Deck 1: Marketing in Todays Economy

Question 1

In 2005, the American Marketing Association changed the definition of marketing that had stood for 20 years. The major changes in the definition included a shift from delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________.

A) satisfaction; customer relationships
B) value; customer relationships
C) quality; transactions
D) value; satisfaction
E) quality; value

Answer 1

B

Question 2

The four Ps of the marketing mix consist of product, positioning, pricing, and promotion.​

Answer 2

False

Question 3

The Internet has shifted more power to the marketer.​

Answer 3

False

Question 4

From the customer's perspective, which part of the marketing mix takes place largely behind the scenes?

A) ​Market segmentations
B) ​Product
C) ​Price
D) ​Promotion
E) ​Distribution

Question 5

A cluster of closely related goods and services that center around a specific consumption activity is referred to as a:

A) marketspace.
B) market.
C) metamediary.
D) marketing channel.
E) metamarket.

Question 6

In the airline industry, companies like American, Delta, and US Air have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry?

A) Airline firms compete in a declining industry.
B) Airline customers have become increasingly demanding.
C) There is very little differentiation among product offerings in the industry.
D) The industry experiences very little change over time.
E) Airlines have been forced to develop partnerships to remain competitive.

Question 7

A product that provides the utmost in convenience is said to offer exceptional:

A) time and place utility.
B) place and possession utility.
C) time and possession utility.
D) form and time utility.
E) form and place utility.

Question 8

Environmental scanning refers to the overall process of collecting and interpreting internal, competitive, and environmental information.

Question 9

The "how" of marketing planning is known as marketing implementation.

Question 10

A church sermon preached to a congregation is an example of a product.

Question 11

Market segmentation divides the market into homogenous groups or segments.​

Question 12

The term ______ is used to describe the ability of a product to satisfy a customer's desires.​

A) ​utility
B) ​exchange
C) ​strategy
D) ​market scanning
E) ​competitive intelligence

Question 13

List the elements that make up a marketing program.

A) ​product and target market
B) ​target market and marketing mix
C) ​market segment and market plan
D) ​price, promotion, place, and product
E) ​marketing mix, price, and promotion

Question 14

Competitive advantages are critical because they set the tone of the entire marketing program.

Question 15

Which of the following statements about pricing decisions in the marketing program is TRUE?

A) Price is one of two elements of the marketing mix that leads to revenue.
B) Price has a direct connection with customer demand.
C) Pricing is the least manipulated element of the marketing mix.
D) Pricing is the most difficult element of the marketing mix to change.
E) Customers will always equate higher prices with higher quality products.

Question 16

Marketing strategy is inherently product-driven.​

Question 17

Furniture Mart offers services such as financing and home delivery to its customers. What type of utility is Furniture Mart trying to increase?

A) time utility
B) place utility
C) possession utility
D) form utility
E) psychological utility

Question 18

The term marketspace describes electronic marketplaces unbound by time or space.​

Question 19

One of the major difficulties of conducting business in today's economy concerns the unclear legal jurisdiction surrounding many business transactions. The issue is especially keen for marketers who do business in:

A) international markets.
B) domestic, interstate markets.
C) business-to-business markets.
D) metamarkets.
E) peer-to-peer transactions.

Question 20

Although mass media audiences are becoming increasingly fragmented, media fragmentation does have a major advantage. What is this advantage?

A) It now costs less to reach a mass audience.
B) It is much easier to measure feedback from mass media audiences.
C) It is now easier to reach small, highly targeted audiences.
D) Consumers are now much more receptive to television advertising.
E) Consumers are now highly susceptible to online advertising.

Question 21

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT:

A) Customers are much less brand loyal than in the past.
B) Today's customers are very price sensitive.
C) Today's customers are exceptionally demanding.
D) Product quality is much lower now than at any time in the past.
E) Customers are more cynical, have more information, and have more attitude than ever before.

Question 22

A customer's decision to purchase one product or group of products over another is primarily a function of:

A) the convenience of acquiring the product or group of products.
B) how well that choice will fulfill that person's needs and satisfy his or her wants.
C) the product's features relative to competing products.
D) the product's price.
E) the availability of the product or group of products.

Question 23

__________ involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts.

A) Competitive intelligence
B) Environmental scanning
C) Tactical planning
D) Marketing research
E) External analysis

Question 24

Many firms attempt to distinguish or differentiate their product offerings through the use of __________ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers.

A) product positioning
B) branding
C) perceptual marketing
D) image marketing
E) comparative

Question 25

With respect to the strategic planning process, why has social responsibility and marketing ethics become important today? Is it really necessary to consider these issues in strategic planning? How can a firm plan to be socially responsible?

Question 26

__________ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits.

A) Specialization
B) Commoditization
C) Maturation
D) Price devaluation
E) Market homogeneity

Question 27

In the traditional transactional marketing approach, the ultimate goal of marketing is to:

A) serve customers' needs and wants.
B) develop long-term customer relationships.
C) create value in the buyer-seller relationship.
D) acquire new customers and complete a large number of exchanges.
E) All of the above are goals of transactional marketing

Question 28

What type of planning deals with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets?

A) market planning
B) strategic planning
C) local planning
D) lower-level planning
E) tactical planning

Question 29

A marketer at General Mills in charge of international expansion wants to determine Kellogg's market share in Mexico. What type of marketing activity should she apply?

A) ​Tactical planning
B) ​Internal analysis
C) ​Competitive intelligence
D) ​Environmental scanning
E) ​Situation analysis

Question 30

Edmunds.com provides a collection of online services and information pertaining to the automotive market. Edmunds offers reviews, free pricing reports, discussion boards, and links to a variety of car manufacturers, dealers, insurance companies, and finance companies. What role does Edmunds.com play in today's economy?

A) distributor
B) marketspace
C) metamediary
D) metamarket
E) electronic broker

Question 31

Which of the following IS NOT one of the five conditions of exchange in marketing?

A) There must be at least two parties to the exchange.
B) Each party has something of value to offer the other party.
C) Each party must be free to accept or reject the exchange.
D) Each party must be capable of immediate delivery.
E) Each party believes that it is desirable to exchange with the other party.

Question 32

Among the fundamental changes to marketing and business practice in today's economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today's economy?

A) retailers
B) wholesalers
C) customers
D) manufacturers
E) market research firms

Question 33

Discuss the different views or interpretations of marketing as a function of business, including the AMA's 2007 change in the definition of marketing. Why do you think the AMA changed the definition?

Question 34

Which of the following type of planning focuses on specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets​?

A) ​strategic planning
B) ​customer analysis
C) ​environmental planning
D) ​tactical planning
E) ​marketing plan

Question 35

Changing value propositions in today's economy-such as changes caused by the growth in e-commerce-have forced marketers to learn a tough lesson about customers. What is that lesson?

A) Customers will always seek the best value regardless of quality.
B) Customers will always turn to the most recognized brand.
C) Customers would rather perform service for themselves to save money.
D) Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities.
E) Customers will always seek the best quality regardless of price.

Question 36

Which of the following changes occurring in today's economy has NOT been caused by the growth of the Internet?

A) increase in product selection
B) shifting demand patterns
C) privacy and security concerns
D) rising prices for most products
E) audience and media fragmentation

Question 37

Which of the following outlines the organization's game plan for success?​

A) ​market scanning
B) ​planning
C) ​strategy
D) ​utility
E) ​competitive intelligence

Question 38

Discuss the challenges and opportunities associated with planning and developing marketing strategy in today's economy. Why is marketing strategy both exciting and challenging?