Question 1

Club Med Inc. talks to its present and potential customers to assess their needs for its products. Then it develops products to satisfy those needs. The firm is thus applying the ____ concept.

Accepted Answer

The firm is engaging in market research to understand its customers' needs and is then creating products to meet those needs. This aligns with the marketing concept, which emphasizes understanding and satisfying the needs of customers. The production orientation emphasizes efficiency in manufacturing, the sales orientation emphasizes sales growth, the physical distribution concept emphasizes logistics and supply chain management, and the facilitating concept refers to creating a favorable business environment for other businesses.

Question 2

The utility created by making a product available when customers wish to purchase it is called ____ utility.

Accepted Answer

Time utility refers to the benefit consumers receive from being able to purchase a product at a convenient time.

Question 3

Arthur was a salesperson for a manufacturing firm in the late 1920s. Which of the following would his employer most likely have asked him to do?

Accepted Answer

In the late 1920s, production had increased dramatically due to technological advancements and mass production techniques. Therefore, companies were looking for salespeople who could sell more of their high output using aggressive sales techniques. High-pressure sales tactics were a common practice during this time period, and salespeople were expected to use them to increase the company's sales.

Question 4

Between the 1920s and the 1950s, business had a strong ____ orientation, in which emphasis was placed on increased advertising, enlarged sales forces, and occasionally high-pressure selling techniques.

Accepted Answer

The emphasis on increased advertising, enlarged sales forces, and occasionally high-pressure selling techniques indicates a focus on sales rather than production, marketing, customer, or organizational orientation.

Question 5

Federated Insurance wants to expand its line of life insurance products by introducing a new policy. In keeping with the marketing concept, it likely will research all of the following except

Accepted Answer

While researching competitors' products is important, knowing who their most recent buyers are is not relevant to developing a new life insurance policy. The other options are all key aspects to consider when introducing a new product.

Question 6

From the beginning of the Industrial Revolution until the early twentieth century, business effort was directed mainly toward

Accepted Answer

During the Industrial Revolution, there was a shift from handmade goods to mass production of goods using machines. Therefore, business effort was mainly directed towards the production of goods in order to cater to the growing demand of the masses.

Question 7

Markets are classified as either

Accepted Answer

Markets are typically classified as either consumer markets (where goods and services are sold to individual consumers) or business-to-business markets (where goods and services are sold to other businesses). Option A, B, C, and D are incorrect as they do not reflect the common classifications of markets.

Question 8

An approach to marketing that involves the entire business organization in the process of satisfying customers' needs while achieving the organization's goals is called

Accepted Answer

The marketing concept is an approach to marketing that emphasizes the importance of understanding and meeting the needs and wants of customers while also achieving the organization's goals. This approach involves the entire business organization in the process of creating value for customers, and it requires a coordinated effort across different departments and functions. The marketing concept is a customer-centric approach that is focused on building long-term relationships with customers based on trust and mutual benefit. It is widely accepted as the most effective approach to marketing in today's competitive marketplace.

Question 9

The utility created by transferring ownership of a product to a buyer is called ____ utility.

Accepted Answer

Possession utility is created when ownership of a product is transferred to a buyer. This utility reflects the value customers attach to being able to take immediate possession of a product.

Question 10

A market is a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ____ to purchase such products.

Accepted Answer

A market requires individuals or organizations to have the authority to make purchasing decisions, in addition to having needs, ability, and willingness.

Question 11

Which of the following indicates a customer orientation?

Accepted Answer

Developing products that fulfill customers' needs indicates a focus on satisfying the needs and wants of customers, which is a key component of a customer orientation. The other choices focus more on sales and promotion rather than directly addressing customer needs.

Question 12

Which of the following is not one of the steps in implementing the marketing concept?

Accepted Answer

All of the listed steps are a part of implementing the marketing concept, therefore none of them are not a step.

Question 13

Burlington Coat Factory manufactures its winter jackets in April but does not display them in its stores until early September. Burlington recognizes the importance of ____ utility.

Accepted Answer

Burlington Coat Factory is using time utility by producing the jackets in April but holding off on displaying them in stores until early September, which coincides with the onset of colder weather. This creates a sense of anticipation among consumers and allows the company to capitalize on seasonal demand for winter apparel.

Question 14

When John returned a shirt he had purchased at JCPenney for a refund, he essentially reversed the effect of which type of utility?

Accepted Answer

Possession utility refers to the satisfaction customers derive from owning and possessing a product. When John returned the shirt, he essentially gave up possession of the product, reversing the effect of possession utility.

Question 15

During the 1950s, the marketing concept began to develop as business managers recognized that they were not primarily producers or sellers but rather were in the business of

Accepted Answer

The development of the marketing concept in the 1950s recognized that businesses were in the business of satisfying customers' needs, rather than just producing or selling products.

Question 16

To implement the marketing concept, a firm must first

Accepted Answer

To implement the marketing concept, a firm must first obtain information about its customers' needs. This means understanding their wants, preferences, and behaviors in order to tailor the product or service to meet their needs. Without this information, the firm cannot effectively market its product or service. Mobilizing marketing resources, promoting the product, and developing the product are all important steps, but they come after understanding the customer's needs. Determining if customers want the firm to practice the marketing concept is not a relevant step in implementing the marketing concept as it is the basic premise of modern marketing.

Question 17

The Bitty-Baby Store wants to update its way of doing business from the methods of the sales era to the more current methods of the marketing concept. Which of the following tactics will not be a step in the right direction?

Accepted Answer

Doubling the advertising budget to reach customers more frequently is a tactic from the sales era and does not necessarily align with the marketing concept. The marketing concept focuses on satisfying customer needs and wants through creating value and building relationships, rather than solely focusing on advertising and sales. Therefore, increasing advertising without a clear value proposition or understanding of customer needs may not be a step in the right direction.

Question 18

In the 1920s, producers had to shift to a new sales orientation, which was characterized by all of the following except

Accepted Answer

In the 1920s, producers had to shift to a new sales orientation, which focused on determining what goods consumers wanted, enlarging the sales force, increasing advertising, using high-pressure selling techniques, and taking orders and delivering goods. Therefore, option C does not characterize the new sales orientation.

Question 19

Teenagers spend billions of dollars on smart phones, music downloads, and video games. They have the ability, willingness, and authority to purchase such products because of their perceived need. These teenagers are an example of a(n) ____ market.

Accepted Answer

The given scenario describes how teenagers are spending money on products that they perceive as necessary or desirable, which is a characteristic of consumer markets. The other options (business-to-business, producer, governmental, institutional) do not apply to the given situation.

Question 20

The marketing activities associated with time, place, and possession utility account for about ____ of every consumer dollar spent.

Accepted Answer

Marketing activities related to time, place, and possession utility typically account for about one-half of every consumer dollar spent. This reflects the significant role that marketing plays in the distribution and sale of products, encompassing everything from advertising and promotion to logistics and retailing.

Quiz 12: Building Customer Relationships Through Effective Marketing