Marketing Management Topic 1 – Flashcards
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1) Which of the following statements about marketing is true? A) It is of little importance when products are standardized. B) It can help create jobs in the economy by increasing demand for goods and services. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. D) It is more important for bigger organizations than smaller ones. E) It is seldom used by nonprofit organizations.
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B Page Ref: 4 Objective: 1 Difficulty: Easy
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2) ________ is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. A) Marketing management B) Knowledge management C) Operations management D) Strategic management E) Distribution management
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A Page Ref: 5 Objective: 2 Difficulty: Easy
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3) Identify the correct statement about marketing management. A) It is primarily concerned with the systematic gathering, recording, and analysis of data about issues related to marketing products and services. B) It focuses mostly on monitoring the profitability of a company's products and services. C) It focuses solely on attaining an organization's sales goals in an efficient manner. D) It is defined as the field that deals with planning and managing a business at the highest level of corporate hierarchy. E) It occurs when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.
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E Page Ref: 5 Objective: 2 Difficulty: Moderate
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4) A social definition of marketing says ________. A) effective marketing requires companies to remove intermediaries to achieve a closer connection with direct consumers B) a company should focus exclusively on achieving high production efficiency, low costs, and mass distribution to facilitate the broadest possible access to the company's products C) marketing is the process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others D) marketing is the process of extracting the maximum value from consumers to facilitate corporate growth E) marketing is the process of aggressive selling and promotion to encourage the purchase of products that might otherwise be unsought by the consumer
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C Page Ref: 5 Objective: 2 Difficulty: Easy
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11) Janet is very upset that she can't get tickets to the Rolling Stones concert because they are sold out. Which of the following demand states applies to Janet's situation? A) nonexistent demand B) latent demand C) full demand D) unwholesome demand E) overfull demand
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E Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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12) Sales of woollen clothing usually increase during the winter season and decline thereafter. This is an example of ________ demand. A) irregular B) declining C) impulse D) latent E) negative
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A Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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13) Julia is worried about the rising pollution levels in her city. She doesn't mind paying extra for goods and services that use sustainable processes to help control pollution. This is an example of ________ for pollution. A) declining demand B) nonexistent demand C) latent demand D) negative demand E) unwholesome demand
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D Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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14) People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market. A) demographic B) business C) need D) geographic E) service
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C Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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15) When consumers share a strong need that cannot be satisfied by an existing product, it is called ________. A) negative demand B) latent demand C) declining demand D) irregular demand E) nonexistent demand
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B Page Ref: 8 Objective: 2 Difficulty: Moderate
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16) When demand is ________, it implies that more customers would like to buy the product than can be satisfied. A) latent B) irregular C) overfull D) full E) negative
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C Page Ref: 8 Objective: 2 Difficulty: Easy
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17) In the case of ________, consumers dislike the product and may even pay a price to avoid it. A) nonexistent demand B) overfull demand C) irregular demand D) negative demand E) declining demand
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D Page Ref: 8 Objective: 2 Difficulty: Easy
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18) Organizations catering to the ________ need to price their offerings carefully because these markets usually have limited purchasing power. A) business market B) global market C) nonprofit market D) consumer market E) exclusive market
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C Page Ref: 9 Objective: 2 Difficulty: Easy
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19) Which of the following is true of business markets? A) Buyers are usually not skilled at comparing competitive product offerings. B) Buyers have limited purchasing power. C) Property rights, language, culture, and local laws are the most important concerns. D) Products sold in such markets are usually highly standardized. E) Business buyers buy goods to make or resell a product to others at a profit.
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E Page Ref: 9 Objective: 2 Difficulty: Moderate
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29) Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs. A) brand B) value proposition C) deal D) marketing plan E) demand
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B Page Ref: 10 Objective: 3 Difficulty: Moderate
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30) During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called ________. A) target markets B) capital markets C) tertiary markets D) demographic markets E) developing markets
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A Page Ref: 10 Objective: 3 Difficulty: Moderate
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34) If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________. A) service channel B) distribution channel C) communication channel D) relationship channel E) standardized channel
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A Page Ref: 11 Objective: 3 Difficulty: Moderate
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35) The ________ is the channel stretching from raw materials to components to final products that are carried to final buyers. A) communication channel B) distribution channel C) supply chain D) service chain E) marketing chain
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C Page Ref: 11 Objective: 3 Difficulty: Easy
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36) The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________. A) supply chain B) global market C) value proposition D) competition E) marketing environment
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D Page Ref: 11 Objective: 3 Difficulty: Easy
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37) The ________ includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers. A) economic environment B) management environment C) strategic environment D) task environment E) tactical environment
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D Page Ref: 11 Objective: 3 AACSB: Analytic skills Difficulty: Moderate
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38) In an attempt to create greater competition and growth opportunities, countries often ________. A) increase trade barriers B) protect industries C) deregulate industries D) encourage intermediation E) reduce privatization
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C Page Ref: 12 Objective: 4 AACSB: Multicultural diversity Difficulty: Moderate
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39) Rising promotion costs and shrinking profit margins are the result of ________. A) new and improved technology B) disintermediation C) industry convergence D) privatization E) heightened competition
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E Page Ref: 12 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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40) Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries. This is called ________. A) globalization B) customization C) industry convergence D) disintermediation E) privatization
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C Page Ref: 12 Objective: 4 Difficulty: Easy
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41) The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels. A) disintermediation B) diversification C) reduced competition D) deregulation E) privatization
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A Page Ref: 13 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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42) In response to threats from such companies as AOL, Amazon.com, Yahoo!, eBay, E*TRADE, and dozens of others, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This process is known as ________. A) reintermediation B) disintermediation C) retail transformation D) e-collaboration E) new-market synchronization
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A Page Ref: 13 Objective: 4 Difficulty: Moderate
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43) When eBay and Amazon.com cut out the majority of middlemen that normally would participate in the exchange process, it is an example of ________. A) deregulation B) reverse auctioning C) reintermediation D) disintermediation E) diversification
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D Page Ref: 13 Objective: 4 AACSB: Use of IT Difficulty: Moderate
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44) Disintermediation via the Internet has resulted in ________. A) higher prices B) stronger brand loyalty C) greater emphasis on personal selling D) well-established brand names E) greater consumer buying power
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E Page Ref: 13 Objective: 4 AACSB: Use of IT Difficulty: Moderate
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45) Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception. A) It has facilitated high-speed communication among employees. B) It has empowered consumers with easy access to information. C) It can be used as a powerful sales channel. D) It has facilitated mass marketing but not the sale of customized products. E) It enables marketers to use social media to advertise their products.
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D Page Ref: 14-15 Objective: 4 AACSB: Use of IT Difficulty: Easy
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46) The ________ process consists of analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing effort. A) marketing planning B) strategic planning C) market research D) opportunity analysis E) operational management
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A Page Ref: 15 Objective: 4 Difficulty: Moderate
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47) Kotler and Casoline suggested eight factors that marketers must keep in mind in order to deal with risk and uncertainty. Which of the following statements are they most likely to agree with when the environment is uncertain? A) Companies should be prepared to implement ad hoc strategies whenever required. B) Companies should push aggressively for the market share of their competitors. C) Companies should focus less on their core segments, and more on new target markets. D) Companies should not increase marketing budgets in times of uncertainty. E) Companies should focus and improve their marginal brands.
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B Page Ref: 16 Objective: 4 Difficulty: Moderate
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48) What are customer touch points? A) all aspects of the offering that directly affect consumer preferences B) all needs and wants of customers C) all direct or indirect interactions between the customer and the company D) all interactions between customers and competitors E) all factors that affect buying behavior
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C Page Ref: 17 Objective: 4 Difficulty: Moderate
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49) Which of the following holds that consumers prefer products that are widely available and inexpensive? A) the product concept B) the production concept C) the selling concept D) the performance concept E) the marketing concept
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B Page Ref: 18 Objective: 4 Difficulty: Moderate
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50) Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs, and mass distribution. A) selling-oriented B) product-oriented C) production-oriented D) marketing-oriented E) consumer-oriented
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C Page Ref: 18 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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51) The ________ concept holds that consumers will favor offerings with the best quality, performance, or innovative features. A) product B) marketing C) production D) selling E) holistic marketing
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A Page Ref: 18 Objective: 4 Difficulty: Easy
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52) Which of the following categories of goods and services is most likely to require an aggressive use of the selling concept? A) shopping goods B) unsought goods C) necessary goods D) luxury goods E) complementary goods
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B Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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53) As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. SteelMakers has a ________. A) selling orientation B) production orientation C) product orientation D) marketing orientation E) social orientation
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B Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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54) Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace? A) production orientation B) product orientation C) selling orientation D) marketing orientation E) holistic marketing orientation
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B Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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55) Rick Johnson trains his company's sales force to go after the consumer. He repeatedly asks his team to bear in mind the essential fact that it is the sales team's responsibility to rouse the consumer's interest and make him feel that he needs the product. A true salesman is one who can convert an indifferent consumer walking into the store into a new customer. Johnson believes in the ________ concept. A) product B) production C) selling D) marketing E) social responsibility
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C Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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56) Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc., follows the ________ concept in doing business. A) production B) product C) selling D) marketing E) social responsibility
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D Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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57) The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products. A) production B) selling C) marketing D) product E) holistic marketing
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B Page Ref: 18 Objective: 4 Difficulty: Easy
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58) Identify the concept that emerged in the mid-1950s as a customer-centered, sense-and-respond philosophy. A) the product concept B) the production concept C) the selling concept D) the marketing concept E) the holistic marketing concept
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D Page Ref: 18 Objective: 4 Difficulty: Moderate
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59) The marketing concept holds that ________. A) a firm should find the right products for its customers, and not the right customers for its products B) customers who are coaxed into buying a product will most likely buy it again C) a new product will not be successful unless it is priced, distributed, and sold properly D) consumers and businesses, if left alone, won't buy enough of the organization's products E) a better product will by itself lead people to buy it without much effort from the sellers
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A Page Ref: 18 Objective: 4 Difficulty: Moderate
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60) ________ is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. A) Niche marketing B) Holistic marketing C) Relationship marketing D) Supply chain marketing E) Demand-centered marketing
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B Page Ref: 18 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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61) Which of the following is considered as a "sin" in the marketing discipline? A) focusing too much on new opportunities B) targeting a competitor's market share C) prioritizing customer relationships over everything else D) using technology in an inefficient manner E) increasing the marketing budget in times of uncertainty and risk
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D Page Ref: 19 Objective: 4 Difficulty: Moderate
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62) What are the four broad components of holistic marketing? A) relationship, internal, position, and performance marketing B) integrated, internal, position, and performance marketing C) relationship, integrated, internal, and performance marketing D) integrated, relationship, social responsibility, and position marketing E) relationship, social responsibility, internal, and performance marketing
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C Page Ref: 19 Objective: 4 Difficulty: Moderate
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63) ________ marketing aims to build mutually satisfying long-term collaboration with key constituents, such as customers, employees, suppliers, distributors, and other marketing partners, in order to earn and retain their business. A) Integrated B) Demand-based C) Direct D) Relationship E) Internal
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D Page Ref: 20 Objective: 4 Difficulty: Easy
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64) Tracy's is a chain of hair dressing salons for women. They use the television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. Tracy's believes in ________. A) internal marketing B) integrated marketing C) socially responsible marketing D) global marketing E) relationship marketing
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B Page Ref: 20 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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65) The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders. A) brand B) supply chain C) marketing network D) value proposition E) service channel
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C Page Ref: 20 Objective: 4 Difficulty: Moderate
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66) Which of the following is most consistent with the integrated marketing approach? A) A good product will sell itself. B) If left alone, consumers are inclined to purchase only inexpensive products. C) All communication to consumers must deliver a consistent message irrespective of the medium. D) In order to succeed, the main focus should be on having an efficient production process in place. E) Online marketing is less important than traditional marketing efforts.
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C Page Ref: 20-21 Objective: 4 Difficulty: Moderate
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67) Which aspect of holistic marketing motivates employees and ensures that everyone in the organization embraces appropriate marketing principles, especially senior management? A) relationship marketing B) integrated marketing C) internal marketing D) network marketing E) performance marketing
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C Page Ref: 21 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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68) Financial accountability and social responsibility marketing are elements of ________. A) performance marketing B) relationship marketing C) internal marketing D) social marketing E) mass marketing
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A Page Ref: 22 Objective: 4 Difficulty: Moderate
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69) Companies are recognizing that much of their market value comes from ________, particularly their brands, customer base, employees, distributor and supplier relations, and intellectual capital. A) variable assets B) value propositions C) intangible assets D) market offerings E) industry convergence
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C Page Ref: 22 Objective: 4 AACSB: Reflective thinking Difficulty: Easy
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70) Holistic marketing incorporates ________, an understanding of broader concerns in the ethical, environmental, legal, and social context of marketing activities. A) internal marketing B) cultural marketing C) social responsibility marketing D) relationship marketing E) integrated marketing
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C Page Ref: 22 Objective: 4 Difficulty: Easy
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71) The ________ holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-being. A) selling concept B) integrated marketing concept C) social responsibility marketing concept D) production concept E) relationship marketing concept
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C Page Ref: 22 Objective: 4 AACSB: Analytic skills Difficulty: Easy
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72) Joanna owns a chain of fast-food joints. As the chain became more and more successful, she decided to contribute a share of her profits each year to support cancer research. This is an example of ________. A) corporate community involvement B) environmental marketing C) cause-related marketing D) benefit marketing E) responsible marketing
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C Page Ref: 24 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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73) McCarthy classified marketing activities into the four Ps of the marketing mix. These four Ps stand for ________. A) product, positioning, place, and price B) product, production, price, and place C) promotion, place, positioning, and price D) place, promotion, production, and positioning E) product, price, promotion, and place
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E Page Ref: 25 Objective: 4 Difficulty: Easy
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74) Incorporating the holistic view of marketing, the four Ps of the marketing mix can be updated to ________. A) product, positioning, people, and price B) people, processes, place, and promotion C) product, processes, price, and people D) people, processes, programs, and performance E) product, price, promotion, and people
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D Page Ref: 25 Objective: 4 AACSB: Multicultural diversity Difficulty: Moderate
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75) Which of the following reflects the "people" component of the marketing mix? A) the creativity, discipline, and structure brought to marketing management B) the development of new products by the marketers C) the firm's consumer-directed activities D) the right set of processes to guide activities and programs within the firm E) the internal marketing of the firm
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E Page Ref: 25 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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76) Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing? A) programs B) processes C) promotion D) people E) performance
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A Page Ref: 25 Objective: 4 Difficulty: Moderate
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77) At the heart of any marketing program is the firm's ________, its tangible offering to the market. A) strategy B) product C) brand D) value E) people
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B Page Ref: 27 Objective: 5 Difficulty: Easy
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78) ________ activities include those the company undertakes to make the product accessible and available to target customers. A) Line extension B) Segmentation C) Marketing research D) Channel E) New-product development
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D Page Ref: 27 Objective: 5 Difficulty: Moderate
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79) A marketer's only concern is how best to create demand for a new product produced by his company. Improving product design is not his responsibility.
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FALSE Page Ref: 4 Objective: 1 Difficulty: Easy
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80) A short definition of marketing is "meeting needs profitably."
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TRUE Page Ref: 5 Objective: 2 AACSB: Analytic skills Difficulty: Easy
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81) Services constitute the bulk of most countries' production and marketing efforts.
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FALSE Page Ref: 5 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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82) The U.S. economy today consists of a 70-30 services-to-goods mix.
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TRUE Page Ref: 5 Objective: 2 Difficulty: Moderate
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83) Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.
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TRUE Page Ref: 6 Objective: 2 Difficulty: Easy
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84) Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds).
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FALSE Page Ref: 6 Objective: 2 Difficulty: Easy
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85) "Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience.
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FALSE Page Ref: 7 Objective: 2 AACSB: Reflective thinking Difficulty: Moderate
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86) Unwholesome demand occurs when consumers' purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
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FALSE Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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87) When consumers share a strong need that cannot be satisfied by an existing product, they are exhibiting latent demand.
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TRUE Page Ref: 8 Objective: 2 Difficulty: Moderate
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88) Advertising is the most important element in business marketing.
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FALSE Page Ref: 9 Objective: 2 AACSB: Multicultural diversity Difficulty: Moderate
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89) Companies selling their goods to nonprofit organizations often charge a premium over their normal prices because these organizations are largely indifferent to price.
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FALSE Page Ref: 9 Objective: 2 AACSB: Reflective thinking Difficulty: Easy
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90) Shops and stores have a physical existence and as such are examples of marketspace.
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FALSE Page Ref: 9 Objective: 2 AACSB: Use of IT Difficulty: Easy
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91) Wants are basic human requirements, such as food and shelter.
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FALSE Page Ref: 9-10 Objective: 3 Difficulty: Easy
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92) Demands are wants for specific products backed by an ability to pay.
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TRUE Page Ref: 10 Objective: 3 AACSB: Analytic skills Difficulty: Easy
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93) Contrary to popular belief, marketers do not create needs.
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TRUE Page Ref: 10 Objective: 3 Difficulty: Easy
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94) The customer value triad consists of a combination of quality, durability, and price.
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FALSE Page Ref: 10 Objective: 3 AACSB: Analytic skills Difficulty: Moderate
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95) A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, or deliver the physical product or service(s) to the buyer or user.
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TRUE Page Ref: 11 Objective: 3 Difficulty: Easy
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96) The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena.
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FALSE Page Ref: 11 Objective: 3 AACSB: Analytic skills Difficulty: Moderate
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97) Regulation of industries has created greater competition and growth opportunities because the playing field has been leveled.
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FALSE Page Ref: 12 Objective: 4 AACSB: Reflective thinking Difficulty: Easy
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98) Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries.
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TRUE Page Ref: 12 Objective: 4 Difficulty: Easy
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99) The overabundance of information available on the Internet has made it more difficult for consumers to compare product features and prices.
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FALSE Page Ref: 13 Objective: 4 AACSB: Reflective thinking Difficulty: Easy
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100) Companies can facilitate and speed external communication among customers by creating online and off-line "buzz" through brand advocates and user communities.
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TRUE Page Ref: 14 Objective: 4 Difficulty: Moderate
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101) The proliferation of targeted media and communication channels has allowed marketers to become much more aware of their target consumers' preferences and to customize both products and messages for individual consumers.
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TRUE Page Ref: 15 Objective: 4 Difficulty: Easy
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102) The production concept is one of the newest concepts in business.
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FALSE Page Ref: 18 Objective: 4 Difficulty: Easy
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103) The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
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FALSE Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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104) The selling concept holds that consumers will prefer products that are ethical, environmentally responsible, legal, and social in the context of marketing activities and programs.
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FALSE Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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105) The marketing concept stresses on finding the right customers for the company's products.
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FALSE Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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106) The selling concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.
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FALSE Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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107) Relationship marketing aims to build mutually satisfying long-term relationships with key parties.
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TRUE Page Ref: 20 Objective: 4 Difficulty: Easy
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108) Attracting a new customer costs far more than retaining an existing one.
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TRUE Page Ref: 20 Objective: 4 AACSB: Analytic skills Difficulty: Easy
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109) One of the key themes of integrated marketing is that there are very few marketing activities that can effectively communicate and deliver value.
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FALSE Page Ref: 20 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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110) Proponents of holistic marketing consider internal marketing to be as important as marketing to consumers.
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TRUE Page Ref: 21 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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111) Integrated marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
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FALSE Page Ref: 21 Objective: 4 Difficulty: Easy
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112) Performance marketing requires understanding the financial and non-financial returns to business and society from marketing activities and programs.
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TRUE Page Ref: 22 Objective: 4 Difficulty: Easy
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113) Performance marketing involves reviewing metrics assessing market share, customer loss rate, customer satisfaction, and product quality in the evaluation of the effectiveness of marketing activities.
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TRUE Page Ref: 22 Objective: 4 Difficulty: Moderate
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114) The social responsibility marketing concept holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-being.
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TRUE Page Ref: 22 Objective: 4 Difficulty: Easy
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115) Adapting and conducting business practices that protect the environment and human and animal rights is specifically a part of corporate social marketing.
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FALSE Page Ref: 24 Objective: 4 Difficulty: Moderate
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116) Cause-related marketing involves donating a percentage of revenues to a specific cause based on the revenue occurring during the announced period of support.
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TRUE Page Ref: 24 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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117) Making gifts of money, goods, or time to help nonprofit organizations, groups, or individuals is known as corporate philanthropy.
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TRUE Page Ref: 24 Objective: 4 Difficulty: Easy
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118) The marketing-mix component called "people" reflects all the creativity, discipline, and structure brought to marketing management.
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FALSE Page Ref: 25 Objective: 4 Difficulty: Easy
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119) A firm's tangible offering to the market includes product quality, design, features, and packaging.
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TRUE Page Ref: 27 Objective: 5 AACSB: Reflective thinking Difficulty: Easy
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120) Marketing has been described as being both an "art" and a "science." Discuss the differences and similarities between these two marketing thrusts. Provide your theoretical response and a "real-life" example where you have seen both processes work effectively at creating customer value and loyalty.
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The student should demonstrate his or her understanding that the marketer must use data to understand customer needs and translate this understanding into properly designed products and services. This requires application of state-of-the art tools and techniques. It is also an art as marketers try to find creative solutions to consumer needs. Page Ref: 3-4 Objective: 2 AACSB: Reflective thinking Difficulty: Moderate
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121) Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities.
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The types of entities that are marketed are (1) goods—physical goods, (2) services—hotels and car rental services, (3) events—time-based events such as trade shows, (4) experiences—Walt Disney's Magic Kingdom, (5) persons—celebrity marketing, (6) places—cities, states, regions, and even whole nations, (7) properties—intangible rights of ownership of either real property or financial property, (8) organizations—corporate identity, (9) information—information produced and marketed as a product, and (10) ideas—marketing the basic idea of a market offering. Page Ref: 5-7 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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122) Marketers should be skilled in stimulating demand for a company's products. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management. Marketing managers seek to influence the level, timing, and composition of demand to meet the organization's objectives. List and briefly characterize the eight different demand states.
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The eight different demand states are (1) negative demand—consumers dislike the product and may even pay a price to avoid it, (2) nonexistent demand—consumers may be unaware or uninterested in the product, (3) latent demand—consumers may share a strong need that cannot be satisfied by an existing product, (4) declining demand—consumers begin to buy the product less frequently or not at all, (5) irregular demand—consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis, (6) full demand—consumers are adequately buying all products in the market, (7) overfull demand—more consumers would like to buy the product than can be satisfied, and (8) unwholesome demand—consumers may be attracted to products that have undesirable social consequences. Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Easy
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123) Consumers often have many needs that are not readily obvious. Just observing their behavior inside a retail store is not enough to get a true understanding of their "needs." List and briefly describe the five types of needs that most consumers have.
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Suppose a customer wants to buy a car. The five types of customer needs with respect to this example are (1) stated needs—the customer wants an inexpensive car, (2) real needs—the customer wants a car whose operating cost, not its initial price, is low, (3) unstated needs—the customer expects good service from the dealer, (4) delight needs—the customer would like the dealer to include an onboard navigation system, and (5) secret needs—the customer wants to be seen by friends as a savvy consumer. Page Ref: 10 Objective: 3 AACSB: Analytic skills Difficulty: Easy
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124) Distinguish between the concepts of value and satisfaction.
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The offering will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses between different offerings on the basis of his or her perception about which product will deliver the most value. Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service, and price (called the customer-value triad). Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or outcome) in relation to his or her expectations. Page Ref: 10 Objective: 3 AACSB: Reflective thinking Difficulty: Easy
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125) Assume that you have been given the task of assisting a company in designing its marketing planning process. What components should be in such a process?
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The marketing planning process consists of analyzing marketing opportunities, selecting target markets, designing strategies, developing marketing programs, and managing the marketing effort. Page Ref: 15-16 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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126) The competing concepts under which organizations have conducted marketing activities include: the production concept, product concept, selling concept, marketing concept, and holistic marketing concept. Evaluate the advantages and disadvantages of each concept. Which concept do you believe is the most effective? Why?
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Although students will be expected to research each concept, they should conclude the most effective concept is the holistic marketing concept, where companies need to have a more complete, cohesive approach that goes beyond traditional applications of the marketing concept. Page Ref: 17-19 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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127) Define internal marketing and its role in the company. Outline how various departments within the company can demonstrate a customer focus.
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Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Internal marketing must take place on two levels. At one level, the various marketing functions must work together. At the second level, other departments must embrace marketing and a "think customer" attitude. Page Ref: 21-23 Objective: 4 AACSB: Reflective thinking Difficulty: Easy
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128) According to Starbucks Chairman Howard Schultz, "Consumers now commonly engage in a cultural audit of [product and service] providers. People want to know your value and ethics demonstrated by how you treat employees, the community in which you operate." Discuss the concept of social responsibility marketing and how it impacts both companies and consumers.
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The social responsibility marketing concept holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and society's long-term well-being. Many companies actively engaged in corporate social responsibility campaigns to both motivate employees and attract consumers. As goods become more commoditized, and as consumers grow more socially conscious, some companies are adding social responsibility as a way to differentiate themselves from competitors, build consumer preference, and achieve notable sales and profit gains. They believe customers will increasingly look for signs of good corporate citizenship. Page Ref: 22, 24 Objective: 4 AACSB: Ethical understanding and reasoning abilities Difficulty: Moderate
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129) Identify and define the traditional four Ps. Also identify the new four Ps and the reason for developing the new interpretation.
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The traditional four Ps are: Product (product variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns), Price (list price, discounts, allowances, payment period, credit terms), Promotion (sales promotion, advertising, sales force, public relations, direct marketing), and Place (channels, coverage, assortments, locations, inventory, transportation). However, given the breadth, complexity, and richness of marketing, as exemplified by holistic marketing, these 4 Ps are not the whole story anymore. Updating them to reflect the holistic marketing concept, researchers in this field arrived at a more representative set that encompasses modern marketing realities: people, processes, programs, and performance. Page Ref: 25-26 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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130) Discuss the eight demand states with respect to bifocal lenses for glasses.
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Student answers may vary, but a possible answer includes the following: (1) negative demand—many people don't want to admit they need bifocals, (2) nonexistent demand—when bifocal lenses were first introduced, people didn't know they existed, (3) latent demand—before they were introduced, many people thought such a product would be nice, but didn't think it would ever exist, (4) declining demand—this will occur when something better and more convenient is invented, (5) irregular demand—the consumer perceives a need for eye care devices only periodically, possibly when they begin to have trouble with their vision, (6) full demand—the manufacturers of the lenses are making all they possibly can, (7) overfull demand—the manufacturers of the lenses can't make enough and inventories are low, and (8) unwholesome demand—seeking alternatives that can lead to undesirable consequences. Page Ref: 8 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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131) New terms are now being used to describe where marketing is done. Using the automobile market, describe automotive buying behavior for a: (1) marketplace, (2) marketspace, and (3) metamarket.
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Responses to this question should include a reference to the following: (1) marketplace—shopping for an automobile at a dealer, (2) marketspace—shopping for an automobile via the Internet, eBay, or even designing your own car via a manufacturer's Web site, and (3) metamarket—(a cluster of complementary products and services that are closely related in the customer's mind but are spread across a diverse set of industries) that might include insurance companies, the racing industry, the travel industry, the customization industry, etc. Page Ref: 9 Objective: 2 AACSB: Analytic skills Difficulty: Moderate
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132) Ford knows that to reach its target markets three kinds of marketing channels may be used. What are these three marketing channels and how might Ford use each of them?
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The three marketing channels are communication, distribution, and service channels. Ford uses advertising to position its products and convey a certain message to consumers (communication channel). The delivery of cars to end consumers would require a distribution channel, such as a car dealership, and the company can have tie-ups with insurance companies to provide car insurance (service channel). Page Ref: 11 Objective: 3 AACSB: Analytic skills Difficulty: Moderate
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133) The marketplace isn't what it used to be. List and briefly discuss the new behaviors, opportunities, and challenges that await the marketer in the 21st century.
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Responses to this question should include: (1) changing technology, (2) globalization, (3) deregulation, (4) privatization, (5) customer resistance, (6) heightened competition, (7) industry convergence, (8) retail transformation, (9) disintermediation, (10) network information technology, (11) consumer buying power, (12) consumer information, (13) consumer participation, and (14) consumer resistance. Page Ref: 12-13 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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134) Discuss the concept of disintermediation and provide an example.
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Disintermediation grew out of the rush to embrace the dot-coms and e-commerce. Essentially, the dot-coms removed many of the traditional intermediaries by encouraging consumers to deal directly with the company via the Internet. "Brick-and-click" businesses eventually brought some of the intermediaries back through a process called reintermediation. Page Ref: 13 Objective: 4 AACSB: Use of IT Difficulty: Easy
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135) The digital revolution has placed a whole new set of capabilities in the hands of consumers and businesses. Describe the advantages that you as a consumer have today that your parents or grandparents didn't have.
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Responses to this question should include: (1) a substantial increase in buying power, (2) a greater variety of available goods and services, (3) a great amount of information about practically anything, (4) greater ease in interacting and placing and receiving orders, and (5) an increased ability to compare products and services. Page Ref: 14-15 Objective: 4 AACSB: Analytic skills Difficulty: Easy
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136) The Internet has given today's companies a new set of capabilities. Among those capabilities is the ability to operate a new information channel. Describe how information can be used by the marketer in this new channel.
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Companies can operate a powerful new information and sales channel, the Internet, with augmented geographical reach to inform and promote their businesses and products worldwide. By establishing one or more Web sites, a company can list its products and services, its history, its business philosophy, its job opportunities, and other information of interest to visitors. This provides consumers with a direct access to the company. Almost all Web sites include a "contact us" section that enables consumers to put forth their queries and interact with the company directly. This in turn allows marketers to be aware of people's opinions and preferences. Page Ref: 14-15 Objective: 4 AACSB: Analytic skills Difficulty: Easy
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137) Discuss how companies can use the Internet to build their brands. Give an example of a company that has done so.
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Online marketing activities can be used to build brands by increasing consumer exposure to the brand and creating an interactive experience between the customer and the brand, giving consumers access not only to company-created information but also consumer-generated content. For example, Carnival Connections, an online cruise-booking site, made it easy for cruise fans to compare notes on cruise destinations and onboard entertainment. Page Ref: 14-15 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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138) Arthur Jones has decided to start a business. He wants to manufacture lawn mowers and believes in the production concept. If this approach is taken, what will be Mr. Jones' primary areas of concentration as he builds his business?
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This orientation holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on high production efficiency, low costs, and mass distribution. Jones will also want an efficient production process in place. This approach is also used when a company wants to expand the market. Students may use these facts as they design their answer. Page Ref: 18 Objective: 4 AACSB: Analytic skills Difficulty: Easy
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139) Increasingly, a key goal of marketing is to develop deep, enduring relationships with all entities that directly or indirectly affect the success of the firm. Discuss the merits of relationship marketing. From your experience as a consumer, describe the relationship marketing efforts undertaken by a company of your choice.
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Students should understand that the relationship between any supplier and customer is not just in the mechanics of the transaction, but more importantly how the customer is treated during the transaction. The better the relationship, the more the likelihood of the customer remaining loyal. They should pick a company that has served them well and made them feel special each and every time. Page Ref: 20 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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140) What would be the marketing network elements for a motorcycle company such as Harley-Davidson?
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A marketing network consists of the company and its supporting stakeholders. These stakeholders for Harley-Davidson are its customers, employees, suppliers, distributors, retailers, repair services, ad agencies, lobby groups, and motorcycle support clubs. The operating principle is simple: Build an effective network of relationships with key stakeholders, and profits will follow. Page Ref: 20 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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141) Your firm is in the process of moving from focusing on a financial scorecard as the basis for running and evaluating the organization to a marketing scorecard approach. What is a marketing scorecard approach and what might be some of its components?
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Top management is going beyond sales revenue alone to examine the marketing scorecard. Today, the shift to the marketing scorecard attempts to interpret what is happening to market share, customer loss rate, customer satisfaction, product quality, and other measures. Managers know changes in marketing indicators predict changes in financial results. Page Ref: 22 Objective: 4 AACSB: Reflective thinking Difficulty: Moderate
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142) William Burns owns an extremely profitable sea-side resort. In order to increase his resort's brand value, Burns is considering cause-marketing. Give a few examples of how he may achieve this goal.
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Cause marketing is promoting social issues through efforts such as sponsorships, licensing agreements, and advertising. The hotel can sponsor events addressing social issues. As it is a sea-side resort, it can support and sponger efforts to protect marine life, preserve the natural environment, and prevent water pollution. (Answers can vary.) Page Ref: 24 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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143) You have been given the assignment of justifying cause-related marketing to your board of directors. What would be your primary argument in favor of such a proposal?
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Companies see cause-related marketing as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase press coverage. They believe customers will increasingly look for signs of good corporate citizenship that go beyond supplying rational and emotional benefits. This should be the main line of argument in support of any cause-related marketing effort. Page Ref: 24 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
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144) Linda Evans has been given the task of developing the product element of her company's marketing mix. List the components that will likely be included in this element of the marketing mix.
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Product variety, quality, design, features, brand name, packaging, sizes, services, warranties, and returns are the key elements of the product portion of the marketing mix. Page Ref: 25 Objective: 4 AACSB: Analytic skills Difficulty: Moderate
