An Overview of Marketing Chapters 1-2 Answer Key

An Overview of Marketing MULTIPLE CHOICE 1. The term marketing refers to: a. new product concepts and improvements b. selling c. advertising and promotion activities d. a philosophy that stresses customer satisfaction e. planning sales campaigns ANS: D 2. A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of: a. a control system b. marketing c. accounting d. production e. human resources ANS: B This description contains three of the four main activities included in the marketing function. Many students may mistakenly believe that marketing is only concerned with promotion. 3. _____ is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. a. Planning strategy b. Customer management c. Marketing d. A control system e. Reciprocity ANS: C 4. The American Marketing Association's definition of marketing: a. is limited to promotional activities b. focuses on the value of empowerment, teamwork, and customer value c. shows how marketing benefits the marketer d. relies on the synergy created by exchange e. includes the processes marketers use to establish and maintain relationships with customers EXAM 1 POOL ITEMS ANS: E According to the American Marketing Association, marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. 5. _____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in order to receive something that they would rather have. a. Exchange b. Synergy c. Transformation d. Leveraging e. Reciprocity ANS: A 6. In order for exchange to occur: a. a complex societal system must be involved b. organized marketing activities must also take place c. a profit-oriented organization must be involved in the process d. money or other legal tender is required e. each party must have something the other party considers to be valuable ANS: E Exchange involves the trade of items of value, but does not necessarily involve formal organizations, profit, or money/legal tender. 9. For an exchange to take place: a. there must be at least two parties involved b. money must be used in the transaction c. each party must feel obligated to accept the offer d. at least one party must have something of value that the other party desires e. neither party must communicate with the other ANS: A 10. Indonesian logging companies harvest the rainforests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation. a. exchange b. product c. production d. sales e. environmental ANS: C The logging companies do not focus on the needs and desires of the marketplace. EXAM 1 POOL ITEMS 11. The concept of exchange is important to marketing because: a. if all the conditions for an exchange are in place, then the exchange will be completed b. exchange provides money to marketers c. marketing activities help to create exchange d. marketing activities are a requirement for exchange to take place e. money is the only medium of exchange for business marketers ANS: C Marketing activities help the exchange to take place, but marketing can occur without an exchange. 14. Which of the following is NOT a marketing management philosophy? a. sales orientation b. societal marketing orientation c. market orientation d. profitability orientation e. production orientation ANS: D 15. Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace. a. sales b. production c. market d. customer e. customer-benefit ANS: B 16. A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation. a. marketplace b. sales c. market d. exchange e. production ANS: E 19. A firm with a production orientation is most likely to survive if: a. there are many small competitors in the marketplace EXAM 1 POOL ITEMS b. c. d. e. demand for the product it produces exceeds supply the needs of the marketplace are constantly shifting supply for the product it produces exceeds demand any of the above conditions exist ANS: B The production orientation can survive in the short term under a variety of conditions; however, if market needs change, long-term survival is difficult. 20. A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace. a. customer b. exchange c. product d. market e. production ANS: E The production orientation forces a company to build whatever it builds best, that is, whatever it has the experience and expertise in doing. 22. The _____ orientation assumes people will buy more if aggressive selling techniques are used. a. market b. sales c. customer d. production e. exchange ANS: B The sales orientation assumes aggressive selling is what is needed to increase demand. 23. A _____ orientation assumes marketing means selling things and collecting money. It also assumes people will buy more goods and services if aggressive marketing techniques are used. a. sales b. production c. market d. customer e. marketplace ANS: A EXAM 1 POOL ITEMS 25. If a company uses a sales orientation, consumer complaints would most likely result in: a. a modification of the sales presentation b. product reinvention c. continuous market research d. philanthropy e. attempts to cut production costs ANS: A The sales orientation relies on aggressive sales techniques to fuel business. 29. Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that: a. price is the most important variable for customers b. sales depend predominantly on an aggressive sales force c. what the customer thinks he or she is buying is what is important d. a company has to apply scientific management techniques to survive e. selling and marketing are essentially the same thing ANS: C The perceived product and perceived value are what the customer is buying, and the marketing concept and market orientation have endeavored to understand those perceptions. 30. A company that has a market orientation and adheres to the marketing concept does NOT: a. integrate all the activities of the firm to satisfy customer wants b. focus on consumer needs and wants c. differentiate the firm's products from its competitor's products d. fuel sales growth through the application of aggressive sales techniques e. concentrate on long-term goal achievement (such as profits and growth) for the firm ANS: D Aggressive sales techniques are part of the sales orientation and are not needed if a company is meeting needs and wants of its customers. 31. The statement, "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation. a. production b. market c. retail d. sales e. enterprise ANS: B Understanding the competitive arena and competitors' strengths and weaknesses is a critical component of market orientation. EXAM 1 POOL ITEMS 36. The marketing concept involves: a. focusing on customers' wants so that the organization can distinguish its product (or products) from the competitors' products b. satisfying management's needs and wants with the idea of maximizing profits in the short run c. selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are used d. selling as much as possible under the assumption consumers will buy more at lower prices e. focusing on production in order to increase product quality and lower prices ANS: A 37. The marketing concept includes a goal orientation to remind managers that: a. achieving long-term organizational goals is as important as satisfying customers b. customers must be satisfied no matter what the long-term effect on the firm c. the only reason for any business to exist is to make a profit d. the objective is to find a target market that differs from that of the competition e. functional integration of all departments is useful but not essential ANS: A The goal orientation refers to the company's goals, such as profit, growth, service, and survival. 38. The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while: a. producing a good or service at the lowest possible cost b. improving the general standard of living c. constantly increasing sales volumes d. applying scientific management techniques to improve efficiency e. simultaneously meeting organization objectives ANS: E The marketing concept holds that the needs and wants of both the customer and the firm be served. 40. An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's longterm best interests. a. sales orientation b. market orientation c. ethical business mission EXAM 1 POOL ITEMS d. focused target market strategy e. societal orientation ANS: E 45. Which of the following statements about the societal orientation is true? a. Companies that protect the environment by using all-natural materials in their products are showing a societal marketing orientation. b. Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers. c. The societal marketing concept is an important refinement of the market concept. d. Organizations have both a social and economic justification for their existence. e. All of these statements about the societal orientation are true. ANS: E 48. Organizations that sell products that are often unsought (such as life insurance and retirement plans) may find themselves adopting a _____ orientation because the companies are marketing products that most people do not want. a. sales b. production c. marketing d. product e. customer ANS: A Aggressive selling is sometimes used by companies that sell products their customers do not want to buy. 57. _____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management. a. Management-employee synergy b. Organizational entropy c. Managerial reciprocity d. Empowerment e. Delegation ANS: D 58. Market-oriented firms primarily focus their efforts upon: a. improving the technological skills and competitive advantages of the firm b. satisfying the organization's needs for low overhead c. achieving the company’s societal responsibilities inexpensively d. distributing goods and services e. satisfying the wants and needs of their customers EXAM 1 POOL ITEMS ANS: E Market-oriented firms are focused outward toward their customers. 59. Which of the following statements about a typical sales-oriented business is true? a. The company develops its products to meet the needs of specific groups of people. b. The primary goal of the company is profit through customer satisfaction. c. The company invests the majority of its resources in promoting its products and services. d. The company is in business to satisfy customers' wants and needs and deliver superior value. e. All of these statements about a typical sales-oriented business are true. ANS: C See Review Learning Outcome 3. 60. _____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits. a. Opportunity cost b. Marketing utility c. Market quality d. Satisfaction percentage e. Customer value ANS: E 61. Marketers interested in offering customer value can: a. offer products that perform b. give the consumer facts c. offer organization-wide commitment to service and after-the-sale support d. avoid unrealistic pricing e. do all of these ANS: E 64. When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created. a. a value line b. a quality rift c. planning excellence d. customer satisfaction e. expectation satisfaction ANS: D EXAM 1 POOL ITEMS 66. _____ is a strategy that entails forging long-term partnerships with customers. a. Commitment selling b. Relationship marketing c. Transactional marketing d. Market engineering e. Organization-customer synergy ANS: B 71. Which of the following measures would be the best indicator of whether your organization's personnel have a customer orientation? a. Ask each employee's boss if that person is customer-oriented. b. Assess each employee's impact on the profitability of the firm. c. Survey customers on how oriented the organization's personnel are to customer needs and desires. d. Assess how well each employee has contributed to the marketing success of the firm by examining every financial statement created by the organization. e. Test employees on their knowledge of customer service techniques. ANS: C The key to assessing how customer-oriented a firm's personnel are is to ask the customer. Only the customer can provide this type of information. 73. Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as: a. training b. deregulation c. empowerment d. commissioning e. mediating ANS: C 76. _____ is the collaborative efforts of people to achieve common objectives. a. Effort training b. Teamwork c. Empowerment d. OJT training e. Mediation ANS: B