Deck 1: Marketing: the Art and Science of Satisfying Customers

Question 1

Information technologies give organizations fast new ways to interact and develop long-term relationships with their customers and suppliers.

Answer 1

True

Question 2

Electronic commerce and computer technologies have created unprecedented opportunities in business today.

Answer 2

True

Question 3

The marketing era is the successive historical outcome of the production era.

Answer 3

False

Question 4

In the sales era,firms attempted to match their output to the potential number of customers who would want it.

Question 5

Programs that improve customer service inside a company raise productivity and staff morale,resulting in better customer relationships outside the firm.

Question 6

It can be said that Glen Inc.,a woolen products manufacturing company based in Switzerland,is a firm that uses a market-driven strategy because it produces goods based on local customers' experiences,needs,and preferences.

Question 7

Buzz marketing excludes visual aspects as it does not consist of a tangible expression of an issue or position.

Question 8

Interactive marketing allows marketers and consumers to customize their communication.

Question 9

A strategic alliance is defined as a partnership between a for-profit business and a not-for-profit organization.

Question 10

Compared to transaction marketing,relationship marketing relies more heavily on information technologies.

Question 11

Marketing myopia occurs when management fails to recognize the scope of its business.

Question 12

Buying an iPod generates ownership utility; however,buying a concert ticket does not.

Question 13

The marketing concept focuses on the objective of achieving short-term profits instead of long-run success during tough economic times.

Question 14

Within a business environment,the marketing function is responsible for the creation of time,place,and ownership utility,whereas the production function creates form utility.

Question 15

The relationship era builds on the marketing era's customer orientation by only focusing on maintaining relationships with customers.

Question 16

Mobile marketing is a term used to describe marketing messages sent via wireless technology.

Question 17

Product development partnerships and vertical alliances are two examples of strategic alliances.

Question 18

Manufacturers engage in risk taking when they create goods and services based on research and their belief that consumers need them.

Question 19

The financial bottom line refers to the limitations laid on the budgets of a firm.

Question 20

While many firms claim to have adopted the marketing concept,there is little evidence that a strong market orientation contributes to market success and overall performance.

Question 21

According to relationship marketing,firms must apply higher standards of customer satisfaction to external customer relationships over intradepartmental relationships.

Question 22

Branches of the U.S.military sometimes show recruitment advertisements in cinemas featuring movies that are most likely to attract viewers of military age.This is an example of place marketing.

Question 23

Firms that make the most efficient use of buzz marketing claim that it is a "one-way" approach to building customer relationships.

Question 24

The private sector has an even greater array of not-for-profit organizations than the public sector.

Question 25

Virtually all colleges and universities have alumni associations that publish magazines,hold reunions,and try to raise funds.These activities constitute organization marketing.

Question 26

The advent of a strong buyer's market created the need for consumer orientation by businesses.

Question 27

Not-for-profit organizations are generally less concerned with the bottom line than for-profit organizations.

Question 28

In the past,firms have viewed their suppliers as adversaries against whom they must fiercely negotiate prices,playing one off against the other.

Question 29

Marketing is the organizational function that refers to all forms of selling from institutional sales to personal selling.

Question 30

According to relationship marketing,the lifetime value of a customer should exceed the investment made by the firm to attract and keep the customer.

Question 31

Form utility refers to conversion of raw materials and components into finished goods and services.

Question 32

Information technology has enhanced the effectiveness of relationship marketing by leveraging mass-marketing campaigns.

Question 33

Wesley Pvt.Ltd.,can avoid marketing myopia by finding innovative ways to reach new markets with existing goods and services.

Question 34

Promotional events designed to attract visitors to a particular area or to improve the image of a city,state,or nation would be examples of event marketing.

Question 35

An important difference between not-for-profit and for-profit organizations is that,not-for-profit organizations cannot market tangible goods.

Question 36

Social responsibility includes marketing philosophies,policies,procedures,and actions whose primary objective is to enhance society and protect the environment through sustainable products and practices.

Question 37

The establishment of the WTO,the passage of NAFTA,and the creation of the Euro are examples of protectionism on the part of nations concerned with increased globalization of the marketplace.

Question 38

Relationship marketing tries to rebuild damaged relationships and rejuvenate unprofitable customers.

Question 39

ARC Inc.,a waste management company,expands its scope of business to recycle liquids that can be turned into fuel-grade ethanol,demonstrating the socially responsible approach of the company.

Question 40

On average,marketing expenses account for half of the costs involved in a product.

Question 41

The main goal of not-for-profit organizations is to generate revenues above and beyond their costs to make money for all stakeholders involved.

Question 42

An auto manufacturer creates ownership utility for its consumers by combining metal,rubber,plastic and petroleum products.

Question 43

An exchange process is an activity in which two or more parties give something of value to each other to satisfy perceived needs.

Question 44

Not-for-profit organizations have numerous organizational objectives other than profitability due to their diversity.

Question 45

Company A provides a component to Company B,which then sells it under its own brand.This is an example of a vertical alliance.

Question 46

Sustainable products are products that can be produced,used,and disposed of with minimal impact on the environment.

Question 47

Marketing of a product begins after it hits the shelf.

Question 48

Intermediaries that operate between producers and resellers are known as wholesalers.

Question 49

Marketing of sporting,cultural,and recreational activities to selected target markets is known as cause marketing.

Question 50

On account of their unselfish goals of serving society,not-for-profit organizations are not required to have marketing objectives.

Question 51

The physical distribution functions of marketing are related to advertising,personal selling,and sales promotion in the attempt to match products and services to consumer needs.

Question 52

Not-for-profit organizations face complex decision-making issues about the correct markets to target as they often must market to multiple publics.

Question 53

The cost of finding new customers is far less than the cost of maintaining existing ones.

Question 54

A theater group promoting a performance to raise funds in the fight against cancer is an example of both cause marketing and event marketing.

Question 55

Interactive marketing refers to buyer-seller communication in which the customer controls the amount and type of information received from a marketer.

Question 56

Production and marketing of goods and services are two basic functions that create utility.

Question 57

A seller's market is one in which there are more goods and services than people willing to buy them.

Question 58

The marketing era is defined by a shift in focus from products and sales to satisfying a consumer's needs.

Question 59

Product-oriented rather than customer-oriented management endangers the future growth of an organization.

Question 60

For-profit organizations tend to focus more on their customers than not-for-profits do.

Question 61

Relationship marketing moves customers up a loyalty ladder-from new customers to regular purchasers,then to loyal supporters of the firm and its goods and services,and finally to advocates who not only buy its products but recommend them to others.

Question 62

Interactive promotions put customers in control because they can gain immediate access to key product information when they want it.

Question 63

Buying,selling,transporting,and storing are known as the facilitating functions of marketing because they represent the exchange and physical distribution functions.

Question 64

In relationship marketing,employees serve customers within an organization as well as outside it.

Question 65

Firms that narrowly define their organizational goals can avoid the problem of marketing myopia.

Question 66

The most obvious distinction between not-for-profit organizations and for-profit firms is the focus on generating revenues above and beyond the costs.

Question 67

Marketing is the indirect connection between a firm and its customers.

Question 68

Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the quality of products.

Question 69

Noel Pvt.Ltd.combines metal,rubber,and other components in the production of appliances.In doing so the company creates _____ utility.

A)ownership
B)form
C)place
D)time

Question 70

A firm with a fully developed marketing concept is one with a company-wide consumer orientation with the objective of achieving long-term success.

Question 71

Relationship building in marketing starts with excellent customer service after purchase.

Question 72

Celebrities use person marketing as a way to increase their value in the marketplace.
Indicate the answer choice that best completes the statement or answers the question.

Question 73

The emergence of the marketing concept can be linked to the shift from a seller's market to a buyer's market.

Question 74

The expanded concept of marketing activities permeates all functions in businesses and not-for-profit organizations.​

Question 75

An organization creates a customer through a three-step approach: identifying needs in the marketplace,finding out which needs the organization can profitably serve,and developing goods and services to convert potential buyers into customers.

Question 76

The limitation of a strategic alliance is that it eliminates competitive advantage.

Question 77

The functions of marketing can be grouped into three major categories: exchange functions,physical distribution functions,and financing functions.

Question 78

The traditional view of marketing can be described as transaction-based marketing.

Question 79

Owen buys a car for himself.Owen has created ownership utility.

Question 80

A service user of a not-for-profit organization has more control over the organization's destiny than customers of a profit-seeking firm.