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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

Marketing of a product begins after it hits the shelf.

Question 9

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

Question 10

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 11

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

Question 12

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 13

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

Question 14

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

Question 15

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 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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 24

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

Question 25

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

Question 26

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 27

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

Question 28

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

Question 29

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

Question 30

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 31

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

Question 32

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 33

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

Question 34

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

Question 35

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 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

Celebrities use person marketing as a way to increase their value in the marketplace.

Question 42

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

Question 43

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

Question 44

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

Question 45

Interactive marketing allows marketers and consumers to customize their communication.

Question 46

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 47

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

Question 48

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

Question 49

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

Question 50

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 51

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

Question 52

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

Question 53

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

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

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 56

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 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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 65

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

Question 66

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

Question 67

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

Question 68

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 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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 74

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

Question 75

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

Question 76

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 77

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

Question 78

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

Question 79

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

Question 80

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.