfy those consumers' needs? A. price B. place C. promotion D. product
D. product
A ______ market is one or more specific groups of potential consumers toward which an organization directs its marketing program. A. reliable B. test C. promotional D. target
D. target
The place element of the marketing mix involves ______. A. what is exchanged between buyer and seller in order to obtain a product B. the combination of goods, services, or ideas that a firm offers to consumers C. finding the best ways to promote a product to consumers D. the activities a firm undertakes to get a product to the consumer
D. the activities a firm undertakes to get a product to the consumer
For marketing to occur, there must be ______ with unsatisfied needs. A. at least one party B. exactly two parties C. one party D. two or more parties
D. two or more parties
Put the four evolutionary stages in the correct historical order, with the oldest on the top and the newest on the bottom.
Production era > Sales era > Marketing concept era > Market orientation
True or False: The marketing department helps support the goals of management by working with a network of other departments and employees to provide the customer-satisfying products that help the organization to survive and prosper.
True
True or false: The same marketing principles used in business settings can be used by individuals to market themselves professionally and help them reach their goals.
True
A marketing _______ is the trade of things of value between a buyer and seller so that each is better off afterward.
exchange
