Marketing Chapter 1 MC – Flashcards
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1. Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing so the company creates _____ utility. a. ownership b. form c. place d. time
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b. form
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2. The utility of a product or service is its: a. want-satisfying power. b. re-usability. c. function as a commodity. d. design quality.
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a. want-satisfying power.
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3. Fame-us is a talent hunt agency focusing on the youth looking to enter Hollywood. As part of their marketing strategy, Fame-us generate time and place utility by: a. creating a nationwide advertising campaign to attract applicants. b. launching roadshows across cities and conduct talent hunts at campuses during Thanksgiving. c. endorsing their services using famous celebrities from Hollywood. d. opening a well-equipped studio with pre and post-production facilities.
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b. launching roadshows across cities and conduct talent hunts at campuses during Thanksgiving.
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4. The ability to transfer title to goods or services from marketer to buyer is described as: a. ownership utility. b. form utility. c. time utility. d. place utility.
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a. ownership utility.
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5. Availability of goods and services at convenient locations creates: a. form utility. b. time utility. c. place utility. d. ownership utility.
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c. place utility.
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6. Creating _____ utility is the responsibility of the production function. a. place b. form c. time d. ownership
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b. form
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7. Banks have recently begun to install ATMs in supermarkets to address customers' wants for instant cash when they go shopping. What type of utility are banks creating for customers? a. Form b. Possession c. Place d. Ownership
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c. Place
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8. The organizational function and set of processes that creates, communicates, and delivers value to customers and manages customer relationships in ways that benefit the organization and its stakeholders is called _____. a. marketing b. financing c. operations d. administration
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a. marketing
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9. Which of the following is true regarding marketing? a. The marketing concept emphasizes creating and maintaining short-term successful relationships with customers and suppliers. b. Marketing encompasses such a broad scope of activities and ideas that settling on one definition is often difficult. c. Marketing refers to an activity in which two or more parties give something of value to each other to satisfy perceived needs. d. The marketing concept is a belief that consumers will resist purchasing nonessential goods and services.
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b. Marketing encompasses such a broad scope of activities and ideas that settling on one definition is often difficult.
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10. Which of the following statements concerning the global marketplace is true? a. The global marketplace is diminishing because of Internet technology. b. The global marketplace is growing because of trade agreements. c. The global marketplace is growing due to the threat of the ability of a single nation to manufacture, supply, and consume all that it produces. d. The global marketplace is growing owing to the talent shortage in the home countries of national companies.
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b. The global marketplace is growing because of trade agreements.
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11. The marketing philosophy summarized by the phrase "a high-quality product will sell itself" is a characteristic of the _____ era. a. production b. sales c. marketing d. relationship
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a. production
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12. Which of the following factors contributed to the transition from the production era to the sales era? a. Increased consumer demand b. Sophisticated production techniques c. Increase in urbanization d. The Great Depression
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b. Sophisticated production techniques
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13. A company produces a high-quality product, with a maximum monthly output of 10,000 units. Production levels are constant and the company relies on its marketing department to find customers for its output. This approach is consistent with which era in marketing history? a. Production era b. Relationship era c. Marketing era d. Sales era
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d. Sales era
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14. A company with a _____ orientation assumes that customers will resist purchasing nonessential goods and services and that the task of personal selling and advertising is to persuade them to buy. a. production b. marketing c. sales d. relationship
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c. sales
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15. A market in which there are more buyers for fewer goods and services is known as a: a. seller's market. b. monopoly. c. buyer's market. d. oligopoly.
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a. seller's market.
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16. Which of the following statements regarding the marketing era is true? a. Marketing and selling would no longer be considered synonymous terms. b. Marketing was relegated to a supplemental role performed after the production process. c. The marketing concept was linked to a shift from a buyer's market to a seller's market. d. Business success often was defined solely in terms of production successes.
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a. Marketing and selling would no longer be considered synonymous terms.
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17. A buyer's market is characterized by: a. more goods and services than buyers to buy them. b. a small number of firms dominating the production of goods offered. c. practically no competition in the marketplace. d. a single firm producing a major share of the products or services offered.
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a. more goods and services than buyers to buy them.
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18. The emergence of the marketing concept can best be explained by: a. higher production levels. b. greater sophistication in the production of goods. c. the shift from a seller's market to a buyer's market. d. a focus on product quality.
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c. the shift from a seller's market to a buyer's market.
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19. Assume you want to increase the number of customers by applying the marketing concept. Which of the following strategies would be most consistent with this approach? a. Reduce product costs b. Offer more product variety than competitors c. Target markets d. Employ inexpensive labor
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c. Target markets
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20. Indigo Ltd. wanted to increase its customers by applying the marketing concept. Which of the following would be an appropriate way to apply this approach? a. Maximize production of goods b. Focus on meeting the needs of the consumers c. Offer more product variety than competitors d. Produce high quality goods
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b. Focus on meeting the needs of the consumers
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21. Which of the following is true of a company with strong market orientation? a. It designs products with advantages and levels of quality compatible with its competitors. b. It assumes that customers will resist purchasing nonessential goods. c. It stresses on efficiency in producing a quality product, with the attitude toward marketing that "a good product will sell itself." d. It has a focus on new-product development and the introduction of innovative products.
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d. It has a focus on new-product development and the introduction of innovative products.
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22. The business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them is known as: a. customer persuasion. b. consumer orientation. c. aggressive marketing. d. sales orientation.
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b. consumer orientation.
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23. The _____ is a companywide consumer orientation with the objective of achieving long-run success. a. marketing myopia b. exchange process c. marketing concept d. seller's market
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c. marketing concept
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24. Which of the following is true regarding the marketing concept? a. During tough economic times, the marketing concept focuses on the objective of achieving short-term profits instead of long-run success. b. The marketing concept believes that consumers will resist purchasing nonessential goods and services. c. The marketing concept emphasizes cutting costs and boosting revenues during tough economic times. d. A firm's survival and growth are built into the marketing concept.
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d. A firm's survival and growth are built into the marketing concept.
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25. In the relationship era, firms focus on: a. short-term relationships with suppliers. b. long-term relationships with customers and suppliers. c. short-term relationships with customers and suppliers. d. short-term relationships with customers.
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b. long-term relationships with customers and suppliers.
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26. Which of the following would be visible in relationship marketing? a. Focus on producing high quality goods b. Sales orientation c. Companywide consumer orientation d. Strategic alliances
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d. Strategic alliances
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27. The future growth of a company is endangered when management: a. adopts a consumer orientation. b. is aware of the scope of its business. c. is committed to maintaining a product-oriented philosophy. d. is focused on converting customer needs to wants.
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c. is committed to maintaining a product-oriented philosophy.
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28. If a company such as J.B. Trucking wanted to avoid marketing myopia, it should define its business as: a. a provider of transportation solutions. b. a trucking company. c. a materials handling company. d. a freight hauling firm.
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a. a provider of transportation solutions.
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29. Which of the following refers to marketing myopia? a. A companywide consumer orientation with the objective of achieving long-run success b. A market in which there are more buyers for fewer goods and services c. A management's failure to recognize the scope of its business d. A market in which there are more goods and services than people willing to buy them
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c. A management's failure to recognize the scope of its business
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30. Which of the following statements is correct regarding not-for-profit organizations? a. The sole common factor between not-for-profit organizations and for-profit firms is the financial bottom line. b. Not-for-profit organizations hope to generate as much revenue as possible to support their causes. c. Not-for-profit organizations are all found in the public sector. d. Historically, not-for-profit firms have had more exact goals and marketing objectives than for-profit firms.
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b. Not-for-profit organizations hope to generate as much revenue as possible to support their causes.
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31. Which of the following holds true when not-for-profit organizations are compared with for-profit organizations? a. Not-for-profit organizations tend to focus their marketing on just one public-their customers. b. Not-for-profit organizations often possess some degree of monopoly power in a given geographical area. c. Not-for-profit organizations depend on strategic alliances with for-profits to provide advertising and visibility. d. A service user of a not-for-profit organization may have more control over the organization's destiny than customers of a profit-seeking firm.
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b. Not-for-profit organizations often possess some degree of monopoly power in a given geographical area.
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32. An alliance between a not-for-profit organization and a for-profit organization: a. rarely benefits either party. b. often benefits both parties. c. typically benefits the not-for-profit more than the for-profit. d. typically benefits the for-profit more than the not-for-profit.
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b. often benefits both parties.
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33. The most obvious distinction between not-for-profit and for-profit organizations is: a. not for-profit organizations have more exact marketing goals. b. not-for-profit organizations have a different view of what constitutes the bottom line. c. customers of not-for-profit organizations have more control. d. not-for-profit organizations market services not goods.
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b. not-for-profit organizations have a different view of what constitutes the bottom line.
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34. The term 'bottom line' is a reference to: a. overall company profitability. b. a firm's social responsibility. c. the limits on marketing budgets. d. the ethical and social viability of marketing.
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a. overall company profitability.
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35. In not-for-profit organizations, _____ may interfere with the organization's marketing program. a. stockholders b. the government c. service-users d. major contributors
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d. major contributors
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36. Which of the following is an example of person marketing? a. A firm creating awareness of the importance of using public transport. b. A country promoting its sightseeing spots and cuisines. c. A mall being inaugurated by a popular commercial actor. d. A firm promoting an inter-state soccer match.
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c. A mall being inaugurated by a popular commercial actor.
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37. Melissa is campaigning for Janet, her friend, who is contesting for the presidency of the student council at Riverdale Junior College. Melissa's effort is an example of _____ marketing. a. cause b. person c. place d. organization
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b. person
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38. The basic objective of place marketing is to: a. attract visitors or new businesses to a particular area. b. influence others to accept the goals of the sponsoring organization. c. convince people to attend a sporting or cultural event. d. bring to the attention of the public some charitable issue.
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a. attract visitors or new businesses to a particular area.
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39. State bureaus of tourism and conventions typically engage in _____ marketing. a. organization b. person c. place d. cause
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c. place
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40. Wild Escape advertises jungle safaris, chimpanzee tracking, and gorilla tracking tours. This is an example of _____. a. form utility creation b. place marketing c. organization utility d. sports marketing
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b. place marketing
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41. Phoebe was asked to bring a can of food for the local food bank as the "price of admission" for a certain ceremony. This is an example of _____. a. person marketing b. organization marketing c. ownership utility d. cause marketing
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d. cause marketing
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42. Some Florida drivers have license plates that say "Save the Manatee." This is an example of _____ marketing. a. organization b. cause c. place d. event
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b. cause
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43. Fred Foods Inc. provides free cereals and biscuits to support a program that aims to end hunger in various emerging nations. This is an example of _____ marketing. a. organization b. person c. cause d. place
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c. cause
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44. The Tour de Cure is a bicycle ride, not a race, to raise money for the American Diabetes Association and is held in 40 states nationwide. This is an example of: a. event marketing. b. organization marketing. c. person marketing. d. place marketing.
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a. event marketing.
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45. As an official sponsor of the Olympics, the Coca-Cola Company engages in _____ marketing. a. place b. event c. person d. organization
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b. event
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46. Which of the following is a combination of person, cause, and organization marketing? a. Tiger Woods' endorsement of Nike, a sports company and Accenture, a consulting company b. The Nobel Peace Prize for Al Gore for his work on global warming c. UNICEF's work to improve the living conditions of children across the world d. Angelina Jolie's role as a UN Goodwill Ambassador for refugees
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d. Angelina Jolie's role as a UN Goodwill Ambassador for refugees
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47. A university sells customized sweat shirts, pull overs, and jerseys to its students and staff. This is an example of _____. a. cause marketing b. organization marketing c. person marketing d. event marketing
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b. organization marketing
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48. The revenues and intangible benefits accrued to the firm, minus the investment to attract and keep a customer is known as the: a. gradient of return on investment. b. intangible benefit stream. c. investment-benefit differential. d. lifetime value of the customer.
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d. lifetime value of the customer.
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49. Many hotel chains offer free stays and other perks to repeat customers. This is an example of: a. relationship marketing. b. transaction-based marketing. c. interactive marketing. d. social marketing.
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a. relationship marketing.
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50. In the practice of relationship marketing, the definition of a customer is taken to another level. Which of the following best illustrates how a company practicing relationship marketing is different from a traditional transaction-based marketer? a. The city pool allows kids 12 years and younger to swim for free on Fridays. b. A local coffee shop distributes coupons for $.50 off each cup of coffee. c. The purchasing department of a defense contractor invites its suppliers to attend an annual golf outing. d. The heads of the financial departments meet with the Chief Financial Officer to discuss year-end financial reporting.
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c. The purchasing department of a defense contractor invites its suppliers to attend an annual golf outing.
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51. What is the ultimate objective of relationship marketing? a. Find new customers b. Create regular purchasers c. Turn customers into advocates d. Turn customers into loyal supporters
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c. Turn customers into advocates
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52. The application of relationship marketing requires attention to levels of customer loyalty. Which of the following is the highest level as defined by this type of marketing? a. Loyal supporter of the company and its goods and services. b. Advocate who not only buys the products but recommends them to others. c. Regular purchaser of the company's products. d. Stockholder who literally buys into the organization and its mission.
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b. Advocate who not only buys the products but recommends them to others.
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53. An example of interactive marketing would be: a. a customer creating their own products, as in the case of Subway or Build-a-Bear. b. an intermediary wholesaler who links sale of goods from manufacturer to consumer. c. buyer-seller communication through the Internet and virtual reality kiosks. d. sponsoring local sports teams.
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c. buyer-seller communication through the Internet and virtual reality kiosks.
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54. Interactive marketing refers to: a. sequential marketing efforts beginning with frontline salespersons and proceeding to detailed instructions by a technical expert. b. marketing efforts vis-a-vis interactive programs where customers can post their queries directly to the management. c. buyer-seller communications in which the customer controls the amount and type of information received from a marketer. d. software-controlled marketing strategy which uses central databases to segment the market on various demographic and psychographic factors.
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c. buyer-seller communications in which the customer controls the amount and type of information received from a marketer.
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55. Mobile marketing refers to: a. running promotional campaigns on transport media like trains and airplanes. b. marketing messages transmitted via wireless technology. c. promoting associated products or services alongside mobile technologies. d. the use of online social media as a communications channel for marketing messages.
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b. marketing messages transmitted via wireless technology.
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56. By converting indifferent customers into loyal ones through relationship marketing, companies can: a. increase the cost of maintaining existing customers. b. start a process by which customers become bound contractually to the business. c. avoid the necessity of improving customer service in the long run. d. generate repeat sales.
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d. generate repeat sales.
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57. Which of the following is true of relationship marketing? a. It focuses on finding new customers. b. It prefers not to maintain existing customers due to high costs. c. It does not believe in generating repeat sales. d. It believes in maintaining existing customers.
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d. It believes in maintaining existing customers.
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58. Relationship marketing focuses more attention on _____ customers because new customers are _____ to acquire compared to existing customers. a. existing; less expensive b. new; less expensive c. existing; more expensive d. new; more expensive
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c. existing; more expensive
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59. Sally Myers, head of marketing at Sally's Salon, serviced six new customers over the past two weeks. Through a feedback form, Sally learnt that all of them had acted upon the opinions of their friends and family members. What Sally encountered is an example of: a. transaction-based marketing. b. sales orientation. c. marketing myopia. d. buzz marketing.
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d. buzz marketing.
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60. Which of the following holds true regarding relationship marketing? a. It applies only to individual consumers and employees. b. It affects distributors as well as other types of corporate partnerships. c. It does not allow marketers and customers to customize their communication. d. It is a buyer-seller communication in which the marketer controls the amount and type of information received from a customer.
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b. It affects distributors as well as other types of corporate partnerships.
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61. Relationship marketing relies heavily on: a. mass marketing and global promotions. b. technology to store customer data and to customize products/services. c. strategic alliances and creating competitive advantage. d. aligning business goals with a social cause.
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b. technology to store customer data and to customize products/services.
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62. A gaming corporation and a mobile manufacturer work together to develop unique games which are made available on the applications of the phones. This is an example of: a. an exchange function. b. marketing research. c. social marketing. d. a strategic alliance.
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d. a strategic alliance.
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63. Buying and selling are: a. the two exchange functions of marketing. b. physical distribution functions. c. exchange and distribution functions, respectively. d. distribution and exchange functions, respectively.
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a. the two exchange functions of marketing.
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64. What are the subfunctions of physical distribution? a. Buying, selling, and financing b. Risk taking and market research c. Storing and transporting d. Standardizing and grading
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c. Storing and transporting
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65. The facilitating functions of marketing include: a. securing marketing information and financing. b. buying and selling. c. securing market information and storage. d. risk taking and transporting.
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a. securing marketing information and financing.
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66. The financing function of marketing involves: a. making sufficient quantities of goods available in the marketplace. b. ensuring products meet established quality and quantity standards. c. providing funds to buyers for building inventories prior to sales. d. using advertising, personal selling, and sales promotion to match goods and services to customers.
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c. providing funds to buyers for building inventories prior to sales.
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67. Financing is one of the _____ functions of marketing. a. Exchange b. Distribution c. Decisional d. Facilitating
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d. Facilitating
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68. ACB Ltd. provides credit to dealers, as well as buyers of Alfresco Automobiles. The marketing function performed in this case is: a. financing. b. exchange. c. distribution. d. risk taking.
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a. financing.
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69. When marketers apply quantity control standards, they are: a. engaging in the process of exchange. b. reducing the need for purchasers to inspect each item they purchase. c. determining the amount an individual will be allowed to buy on credit. d. developing channels of distribution for a product.
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b. reducing the need for purchasers to inspect each item they purchase.
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70. William Cutlery Inc. sells its products at its stores and via door-to-door sales. Selling, order taking, delivery, and limited customer service are all conducted by the drivers. Which two marketing functions overlap as a result of the drivers' required responsibilities? a. Facilitation and distribution b. Exchange and facilitating c. Distribution and exchange d. Exchange and financing
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c. Distribution and exchange
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71. Which of the following forms the first half of the exchange process? a. Standardizing b. Buying c. Selling d. Storing
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b. Buying
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72. Which of the following functions of marketing involves advertising? a. Standardizing b. Buying c. Selling d. Storing
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c. Selling
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73. Which of the following is a facilitating function of marketing? a. Buying b. Selling c. Standardization and grading d. Distribution
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c. Standardization and grading
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74. Which function of marketing helps marketers determine what consumers want and need and how to offer goods and services to satisfy them? a. Financing b. Securing market information c. Risk taking d. Standardizing and grading
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b. Securing market information
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75. Manufacturers create goods and services based on research and their belief that consumers need them. In doing so, what marketing function are they performing? a. Financing b. Standardizing and grading c. Risk taking d. Physical distribution
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c. Risk taking
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76. Ethics are: a. beliefs or customs taught by one generation to the next, often orally. b. the social causes promoted by the company. c. established patterns of behavior that can be objectively verified within a particular social setting. d. the moral standards of behavior expected by society.
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d. the moral standards of behavior expected by society.
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77. _____ involves marketing philosophies, policies, procedures, and actions whose primary objective is the enhancement of society. a. Social responsibility b. Customer orientation c. Ethics d. Relationship marketing
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a. Social responsibility
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78. When a firm contributes to environment protection and human welfare programs, which type of behavior is it exhibiting? a. Relationship marketing b. Social responsibility c. Economic neutrality d. One-to-one marketing
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b. Social responsibility
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79. Products that can be produced, used, and disposed of with minimal impact on the environment are called: a. non-renewable products. b. bio-gradable products. c. sustainable products. d. modulated effluents.
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c. sustainable products.
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80. What is the role of marketing in sustainability efforts? a. Firms stand to exploit newer markets that are opened up to them. b. Firms gain credibility from their efforts to protect the environment. c. Firms can expect to save on costs incurred in discarding older, ineffective technology in favor of newer, state-of-the-art technology. d. Firms can increase their profitability by enhancing their carbon-footprint.
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b. Firms gain credibility from their efforts to protect the environment.
