Deck 1: Marketing in Todays Business Milieu

Question 1

It is important that everyone in the organization understand the concept of customer orientation.After all,every employee has an internal customer.

Answer 1

True
Explanation: The notion of market orientation, one component of which is customer orientation-placing the customer at the core of all aspects of the enterprise-takes the guiding business philosophy of the marketing concept and works to more usefully define just how to implement it within a firm.

Question 2

The American Marketing Association defines marketing as "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."
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.

Answer 2

True
Explanation: The American Marketing Association offers the following as its official definition of marketing:
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 3

Firms today have learned to be open about products and services with consumers who have endless sources of information,including blogs,chat rooms,and independent websites.

Answer 3

True
Explanation: For competitive reasons, firms have no choice but to be more open about their businesses and products. Even if they wanted to, firms can't stop chat rooms, independent websites, web logs or blogs, and other customer-generated modes of communication from filling web page after web page with information, disinformation, and opinions about a company's products, services, and even company dirty laundry.

Question 4

Strategic marketing refers to the understanding of markets,competitors,and other external forces as well as internal capabilities.

Question 5

Customer orientation and market orientation are opposing concepts.Customer-oriented firms look at customers as individuals and market-oriented firms look at the market as a whole.Relationship-oriented firms focus on short-term profitability.

Question 6

Little m marketing refers to tactics and programs the firm uses to reach its stakeholders.

Question 7

Don Peppers and Martha Rogers popularized the term one-to-one marketing.Some firms come close to one-to-one marketing by combining flexible manufacturing with flexible marketing to enhance customer choices.

Question 8

Practicing marketers pitch marketing as an investment,not an expense,so using marketing metrics is important.

Question 9

Sustainability refers to practices of socially responsible firms that incorporate doing well by doing good.

Question 10

Fred Wiersema's book The New Market Leaders states that marketers will continue to have more power than customers in both B2B and B2C markets.

Question 11

Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients on websites enable them to self-diagnose and self-prescribe and saves the physician time.The trend toward more information in the hands of the customer is diminishing.

Question 12

A firm with a production orientation assumes that "if you build it,they will come." Value and exchange are not considered to be core marketing concepts.

Question 13

Marketing is relevant only to people in the organization that work directly in the marketing department.

Question 14

Strategic marketing refers to deciding which media,distribution,or pricing tactics to use.

Question 15

Gen Yers tends to value relationships with marketers like State Farm Insurance in exactly the same way their parents do.

Question 16

Of all the business fields,marketing is most visible to people outside the organization.Peter Drucker stated that since it is the customer who defines value,the business enterprise has only two business functions: marketing and innovation.

Question 17

Dell Computers employs one-to-one marketing by allowing a customer essentially to customize the product features that he or she desires.When Henry Ford said "People can have the Model T in any color-so long that it's black," he was reflecting a selling focus.

Question 18

Firms today are beginning to understand the importance of marketing metrics to assess marketing performance.They are aligning all internal organization processes and systems around the customer-from IT to billing to telecommunications.

Question 19

Even with great marketing,vast numbers of potential customers have never heard of some products or services.Some people think that marketing is all about advertising,pushy salespeople,celebrity spokespeople,spam e-mail,and overstated product claims.

Question 20

Big M marketing refers to the strategic,long-term,firm-level commitment to investing in marketing.

Question 21

A medieval knight could not go to the armor maker and pick out a size 44 Long suit of armor to protect him in battle.Nor could a person go to the cobbler and get a pair of shoes in a few minutes.This period before the advent of marketing is known as the _______________.

A)Industrial revolution
B)Mass production era
C)Dark Ages
D)Pre-industrial revolution
E)Sales orientation era

Question 22

Studying marketing today is relevant to any business student because _____.

A)It has much to offer anyone whether or not marketing is in a job title
B)It will enhance a person's effectiveness as a leader
C)It will impact the performance of a work group
D)Mastering marketing is useful for anyone
E)All of these

Question 23

AMA's current official definition of marketing reflects the view toward marketing activities as ______.

A)Focused on strategy
B)Focused on tactics like using electronic commerce and new media like YouTube
C)Focused on relationships with suppliers and customers
D)Focused on value through creating, communicating, delivering, and exchanging offerings that have value
E)Both focused on strategy and focused on value through creating, communicating, delivering, and exchanging offerings that have value

Question 24

When JCPenney department store (JCP)changed its _________________ strategy,it discovered that customers did not like it and left.

A)Pricing
B)Promotion
C)Distribution
D)Product
E)Customer satisfaction

Question 25

Peter Drucker,the father of modern management,stated that the only purpose of an organization is _____________.

A)To create products
B)To make products affordable and accessible to the majority of the public
C)To improve the quality of life for all people
D)To create a customer
E)To respect the environment

Question 26

Peter Drucker,the father of modern management,believed that marketing _____________.

A)Should be a separate function within the business
B)Is the business as seen from an internal point of view
C)Is the business as seen from the customer's point of view
D)Is so basic that it is a central dimension of the entire business
E)Should improve the quality of life for society

Question 27

_____________ is the set of institutions and processes for creating,communicating,delivering,and exchanging offerings that have value for customers,clients,partners,and society at large.

A)Business
B)Marketing
C)Management
D)Finance
E)Economics

Question 28

Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's website.Bryan is practicing the central tenet of marketing called ____________.

A)Value
B)Exchange
C)Growth
D)Sustainability
E)Barter

Question 29

The concept of exchange relates to _____________.

A)Monetary price
B)The hassle factor involved in making a choice
C)Skill or intellectual capital
D)Time used in shopping
E)All of these

Question 30

Marketing misnomers occur because many people think of marketing as __________.

A)Pushy salespeople
B)Advertising and celebrity spokespersons
C)The firm's department of advertising
D)Overstated product claims
E)All of these

Question 31

When you tell someone you are a marketing major in college,he or she may think you want a career in ________________.

A)Management
B)Information technology
C)Sales
D)Customer service
E)Financial planning

Question 32

Purpose marketing,or pro-social marketing,as practiced by Panera Bread _______.

A)Is an insignificant part of its image
B)Is a for-profit part of the business
C)Focuses on public relations
D)Engages with the consumer in a meaningful way as it works to feed the hungry
E)Has no impact on consumers who care about social issues

Question 33

After a recent 141-day strike,the union members in California went back to work at area grocery stores.The union negotiated raises,better health care benefits,and a one-tier pay scale.The role of the union may best be described as a(n)________.

A)Governmental body
B)Stakeholder
C)Vendor
D)Internal customer
E)Management group

Question 34

In 2012,product endorsements earned a professional golfer $78 million,a top football quarterback $49 million,and a pro basketball player $62 million.This illustrates why many people think of marketing as primarily about ______________.

A)Adding costs to products
B)Overstating claims
C)Advertising
D)Pushy salespeople
E)Celebrities sponsoring the best products

Question 35

From a customer's perspective,value is defined as ___________________.

A)Getting the cheapest price
B)Liking a product, no matter the price
C)Shopping at Walmart
D)Receiving the benefits for the burdens endured
E)Getting the best of the seller

Question 36

Companies that promote sustainability practices like Starbucks,which has a stringent recycling program,or General Electric,which makes compact fluorescent lightbulbs (CFLs),are practicing ______________.

A)Green marketing
B)Public relations
C)Publicity
D)Shotgun marketing
E)One-to-one marketing

Question 37

The most visible business function of the firm is ______,as demonstrated by a web page,good customer service,or a TV advertisement.

A)Marketing
B)Finance
C)Production
D)Operations management
E)Human resources

Question 38

__________ is not a marketing function.

A)Research
B)Advertising
C)Brand development
D)Public relations
E)Research and development

Question 39

The _____________ aspect of a firm is generally the most visible to people outside the organization.

A)Financial management
B)Accounting
C)Marketing
D)Information technology
E)Operations management

Question 40

According to Peter Drucker,the father of modern management,the business enterprise has only two functions: ______ and _____.

A)Sales; service
B)New product development; sales
C)Marketing; innovation
D)Management; marketing
E)Sales; innovation

Question 41

_____________ is not part of the marketing mix.

A)Product
B)Distribution
C)Promotion
D)Price
E)Manufacturing

Question 42

Creating value focuses on _____________________.

A)Product development
B)Branding and positioning
C)Attention to service
D)Pricing
E)All of these

Question 43

Companies that conduct research using focus groups,consumer surveys,and in-person interviews most likely have a ____________.

A)Production orientation
B)Selling orientation
C)Marketing orientation
D)Buzz marketing orientation
E)Business orientation

Question 44

Customers may visit the Levi's clothing website or some company-owned stores and order a pair of jeans that will be made especially for them.Levi's has adopted a ___________ approach.

A)Market orientation
B)Mass customization orientation
C)Differentiation orientation
D)Product orientation
E)Relationship orientation

Question 45

High pressure selling _____________.

A)Is practiced today by many companies
B)Has a marketing orientation
C)Sparked laws to protect consumers
D)Both is practiced today by many companies and sparked laws to protect consumers
E)None of these

Question 46

Relationship-oriented firms _______________.

A)Are driven by meeting this quarter's financial projections
B)Seek the most profitable customers who are highly satisfied with the firm's offering
C)Constantly invest in new customers and hope they become long-term
D)Often scramble to replace lost customers
E)Try to retain all customers

Question 47

The marketing concept was introduced ______________.

A)After the Civil War
B)After World War I
C)After the Great Depression
D)In the 1950s
E)In the 1960s

Question 48

The marketing concept was first articulated in writing in the Annual Report of ______________.

A)Ford Motor Company
B)AT&T
C)RCA
D)General Motors
E)General Electric

Question 49

Value may be defined as the ratio of bundled benefits received to the cost incurred by the customer to receive those benefits.____________ is not thought of as one of the costs.

A)Monetary cost
B)Time to shop
C)Skill or expertise
D)Poor service quality
E)Customer satisfaction

Question 50

High-tech media options like cell phones and the Internet have had a huge impact on the ________ aspect of marketing.

A)Product
B)Promotion
C)Price
D)Distribution
E)Research

Question 51

Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T.This is an example of _____________.

A)Production orientation
B)Selling orientation
C)Marketing orientation
D)Buzz marketing orientation
E)Business orientation

Question 52

Don Peppers and Martha Rogers promote the idea of ____________.

A)Market orientation
B)Mass customization orientation
C)Differentiation orientation
D)One-to-one marketing orientation
E)Relationship orientation

Question 53

XYZ department store advertises the "biggest sale of the year" every weekend and offers extra bargains to early bird customers.ABC department store advertises seasonal sales and employees send handwritten notes to customers who spend more than a certain amount of money.This implies that _______________________.

A)XYZ is short-term oriented and ABC is long-term oriented
B)XYZ is focused on selling and ABC is focused on relationship building
C)Both firms are trying to achieve the same goal of profitability so tactics do not matter
D)XYZ must be more successful since it advertises every week
E)Both XYZ is short-term oriented and ABC is long-term oriented and XYZ is focused on selling and ABC is focused on relationship building

Question 54

The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service to feel tailored is known as ____.

A)Market orientation
B)Product orientation
C)Differentiation orientation
D)One-to-one marketing orientation
E)Relationship orientation

Question 55

Creating,communicating,delivering,and exchanging offerings that have value may be thought of as ___________________.

A)The marketing mix, or 4Ps
B)The firm's strategic plan
C)Sales orientation
D)Production orientation
E)Exchange

Question 56

The Clean-O company makes an all-purpose cleaner for the hospital and nursing home market that is guaranteed to kill 99 percent of Staphylococcus germs,a major concern for medical facilities.The company is not interested in pursuing the consumer market.Clean-O has adopted a ___________.

A)Market orientation
B)Mass customization orientation
C)Differentiation orientation
D)Relationship orientation
E)Product orientation

Question 57

Making a change in any of the marketing mix elements will _______________.

A)Leave the other elements unchanged
B)Possibly have an impact on another element
C)Have a domino effect on the other elements
D)Require the firm to introduce new products
E)Require an increase in promotion

Question 58

Fernandez Brothers Inc.,provides accounting services to small businesses.Before and after tax season,the partners meet with each client company.It sends a monthly newsletter to update clients with tax changes.The firm's business practices revolve around putting the customer at the center when developing services and practices.Fernandez Brothers has adopted a ________________ approach.

A)Market orientation
B)Mass customization orientation
C)Differentiation orientation
D)Relationship orientation
E)Product orientation

Question 59

The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy.This is an example of _____________.

A)Production orientation
B)Selling orientation
C)Marketing orientation
D)Buzz marketing orientation
E)Business orientation

Question 60

Communicating and delivering value focuses on _____________________.

A)Supply chain management
B)Branding and positioning
C)Retailing
D)Integrated marketing communications
E)Supply chain management, Branding and positioning, and Integrated marketing communications

Question 61

Generational shifts impact marketing in terms of human resources.Older and younger generations may have _________________.

A)Different attitudes toward work life versus family life
B)Expectations about job satisfaction and rewards
C)Preferred modes of learning and working
D)All of these
E)None of these

Question 62

Starbucks does not use advertising to promote its stores.This decision most likely reflects the company's _____________.

A)Advertising budget
B)Marketing (Big M)
C)Marketing (little m)
D)Relationship orientation
E)Sales orientation

Question 63

Southwest Airlines was the only airline in the United States that did not lose money in the year following the 9/11 terrorist attacks in 2001.This decision most likely reflects the company's _____________.

A)Advertising budget
B)Marketing (Big M)
C)Marketing (little m)
D)Relationship orientation
E)Sales orientation

Question 64

The Internet has made it easy for customers to access information and disinformation,post their opinions,and read other people's opinions.From a marketer's point of view,this has caused _______.

A)A shift to product glut and customer shortage
B)A shift in generational values and preferences
C)A shift in power from marketers to consumers
D)A shift to demanding return on marketing investment
E)A shift to distinguishing Marketing (Big M) from marketing (little m)

Question 65

Little m marketing is also known as __________.

A)Long-term planning
B)Tactical marketing
C)Strategic marketing
D)A mission statement
E)Differentiation orientation

Question 66

_______,a clothing retailer,had declining sales.In an effort to offer trendier clothes,it started carrying colorful jeans in some stores and a "Mad Men" collection in others.Customers have responded and revenue per product has increased.

A)JCPenney
B)Target
C)H&M
D)Gap
E)Hollister

Question 67

An offering today is considered to be the ___________ of the marketing mix.

A)Product
B)Price
C)Promotion
D)Place
E)Brand

Question 68

Big M Marketing is also known as ___________.

A)Long-term planning
B)Tactical marketing
C)Strategic marketing
D)A mission statement
E)Differentiation orientation

Question 69

The long-term objective of strategic marketing is ____________.

A)Providing customer satisfaction at all costs
B)Achieving profitability through building a customer-oriented organization
C)Understanding where the company with be in 10, 20, and 30 years
D)Getting ahead while doing well in society
E)Studying the competition

Question 70

Today companies have no choice but to be more open about their businesses and products because they can't stop chat rooms or bloggers or customer reviews.This is reflected in the ___________ change driver impacting the future of marketing.

A)Shift to product glut and customer shortage
B)Shift in power from marketer to customer
C)Shift in generational values and preferences
D)Shift to distinguishing Marketing (Big M) from marketing (little m)
E)Shift to justifying the relevance and payback of the marketing investment

Question 71

Today customers have limitless access to information about companies,products,competitors,other customers,and even detailed elements of marketing plans and strategies.This is reflected in the ___________ change driver impacting the future of marketing.

A)Shift to product glut and customer shortage
B)Shift in power from marketer to customer
C)Shift in generational values and preferences
D)Shift to distinguishing Marketing (Big M) from marketing (little m)
E)Shift to justifying the relevance and payback of the marketing investment

Question 72

Strategic marketing refers to __________________.

A)A firm's committing to long-term growth through internal focus on production and customer satisfaction
B)Working with competitors, when appropriate, and with suppliers
C)Understanding the market, competitors, and other external forces, and focusing on internal capabilities to plan for the future
D)Making a nonwavering commitment on which customers to serve
E)Studying promotion, distribution, delivery, and production

Question 73

The 4Ps of marketing refers to ___________.

A)Product, price, place, and promotion
B)The marketing mix
C)How a company can achieve distinction by offering a unique combination of these elements
D)The basic building blocks of marketing
E)All of these

Question 74

Marketing tactics such as designing the elements of the marketing mix are reflected in the ___________ change driver impacting the future of marketing.

A)Shift to product glut and customer shortage
B)Shift in power from marketer to customer
C)Shift in generational values and preferences
D)A shift to distinguishing Marketing (Big M) from marketing (little m)
E)Shift to justifying the relevance and payback of the marketing investment

Question 75

Customer relationship management (CRM)is designed to __________.

A)Assign a sales representative to a particular customer
B)Allow software to manage marketing
C)Facilitate higher levels of customer satisfaction
D)Identify the most profitable customers
E)Both facilitate higher levels of customer satisfaction and identify the most profitable customers

Question 76

The Girl Scouts introduced a cookie finder app in 2013.This is reflected in the ___________ change driver impacting the future of marketing.

A)Shift to product glut and customer shortage
B)Shift in power from marketer to customer
C)Shift in generational values and preferences
D)Shift to distinguishing Marketing (Big M) from marketing (little m)
E)Shift to justifying the relevance and payback of the marketing investment

Question 77

High-tech media options as well as traditional advertising are part of the ____________ aspect of the marketing mix.

A)Product
B)Price
C)Promotion
D)Place
E)Brand

Question 78

The concept of supply chain management and logistics is considered to be the ____________ of the marketing mix.

A)Product
B)Price
C)Promotion
D)Place
E)Brand

Question 79

The way a firm looks at strategy and tactics is reflected in the ___________ change driver impacting the future of marketing.

A)Shift to product glut and customer shortage
B)Shift in power from marketer to customer
C)Shift in generational values and preferences
D)A shift to distinguishing Marketing (Big M) from marketing (little m)
E)Shift to justifying the relevance and payback of the marketing investment

Question 80

Bazooka Bubble Gum revamped its package inserts by changing from comic strips to quizzes and brainteasers that direct kids to digital content.This is reflected in the ___________ change driver impacting the future of marketing.

A)Shift to product glut and customer shortage
B)Shift in power from marketer to customer
C)Shift in generational values and preferences
D)Shift to distinguishing Marketing (Big M) from marketing (little m)
E)Shift to justifying the relevance and payback of the marketing investment