Deck 1: An Overview of Marketing

Question 1

The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers.

Answer 1

True

Question 2

Only a firm's salespeople need to be customer-oriented.

Answer 2

False
All employees need to be customer-oriented because in the customer's eyes,the employee (regardless of the position held in the organization)is the firm and may be the only firm representative the customer ever sees.

Question 3

Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.

Answer 3

True

Question 4

Approximately 50 percent of the U.S.civilian work force performs marketing activities.

Question 5

Marketing is defined as producing,promoting,and selling products.

Question 6

The focus of a production-oriented firm is on what it can make or do best.

Question 7

Personnel in sales-oriented firms tend to be "outward looking," focusing on selling what the market wants.

Question 8

The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while meeting organizational objectives.

Question 9

While most marketing organizations rely on various forms of promotion to succeed,sales-oriented organizations make the most effective use of their entire marketing mix.

Question 10

Marketing is important to business,so marketing should be part of the job of everyone in the organization,not just those in marketing.

Question 11

Unlike a production orientated firm,a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.

Question 12

Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products.

Question 13

In the early 1920s,Ford promised its customers any color vehicle they wanted as long as it was black.Ford's management assumed anyone buying a car would accept the color black,so it made products affordable by offering only one variety in large quantities.Ford is an example of a market-oriented firm.

Question 14

The way to achieve customer satisfaction and value is to offer the lowest price.

Question 15

3D Systems is a company that uses computers to generate new product prototypes.It has generated loyal business clients by providing the best customer support in the industry.The company also provides direct sales consultations that gives its salespeople intimate knowledge about what exactly its customers want.This partnership between 3D Systems and its customers entails relationship marketing.

Question 16

Customer value is the relationship between company profits and company costs.

Question 17

According to the American Marketing Association,marketing is the activity,set of institutions,and processes for creating,communicating,delivering,and exchanging offerings that have value for customers,clients,partners,and society at large.

Question 18

An exchange cannot take place unless each party in the exchange has something that the other party values.

Question 19

Sara Lee Industries spent considerable money and time developing a crustless bread.Prior to the introduction,the company had not conducted market research among its customers,but it was confident that its science and technology department had produced a successful new product.Based on this example,Sara Lee is a good example of a production-oriented company.

Question 20

The societal marketing concept considers society's long-term best interests along with the satisfaction of customers' wants and needs.

Question 21

For an exchange to take place:

A) there must be at least two parties involved
B) money must be used in the transaction
C) each party must feel obligated to accept the offer
D) at least one party must have something of value that the other party desires
E) neither party must communicate with the other

Question 22

A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally harvested.In places like Indonesia as much as 80 percent of timber available for sale was illegally cut.Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests.Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot?

A) There are more than two parties involved.
B) Each party has something of value to bring to the exchange.
C) One party is free to accept the exchange offer.
D) Each party believes it is appropriate to deal with the other party.
E) Nobody sees the exchange as producing value.

Question 23

Barry collects antique watches and decided to sell a few of them on eBay.Some of the watches he wants to sell are rare and very valuable.What condition is necessary for an exchange to occur between Barry and a buyer?

A) His watch should have a certificate of authenticity.
B) The opening bid must be lower than other watches being sold on the site.
C) Buyers must provide payment before the item is shipped.
D) Delivery must take place within 2 days of the purchase.
E) Potential buyers must be able to see the watch and understand its qualities.

Question 24

All of the following are necessary for exchange to occur EXCEPT:

A) each party is capable of communication and delivery
B) each party signs a contract before exchange occurs
C) each party believes it is appropriate or desirable to deal with the others
D) each party is free to accept or reject the exchange offer
E) each party must have something the other party considers to be valuable

Question 25

A newspaper ad for a hospital that states,"We have the most modern delivery rooms and state-of-the art medical equipment," is an indication of which marketing management philosophy?

A) sales
B) customer
C) market
D) societal
E) production

Question 26

A company that sets its goals and strategies based on what its current equipment can produce,what products engineering can design,and what the company itself can do best,has a(n)_____ orientation.

A) marketplace
B) sales
C) market
D) exchange
E) production

Question 27

All of the following are marketing management philosophies EXCEPT:

A) sales orientation
B) societal marketing orientation
C) market orientation
D) profitability orientation
E) production orientation

Question 28

A firm that adopts a(n)_____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.

A) customer
B) exchange
C) product
D) market
E) production

Question 29

Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

A) sales
B) production
C) market
D) customer
E) customer-benefit

Question 30

_____ is a set of activities used to implement a management orientation that stresses customer satisfaction.

A) Planning strategy
B) Customer management
C) Marketing
D) A control system
E) Reciprocity

Question 31

The American Marketing Association's definition of marketing:

A) is limited to promotional activities
B) focuses on the value of empowerment,teamwork,and customer value
C) shows how marketing benefits the marketer
D) relies on the synergy created by exchange
E) includes creating,communicating,delivering and exchanging offerings that have value for customers,clients,partners,and society at large.

Question 32

The concept of exchange is important to marketing because:

A) if all the conditions for an exchange are in place,then the exchange will be completed
B) exchange provides money to marketers
C) marketing activities help to create exchange
D) marketing activities are a requirement for exchange to take place
E) money is the only medium of exchange for business marketers

Question 33

A business is concerned with many day-to-day activities.Some of the most important of these activities are the planning and development of a product,its pricing policy,and the distribution strategy.These activities are all a part of:

A) a control system
B) marketing
C) accounting
D) production
E) human resources

Question 34

Which of the following occurs when people give up something in order to receive something that they would rather have?

A) Exchange
B) Synergy
C) Transformation
D) Leveraging
E) Reciprocity

Question 35

Toyota found that consumers wanted cars to last longer and be more environmentally friendly.GM,however,enjoyed being the top U.S.car producer,and focused more on how many cars and trucks it could manufacture and not on what customers wanted from a vehicle.GM had more of a _____ orientation.

A) sales
B) production
C) market
D) product
E) customer

Question 36

Researchers at PPG Industries spent considerable time,effort,and money developing a bluish windshield that would let in filtered sunlight but block out the heat.Little market research was done,but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color than the current models on the market.This scenario suggests PPG most likely has a(n)_____ orientation.

A) exchange
B) production
C) sales
D) promotion
E) customer

Question 37

Kellogg's is offering free DVDs to consumers who collect 5 official Collection certificates from the back panels of specially marked packages of Kellogg's cereals and mail them with the official order form.Within 90 days,these consumers will receive the movie of their choice.A(n)_____ will occur when a movie fan mails in his or her certificates for a movie.

A) synergy
B) sublimation
C) exchange
D) entropy
E) reciprocity

Question 38

One facet of marketing is that it is:

A) an approach that focuses on maximizing sales
B) a short-term oriented approach to profit maximization
C) an approach that requires diversity
D) a philosophy that stresses customer satisfaction
E) independent of value creation

Question 39

A firm with a production orientation is most likely to survive if:

A) there are many small competitors in the marketplace
B) demand for the product it produces exceeds supply
C) the needs of the marketplace are constantly shifting
D) supply for the product it produces exceeds demand
E) any of these conditions exist

Question 40

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products.The typical Indonesian logging company has a(n)_____ orientation.

A) exchange
B) product
C) production
D) sales
E) environmental

Question 41

At www.mystarbucksidea.com customers are encouraged to share their ideas and thoughts about how Starbucks can better serve their customers.Starbucks customers told management that they wanted to be recognized for choosing Starbucks coffee.So Starbucks instituted the Starbucks Reward program with money saving benefits to their Starbuck card-holders.Starbucks is an example of a company with a _____ oriented philosophy.

A) transactional
B) sales
C) product
D) societal
E) market

Question 42

A company adhering to the marketing concept will likely take which of the following steps if it learned that its customers were dissatisfied with its product?

A) hire more salespeople
B) decrease its organizational overhead
C) increase its advertising to underserved markets
D) increase the number of outlets in which the product is sold
E) conduct research to determine if its customers' needs have changed

Question 43

After hearing his company criticized for its failure to respond to consumer needs,the CEO of a bank realized that his company needs to adhere to the marketing concept and implement a market-oriented strategy.Which of the following actions would be the best approach to achieving this goal?

A) reorganize the company and make marketing its most important department
B) hire new salespeople to find new customers
C) expand the advertising budget to make potential customers more aware of its product offerings
D) create cross-functional teams and instruct them to focus on creating greater customer value
E) hire a new product development manager

Question 44

The _____ orientation assumes people will buy more if aggressive selling techniques are used.

A) market
B) sales
C) customer
D) production
E) exchange

Question 45

Minor League Baseball (MiLB)suffers from sluggish attendance.To attract more fans to MiLB games,owners often resort to gimmicks--free hot dog nights,events designed to get into the Guinness Book of Records,and celebrity visits.Since baseball fans are seldom asked what would make them want to attend more games,this suggests most MiLB teams do not have a(n)_____ orientation.

A) sales
B) empowerment
C) community
D) societal
E) market

Question 46

Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:

A) price is the most important variable for customers
B) sales depend predominantly on an aggressive sales force
C) what the customer thinks he or she is buying is what is important
D) a company has to apply scientific management techniques to survive
E) selling and marketing are essentially the same thing

Question 47

The marketing concept involves:

A) focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products
B) satisfying management's needs and wants with the idea of maximizing profits in the short run
C) selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are used
D) selling as much as possible under the assumption consumers will buy more at lower prices
E) focusing on production in order to increase product quality and lower prices

Question 48

At the Lands End web site a customer can chat on-line with customer service representatives while shopping.This live help allows customers to have questions answered before placing an order.This focus on meeting customer needs illustrate a(n)_____ orientation.

A) societal
B) market
C) sales
D) production
E) one-to-one

Question 49

The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:

A) producing a good or service at the lowest possible cost
B) improving the general standard of living
C) constantly increasing sales volumes
D) applying scientific management techniques to improve efficiency
E) simultaneously meeting organization objectives

Question 50

Fujifilm Computer Products has improved the efficiency and productivity of its plant,which manufactures printing technology.For the new fiscal year,the company projects a production increase of 25 percent.It has instructed its sales force to aggressively distribute and promote its printers.The CEO is sure the market will absorb more product if the sales force is determined and assertive.Fujifilm appears to have a _____ orientation.

A) market
B) production
C) sales
D) customer
E) marketplace

Question 51

Colorado Silversmith creates and markets silver and turquoise jewelry,which it sells to retailers in the western United States.The company's management believes its retail customers will stock more jewelry if its salespeople use aggressive marketing techniques,so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its jewelry.In other words,the company has a _____ orientation.

A) promotion
B) production
C) sales
D) market
E) customer

Question 52

Jacques Torres Chocolate is a factory and retail store in Brooklyn.Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy.His only condition is that when he adds new products,his customers have the final say on whether the product is of any value.According to Torres,"If something doesn't move,that's the last time you see it." By focusing on customers' wants,the chocolate company exhibits a(n)_____ orientation.

A) exchange
B) product
C) production
D) sales
E) market

Question 53

Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used?

A) sales
B) production
C) market
D) customer
E) marketplace

Question 54

A company that has a market orientation and adheres to the marketing concept does NOT:

A) integrate all the activities of the firm to satisfy customer wants
B) focus on consumer needs and wants
C) differentiate the firm's products from its competitor's products
D) fuel sales growth through the application of aggressive sales techniques
E) concentrate on long-term goal achievement (such as profits and growth) for the firm

Question 55

Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product?

A) sales
B) production
C) product
D) market
E) exchange

Question 56

Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance,retirement plans,and pre-planned funeral services?

A) sales orientation
B) production orientation
C) marketing orientation
D) product orientation
E) customer orientation

Question 57

Mimi Couturier is a design company that specializes in formalwear for women.The company is known for challenging fashion mores.The company's fashion designers use computer-assisted design software to create what it thinks women should wear.The company regularly hires industry experts to examine its factories to find waste and inefficiencies that can be eliminated.The company has expanded the number of products it offers for sale many times.However,for the last two years Mimi Couturier has lost money,and it has had to lay off some of its work force.To avoid this occurrence in the future,Mimi Couturier should:

A) hire more retail efficiency experts to trace down any production problems
B) increase its sales force to find more potential customers for the firm
C) have someone study its target market to see what needs and wants should be met by Mimi Couturier
D) cut prices so that its prices will be at least 10 percent below those of its competitors
E) design more sophisticated products that use the latest computer-aided techniques

Question 58

If a company uses a sales orientation,consumer complaints would most likely result in:

A) a modification of the sales presentation
B) product reinvention
C) continuous market research
D) philanthropy
E) attempts to cut production costs

Question 59

Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants.This philosophy is at the heart of a(n)_____ orientation.

A) sales
B) market
C) retail
D) production
E) exchange

Question 60

SAP,the world's largest business software company,has pledged to put the "customer at the center" of their universe.SAP has captured the idea of:

A) the 80/20 rule
B) Maslow's hierarchy of needs
C) the marketing concept
D) the sales orientation philosophy
E) the societal concept

Question 61

When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet,he gathered up materials totaling almost $70.One his way to checkout,an employee asked him what was he trying to fix.After some discussion,the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble.This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n)_____ orientation.

A) sales
B) market
C) product
D) exchange
E) production

Question 62

Which marketing management philosophy focuses on the question,"What do customers want and need?"

A) sales
B) production
C) product
D) market
E) internal

Question 63

Which of the following statements about the societal orientation is FALSE?

A) Companies that protect the environment by using all-natural materials in their products are showing a societal marketing orientation.
B) Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers.
C) The societal marketing concept is an important refinement of the market concept.
D) Organizations have both a social and economic justification for their existence.
E) The majority of consumers support environmentally-friendly companies and willingly paying more for these products.

Question 64

An organization with a(n)_____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.

A) sales orientation
B) market orientation
C) ethical business mission
D) focused target market strategy
E) societal marketing orientation

Question 65

Most companies become sensitized to community issues after they've done enough damage to draw the locals' anger.Dofasco,Inc.,a highly successful steel company in Ontario,tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding what projects to improve the local environment will be implemented.This annual community-wide meeting indicates Dofasco has a _____ orientation.

A) societal marketing
B) sales
C) reciprocal exchange
D) production
E) product

Question 66

Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices.Unfortunately,the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide.Human rights organization have asked jewelers to buy diamonds that are "conflict-free," that is from South Africa,Australia,or Canada.LeeBrant is one retail jewelry store that sells only diamonds that are certified to be from these countries.LeeBrant is exhibiting which marketing management orientation?

A) production
B) sales
C) societal marketing
D) direct
E) omnipotent

Question 67

Life is good ® no longer encloses its apparel in individual poly-bags when shipping to customers because the management feels it harms the environment.This is an example of a _____ orientation.

A) societal marketing
B) sales
C) reciprocal exchange
D) production
E) product

Question 68

Which marketing management philosophy focuses on the question,"How can we sell more aggressively?"

A) production
B) marketing
C) sales
D) external
E) internal

Question 69

Life is good® developed the "Good Karma" line of environmentally friendly 100% organic cotton apparel.The production of the Good Karma line is consistent with a _____ orientation.

A) societal marketing
B) supplier
C) sales
D) production
E) philanthropic

Question 70

Which of the following statements about a typical sales-oriented business is true?

A) The company develops its products to meet the needs of specific groups of people.
B) The primary goal of the company is profit through customer satisfaction.
C) The company invests the majority of its resources in promoting its products and services.
D) The company is in business to satisfy customers' wants and needs and deliver superior value.
E) All of these statements about a typical sales-oriented business are true.

Question 71

Market-oriented firms primarily focus their efforts upon:

A) improving the technological skills and competitive advantages of the firm
B) satisfying the organization's needs for low overhead
C) achieving the company's societal responsibilities inexpensively
D) distributing goods and services
E) satisfying the wants and needs of their customers

Question 72

Which marketing management philosophy focuses on the question,"What do customers want and need,and how can we benefit society?"

A) internal
B) external
C) sales
D) societal marketing
E) production

Question 73

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

A) Opportunity cost
B) Marketing utility
C) Market quality
D) Satisfaction percentage
E) Customer value

Question 74

The U.S.Postal Service (USPS)argues that its express service is comparable to what is offered by FedEx and that its prices are much lower.Yet,FedEx dominates with more than a 45 percent share of the express-delivery market.Which of the following statements describes this situation?

A) The USPS is perceived as offering greater customer value.
B) FedEx is perceived as offering greater customer value.
C) FedEx and the USPS offer the same customer value.
D) Customer value is not an issue in deciding which express-delivery service to use.
E) The USPS should lower its prices even further to increase market share.

Question 75

The sales and market orientations differ on all of the following characteristics EXCEPT:

A) those to whom the product is directed
B) firm's performance
C) firm's business
D) firm's primary goal
E) tools to achieve goals

Question 76

Target shoppers can enroll in the Take Charge of Education® program so that Target will donate one percent of purchases made with a consumer's REDcard,a Target credit card.The more money customers spend,the larger the donation to the consumer's school of choice.By instituting the Take Charge of Education® program to help local schools,Target has shown a _____ orientation.

A) societal marketing
B) supplier
C) sales
D) production
E) philanthropic

Question 77

A company that wants to implement a market orientation would need to:

A) do research on its customers,competitors,and markets
B) determine how to deliver superior customer value
C) establish and maintain mutually satisfying relationships with customers
D) implement actions that provide value to customers
E) do all of the activities listed

Question 78

At the Container Store every employee is trained to serve customers.Full time salespeople receive 240 hours of training.The Container Store works to hire people who are self-motivated and have a passion for customer service.The Container Store has a(n)_____ orientation.

A) sales
B) market
C) product
D) societal
E) production

Question 79

Which marketing management philosophy focuses on the question,"What can we make or do best?"

A) production
B) marketing
C) sales
D) societal
E) internal

Question 80

Procter & Gamble decided to address the fact that Hispanic women are more likely to die from breast cancer because they're reluctant to get mammograms or discuss screening.So P&G brought screening to the supermarket,parking mobile mammography vehicles in grocery store parking lots in Texas and inviting shoppers in for free x-rays.Tie-ins with local hospitals assured that women with suspicious films got follow-up care.P&G adopted a _____ orientation to achieve this goal.

A) promotional
B) societal marketing
C) customer
D) marketing
E) product