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M: Marketing, 6e (Grewal)
Chapter 1 Overview Of Marketing
1) Marketing is an activity that only large firms with specialized departments can execute.
2) The marketing plan is broken down into various components—how the product or service will
be conceived or designed, how much it should cost, where and how it will be promoted, and how
it will get to the consumer.
3) Understanding the marketplace and especially a consumer's needs and wants, is fundamental
to marketing success.
4) In their battle for chocolate lovers, Godiva and Hershey's must divide the population into
different categories of consumers, for example, luxury versus cost-conscious, those looking for a
quick energy boost versus those looking for a gift for a loved one.
5) The four Ps of the marketing mix are product, promotion, planning, and place.
6) Without a strong and efficient marketing channel system, merchandise isn't available when
customers want it.
7) Value is what you get for what you give.
8) In value cocreation, the customer participates in the creation of a good or service, which
provides additional value to the customer.
9) Communicating value to customers is the primary function of marketing.
10) Entrepreneurs are people who organize, operate, and assume the risk of a business venture.
11) When a manufacturer sells truck and car parts to Toyota, this is an example of B2C
marketing.
12) The power adapters that Dell sells with its computers are built by small companies that
specialize in power-related accessories. When Dell purchases its power adapters from these
small companies, it is engaging in B2B marketing.
13) Garage sales and online classified ads are examples of C2C marketing.
14) Key to the success of many entrepreneurs is that they launch ventures that aim to satisfy
unfilled needs.
15) Marketing is important because without it, it would be difficult for any of us to learn about
new products and services.
16) In marketing, an exchange is when the buyer and the seller trade things of value to benefit
the other.
17) Marketing's fundamental purpose is to create value by developing a variety of offerings that
will earn income for the company.
18) Margo always stops at Starbucks for her morning coffee. Not only is there a Starbucks
Drive-Thru on her way to work, there is also a small kiosk in the lobby of her office building.
Starbucks is using the place element of the marketing mix to influence its customers.
19) When Apple makes innovations compatible with its existing products, it is encouraging
consumers to maintain long-term relationships with the company.
20) Firms have come to realize that good corporate citizenship through socially responsible
actions should be a priority because it will help their bottom line in the long run.
21) Effectively managing supply chain relationships has a minimal effect on profitability.
22) A group of firms that make and deliver a given set of goods and services is known as a
distribution network.
23) Buffalo Wild Wings suggests that its diners check in to its locations using their phones. This
demonstrates the use of social and mobile media to connect better with their customers.
24) Approximately half of marketers use social media tools for their businesses.
25) Firms become value driven, in part, by sharing information about their customers and
competitors across their own organization and other firms.
26) When a T-shirt manufacturer states, "Customers can have any color T-shirt they want, so
long as it's black," it is reflecting a view that was popular in which era of the marketing
evolution?
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) economics-oriented
27) The core aspects of marketing include all of the following except
A) conducting exchanges.
B) satisfying customer needs and wants.
C) creating value.
D) product, price, place, and promotion decisions.
E) production scheduling.
28) Jami sells construction equipment. Whenever she calls on her building contractor customers,
she asks if they are having any problems. In doing so, Jami is addressing which of the following
core aspects of marketing?
A) satisfying customer needs and wants
B) completing the exchange function of marketing
C) making product, place, promotion, and price decisions
D) making decisions about the setting in which marketing takes place
E) creating value
29) Julia is considering a career in marketing. She is concerned about the image of marketers as
fast-talking, high-pressure people who care only about making a sale. When reading about the
core aspects of marketing, Julia is relieved to see that in marketing
A) understanding consumer needs and wants is fundamental.
B) promotion is the most important consideration, followed by pricing decisions.
C) value creation is driven by corporate interests.
D) customers are not considered until the product is ready for sale.
E) distribution is controlled by customers.
30) Xavier must determine the price of his products carefully on the basis of the potential buyer's
interest in his products and
A) a thorough knowledge of his brand messages.
B) the buyer's belief about the products' value.
C) knowledge of competing products.
D) ability to negotiate discounts.
E) susceptibility to traditional marketing alternatives.
31) For marketers, "exchange," refers to
A) the location where products and services are traded.
B) the price charged, adjusted for currency exchange rates.
C) location-based tactics for creating value.
D) promotional offers designed to stimulate barter.
E) the trading of things of value.
32) Valerie is an organizational expert. Whenever she works with a new client, she always
invites the client to join her e-mail distribution list. In this exchange, the client's e-mail address
represents
A) information.
B) promotional capital.
C) pricing data.
D) value cocreation.
E) feedback.
33) Which of the following is a core aspect of marketing?
A) satisfying as many needs as possible
B) creating a product that everyone will want to buy
C) setting prices lower than all competitors
D) making product, place, promotion, and price decisions
E) increasing the company's profit
34) Marketing has traditionally been divided into a set of four interrelated decisions known as
the marketing mix, or four Ps, including all of the following except
A) product.
B) place.
C) performance.
D) promotion.
E) price.
35) The four Ps make up the marketing mix, which is the ________ set of decisions or activities
that the firm uses to respond to the wants of its target markets.
A) unpredictable
B) external
C) internal
D) controllable
E) global
36) The fundamental goal of marketers when creating goods, services, or combinations of both is
to
A) defeat the competition.
B) serve all consumers.
C) operate according to government regulations.
D) stimulate short-term sales.
E) create value.
37) Brian is struggling with the choice of publishing his new book, How to Cook Polish
Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect?
A) developing a promotional plan
B) managing the exchange function of marketing
C) making a product decision
D) deciding where and how to sell the product
E) pricing the product
38) The basic difference between a good and a service is that a good
A) provides intangible benefits.
B) can be physically touched.
C) is always less expensive than a corresponding service.
D) generates greater interest among consumers.
E) is more quickly forgotten by consumers.
39) Four Winds Art Gallery, known for selling paintings, recently began offering appraisals of
customers' art collections. Four Winds is
A) shifting its focus from offering just services to also offering goods.
B) implementing a market segmentation strategy.
C) capturing value through multiple pricing strategies.
D) expanding from offering just goods to also offering services.
E) increasing customer value through inflated appraisal evaluations.
40) Marketers must determine the price of a product carefully on the basis of the potential
buyer's beliefs about
A) its value.
B) the environment.
C) the cost to manufacture the product.
D) the economic outlook.
E) the product's new advertising campaign.
41) Some discount stores place products in large bins, inviting consumers to spend time hunting
through them to find a bargain. The price these consumers pay includes
A) only the actual price they pay at the register.
B) the value of their time and energy.
C) the excitement they experience in finding an item they desire.
D) the savings to the store of not having to display the products neatly on shelves.
E) the time the product was full price and didn't sell.
42) Henriette offers financial counseling and management on a fee-only basis. She has found that
different customers are willing to pay different rates for her services. This shows that her pricing
decisions should depend primarily on
A) choosing an average price that she will charge all her clients.
B) changes in technology allowing consumers to manage their own affairs.
C) how different customers perceive the value of her services.
D) changes in the economy.
E) how much her competitors charge for similar services.
43) Marketing channel management is also known as
A) endless chain marketing.
B) a transactional orientation.
C) wholesaling.
D) production management.
E) supply chain management.
44) ________ represents all the activities necessary to get the product to the right customer when
that customer wants it.
A) Place
B) Promotion
C) Social media
D) Value cocreation
E) Supply chain marketing
45) Not only does GIS technology help Starbucks determine the ideal locations for new stores,
but it also enables the company to decide which kinds of stores to open. This represents what
type of marketing mix decision?
A) product
B) place
C) price
D) promotion
E) process
46) The marketing goal of getting the "right quantities to the right locations, at the right time"
relates to
A) communicating the value proposition.
B) managing the supply chain.
C) performing service marketing.
D) capturing value.
E) managing price and performance.
47) Value-oriented marketers constantly measure
A) promotional effectiveness against ethical advertising standards.
B) the problem of price maximization against cost-efficiency.
C) perceived customer benefits against the costs of their offerings.
D) the desire to achieve against the need for a stable source of supply.
E) the goal of efficiency against the price charged by competitors.
48) Many marketing students initially overlook the importance of marketing channel
management because
A) marketing has no responsibility for supply chain management.
B) marketing channel management doesn't add much value for customers.
C) companies do not want customers to know anything about the supply chain.
D) many of these activities take place behind the scenes.
E) marketing channel management is already transparent.
