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Chapter 01
Test Bank
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 a customer's needs and wants is fundamental to marketing success.
4. As Godiva and Hershey’s battle for chocolate lovers, they divide the population into a host of categories such as luxury versus cost-conscious and
service-oriented versus self-service.
5. The four Ps of the marketing mix include product, promotion, planning, and place.
6. Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers,
manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and
distributed in the right quantities, to the right locations, and at the right time.
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. Marketing advises production about how much of the company's product to make and then tells supply chain mangers when to ship it.
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 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 engaged 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. HappyCow is an example of a location-based social media application.
16. As it relates to marketing, the trade of things of value between the buyer and the seller so that each is better off as a result is known as an exchange.
17. Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.
18. Margo likes her morning coffee, and she always stops at Starbucks because it is on her way to work. Margo is being influenced by the place element
of the marketing mix.
19. To build relationships, firms focus on the lifetime profitability of the relationship, not how much money is made during each transaction.
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 media to market a
product.
24. Approximately half of marketers use social media tools for their businesses.
25. Firms become value driven, in part, by focusing on the competition.
26. When a T-shirt manufacturer states, "We sell it only in black because that way we can buy plenty of black fabric and run our plant efficiently," its
statement reflects the views that were popular in which era of the evolution of marketing?
27. Marketing involves all of the following except
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?
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
30. Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and
31. When referring to "exchange," marketers are focusing on
32. Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to
exchanging her massage therapy service for payment, Valerie is gathering
33. Which of the following is a core aspect of marketing?
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
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.
36. The fundamental goal of marketers when creating goods, services, or combinations of both is to
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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?
38. The basic difference between a good and a service is that a good
39. Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is
40. Marketers must determine the price of a product carefully, based on potential buyers' beliefs about
41. Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes
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
43. Marketing channel management is also known as
44. ___________ represents all the activities necessary to get the product to the right customer when that customer wants it.
45. Not only does GIS technology help Starbucks determine the ideal locations for new stores, but it also can enable the company to decide
46. The marketing goal of getting the "right quantities to the right locations, at the right time" relates to
47. Value-oriented marketers constantly measure
48. Many marketing students initially overlook the importance of marketing channel management because
49. Which element of the marketing mix deals with supply chain management?
50. UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals.
51. __________ is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service so as to influence
52. Effective promotion enhances a product or service's
53. By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to
54. When retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts it is considered _______
marketing.
55. By allowing consumers to sell their unwanted goods to other consumers, auction sites like eBay and Etsy cater to __________ marketing.
56. As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their
existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing.
57. Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These
bulletin boards increase __________ marketing.
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58. The "Milk Life" advertising campaign, designed to increase awareness of the health benefits of milk, was intended to help market a(n)
59. The “onboard, online retail business” refers to
60. The idea that a good product will sell itself is associated with the __________ era of marketing.
61. Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing.
62. Melanie works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing,
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and promoting the company. Her boss is probably stuck in the __________ era of marketing.
63. During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers.
64. The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold.
65. Near the end of the model year, the Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her
advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.
66. Many U.S. companies first discovered marketing during the __________ era.
A. production-oriented
B. sales-oriented
67. Which of the following statements reflects the philosophy of the market-oriented era?
68. Data about how, when, why, where, and what people buy refers to
69. During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
70. Creative locations, such as kiosks at the baggage claim in airports or small booths in grocery stores, represent Starbucks' effort to improve its
offering on which dimension of the marketing mix?
71. Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He
decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era.
72. Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers
want. Serena most likely operates in the __________ era of marketing.
73. In delivering value, marketing firms attempt to find the most desirable balance between
74. Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda
will likely attempt to either provide the same quality at a lower cost or
75. Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned
because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years,
is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on
their suggestions. Peter's approach is based on
76. To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its
graduates regarding students' educational needs and desires. By doing so, Pokrah University is becoming more value driven through
77. As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system.
One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up
to the value-driven activity of
78. In the past, manufacturer's representatives did not have real-time inventory data about the products they were selling. Today, manufacturer's
representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to
become more value driven by
