MKT 3301 - TEST 1 _ CH 1-3_other sources

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The following headlines are for articles from the Wall Street Journal. Which article is most likely to be reporting a macro-marketing topic?

"Frozen Yogurt Popularity Leads to More Frozen Yogurt Shops" The role of a macro-marketing system is to effectively match the heterogeneous supply and demand and at the same time accomplish society's objectives. The other alternatives above deal with individual firms.

Which of the following is the BEST example of management thinking during the "production era"?

"If we can produce it, customers will buy it." "If we can make it, it will sell" is management thinking characteristic of the production era due to shortage of products.

In an advanced economy, marketing costs account for about ______ cents of every consumer dollar.

50 In advanced economies, marketing costs about 50 cents of every consumer dollar. For some goods and services, the percentage is much higher.

11) "Production orientation" refers to the attitudes of ______. 11) ______ A) anyone who doesn't practice the marketing concept B) sales managers C) financial managers D) production managers E) accountants

113) Compared with other approaches to business, the marketing concept is distinct in that it ______. 113) _____ A) focuses on satisfying customers' needs B) creates a broad assortment of products C) produces new products and services D) focuses on profits E) produces quality products

115) In nonprofit organizations, the marketing concept ______. 115) _____ A) has different measures of success B) is usually easy to adopt because of how nonprofits organize for marketing C) operates with a production orientation D) can be implemented by ignoring customer needs E) is not relevant

119) Regarding the five stages in marketing evolution, ______. 119) _____ A) the sales era continued until at least 1950 for most firms B) few firms have graduated to the marketing company era C) the production era was the first era to evolve D) in the marketing department era, firms began to do long-run planning

122) Of the following headlines from the Wall Street Journal, which is most likely to be about a MACRO-marketing topic? 122) _____ A) "Thailand Has Unusually Large Number of Wholesalers" B) "Coke Plans Beverage Line to Compete with Lipton's" C) "Dow Chemical Adds Shipping Safeguards" D) "Tupperware Has a New Strategy" E) "Military Supplier Shifts to Selling Gas Masks to Private Citizens"

124) The text considers five "eras" of marketing evolution. These five eras in their logical order are ______. 124) _____ A) Simple trade, production, sales, marketing department, marketing company B) Simple trade, production, sales, entrepreneurial, marketing company C) Simple trade, production, sales, marketing company, marketing department D) Subsistence, production, sales, entrepreneurial, marketing company E) Simple trade, production, sales, marketing department, international trading

125) In the American Marketing Association's Statement of Ethics, which ethical value stresses a firm's attempts to balance the needs of its buyers with the interests of sellers? 125) _____ A) Fairness B) Citizenship C) Responsibility D) Honesty E) Openness

15) In a pure subsistence economy, ______. 15) ______ A) each family unit is self-sufficient B) the standard of living is relatively high C) there is a great need for intermediaries D) exchanges are very important

19) Customer value ______. 19) ______ A) affects a customer's relationship with a firm before and after a sale B) is greater if costs exceed benefits C) is the same thing as low price D) becomes less important as competition increases E) None of these responses is correct.

23) From a micro view, which of the following is the best example of marketing? 23) ______ A) The American Red Cross seeks more blood donors. B) North Korea unveils a new five-year production plan. C) The Internet makes it possible for firms to reach customers in other countries. D) China and the U.S. agree on a new trade agreement. E) None of these is a good example.

23) The North American Free Trade Agreement (NAFTA): 23) ______ A) Has reshaped the rules of trade among the United States, Canada, and Mexico. B) Provides a plan to reshape the rules of trade among Germany, the United States, and Colombia. C) Makes it more difficult to resolve trade disputes among the countries participating in NAFTA. D) Eliminates the need for companies to adjust strategies.

24) Looking at marketing as a social process focuses on ______. 24) ______ A) macro-marketing B) for-profit marketing C) personalized marketing D) nonprofit marketing E) micro-marketing

25) Gross domestic product (GDP) is the: 25) ______ A) total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country. B) total market value of goods (but not services) produced in an economy in a year. C) total market value of goods (but not services) consumed in an economy in a year. D) total cost of producing all goods and services sold in a year. E) total market value of goods and services consumed in a year.

31) The languages people speak, the type of education they have, and their religious beliefs are examples of the ________ environment. 31) ______ A) cultural and social B) economic C) technological D) political E) legal

34) Underlying any economic environment is technology which affects: 34) ______ A) how the economy's resources are converted to output. B) how fast consumer attitudes change. C) how quickly technological developments lead to new consumer protection laws. D) how competitors react to each other. E) how aggressive competitors are in planning new marketing strategies.

39) According to projections, the population of ________ is likely to grow by 9 percent between 2013 and 2025. 39) ______ A) United States B) Russia C) Singapore D) China E) Japan

4) A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals. 4) _______ A) competitor matrix B) insight table C) positioning graph D) competitor analysis E) competitive advantage

47) Between 2010 and 2020, the highest growth rate in population in the United States occurred in: 47) ______ A) the western states. B) the northwestern states. C) the midwestern states. D) the northeastern states.

52) Marketing can be viewed as ______. 52) ______ A) a set of activities performed by individual organizations B) just selling and advertising C) beginning with the production process D) relevant to for-profit organizations only

57) The advantages of working with an intermediary usually increase when there is ______. 57) ______ A) a greater number of customers B) a smaller number of competing products C) excellent communication with customers D) little distance between customers

6) Rising costs and inflation are part of the uncontrollable ________ environment. 6) _______ A) economic B) social C) competitive D) technological E) legal

61) Which of the following illustrates the marketing concept in action? 61) ______ A) A local police department organizes a "community crime watch" program in a neighborhood that has had many burglaries. B) Several lawyers set up a group practice—so that the costs of the office and equipment can be shared. C) A young lawyer gives free legal advice to poor people. D) None of these illustrate the marketing concept in action.

69) The various economic systems around the world are ______. 69) ______ A) heavily influenced by a society's political institutions B) known collectively as the command economy C) always shaped by the free decisions of producers and consumers D) based on the ideal of a pure subsistence economy E) equally effective at providing for the needs of citizens

7) Most product-markets head toward ________ over the long run. 7) _______ A) pure competition B) collectivism C) monopolistic competition D) capitalistic competition E) monopoly

70) Marketing will not happen unless ______. 70) ______ A) two or more parties each have something they want to exchange for something else B) an economy is market-directed rather than command C) e-commerce is flourishing D) collaborators are present to simplify exchange E) intermediaries are present to facilitate exchange

76) From the perspective of macro-marketing, e-commerce specialists CarFax (which provides vehicle history reports) and Cars.com (a website offering auto comparison shopping) have emerged within the auto industry because ______. 76) ______ A) the information they give helps connect producers to consumers B) the role of the automotive sales person is becoming obsolete C) consumers live far distances from most automotive plants D) the market needs competitive rivals to auto dealerships E) auto manufacturers need to sell direct to consumers

8) Which of the following is an element of the direct market environment? 8) _______ A) Competitors B) Demographic trends C) Economic environment D) Cultural environment E) Technological environment

81) Which of the following is the BEST example of the micro-macro dilemma? 81) ______ A) Paper cups for soft drinks are convenient, but they often end up as litter along the highway. B) A small group of loyal consumers really like RC Cola best, but most consumers don't like it at all. C) The deposit on returnable soft drink bottles is about equal to the cost of the bottle. D) Snapple beverages are more popular in Texas than in the rest of the U.S. E) Pepsi Blue sales went up, but total sales of all soft drinks went down.

86) The universal functions of marketing ______. 86) ______ A) must be performed in both market-directed and command economies B) can sometimes be eliminated—in very efficient macro-marketing systems C) must all be performed by every firm from a MICRO view D) are usually performed in the same way and by the same types of institutions in all MACRO-marketing systems

88) Which of the following activities is NOT part of marketing? 88) ______ A) building a facility to make furniture B) advertising the grand opening of a new furniture store C) selling furniture to customers in a furniture showroom D) researching which furniture designs are popular with consumers E) determining how many pieces of furniture can be sold at different price points

89) ______ involve(s) sorting products according to size and quality. 89) ______ A) Standardization and grading B) Marketing C) Financing D) Transporting and storing E) Buying

94) When marketing people do long-range planning and the whole company is guided by the "marketing concept," the company has entered the ______ era. 94) ______ A) marketing company B) marketing department C) production D) consumerism E) customer satisfaction

A pharmaceutical company spent a significant amount of money developing a new drug to combat high blood pressure. The drug did not cause any of the typical side effects usually associated with blood pressure medications. It was forecasted to be a "blockbuster" medication that would achieve over $1 billion in sales. It would also be difficult for other firms to duplicate, at least in the short-run, because of patent protection and the substantial research and development costs required. The introduction of this new drug would best be described as ________.

A breakthrough opportunity Breakthrough opportunities help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.

6) Which of the following is an example of the "micro-macro dilemma?" A) A homeowner purchases a ladder but falls off it because he didn't set up the ladder according to the safety instructions posted on it. B) A person is injured while using a power lawn mower because of a small stone that is hurled from the discharge chute. C) A person drives without fastening his seat belt even though a warning light and chime remind him to "buckle up." D) A restaurant owner uses plastic containers to keep "take-out" food warm for customers, but the containers cannot be reused or recycled. E) A person gets a speeding ticket because she was talking on her cell phone while driving and didn't notice a speed limit sign.

A restaurant owner uses plastic containers to keep "take-out" food warm for customers, but the containers cannot be reused or recycled

Which of the following is an example of the "micro-macro dilemma?"

A restaurant owner uses plastic containers to keep "take-out" food warm for customers, but the containers cannot be reused or recycled. The micro-macro dilemma refers to what is "good" for some firms and consumers may not be good for society as a whole.

In a command economy, government officials decide ______.

All of these In a command economy, government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.

"Breakthrough opportunities" are opportunities that: All of these apply to breakthrough opportunities. help a firm satisfy customers better than some competitor. may be turned into marketing strategies that will be profitable for a long time. help innovators develop hard-to-copy marketing strategies. help the firm develop a "competitive advantage."

All of these apply to breakthrough opportunities. Breakthrough opportunities help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time. Even if a manager can't find a breakthrough opportunity, the firm should try to obtain a competitive advantage to increase its chances for profit or survival.

Why can't marketing managers be satisfied just planning present activities? The environment keeps changing. All of these are reasons why marketing managers can't be satisfied just planning present activities. Consumers' needs keep changing. Competitors often change. Markets are dynamic.

All of these are reasons why marketing managers can't be satisfied just planning present activities. Marketing managers are not satisfied just planning present activities since markets are usually dynamic and consumers' needs, competition, and the environment keep changing.

"Promotion" may include: advertising on the Internet. point-of-purchase materials. personal selling to channel members. All of these may be included in Promotion. mail-order selling.

All of these may be included in Promotion. Promotion is concerned with telling the target market or others in the channel of distribution about the "right" product. Promotion includes personal selling, mass selling, and sales promotion.

"Product" is concerned with: designing, packaging, and branding new products. physical goods. services. All of these might be involved with Product. developing products that will satisfy some customers' needs.

All of these might be involved with Product. Apart from the physical product, a service, or a blend of both, product related decisions include developing, designing, packaging, and branding.

The marketing management process is the process of: Planning marketing activities. All of these. Controlling marketing plans. Implementing marketing plans

All of these. The marketing management process refers to (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans.

1) ______ refers to a firm's obligation to improve its positive effects on society and reduce its negative effects. 1) _______ A) Legal obligations B) Social responsibility C) Marketing ethics D) The micro-macro dilemma E) The nonprofit orientation

101) The difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits is called customer ______. 101) _____ A) bias B) value C) price D) cost E) loyalty

103) The universal functions of marketing ______. 103) _____ A) are not all needed in command economies B) can be performed by producers, consumers, and a variety of marketing specialists C) are performed in the same way in all economic systems D) are not all needed in market-directed economies

104) _____ NOT the government's job in a market-directed economy. 104) _____ A) Protecting property and enforcing contracts are B) Determining what and how much is to be produced is C) Regulating radio and television broadcasting is D) Controlling interest rates and the supply of money are E) Setting import and export rules is

105) Which of the following is a consequence of consumers easily finding product satisfaction information through consumer reviews on the Internet? 105) _____ A) It lets firms evaluate macro-marketing strategies in terms of society's objectives. B) It lets firms play by the socially accepted "rules of the game." C) It allows firms to monopolize markets. D) It allows government agencies to control interest rates and the supply of money. E) It allows firms to make exaggerated claims about its products.

106) Until recently, good PC software for producing digital videos was not available, but was much in demand by businesses. The first companies to produce a specific type of program had good sales even though they did little promotion and their programs were not "user-friendly." It seems that many of these "innovators" operated as if they were in the ______ era. 106) _____ A) sales B) production C) simple trade D) marketing department E) marketing company

107) In order to build relationships with customer value, firms must do all of the following except ______. 107) _____ A) ensure that everyone in a firm works together to provide customer value before and after each purchase B) brief their advertising people to develop ads that try to convince a customer to buy once C) try to adopt the marketing concept D) attract customers in the first place—and keep them satisfied after they buy E) try to eliminate costs that do not give value to customers

111) Which of the following is a basic idea of the marketing concept? 111) _____ A) A firm should "give customers what it produces best." B) Survival and success require a profit. C) A production orientation must guide the whole system. D) An organization should build "fences" around its own departments. E) A firm is obliged to have a positive effect on society.

116) Which of the following is NOT true about a firm practicing the marketing concept? 116) _____ A) Everyone in the organization focuses on satisfying customers. B) Satisfying customers leads to customers defecting to the competition. C) Offering superior customer value attracts customers. D) Firms build profitable customer relationships. E) All of these are true.

118) Which of the following statements about economic systems is true? 118) _____ A) Branding is less common in a market-directed economy than in a command economy. B) Consumers usually have more freedom of choice in a market-directed economy. C) The United States is a good example of a command economy. D) Command economies are most effective for countries with large and complicated varieties of goods and services. E) None of these statements is true.

120) In the American Marketing Association's Statement of Ethics, which ethical value stresses a firm's attempts to recognize the basic human dignity of its customers? 120) _____ A) Citizenship B) Respect C) Honesty D) Responsibility E) Openness

17) Which of the following statements about marketing is FALSE? 17) ______ A) Marketing affects the products you buy. B) Marketing can help with individual transactions but not in building relationships with customers. C) Marketing affects the advertising you see and hear. D) Marketing applies to nonprofit organizations too. E) Marketing offers many good job opportunities.

17) Which of the following types of products is LEAST sensitive to environmental changes, according to the "continuum of environmental sensitivity"? 17) ______ A) Consumer products linked to cultural variables. B) Industrial products. C) "Me-too" products. D) Fad products. E) Commodity-type consumer products.

18) The _____ environment sets the basic rules for how a business can operate in society. 18) ______ A) social B) legal C) cultural D) technical E) economic

2) An organization practicing ______ aims all its efforts at satisfying its customers—at a profit. 2) _______ A) a production orientation B) the marketing concept C) the sales concept D) in the marketing department era E) profit maximization economics

2) The environment that affects the number and types of competitors a marketing manager must face and how they might behave is called the ________ environment. 2) _______ A) economic B) competitive C) social D) political E) cultural

21) In a firm that has a total company effort in implementing the marketing concept, ______. 21) ______ A) the firm is more production-oriented than marketing-oriented B) departments—even very specialized ones—are guided by what customers want C) not all departments impact customer satisfaction D) the firm lacks a central focus E) there are "fences" around individual departments

22) A change in the ________ environment can affect consumer purchases of homes, cars, and other items usually bought on credit. 22) ______ A) legal B) economic C) technological D) social or cultural E) political

25) Which of the following statements regarding the "sales era" is true? 25) ______ A) A business problem was to decide where to put the company's effort. B) More production capability was available than ever before. C) It followed the marketing department era. D) The emphasis was on producing.

27) The competitive environment that most marketing managers experience in developed economies is: 27) ______ A) monopoly. B) monopolistic competition. C) regulated competition. D) oligopoly. E) pure competition.

29) When using screening criteria to evaluate opportunities: 29) ______ A) The firm's weaknesses should be ignored. B) Marketers must try to match opportunities to the firm's resources and objectives. C) Quantitative but not qualitative criteria should be considered. D) Opportunities that are not expected to be profitable after one year of implementation should always be dropped. E) All of these are correct.

3) Which of the following is NOT true about a market-directed economy? 3) _______ A) Producers enjoy maximum freedom of choice. B) Government is responsible for setting up all marketing activities. C) Consumers enjoy maximum freedom of choice. D) The price of a consumer product serves as a measure of its value. E) The interaction between consumers and producers is great.

30) Administrators at a university noted that they were 200 students short of their enrollment projection as the start of the school year approached. The president of the university, fearing a revenue shortage, told the director of admissions, "You need to use whatever means necessary to get enough students to meet the projection before classes start. Run ads in the newspaper, call high school guidance counselors, recruit from our pool of rejected applicants-whatever it takes." The university president is operating as though he was in the ______ era. 30) ______ A) marketing company B) sales C) simple trade D) marketing department E) production

33) One way marketers can screen for opportunities that are good for society is to screen based on the criteria of: 33) ______ A) business strengths. B) sustainability. C) profitability. D) growth. E) return on investment.

34) Which of the following statements about economic decision-making is TRUE? 34) ______ A) Government planning usually works best when economies become more complex and the variety of goods and services produced is fairly large. B) In a market-directed economy, the micro-level decisions of individual producers and consumers determine the macro-level decisions. C) Command economies usually rely on market forces to determine prices. D) The United States may be considered a pure market-directed economy.

36) Which of the following is the likely impact of the "unification of Europe"? 36) ______ A) Consumer prices rose and job opportunities became limited. B) Many of the taxes and rules that have limited trade among member countries of the European Union were eliminated. C) The need to adjust strategies to reach submarkets of European consumers disappeared. D) The unification complicated inter-European commerce and trade directly. E) Firms operating in Europe had harder access to large markets.

37) A firm that discriminates in price on goods of "like grade and quality" may be in violation of the ________. 37) ______ A) Antimerger Act B) Robinson-Patman Act C) Wheeler-Lea Amendment D) Magnuson-Moss Act E) Sherman Act

38) Gross domestic product (GDP) is the: 38) ______ A) manufacturers' selling price of goods (but not services) produced in a year. B) total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country. C) total market value of goods and services consumed in a year. D) total market value of goods (but not services) produced in an economy in a year. E) None of these definitions of GDP is correct.

38) The owner of a company that produces electronic circuit boards sees many competitors with extra capacity and says, "the only hope is that our sales manager, who makes all of our marketing decisions, will find a way to sell more boards." It seems that this company is run as if it were in the ______ era. 38) ______ A) excess capacity B) sales C) marketing department D) production E) marketing company

40) Macro-marketing ______. 40) ______ A) matches homogeneous supply and demand B) emphasizes how the whole marketing system works C) considers how marketing affects society, but not how society affects marketing D) is mainly concerned with the activities of individual organizations

43) A producer with a marketing orientation is MOST likely to ______. 43) ______ A) distribute the product in as many retail outlets as possible B) distribute the product according to customer needs C) use e-commerce as a key element in distribution D) distribute directly from the producer to the consumer E) provide overnight express shipping at an extra cost

45) A firm may use all of the following methods for beating the competition except: 45) ______ A) apply for patents. B) seek a monopoly. C) develop a sustainable competitive advantage. D) utilize advanced technology. E) conduct a competitor analysis.

46) In a ______ the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy. 46) ______ A) command economy B) market-directed economy C) controlled economy D) production-oriented economy E) mixed economy

47) Which of the following statements best describes the modern view of marketing? 47) ______ A) Production, not marketing, should determine what goods and services are to be developed. B) Marketing begins with anticipating potential customer needs. C) Marketing is concerned with generating a single exchange between a firm and a customer. D) Marketing should take over production, accounting, and financial services within a firm. E) The job of marketing is to get rid of whatever the company is producing.

48) In the short run, a marketing manager usually cannot control: 48) ______ A) the economic environment. B) Any of these environments are uncontrollable in the short run. C) the cultural environment. D) the competitive environment. E) the legal environment.

50) The greatest growth in the world's population over the next several years will come from: 50) ______ A) Eastern Europe. B) Africa. C) Australia. D) Russia and nations of the former Soviet bloc. E) Western Europe.

59) Which of the following statements is true regarding marketing ethics and social responsibility? 59) ______ A) Being socially responsible tends to decrease a firm's costs, but negatively affects its profits. B) When products are complicated, consumers may be vulnerable to unscrupulous sellers. C) Consumers only want to purchase products that are safe or good for them in the long-run. D) Firms should aim to advance their own short-term interests at the expense of customers.

60) Which of the following statements best describes the modern view of marketing? 60) ______ A) It consists mainly of advertising and personal selling. B) It anticipates customer needs. C) It is emphasized more for firms that don't rely on e-commerce. D) It is only necessary for profit-oriented firms. E) It begins as soon as products are produced.

64) Complete acceptance of the "marketing concept" would require ______. 64) ______ A) trying to satisfy the needs of each and every customer B) making sure that all departments focus their efforts on satisfying customer needs C) placing less emphasis on profit as the objective of the firm D) having all production, finance, accounting, and personnel managers report directly to the marketing manager

67) The fact that producers usually prefer to produce products in large quantities, while most consumers prefer to buy in small quantities, results in ______. 67) ______ A) temporal separation B) discrepancies of quantity C) discrepancies of assortment D) spatial separation E) separation of ownership

7) Which of the following is MOST LIKELY to be found in a production-oriented firm? 7) _______ A) A focus on profit rather than sales B) Making products that are easy to produce C) Producing goods that exactly meet the customer's needs D) Agreements among departments about how to improve customer satisfaction E) None of these is likely to be found in a production-oriented firm

90) Trying to balance the interests of people who want to consume alcoholic drinks and the dangers of drunk driving is an example of ______. 90) ______ A) subsistence marketing B) the macro-micro dilemma C) political action D) the exchange process in marketing E) the role of a central market

95) The economic freedom provided within a market-directed economy produces the greatest number of ______. 95) ______ A) military-oriented purchases B) entrepreneurs and innovators C) government planners D) government regulations E) trade restrictions

100) Asa Meyer was just named FireFly Products sales manager, with responsibilities for all marketing planning. FireFly's president told him that his job is to "outsell the competition." Thus FireFly is operating in the ______ era. 100) _____ A) production B) marketing department C) sales D) marketing company E) market-oriented

102) In a firm operating as a total "system" to implement the marketing concept ______. 102) _____ A) there are no departments B) product planning is under the control of the production or engineering departments C) the whole company is customer-oriented D) the marketing manager directs and controls all company activities E) None of these is true.

108) In a command economy, ______. 108) _____ A) the individual decisions of the many producers and consumers come together to make the macro-level decisions B) consumers make a society's production decisions C) producers generally have little choice about what goods and services to produce D) the market adjusts itself E) consumers decide what is to be produced and by whom through their dollar "votes"

110) When an individual producer sets a price for its product to earn a certain profit while consumers search for the product at the lowest price available from any producer, we say there is a ______. 110) _____ A) discrepancy of assortment B) separation in time C) separation in values D) discrepancy of quantity E) spatial separation

112) Which of the following is NOT likely to be found in a company with a marketing orientation? 112) _____ A) The company focuses on locating new opportunities. B) The company sees customer credit as a service. C) The company sells whatever it can make. D) The company uses marketing research to see if it is satisfying its customers. E) The company designs its packaging as a selling tool.

114) Which of the following is LEAST likely to be classified as a marketing collaborator? 114) _____ A) Wachovia Bank B) Market Survey Research, Inc. C) Quality Coatings and Paint Company D) Mayflower Transport Company E) Internet Advertising, Inc.

129) In advanced economies ______. 129) _____ A) both supply and demand tend to be homogeneous B) most firms specialize in producing and selling small amounts of a huge assortment of goods and services C) producers and consumers are often separated in several ways D) exchange is aided by discrepancies of quantity and assortment

13) A useful tool for organizing the competitor analysis is ________. 13) ______ A) rivals chart B) the oligopoly chart C) a competitor matrix D) the table of competitive rivals E) a competitor grid

13) An intermediary ______. 13) ______ A) usually increases the number of transactions required B) tends to make the exchange process more difficult and costly C) is someone who specializes in trade rather than production D) is a wholesaler-not a retailer E) None of these answers is correct.

14) Which of the following is true of the economic environment? 14) ______ A) It has no relationship to the technological environment. B) It refers to micro-economic factors that do not affect business spending. C) It can change very rapidly. D) It is not affected by the way all of the parts of the macro-marketing system interact. E) It never requires marketing managers to make immediate changes in strategy.

22) Macro-marketing ______. 22) ______ A) concerns the activities of individual managers B) helps consumers that need a narrow assortment of products C) is a social process D) applies only to nonprofit organizations E) is what people have in mind when they talk about marketing in everyday use

24) The Consumer Product Safety Commission is responsible for: 24) ______ A) preventing the distribution and sale of adulterated or misbranded foods, drugs, and cosmetics. B) developing and enforcing environmental protection standards. C) developing and enforcing safety standards for bicycles. D) None of these is correct.

26) Managers who think of customers existing to buy the firm's output rather than of firms existing to serve customers and—more broadly—the needs of society, have a ______ orientation. 26) ______ A) dynamic B) marketing C) production D) customer E) selling

26) Which of the following statements about world population trends is true? 26) ______ A) The concentration of people in major cities often complicates Place and Promotion decisions. B) In general, countries that have higher stages of development experience faster rates of growth than less-developed countries. C) People are moving from rural areas into urban areas. D) The trend toward urbanization has made companies less interested in international markets. E) The extent to which a country's population is clustered around urban areas does not vary much from country to country.

27) Which era of marketing is characterized by families who sold their surpluses to local distributors? 27) ______ A) The marketing company era B) The marketing department era C) The simple trade era D) The production era E) The sales era

28) A first step in evaluating marketing opportunities is to: 28) ______ A) estimate market and sales potentials. B) hire a "futurist" as a marketing consultant. C) consider the objectives and resources of the firm. D) decide which markets the firm wishes to enter. E) find out if potential competitors are larger.

29) In a market-directed economy, ______. 29) ______ A) government planners make all the important economic decisions B) marketing managers make all the important economic decisions C) the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy D) all the important economic decisions are made by voters in political elections E) consumers make all the important economic decisions

31) The triple bottom line is a measure of a firm's success based on multiple criteria commonly referred to as ______. 31) ______ A) product, price, and promotion B) partnership, planning, and positioning C) people, planet, and profit D) brands, buyers, and bucks E) segmentation, targeting, and positioning

32) Which of the following is a quantitative screening criterion for evaluating opportunities? 32) ______ A) Resources the firm should build on B) Kinds of business the firm wants to exclude C) Return on investment (ROI) target for the firm D) Weaknesses the firm should avoid E) Kinds of business the firm wants to be in

36) Marketing means ______. 36) ______ A) distribution. B) making good products C) more than selling and advertising D) performing services E) promotion

42) A (n) ________ is a marketing mix that customers see as better than a competitor's mix and cannot be quickly or easily copied. 42) ______ A) competitor analysis plan B) objective-centered approach C) sustainable competitive advantage D) competitor matrix E) resource combination

58) Which of the following is the best example of the marketing concept in action? 58) ______ A) A product manager tells her sales force "the inventory in the warehouse must be sold if we are to make a profit, so redouble your sales efforts." B) A student group wants to hold an awards banquet, so it buys Krispy Kreme donuts and sells them to friends who want to help the club achieve its objectives. C) A cleaning supplies firm learns that many consumers are having trouble hiring maids-so it develops a plan to offer customers complete house cleaning services. D) A manufacturer of industrial chemicals adapts its formulas and goes after the big consumer cleaning market. E) An Internet retailer finds that shoppers are abandoning their shopping carts before checking out, so it promotes its $10 discount on each customer's first purchase.

62) Market research firm BestOne sells reports about competitors, products, and other areas to various clients in the software industry. BestOne performs which universal marketing function ______. 62) ______ A) social responsibility B) standardization and grading C) market information D) financing E) risk taking

63) As a firm moves from the sales era to the marketing department era it is likely to ______. 63) ______ A) be more concerned with its ability to produce enough to meet demand B) have marketing people who develop long range plans-sometimes 5 or more years ahead C) begin to integrate all the firm's marketing activities D) adopt a more narrow view of marketing E) place less emphasis on earning a profit and more emphasis on what customers will buy

66) The aim of marketing is to ______. 66) ______ A) facilitate a single transaction B) persuade customers to buy the firm's product C) identify customers' needs and meet those needs so well that the product almost "sells itself" D) help create a pure subsistence economy E) eliminate the need for exchanges

73) According to the concept of social responsibility, a firm has a duty to ______. 73) ______ A) satisfy consumer needs at any cost B) communicate regularly with the public C) work in a way that is always good for society as a whole D) place customer satisfaction above all other considerations E) place profit above all other considerations

75) A production-oriented firm typically ______. 75) ______ A) sets inventory requirements with customer needs in mind B) views customer credit as a customer service C) tries to sell the products it can make easily D) operates as an integrated unit E) focuses advertising on need-satisfying product benefits

77) ______ directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the society's objectives. 77) ______ A) Social responsibility B) Micro-marketing C) Macro-marketing D) The transporting function E) Standardization and grading

85) Which of the following is LEAST likely to be classified as a marketing collaborator? 85) ______ A) Public Warehouse Corporation B) United Parcel Service (UPS) C) MeadowView Aluminum Company D) Broadband Communications Company E) Product Safety Testing Laboratories, Inc.

9) A firm that focuses its attention primarily on "selling" its present products in order to meet or beat competition is operating in which of the following "management eras"? 9) _______ A) Advertising era B) Production era C) Sales era D) Marketing company era E) Marketing department era

91) All of the following are examples of a production orientation, as opposed to a marketing orientation, EXCEPT one. Identify it. 91) ______ A) The company sells what it can make easily. B) The relationship with the customer ends with the sale of the product to the customer. C) Advertising focuses on the benefits of the product to customers. D) Advertising focuses on the features of the product. E) The purpose of customer service is to reduce customer complaints.

96) Adoption of the marketing concept ______. 96) ______ A) happened last among consumer product companies B) occurred first in the service industry C) has been slow for producers of industrial commodities D) has been universal E) is easy for most firms

97) Identify the primary role of a public interest group like the Center for Science in the Public Interest (CSPI) in market-directed economies. 97) ______ A) It acts as a forum for consumers to report product dissatisfaction reviews. B) It lets consumers easily access environmental product information and reviews. C) It is a consumer watchdog group that pressures food companies to make healthier products. D) It exposes firms that make false or exaggerated product claims. E) It lets technology firms play by the socially accepted rules of the game.

99) Nonprofit organizations ______. 99) ______ A) are fundamentally different than business firms—so they should embrace a production orientation rather than a marketing orientation B) do not have a profit objective, so the marketing concept does not apply C) can benefit by adopting the marketing concept D) do not need to be concerned with marketing activities E) None of these is true.

Which of the following statements about economic systems is true?

Consumers usually have more freedom of choice in a market-directed economy. Consumers in a market-directed economy enjoy great freedom of choice.

Price is a rough measure of _____.

Customer Value Prices in the marketplace are a rough measure of how society values particular goods and services.

10) From the macro-marketing perspective, the spatial separation that exists between military equipment manufacturers and the people who use the equipment overseas is directly addressed through this marketing function ______. 10) ______ A) financing B) storing C) risk taking D) transporting E) market information

109) The fact that US car companies are located in the upper Midwest while their customers are located throughout the US is an example of ______. 109) _____ A) separation of information B) separation in time C) discrepancies of assortment D) spatial separation E) separation in values

12) The firms that are considered to be the organization's closest challengers are called ________ rivals. 12) ______ A) passive B) aggressive C) indirect D) competitive E) formal

121) American supermarket chain, FoodMart, purchases cheese from five different manufacturers from around the world to assure its customers can choose among different types of cheeses at different prices. FoodMart facilitates the macro-marketing system by helping to address ______. 121) _____ A) discrepancies of assortment B) spatial separation C) separation of values D) All of these are correct.

123) Unlike a business firm, a nonprofit organization ______. 123) _____ A) gets support directly from those who receive the benefits B) must take in as much money as it spends or it won't survive C) faces competition for customers D) does not measure "profit" in the same way E) needs resources and support to survive and achieve its objectives

126) Which of the following statements by a U.S. president best reflects a MICRO view of marketing? 126) _____ A) "In the US we have a better choice of products than in any other country." B) "Next year my administration will spend 75% more on domestic security." C) "With interest rates low, many young people can now afford to buy a new home." D) "Tourism firms should advertise more to attract more international visitors." E) "A tax cut will give consumers more spending money."

128) Which of the following is LEAST LIKELY to be a government role in a market-directed economy? 128) _____ A) To provide things such as mass transportation and highways, national defense, police and fire protection, and public health services B) To set rules to protect individual rights and freedom C) To control interest rates and the supply of money D) To determine prices-and thereby allocate resources and distribute income E) To supervise the economy

130) The main difference between the "marketing department era" and the "marketing company era" is ______. 130) _____ A) whether the president of the firm has a background in marketing B) There is no difference. C) more emphasis on short-run planning in the marketing company era D) whether the whole company is customer-oriented E) more emphasis on selling and advertising in the marketing department era

134) Which of the following practices would suggest that Acme Tools practices a marketing orientation? 134) _____ A) It focuses its advertising efforts on product features and how products are made. B) It sells products that it can make easily for its customers. C) It views customer service as an activity required to reduce consumer complaints. D) It sets inventory levels with customer requirements and costs in mind. E) It ends its relationship with customers when a sale is made.

15) The attitudes and behavior patterns of people are part of the 15) ______ A) economic and technological environment. B) political environment. C) firm's resources and objectives. D) social and cultural environment. E) competitive environment.

16) In the political environment, an emphasis on a single country's interests before everything else is called: 16) ______ A) Socialism. B) Elitism. C) Extremism. D) Nationalism. E) Regionalism.

16) Which of the universal functions of marketing deals most directly with advertising a product in magazines? 16) ______ A) Risk-taking B) Transporting C) Market information D) Selling E) Financing

20) An emphasis on a single country's interests before everything else is known as ________. 20) ______ A) entrepreneurship B) socialism C) capitalism D) nationalism E) democracy

21) Generation Z refers to: 21) ______ A) those born between 1946 and 1964. B) those born between 1965 and 1977. C) those born in the generation immediately following the baby boom. D) those born since 1995.

28) Firms develop ______ to promote fair and honest dealings with all stakeholders inside and outside of the organization. 28) ______ A) marketing departments B) marketing plans C) intermediaries D) codes of ethics E) a marketing orientation

3) General Electric's "strategic planning grid" is an approach for: 3) _______ A) developing new products. B) developing marketing mixes. C) evaluating possible marketing objectives. D) evaluating existing and possible plans. E) selecting target markets.

33) A company where the marketing people do both short-run and long-range planning is operating in the ______ era. 33) ______ A) marketing department B) production C) sales D) marketing company E) simple trade

35) An important step in applying the marketing concept is ______. 35) ______ A) appointing someone with a marketing management background to be the firm's president B) changing the firm's organizational structure C) changing the firm's management methods and procedures D) committing to customer satisfaction E) hiring a marketing consultant

37) An economic system in which government officials determine production levels is known as ______ economy. 37) ______ A) pure subsistence B) production-oriented C) market-directed D) command E) macro-marketing

40) Gross national income (GNI) is the: 40) ______ A) manufacturers' selling price of goods (but not services) produced in a year. B) total market value of goods and services consumed in a year. C) total market value of goods (but not services) produced in an economy in a year. D) total market value of goods and services provided in an economy in a year by residents of that country. E) None of these definitions of GNI is correct.

41) A useful tool for organizing the competitor analysis is: 41) ______ A) the oligopoly chart. B) the competitive summary. C) the table of competitive rivals. D) a competitor matrix. E) rivals chart.

42) A macro-marketing system should ______. 42) ______ A) provide everyone with the same goods and services B) depend solely on a society's political institutions C) be part of a market-directed economy, not a command economy D) match supply and demand and accomplish a society's objectives

45) The development and spread of new ideas, goods, and services for the marketplace is called ______. 45) ______ A) marketing B) production C) collaboration D) innovation E) the micro-macro dilemma

46) "Nationalism" is an issue in the ________ environment. 46) ______ A) economic B) cultural C) competitive D) political E) technological

48) Which of the following is LEAST LIKELY to be found in a production-oriented firm? 48) ______ A) Disagreements among departments about how to improve the company's product B) Making products that are easy to produce C) A mass marketing approach D) Producing goods that exactly meet the customer's needs E) None of these is likely to be found in a production-oriented firm.

49) The term "micro-macro dilemma" means that ______. 49) ______ A) the micro view of marketing is concerned with the flow of goods and services from producers to consumers-while the macro view is not B) most people are both producers and consumers C) macro-marketing is just a small part of a larger micro-marketing system D) what is "good" for some producers and consumers may not be good for society as a whole E) marketing people cannot agree on whether marketing should be viewed as activities or as a social process

5) The objectives that are expected to shape the direction and operation of the whole business are known as ________ objectives. 5) _______ A) collective B) personal selling C) R&D D) company E) price

56) Which item famously originated in the production era? 56) ______ A) Home movie rentals B) Compact fluorescent light bulbs C) Laptop computers D) Automobiles E) Chariots

72) All of the following are examples of a marketing orientation, as opposed to a production orientation, EXCEPT one. Identify it. 72) ______ A) The role of customer service is to satisfy customers after the sale so they'll come back again. B) The role of marketing research is to determine customer needs and how well the company is satisfying them. C) The relationship with the customer is based on customer satisfaction before and after a sale leading to a profitable long-run relationship. D) The firm's focus is on reducing its costs. E) Costs that do not add value to customers should be eliminated.

74) Macro-marketing examines all the following challenging scenarios EXCEPT one of the following. Identify it. 74) ______ A) Consumers require a wide assortment of food items, but individual producers can offer only a narrow assortment of food products. B) Producers set prices to cover costs and make a profit, but consumers choose goods based on their ability to pay. C) Producers tend to locate where it is economical to produce, but consumers are located in many scattered places. D) Cedar Point Amusement Park would like to attract customers all year long, but its marketing strategy is currently limited to discount season pass offers during winter months while the park is closed. E) Producers prefer to manufacture goods in large quantities, but consumers buy in small quantities.

84) Marketing ______. 84) ______ A) says that marketing should take over all production, accounting, and financial activities B) should begin as soon as goods are produced C) does away with the need for advertising D) applies to both profit and nonprofit organizations

87) Marketing should ______. 87) ______ A) focus on getting customers to make a final purchase B) begin with the production process C) provide input, but let production determine what goods and services are to be developed D) make decisions about product design and packaging, prices or fees E) not need to coordinate with production, accounting, and financial activities

9) Product-market screening criteria should be: 9) _______ A) qualitative. B) realistic and achievable. C) quantitative. D) all of these are correct.

93) Myra Martinez was just named Treasure Island, Inc.'s marketing manager—with responsibilities for short-run policy planning of the firm's advertising, sales, marketing research, purchasing, and distribution efforts. Treasure Island is operating in the ______ era. 93) ______ A) production B) market-oriented C) sales D) marketing department E) marketing company

98) Collaborators ______. 98) ______ A) specialize in trade rather than production B) usually have a production orientation C) emerged in the marketing company era D) facilitate or provide one or more of the marketing functions other than buying or selling E) are only used in a command economy

________ means that the marketing mix is distinct from what is available from a competitor.

Differentiation Differentiation means that the marketing mix is distinct from and better than what is available from a competitor.

________ means moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.

Diversification Diversification means moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.

The text discusses the evolution of business through five "eras." Which of the following is NOT one of these eras?

Diversification era The five stages in marketing evolution are: (1) the simple trade era, (2) the production era, (3) the sales era, (4) the marketing department era, and (5) the marketing company era.

1) A "Buy American" campaign is an example of ________. 1) _______ A) transnationalism B) federalism C) environmentalism D) consumerism E) nationalism

10) The current U.S. population is largest in which of the following states? 10) ______ A) New York. B) Texas. C) Florida. D) Illinois. E) California.

11) When looking for attractive opportunities, a marketing manager should consider: 11) ______ A) the firm's financial strengths. B) whether the firm has good relations with established intermediaries. C) the firm's producing capability and flexibility. D) the firm's marketing strengths. E) All of these should be considered.

117) During the sales era, ______. 117) _____ A) families traded or sold their surplus output to local distributors B) marketing people did both short-run and long-run marketing planning C) characteristic management thinking said, "If we can make it, it will sell" D) all marketing activities were brought under the control of one department E) increased competition made firms focus on winning customers

12) Moral standards that guide marketing decisions and actions are called ______. 12) ______ A) laws B) civil laws C) micro dilemmas D) macro dilemmas E) marketing ethics

127) The following article titles are from Business Week magazine. Which article is most likely to be reporting on a macro-marketing topic? 127) _____ A) "Two-Person Engineering Firm Offers Unique Service" B) "Donations to Tsunami Victims Fund Increase after TV Broadcast" C) "Bank of America Offers New Internet Banking Services" D) "Pepsi Sells in Japan" E) "Russia Increases Output of Consumer Goods"

131) The president of a financial services company says that her new marketing manager has changed things a lot—making long-range plans about where the firm should focus its effort, and coordinating the decisions about what services to offer and how they should be promoted and priced. It seems that this company is just moving into the ______era. 131) _____ A) production B) simple trade C) sales D) marketing department E) marketing company

132) Marketing is of no relevance in a ______ economy. 132) _____ A) production-oriented B) market-directed C) consumer-oriented D) command E) pure subsistence

18) Which of the following types of firms are collaborators? 18) ______ A) Marketing research firms B) Product-testing labs C) Overnight delivery firms D) Advertising agencies E) All of these are collaborators.

19) Gross national income (GNI) is the total ________. 19) ______ A) market value of goods (but not services) consumed in an economy in a year B) cost of producing all goods and services sold in a year C) market value of goods (but not services) produced in an economy in a year D) market value of goods and services consumed in a year E) market value of goods and services provided in an economy in a year by residents of that country

20) Since individual firms cannot perform all marketing functions, ______ often play a role in the exchange process. 20) ______ A) nonprofits B) government regulators C) consumers D) marketing managers E) intermediaries

30) Marketing managers should remember that there are many variables in the ____________ that affect strategy planning. 30) ______ A) competitive environment B) cultural and social environment C) political and legal environments D) economic and technological environments E) all of these environments have variables that affect strategy planning

32) The "marketing concept" says that a business firm should ______. 32) ______ A) treat advertising and selling as its priority B) sell those products which it can make at lowest cost C) aim all its efforts at meeting society's needs-regardless of profitability D) place heavy emphasis on developing new products E) aim all its efforts at satisfying its customers—at a profit

35) The scientific way in which an economy's resources are converted to output is part of the ________ environment. 35) ______ A) competitive B) social C) economic D) political E) technological

39) Which of the following countries' governments passed a soda tax to restrict the production and sale of sugary soft drinks? 39) ______ A) India B) The Netherlands C) Australia D) Germany E) France

43) The Wheeler-Lea Amendment specifically aims at ________. 43) ______ A) tying and exclusive dealing contracts B) mergers and acquisitions C) product warranties D) product safety E) unfair or deceptive practices

44) Given the nature of their work, which of the following should have a marketing orientation? 44) ______ A) Dallas-Fort Worth Symphony B) American Cancer Society C) University of Wisconsin D) Girl Scouts of America E) All of these organizations should have a marketing orientation.

44) Increased demand for new homes due to low interest rates is an example of the impact of the ________ environment. 44) ______ A) competitive B) cultural C) technological D) social E) economic

49) The total market value of goods and services provided in a country's economy per year by both residents and nonresidents of that country is ________. 49) ______ A) gross national product B) gross disposable income C) gross national income D) gross domestic income E) gross domestic product

5) The marketing concept can be applied by ______. 5) _______ A) manufacturers of consumer products B) symphony orchestras C) private universities D) nonprofit hospitals E) All of these organizations can apply the marketing concept.

50) The ______ era is a time when a company emphasizes selling because of the increased competition in the external environment. 50) ______ A) production B) demand C) marketing D) supply E) sales

53) The marketing concept can be applied by ______. 53) ______ A) nonprofit hospitals B) national parks C) cosmetic manufacturers D) a nurses association E) All of these can apply the marketing concept.

54) Marketing ______. 54) ______ A) involves persuading customers to buy your product B) tries to make the whole economic system fair and effective C) is a social process involving all producers, intermediaries, and consumers D) begins with the production process E) tries to accomplish a company's objectives by anticipating customers' needs and trying to satisfy them

55) Which of the following is the BEST example of management thinking during the "production era"? 55) ______ A) "We need to make whatever products are easy to produce." B) "The more salespeople we have, the more we can sell." C) "We need to find out what the customer wants." D) "We need to work hard to sell the product to our customers." E) "If we produce a good product, customers will find us and buy it."

65) Predicting what types of bicycles different customers will want and deciding which of these customers the business will try to satisfy are activities a firm should do as part of ______. 65) ______ A) a production orientation B) making goods or performing services C) a command economy D) production E) marketing

68) After seeing a "sale" ad in a local newspaper, Ben Griffith went to a local pet supply store and bought a year's supply of high protein dog food. Which marketing functions—if any—did he perform? 68) ______ A) Consuming market information B) Transporting and storing C) Buying D) Financing and risk taking E) Ben performed all of these marketing functions

71) In a market-directed economy, ______. 71) ______ A) prices usually do not change according to supply and demand B) consumers have little freedom of choice C) profit, survival, and growth are all guaranteed for producers D) only the needs of the majority are served E) consumers decide what is to be produced and by whom through their dollar votes

78) Which of the following is true concerning marketing ethics? 78) ______ A) The prevailing practice of most businesspeople is to be fair and honest. B) Marketing ethics has its critics. C) Opinions about what is right or wrong vary from one society to another. D) Individuals develop moral standards based on their own values. E) All of these are correct.

79) Which of the following is not a challenge related to social responsibility? 79) ______ A) There is little agreement on who gets to determine what is "good" for society. B) Actions that may seem good for society may be costly to a firm. C) Acting to satisfy one group of stakeholders may anger another group of stakeholders. D) It is impossible to know what impact a firm's actions will have on future generations. E) Some consumers make purchases based on the perceived societal benefits of a product or service.

8) Which of the following organizations should apply the marketing concept? 8) _______ A) Christian Children's Fund B) National Federation of the Blind C) National Park Service D) United States Postal Service E) All of these organizations should apply the marketing concept.

80) Which of the following illustrates the marketing concept in action? 80) ______ A) A veterinarian has office hours in the evening to see pets whose owners must work during the day. B) The Nevada auto registration office mails license tags to people, to reduce inconvenient waiting in line. C) Three pediatricians set up a group practice-so that at least one is always available for emergencies. D) Bank ATMs that dispense cash are placed in fast-food restaurants. E) All of these illustrate the marketing concept in action.

82) Which of the following is NOT an example of the micro-macro dilemma? 82) ______ A) A "good" lawn mower can be produced cheaply, but its price must be higher if its design must be safe for "ignorant" users. B) Downhill snow skiing is fun, but really quite dangerous. C) A smoker may enjoy a cigar, but the smell can make other people sick. D) Many people like beer and wine, but drunk driving is a big social problem. E) Some people like to eat a lot, but later feel guilty about eating too much.

In the American Marketing Association's Statement of Ethics, which ethical value stresses a firm's attempts to balance the needs of its buyers with the interests of sellers?

Fairness As stated in Exhibit 1-7, fairness helps to balance justly the needs of the buyer with the interests of the seller.

Which of the following is NOT true about a market-directed economy? - the interaction between consumers and producers is great - producers enjoy maximum freedom of choice - consumers enjoy maximum freedom of choice - the price of a consumer product serves as a measure of its value - government is responsible for setting up all marketing activities

Government is responsible for setting up all marketing activities. In a market-directed economy, the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy. Government officials decide what and how much is to be produced and distributed in a command economy.

Which of the following is the BEST example of the micro-macro dilemma?

High performance cars are fun to drive but may be dangerous to others. The micro-macro dilemma refers to what is "good" for some firms and consumers may not be good for society as a whole.

Which of the following is MOST likely to be classified as a marketing intermediary?

Lillian's Mini-Market An intermediary is someone who specializes in trade rather than production and plays an important role in the exchange process. So is the case of Lillian's Mini-Market.

Which of the following is NOT a Product-area decision?

Market exposure. "Market exposure" is part of Place, not Product.

________ means trying to increase sales of a firm's present products in its present markets.

Market penetration Market penetration means trying to increase sales of a firm's present products in its present markets; usually through an aggressive marketing mix.

Accepting the "Marketing Concept" means that a firm should have a ______ orientation.

Marketing A marketing orientation means trying to carry out the marketing concept.

Which of the following criticisms focuses most directly on a macro view of marketing, rather than a micro view?

Marketing exploits the poor and the uneducated. The criticism that marketing exploits the poor and the uneducated is a macro-marketing issue, not a micro-marketing issue.

Which of the following is NOT a reason for you to study marketing?

Marketing involves actually making the goods that people need. Marketing affects almost every aspect of daily life, is important to your job, affects innovation and consumers' standard of living and also plays a big part in economic growth and development. Production involves actually making the goods that people need.

Which of the following is NOT a reason the marketing program should build customer equity?

Marketing strategies do not contribute to customer equity. Customer equity is the expected earnings stream of a firm's current and prospective customers over some period of time. Top management expects marketing strategy planners to help identify opportunities that will lead to an increase in a firm's customer equity.

Regarding the five stages in marketing evolution, ______. a. the first era to evolve was the sales era b. most firms operate in the production era c. in the marketing department era, firms do both short-run and long-run planning d. None of these responses is true. e. in the marketing company era, firms do short-run planning only

None of these responses is true. In the five stages in marketing evolution, the marketing department era makes short-run planning only; the first era to evolve was the simple trade era; and the marketing company era makes both short-run and long-run planning.

14) Concerning the "universal functions of marketing," which of the following statements is false? A) These functions can be performed by producers, intermediaries, collaborators, or consumers. B) Responsibility for performing these functions can be shared and shifted. C) From a macro viewpoint, all these functions must be performed by someone. D) From a micro viewpoint, not every company must perform every function. E) None of these statements is false.

None of these statements is false

Which of the following statements about customer value is true?

None of these statements is true. Customer value reflects both benefits and costs (positives and negatives) and is applicable to both goods and services. It considers all elements of the marketing mix, not just price, and competition does matter.

Scott Paper uses many intermediaries to reach its target markets; Citibank uses none. Which of the marketing mix variables is being considered here?

Place Place is concerned with decisions involving channel type, market exposure, kinds of intermediaries, kinds and locations of stores, how to handle transporting and storing, service levels, etc.

______ in the marketplace are a rough measure of how society values particular goods and services.

Prices Prices in the marketplace are a rough measure of how society values particular goods and services.

Suzuki's 3 year/36,000 mile new car warranty is part of which marketing mix decision area?

Product "Warranty" is part of Product.

In developing trails for hiking and biking to bring its winter ski customers back in the summer, Mountain High Ski Resort is pursuing what type of opportunity?

Product development Product development means offering new or improved products for present markets. Knowing the present market's needs, a firm may see new ways to satisfy customers.

At MetroTech, salespeople blame the production people for making inferior products, and the production people complain that the salesmen are just not getting enough orders. MetroTech seems to have a ______ orientation.

Production A production orientation means making whatever products which are easy to produce and then trying to sell them and think of customers existing to buy the firm's output rather than of firms existing to serve customers.

Until recently, good PC software for producing digital videos was not available, but was much in demand by businesses. The first companies to produce a specific type of program had good sales even though they did little promotion and their programs were not "user-friendly." It seems that many of these "innovators" operated as if they were in the ______ era.

Production The production era is a time when a company focuses on production of a few specific products—perhaps because few of these products are available in the market. "If we can make it, it will sell" is management thinking characteristic of the production era due to shortage of products.

A firm's "marketing mix" decision areas would NOT include:

Profit The different variables of the marketing mix are product, place, promotion, and price.

In the American Marketing Association's Statement of Ethics, which ethical value stresses a firm's attempts to recognize the basic human dignity of its customers?

Respect As stated in Exhibit 1-7, respect stresses to acknowledge the basic human dignity of all stakeholders.

14) Concerning the "universal functions of marketing," which of the following statements is false? A) These functions can be performed by producers, intermediaries, collaborators, or consumers. B) Responsibility for performing these functions cannot be shared C) From a macro viewpoint, all these functions must be performed by someone. D) From a micro viewpoint, not every company must perform every function. E ) none of these statements is false

Responsibility for performing these functions _cannot_ be shared

Administrators at a university noted that they were 200 students short of their enrollment projection as the start of the school year approached. The president of the university, fearing a revenue shortage, told the director of admissions, "You need to use whatever means necessary to get enough students to meet the projection before classes start. Run ads in the newspaper, call high school guidance counselors, recruit from our pool of rejected applicants-whatever it takes." The university president is operating as though he was in the ______ era.

Sales The sales era is a time when a company emphasizes selling because of increased competition.

The ______ era is a time when a company emphasizes selling because of the increased competition in the external environment.

Sales The sales era is a time when a company emphasizes selling because of increased competition.

Which of the following is NOT an example of the micro-macro dilemma?

Some people like to eat a lot, but later feel guilty about eating too much. The micro-macro dilemma refers to what is "good" for some firms and consumers may not be good for society as a whole.

Which of the following statements about marketing is FALSE?

The cost of marketing is about 15 percent of the consumer's dollar. In advanced economies, marketing costs about 50 cents of every consumer dollar. For some goods and services, the percentage is much higher.

All of the following are examples of a marketing orientation, as opposed to a production orientation, EXCEPT one. Identify it.

The firm's focus is on reducing its costs. As stated in Exhibit 1-4, a firm's focus is on locating new opportunities and not on reducing its costs in marketing orientation.

Which of the following is most likely to increase a firm's customer equity?

The lifetime value of the firm's individual customers increases. A focus on customer equity allows a firm's marketing strategies for each of its products to work together to increase the lifetime value of that customer to the firm.

Which of the following is true?

The product "P" in the marketing mix stands for both physical goods and services. The Product area is concerned with developing the right product for the target market. This offering may involve a physical good, a service, or a blend of both.

What is important to remember when developing the "right" product?

The product must satisfy the customer's needs. The important thing to remember is that your good or service should satisfy some customers' needs.

51) Which of the following statements about the universal functions of marketing is False? A) Who performs the functions may differ among nations and economic systems. B) These functions do not have to be performed in all macro-marketing systems. C) How the functions are performed may differ among nations and economic systems. D) These functions help to overcome discrepancies of quantity and assortment. E) None of these statements is false.

These functions do not have to be performed in all macro-marketing systems

In which quadrant of the S.W.O.T. analysis tool does the following fit? A firm is vulnerable to recession.

Threats A S.W.O.T. analysis identifies and lists the firm's strengths, weaknesses, opportunities, and threats. Recessionary conditions pose a threat to nearly every firm.

The difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits is called customer ______.

Value Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. Any readily available glue that performs the job effectively at the least cost will have high customer value to a scrapbook hobbyist.

Which of the following is part of a complete marketing plan?

What company resources (costs) are required and at what rate. An ideal marketing plan should answer the following questions: (1) what marketing mix will be offered, to whom and for how long; (2) what company resources will be needed at what rate; and (3) what results are expected.

Which of the following describes the micro-macro dilemma?

What is good for some producers and consumers may not be good for society as a whole. The micro-macro dilemma refers to what is "good" for some firms and consumers may not be good for society as a whole.

FlyFar Airlines uses marketing research to determine customer needs and assess how well the company meets them. This suggests that FlyFar managers exhibit ______.

a marketing orientation Marketing-oriented firms try to offer customers what they need instead of just trying to get customers to buy what the firm has produced.

A marketing manager made a speech in which he described his organization as having "really embraced the marketing concept over ten years ago." A critic in the audience argued that the manager didn't understand the "socially conscious" view of the marketing concept. Given the critic's argument, the marketing manager may work for: A) a fruit processor. B) the public library. C) a firm that recycles aluminum cans. D) a soap producer. E) a motorcycle producer.

a motorcycle producer

The marketing concept can be applied by ______. a. All of these organizations can apply the marketing concept. b. nonprofit hospitals c. private universities d. symphony orchestras e. manufacturers of consumer products

a. All of these organizations can apply the marketing concept. Any organization that follows the three basic ideas of marketing concept is said to have adopted the marketing concept.

A firm with a marketing orientation is MOST likely to ______.

advertise how a product meets customers' needs As stated in Exhibit 1-4, marketing-oriented firm tries to offer customers what they need instead of just trying to get customers to buy what the firm has produced.

92) The total system view of the marketing concept builds on the idea that ______. 92) ______ A) each department in an organization should do what it does best B) a company should not have specialized departments C) sales should be the firm's high-level objective D) all departments—not just marketing—should be guided by customer needs E) None of these responses is correct.

all departments—not just marketing—should be guided by customer needs

"Place" is concerned with: all of these might be involved with Place. storing. transporting. channel members. intermediaries.

all of these might be involved with Place Place is concerned with decisions involving channel type, market exposure, kinds of intermediaries, kinds and locations of stores, how to handle transporting and storing, service levels, etc.

"Product" is concerned with: physical goods. packaging and warranty. all of these might be involved with Product. branding. services.

all of these might be involved with Product. Products include physical goods and/or services and product related decisions include branding, packaging, and warranties.

given the nature of their work , which of hte following should have a marketing orientation ? - girl scout of america - university of wisconsin - all of these organizations should have a marketing orientation - American Cancer society - Dallas- Fort Worth Symphony

all of these organizations should have a marketing orientation

Breakthrough opportunities:

are especially important in our increasingly competitive markets. Breakthrough opportunities help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time. Even if a manager can't find a breakthrough opportunity, the firm should try to obtain a competitive advantage to increase its chances for profit or survival.

Consumers in a market-directed economy ______. - are taxed to provide for goods and services that benefit society, such as public health, national defense, highways, police and fire protection - do not have to buy any goods or services - have to buy what is being produced - enjoy limited freedom of choice - do not decide what is to be produced and by whom

are taxed to provide for goods and services that benefit society, such as public health, national defense, highways, police and fire protection The citizens in a market-directed economy are taxed for goods or services provided for the good of society such as national defense, schools, police and fire protection, highway systems, and public-health services.

Exchanges between producers and consumers are more difficult in an advanced economy because of ______. a. separation of information b. separation in values c. All of these are correct. d. separation in time e. spatial separation

c. All of these are correct Exchange between producers and consumers is hampered by spatial separation, separation in time, separation of information and values, and separation of ownership.

Which of the following illustrates the marketing concept in action? a. Three pediatricians set up a group practice-so that at least one is always available for emergencies. b. Bank ATMs that dispense cash are placed in fast-food restaurants. c. All of these illustrate the marketing concept in action. d. A veterinarian has office hours in the evening to see pets whose owners must work during the day. e. The Nevada auto registration office mails license tags to people, to reduce inconvenient waiting in line.

c. All of these illustrate the marketing concept in action. The marketing concept means that an organization aims all its efforts at satisfying its customers, at a profit.

An important step in applying the marketing concept is ______.

committing to customer satisfaction Three basic ideas of the marketing concept are: (1) customer satisfaction, (2) a total company effort, and (3) profit—not just sales—as an objective.

which of the following statements about customer value is true ? - it is the manager's view of customer value that matters , not the customer's - none of these statements is true - customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits - the sure way to achieve high customer value is to offer a lower price - the greater the competition the less important customer value is

customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits

Estimating a customer's lifetime purchasing potential is important because it helps marketers to ________.

devise long-range plans and strategies for building customer relationships Calculating a customer's long-range purchasing potential can help marketers recognize the importance of devising plans that build and maintain customer relationships over a lifetime.

The fact that producers usually prefer to produce products in large quantities, while most consumers prefer to buy in small quantities, results in ______.

discrepancies of quantity Discrepancies of quantity occur when producers prefer to produce and sell in large quantities and consumers prefer to buy and consume in small quantities.

In a pure subsistence economy, ______.

each family unit is self-sufficient In a pure subsistence economy, when each family unit produces everything it consumes, there is no need to exchange goods and services and no marketing is involved.

4) When a firm considers a triple bottom line as a measure of long-term success, this means that it measures outcomes in which of the following three different areas A) company effort, customer satisfaction, and relative market share B) customer satisfaction, environmental impact, and production efficiency C) economic success, social impact, and environmental impact D) firm profitability, customer satisfaction, and behavioral change E) economic success, social impact, and political change

economic success, social impact, and environmental impact

The economic freedom provided within a market-directed economy produces the greatest number of : - government planners - trade restrictions - entrepreneurs and innovators - military-oriented purchases - government regulations

entrepreneurs and innovators

Collaborators ______.

facilitate or provide one or more of the marketing functions other than buying or selling Collaborators are firms that facilitate or provide one or more of the marketing functions other than buying or selling.

All of the following are reasons why international opportunities should be considered by managers, EXCEPT

favorable trends at home and unfavorable trends in other countries make international marketing particularly attractive. Unfavorable trends in the market environment at home or favorable trends in other countries may make international marketing particularly attractive.

A local symphony group that has adopted the marketing concept would be most likely to ______.

find out what kind of music local residents want to hear The marketing concept means that an organization aims all its efforts at satisfying its customers, at a profit.

Compared with other approaches to business, the marketing concept is distinct in that it ______.

focuses on satisfying customers' needs The marketing concept is distinct from other approaches to business in that it views organizations as existing to serve customers and the needs of society. Firms that apply the marketing concept direct all their efforts at satisfying customers.

In nonprofit organizations, the marketing concept _____.

has different measures of success All nonprofit organizations seek to achieve different objectives and need different measures of success.

The various economic systems around the world are ______.

heavily influenced by a society's political institutions While all societies have economic systems, how an economic system operates depends largely on the nature of the society's political institutions.

The various economic systems around the world are ______.

The marketing mix

helps to organize the marketing strategy decision areas. The variables of the marketing mix help organize marketing related decisions, and simplify the selection of marketing mixes.

The text's discussion of Ford's marketing strategy highlights the fact that:

it's not wise for managers just to define a business in terms of the products they currently produce or sell. Henry Ford revolutionized the automobile industry by building the assembly line. His approach highlighted the fact that defining a business in terms of the products they produce or sell is unwise. More recently, Ford is in a continuous process of innovation and redesign.

The total stream of purchases that a single customer could contribute to a company over the length of the relationship is called customer ____.

lifetime value Over a period of years, a single customer is likely to purchase multiple products from a company. The total stream of purchases that a customer could contribute to the company over the length of the relationship is called customer lifetime value.

83) The marketing concept says that a business firm should aim all of its efforts at A) producing products at the lowest cost B) satisfying customers regardless of profitability C) doing more advertising and selling than competitors D) making a profit selling to satisfied customers E) selling what the company produces efficiently

making a profit selling to satisfied customers

All of the following are the basic ideas included in the definition of the marketing concept except ______.

making whatever products are easy to produce and then trying to sell them The marketing concept means that an organization aims all its efforts at satisfying its customers but at a profit. Making whatever products are easy to produce and then trying to sell them is product orientation.

Avon, which in the past relied on door-to-door personal selling, is trying to reach new customers by distributing mail-order catalogs, adding toll-free telephone ordering, and opening online retail sites. Avon is pursuing a ________ opportunity.

market development Market development means trying to increase sales by selling present products in new markets. This may involve searching for new uses for a product, advertising in different media to reach new target customers, or adding channels of distribution or new stores in new areas, including overseas.

An Australian wine producer, facing declining sales at home, set up a new channel of distribution to sell wine in the United States. This seems to be an effort at

market development. Market development means trying to increase sales by selling present products in new markets. This may involve searching for new uses for a product, advertising in different media to reach new target customers, or adding channels of distribution or new stores in new areas, including overseas.

When a firm tries to increase sales by selling its present products in new markets, this is called:

Coca-Cola runs an advertising campaign on morning radio shows encouraging current customers to "have a Coke in the morning" instead of their morning coffee. This is an example of:

market penetration. Market penetration means trying to increase sales of a firm's present products in its present markets; usually through an aggressive marketing mix.

____________ involves anticipating customer needs and directing a flow of need-satisfying goods and services from producer to customer - marketing - sales promotion - innovation - advertising - selling

marketing

41) The universal functions of marketing include buying, selling, transporting, storing, standardization and grading, financing, risk taking, and : A) merchandising information B) weighing C) marketing information D) facilitating

marketing information

which of following statements is false - marketing should provide direction for production accounting , and financial activities - marketing doesn't occur unless two or more parties are willing to exchange something for something else - marketing anticipates customer needs - marketing is most important in a pure substance economy - marketing builds long-lasting relationships that benefit the selling firm

marketing is most important in a pure substance economy

What sets the tone and direction for the whole company?

marketing plan Although marketing strategies are not whole-company plans, company plans should be market-oriented. And the marketing plan often sets the tone and direction for the whole company.

According to the text, marketing means ______.

much more than selling and advertising Although it's true that selling and advertising are parts of marketing, marketing is much more than that.

133) Considering the universal functions of marketing, A) they may not be required in all macro-marketing systems B) responsibility for performing them cannot be shifted or shared C) not every firm must perform all of the marketing functions D) all goods and services require all the functions at every level of their production

not every firm must perform all of the marketing functions

The triple bottom line is a measure of a firm's success based on multiple criteria commonly referred to as ______.

people, planet, and profit Some organizations explicitly consider a triple bottom line-which measures an organization's economic, social, and environmental outcomes-as a measure of long‐term success. Together, these are sometimes referred to as measures of people, planet, and profit.

The ______ area of the marketing mix is concerned with decisions about getting the "right" product to the target market when and where it's wanted.

place Place is concerned with all the decisions involved in getting the right product to the target market's place.

The universal functions of marketing do NOT include ______.

producing The universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information.

Wendy's continues to come out with new offerings like stuffed pitas. This suggests that Wendy's is pursuing ________.

product development Product development means offering new or improved products for present markets. Knowing the present market's needs, a firm may see new ways to satisfy customers.

When a firm tries to increase sales by offering new or improved products to its present markets, this is called:

product development. Product development means offering new or improved products for present markets. Knowing the present market's needs, a firm may see new ways to satisfy customers.

A marketing mix consists of:

product, price, promotion, and place. The different variables of the marketing mix are product, place, promotion, and price.

From the Industrial Revolution until the 1920s, most companies were in the ______ era.

production From the Industrial Revolution until the 1920s, most companies were in the production era since companies focused on production of a few specific products.

Marketing - means "Selling" or "advertising" - does not impact consumers' standard of living - is the development and spread of new ideas , good , and services - provides direction for production - involves actually making goods or performing services

provides direction for production

"Place" is NOT concerned with:

sales reps. "Sales reps" are a part of the Promotion variable of the marketing mix.

When consumers do not know where to buy a product or what it costs and the product's producer does not know where its target market is located, we say there is a ______.

separation of information In separation of information, producers do not know who needs what, where, when, and at what price. Also consumers do not know what is available from whom, where, when, and at what price.

A public utility that has adopted the marketing concept would be most likely to ______.

set up a special service to help consumers reduce expensive peak-hours energy consumption The marketing concept means that an organization aims all its efforts at satisfying its customers, at a profit.

The standardization and grading function of marketing involves ______.

sorting products according to size and quality Standardization and grading involve sorting products according to size and quality.

The primary purpose of the transporting and storing functions of marketing is to overcome ______.

spatial separation The transporting function means the movement of goods from one place to another and the storing function involves holding goods until customers need them. These functions help to overcome spatial separation caused by producers tending to locate where it is economical to produce, while consumers are located in many scattered places.

The fact that many Americans want the convenience of driving gas-guzzling trucks and sport utility vehicles—which also contribute disproportionately to pollution and global warming—is an example of ______.

the micro-macro dilemma The micro-macro dilemma refers to what is "good" for some firms and consumers may not be good for society as a whole.

The text's "Toddler University" example shows that:

the needs of a target market determine the nature of the appropriate marketing mix. In order to serve the 'the Attentive Parents' target market, the owner of Toddler University came up with an appropriate marketing mix that met this target market's needs. It did so by combining "fit and function with fun and fashion."

which of the following is true of marketing intermediaries and collaborators ? - their services allow producers to spend more time for on production - the marketing functions they serve come at a higher cost - because of specialization , economies of scale , or e-commerce - they typically perform marketing functions less effectively than producers or consumers can perform them - their services provide consumers with less time for consumption

their services allow producers to spend more time for on production

Marketing ______.

tries to anticipate and satisfy customer needs and accomplish an organization's objectives Marketing is the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.

A firm with a marketing orientation ______.

tries to determine customers' needs before developing its product A marketing-oriented firm tries to offer customers what they need instead of just trying to get customers to buy what the firm has produced.

The term "micro-macro dilemma" means that ______.

what is "good" for some producers and consumers may not be good for society as a whole The micro-macro dilemma refers to what is "good" for some firms and consumers may not be good for society as a whole.

which of the following statements is true regarding marketing ethnics and social responsibility ? - when products are complicated , consumers may be vulnerable to unscrupulous sellers - consumers only want to purchase products that are safe or good for them in the long run - firms should aim to advance their own short-term interests at the expense of customers - being socially responsible tends to decrease a firm's costs , but it negatively affects profits

when products are complicated , consumers may be vulnerable to unscrupulous sellers

Marketing intermediaries and collaborators can often perform marketing functions ______.

which leaves producers with more time for production Marketing intermediaries and collaborators are often able to perform the marketing functions better and at a lower cost than producers or consumers can which allows producers and consumers to spend more time on production, consumption, or other activities including leisure.

MKT 3301 - TEST 1 _ CH 1-3_other sources

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