Question 1

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

Accepted Answer

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Question 2

The marketing department at Sun Oil Company uses the printing services within its own company to design, edit, and print marketing materials.After mistakes and missed deadlines, the marketing department hires an outside printer.Using the transaction-based marketing theory, the Sun Oil printing department lost a customer when its own marketing department outsourced the printing.

Accepted Answer

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Question 3

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

Accepted Answer

The traditional view of marketing focuses on promoting and selling products or services in exchange for money, which is transaction-based marketing.

Question 4

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

Accepted Answer

Mobile marketing refers to marketing messages that are delivered through mobile devices such as smartphones, tablets, and other wireless devices.

Question 5

In today's competitive environment, attracting new customers is important, but maintaining loyal customers is even more critical.

Accepted Answer

It is easier and more cost-effective to retain existing customers than to constantly acquire new ones. Loyal customers are also more likely to refer others to your business and provide positive reviews, helping to attract new customers.

Question 6

Westbrook & Co.seeks out products that will appeal to its customers and then uses advertising, personal selling, and sales promotion to match the goods and services with the appropriate customers.This part of the marketing process is described as the facilitating function of marketing.

Accepted Answer

The activities described are part of the marketing process, but they are more aligned with the promotion function rather than the facilitating function, which involves logistics and distribution.

Question 7

The cost of finding new customers is far less than the cost of keeping old ones.

Accepted Answer

The cost of acquiring new customers is generally higher than retaining existing ones. Studies have shown that it can cost 5-25 times more to acquire a new customer than to retain an existing one.

Question 8

Relationship marketing relies more heavily on information technologies than transaction marketing.

Accepted Answer

Relationship marketing requires building and maintaining long-term relationships with customers, which can be facilitated by the use of information technologies such as customer relationship management (CRM) systems, social media, and email marketing. Transaction marketing, on the other hand, is focused on individual transactions and does not require as much reliance on information technologies.

Question 9

Less than one-quarter of all major corporations offer ethics training to employees.

Accepted Answer

Most major corporations offer ethics training to their employees as part of their compliance programs and corporate responsibility initiatives. This training is designed to ensure that employees understand the company's values, legal requirements, and ethical standards.

Question 10

When Starbucks makes a latte for a customer, it is performing a distribution function.

Accepted Answer

A distribution function involves the movement of products or services from the producer to the consumer. In this case, Starbucks is distributing its coffee products to its customers by making and serving lattes.

Question 11

Buzz marketing is "spreading the word about a product or service" in an informal fashion.Due to the Internet, companies can do little to control or direct this type of consumer dialogue.

Accepted Answer

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Question 12

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

Accepted Answer

A strategic alliance can be between two for-profit businesses or a for-profit and a non-profit organization, but it is not necessarily defined as exclusively between a for-profit and a non-profit.

Question 13

"Lifetime value of a customer" is the measure of the revenues and intangible benefits that a customer brings to an organization over an average lifetime.

Accepted Answer

Lifetime value of a customer is indeed the measure of the revenues and intangible benefits that a customer brings to an organization over an average lifetime.

Question 14

The buying function of marketing involves advertising, personal selling, and sales promotion in the attempt to match products and services to consumer needs.

Accepted Answer

The buying function of marketing involves analyzing consumer wants and needs, determining which products and services will meet those needs, and then acquiring them from suppliers. The functions involved in matching products and services to consumer needs are the selling function, which includes advertising, personal selling, and sales promotion.

Question 15

Relationship marketing broadens the scope of external marketing relationships to include suppliers, customers, and referral sources.

Accepted Answer

Relationship marketing focuses on building and maintaining long-term relationships with all stakeholders, including suppliers, customers, and referral sources.

Question 16

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

Accepted Answer

This statement is true. Manufacturers invest time, money, and resources to create new products and services, which involves taking risks. They do so based on research and their belief that consumers will want and need the products. However, not all products succeed, and there is always a risk of failure.

Question 17

When determining product costs, marketing expenses will amount to approximately one-half of the total cost of the product.

Accepted Answer

Marketing expenses are not included in product costs.

Question 18

Under the relationship marketing concept, employees within a firm need not apply the same high standards of customer satisfaction to internal relationships at they do to external customer relationships.

Accepted Answer

The relationship marketing concept emphasizes on building strong and long-lasting relationships with both external customers and internal employees. Thus, employees within a firm must apply the same high standards of customer satisfaction to internal relationships as they do to external customer relationships.

Question 19

Relationship marketing classifies its customers in terms of the strength of the organization-to-customer relationship.The following customer relationship ladder outlines the type of relationships and the degree of commitment: customer < regular purchaser < loyal supporter < advocate.

Accepted Answer

This statement accurately describes the customer relationship ladder used in relationship marketing. Customers are classified based on their level of commitment and strength of relationship with the organization, with the highest level being an advocate who actively promotes and supports the brand.

Question 20

When we go to the grocery store and buy milk, steak, and a dozen eggs, whether we know it or not, we are experiencing the effect of one of the facilitating functions of marketing.

Accepted Answer

The facilitating function of marketing in this scenario would be the distribution function, which makes the products (milk, steak, eggs) available for purchase in the grocery store.

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