Chapter 1—An Overview of Strategic Marketing
ESSAY
1. Suppose you are a marketing manager at Procter & Gamble for a new, all-purpose cleaning product.
List four marketing mix variables and describe the decisions and activities associated with each.
2. Describe several activities encompassed by the distribution variable.
3. Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange
relationships.
4. What is meant by the term relationship marketing? How does relationship marketing affect the
customer?
5. What are the three ways that marketing environment forces affect a marketer’s ability to create
satisfying exchange relationships?
6. What is meant by the term marketing concept, and what departments of a company does it affect?
7. What does it mean for a company to be marketing-oriented? What are the most important factors
involved in being marketing-oriented?
8. Define the term value, and explain how people determine a product’s value.
9. Why is marketing important to businesses and to the economy?
10. Explain why a knowledge of marketing is beneficial for all students.
11. Define the term target market and provide an example for a product of your choice.
12. Discuss the concept of green marketing and why it is important to marketers.
13. Describe the three different types of products.
14. Discuss the evolution of the marketing concept through the various types of orientation.
MULTIPLE CHOICE
15. Marketing is the process of
a.
promoting products through personal selling and advertising to develop and maintain
favorable relationships with customers and stakeholders.
b.
creating, distributing, promoting, and pricing products to facilitate satisfying exchange
relationships with customers and to develop and maintain favorable relationships with
stakeholders in a dynamic environment.
c.
delivering a standard of living to a society.
d.
creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the
achievement of the firm’s objectives.
e.
focusing on customers’ needs.
16. The focal point of all marketing activities is
a.
products.
b.
the marketing mix.
c.
profits.
d.
sales.
e.
customers.
17. Organizations should define themselves not according to the products they produce but according to
a.
how profitable they are.
b.
the price of their stock.
c.
the abundance of their product selection.
d.
how they treat employees.
e.
how they satisfy customers.
18. The definition of marketing implies that ____ should receive benefits from exchange relationships.
a.
only customers
b.
only businesses
c.
company management
d.
both customers and businesses
e.
only the most important customers
19. The primary value that a marketer expects to receive from a customer in an exchange relationship is
a.
the price charged for the product.
b.
customer satisfaction.
c.
references to other potential customers.
d.
quality merchandise that meets expectations.
e.
few returns of the merchandise purchased.
20. A target market
a.
involves a large number of customers.
b.
is a specific group of customers on whom a company focuses its marketing efforts.
c.
already has several competitors vying for customers’ business.
d.
is the same as a salesperson’s prospective client list.
e.
is a customer group classified as people with similar demographic characteristics.
21. Kashi Heart to HeartTM cereal is aimed at people concerned about their heart health. These people
represent the Kashi
a.
marketing mix.
b.
marketing strategy.
c.
target market.
d.
marketing tactic.
e.
consumer advocates.
22. A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more
“sugary” drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is
aimed at mothers. These mothers represent SunnyD’s
a.
target market.
b.
consumer advocates.
c.
marketing strategy.
d.
marketing mix.
e.
marketing tactic.
23. Distribution, price, promotion, and product are all elements of
a.
marketing strategy.
b.
the marketing mix.
c.
a target market.
d.
a consumer good.
e.
a business strategy.
24. A marketing manager decides what combination of variables is needed to satisfy customers’ needs for
a general type of product. What are the essential variables that the marketing manager combines?
a.
Product, price, distribution, and promotion variables
b.
Marketing environment variables
c.
Product and promotion variables
d.
Product, price, and customer variables
e.
Product, price, customer, and promotion variables
25. The marketing mix is built around the
a.
product.
b.
company.
c.
customer.
d.
employee.
e.
retail outlet.
26. Marketing managers strive to develop a marketing mix that
a.
minimizes marketing costs.
b.
matches what competitors are offering.
c.
best matches the abilities of the firm.
d.
matches the needs of the target market.
e.
generates the highest level sales.
27. The product variable of the marketing mix can include all of the following except
a.
creation of brand names.
b.
consumer perception of the product price.
c.
development of product packaging.
d.
warranty issues.
e.
repair services.
28. The three basic forms that a product can take are
a.
markets, products, and images.
b.
goods, ideas, and intangibles.
c.
brands, services, and tangibles.
d.
services, ideas, and goods.
e.
ideas, services, and things.
29. A physical product you can touch is a(n)
a.
service.
b.
good.
c.
idea.
d.
concept.
e.
philosophy.
30. The application of mechanical and human efforts to either people or objects to provide intangible
benefits to customers is known as a(n)
a.
issue.
b.
experience.
c.
idea.
d.
good.
e.
service.
31. Which of the following companies is the best example of a service marketer?
a.
FedEx
b.
Sony
c.
Abercrombie & Fitch
d.
The Democratic Party
e.
General Electric
32. Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about
driving under the influence of alcohol. MADD primarily markets
a.
goods.
b.
ideas.
c.
services.
d.
political figures.
e.
applications.
33. The Church of the Latter Day Saints has used advertising for many years, airing a commercial TV
spot that shows parents actively playing games with their children. The Church is using marketing to
promote its
a.
goods.
b.
services.
c.
experiences.
d.
production.
e.
ideas.
34. Which of the following is most likely to be an idea marketer?
a.
Car salesperson
b.
Airline pilot
c.
Attorney
d.
Abuse counselor
e.
Orthodontist
35. Deciding to add gel insoles to its running shoes would be a change in the ____ element of the
marketing mix for Nike.
a.
price
b.
good
c.
product
d.
promotion
e.
distribution
36. Making modifications to packaging or brand names involves the ____ component of the marketing
mix.
a.
price
b.
promotion
c.
market
d.
distribution
e.
product
37. Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the
marketing mix.
a.
distribution
b.
product
c.
exchange
d.
price
e.
promotion
38. Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the
Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of
relying on a shipper as he is currently doing. This most closely represents a decision about
a.
which market he should target.
b.
the best way to distribute his products.
c.
how to effectively promote his business.
d.
the product he provides to his customer.
e.
which supplier he should use.
39. Consumers buying products online have dramatically affected the ____ variable of the marketing mix.
a.
product
b.
price
c.
distribution
d.
research
e.
promotion
40. Changing the hours of operation for a service business involves the ____ component of the marketing
mix.
a.
product
b.
price
c.
distribution
d.
promotion
e.
marketing concept
41. Which of the following scenarios involves the distribution element of the marketing mix?
a.
Deciding whether or not a certain product should continue to be sold
b.
Determining whether an advertising message would be more effective on television or in
magazines
c.
Choosing between a company jet or the airlines for executive travel
d.
Deciding whether or not to have retail outlets in addition to a website
e.
Developing a new warranty policy for an existing product
42. The element of the marketing mix used to increase awareness of a product or company is
a.
communication.
b.
product.
c.
price.
d.
distribution.
e.
promotion.
43. When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate
consumers about the product’s benefits. This calls for activity in which of the following marketing mix
variables?
a.
Price
b.
Promotion
c.
Distribution
d.
Product
e.
Packaging
44. Boca Burger’s website features information about products, recipes, and nutritional values, but
customers cannot actually purchase products from the website. This website is most likely used
primarily as a ____ marketing tool.
a.
promotional
b.
distributional
c.
pricing
d.
targeting
e.
production
45. When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if
customers like all of the items, they can purchase them as a bundle. Which of the following aspects of
the marketing mix is Ikea likely altering?
a.
Price
b.
Promotion
c.
Distribution
d.
Product
e.
Target market
46. When DataComp Corp., a producer of software, delayed the introduction of its new spreadsheet app to
modify the package, its scheduled TV advertisements announcing the new product needed to be
revised. In this case, a change in the ____ variable caused changes in the ____ variable of the
marketing mix.
a.
distribution; promotion
b.
distribution; product
c.
product; price
d.
product; promotion
e.
promotion; price
47. Marketing facilitates exchange relationships between buyers and sellers. What is marketing’s intended
outcome for this relationship?
a.
Profits for the seller
b.
A good bargain on the product for the buyer
c.
Reducing the seller’s inventory
d.
One party having to compromise in the exchange
e.
Satisfaction for both the buyer and seller
48. Which of the following statements about marketing environment forces is correct?
a.
They influence customers by affecting their lifestyles, standards of living, and preferences
and needs for products.
b.
They do not influence customers’ reactions to a firm’s marketing mix.
c.
They fluctuate slowly and thereby create threats to a firm’s marketing mix.
d.
They never fluctuate quickly.
e.
They do not influence the way a marketing manager performs certain marketing activities.
49. The forces of the marketing environment include
a.
political, legal and regulatory, sociocultural, technological, economic, and competitive.
b.
sociocultural, legal, regulatory, economic, and competitive.
c.
legal, regulatory, political, and sociocultural.
d.
competitive and noncompetitive forces that affect most lifestyles.
e.
fairly static components.
50. A marketing manager for a small computer manufacturer is analyzing the potential effects of political,
legal, sociocultural, and economic forces on the firm’s operations. The marketing manager is
examining the ____ that influence(s) the firm’s strategy.
a.
operating situation
b.
marketing environment
c.
surroundings
d.
economic conditions
e.
trends
51. Which of the following best characterizes the forces of the marketing environment?
a.
The forces are relatively stable over time and are interrelated with one another.
b.
There are few overlapping aspects of these forces; therefore, a change in one is unlikely to
result in a change in another.
c.
The various forces ensure that the marketing environment will remain fairly certain in the
future.
d.
These forces change dramatically over time, but a change in one force is unlikely to
impact another force.
e.
The forces change dramatically and quickly, and a change in one force is likely to affect
the other forces.
52. A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller
Brewing.
a.
marketing mix
b.
marketing environment
c.
marketing concept
d.
marketing task
e.
product concept
53. StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net
dolphins. This decision indicates a response to concerns about
a.
target market selection.
b.
the marketing environment.
c.
the reduction of marketing costs.
d.
marketing mix decisions.
e.
efficiency in marketing activities.
54. Which of the following is essentially an uncontrollable factor in developing a marketing mix?
a.
Product adaptations
b.
Pricing strategies
c.
Government regulations
d.
Advertising campaigns
e.
Retail locations
55. The forces of the marketing environment primarily affect marketers in three ways: They influence
customers by affecting their lifestyles and preferences for products; they determine whether or how a
marketing manager can perform certain marketing activities; and they
a.
affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the
firm’s marketing mix.
b.
dictate that changes be made to the existing marketing mix despite any negative reactions
from customers.
c.
make most new products obsolete very quickly so that research and development must
continually develop new products.
d.
cause most advertising to be ineffective at communicating product benefits due to rapidly
changing environmental forces.
e.
change a customer’s decisions about the appropriate marketing mix for the company and
its various products.
56. The marketing environment is best described as being
a.
composed of controllable variables.
b.
composed of variables independent of one another.
c.
an indirect influence on the performance of marketing activities.
d.
dynamic and changing.
e.
slow, with infrequent fluctuations.
57. The marketing concept is best defined as
a.
a second definition of marketing.
b.
a philosophy stating that an organization should try to satisfy customers’ needs through a
coordinated set of activities that allows the organization to achieve its goals.
c.
the performance of business activities that direct the flow of goods and services from
producer to customer or user.
d.
a philosophy stating that an organization should attempt to accomplish its goals with no
regard for the needs of customers.
e.
the inclusion of marketing activities in the activities of an organization.
58. According to the marketing concept, an organization should try to
a.
consider short-run objectives and cash flow needs before developing new products.
b.
define its business as “making a product.”
c.
provide products that satisfy customers’ needs and allow the organization to achieve its
goals.
d.
put most of its emphasis on marketing activities and be less concerned with finance,
accounting, and personnel.
e.
view selling activities as the major means of increasing profits.
59. The marketing concept is a management philosophy that affects
a.
only marketing activities.
b.
all efforts of the organization.
c.
mainly the efforts of sales personnel.
d.
mainly customer relations.
e.
only business organizations.
60. The marketing concept focuses on
a.
achieving the goals of top executives.
b.
creating maximum visibility for the firm.
c.
maximizing sales.
d.
maximizing market share.
e.
satisfying customers’ needs in a way that helps to achieve organizational objectives.
61. The marketing concept is a philosophy that states that an organization should try to satisfy customers’
needs and also
a.
increase market share.
b.
increase sales.
c.
achieve the organization’s goals.
d.
produce high-quality products.
e.
coordinate its activities to increase production.
62. Which one of the following statements by a company president best reflects the marketing concept?
a.
We have organized our business to make certain that customers get what they want.
b.
We believe that the marketing department must organize to sell what we produce.
c.
We have organized an aggressive sales force in our company to promote our products.
d.
We try to produce only high–quality, technically efficient products.
e.
We try to encourage company growth.
63. The marketing concept affects
a.
just the marketing department.
b.
all organizational activities.
c.
only marketing and finance.
d.
only production and marketing.
e.
few decisions in an organization.
64. When Campbell’s introduced a line of low-sodium soups in response to customer demand, it was
following which one of the following philosophies?
a.
Selling concept
b.
Production concept
c.
Customer concept
d.
Marketing concept
e.
Retailing concept
65. The H&R Block company wants to adopt the marketing concept as a business philosophy. To be
consistent with this decision, which of the following philosophies is most appropriate?
a.
The customer is always right.
b.
Making money is our business.
c.
Sell, sell, sell.
d.
Keep prices low.
e.
Focus on today.
66. The marketing concept is
a.
a management philosophy.
b.
synonymous with exchange.
c.
a component of the marketing mix.
d.
a function of the marketing environment.
e.
focused solely on satisfying customer objectives.
67. As the Industrial Revolution came to the United States, most firms operated in a(n) ____ orientation.
a.
market
b.
societal
c.
sales
d.
evolutionary
e.
production
68. During the Industrial Revolution demand for manufactured goods was
a.
weak.
b.
nonexistent.
c.
declining.
d.
strong.
e.
mediocre.
69. From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ____
orientation.
a.
production
b.
market
c.
revolutionary
d.
sales
e.
reduction
70. U.S. Electric, the maker of a highly innovative xenon light bulb used in large, manufacturing facilities,
finds that it has excess inventory. The firm increases its direct marketing budget by 20 percent and
adds three new sales representatives. This company is operating as if it were in which of the following
orientations?
a.
Production
b.
Sales
c.
Market
d.
Customer
e.
Societal
71. TMobileTM implements a program of texting its current customers to find out what changes they would
like to see in the services provided. The firm is exhibiting characteristics associated with which of the
following orientations?
a.
Production
b.
Sales
c.
Market
d.
Social
e.
Development
72. A market orientation is an organization-wide effort that includes all of the following activities except
a.
researching customers’ needs.
b.
focusing on the marketing department only.
c.
generating marketing intelligence for use in the organization.
d.
being responsive to customers’ ever-changing wants and needs.
e.
disseminating marketing intelligence across departments within the organization.
73. Which of the following best describes the acceptance of the marketing concept by American
organizations?
a.
The marketing concept has yet to be fully accepted by all organizations.
b.
All organizations fully utilize the marketing concept to run their businesses.
c.
Nearly half of all organizations are still in the sales orientation and have not implemented
the marketing concept.
d.
Most organizations have really not accepted the marketing concept because of its many
costs and problems.
e.
Although American organizations fully accept the marketing concept, many foreign
companies do not.
74. Which of the following is not an example of the implementation of the marketing concept?
a.
Jimmy Dean’s Sausage introduces turkey sausage patties for a healthier alternative to pork.
b.
Ford asks customers to vote online for a new color for next year’s Ford Focus.
c.
Burger King reduces the labor costs to produce its sausage-egg biscuits.
d.
Microsoft offers rewards for users who can find flaws in its new software.
e.
Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in
the event of a serious collision.
75. Health Care Systems, Inc. rolls out an innovative nurse–on-call information system available online.
The product is not widely accepted because patients don’t see the need for such a service. This
situation represents a failure in which aspect of implementing the marketing concept?
a.
An information system to determine customer needs
b.
The organizational structure
c.
Top-management commitment
d.
Technological advancement
e.
Scanning corporate capabilities