Deck 1: Marketing: the Art of Satisfying Customers

Question 1

Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the quality of products.

Answer 1

False

Question 2

Marketing of a product begins after it hits the shelf.

Answer 2

False

Question 3

A firm with a fully developed marketing concept is one with a company-wide consumer orientation with the objective of achieving long-term success.

Answer 3

True

Question 4

Form utility refers to conversion of raw materials and components into finished goods and services.

Question 5

Celebrities use person marketing as a way to increase their value in the marketplace.

Question 6

The marketing era is the successive historical outcome of the production era.

Question 7

The advent of a strong buyer's market created the need for consumer orientation by businesses.

Question 8

The relationship era builds on the marketing era's customer orientation by only focusing on maintaining relationships with customers.

Question 9

A seller's market is one in which there are more goods and services than people willing to buy them.

Question 10

Owen buys a car for himself. Owen has created ownership utility.

Question 11

The marketing era is defined by a shift in focus from products and sales to satisfying a consumer's needs.

Question 12

Buying an iPod generates ownership utility; however, buying a concert ticket does not.

Question 13

Production and marketing of goods and services are two basic functions that create utility.

Question 14

It can be said that Glen Inc., a woolen products manufacturing company based in Switzerland, is a firm that uses a market-driven strategy because it produces goods based on local customers' experiences, needs, and preferences.

Question 15

Within a business environment, the marketing function is responsible for the creation of time, place, and ownership utility, whereas the production function creates form utility.

Question 16

The emergence of the marketing concept can be linked to the shift from a seller's market to a buyer's market.

Question 17

In the sales era, firms attempted to match their output to the potential number of customers who would want it.

Question 18

The marketing concept focuses on the objective of achieving short-term profits instead of long-run success during tough economic times.

Question 19

An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic, and petroleum products.

Question 20

In the history of marketing, the fourth era, known as the social era, has given way to the fifth era, called the relationship era.

Question 21

According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm to attract and keep the customer.

Question 22

Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause marketing.

Question 23

Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing so, the company creates _____ utility.

A) ownership
B) form
C) place
D) time

Question 24

Marketing is the indirect connection between a firm and its customers.

Question 25

The ability to transfer title to goods or services from marketer to buyer is described as:

A) ownership utility.
B) form utility.
C) time utility.
D) place utility.

Question 26

A theater group promoting a performance to raise funds in the fight against cancer is an example of both cause marketing and event marketing.

Question 27

Fame-us is a talent hunt agency focusing on the youth looking to enter Hollywood. As part of their marketing strategy, Fame-us generates time and place utility by:

A) creating a nationwide advertising campaign to attract applicants.
B) launching road shows across cities and conducting talent hunts at campuses during Thanksgiving.
C) endorsing their services using famous celebrities from Hollywood.
D) opening a well-equipped studio with pre- and post-production facilities.

Question 28

Relationship building in marketing starts with excellent customer service after purchase.

Question 29

Compared to transaction marketing, relationship marketing relies more heavily on information technologies.

Question 30

Intermediaries that may be involved in a product's movement from producer to final consumer are known as wholesalers.

Question 31

Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise funds. These activities constitute organization marketing.

Question 32

Promotional events designed to attract visitors to a particular area or to improve the image of a city, state, or nation would be examples of event marketing.

Question 33

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

Question 34

The cost of finding new customers is far less than the cost of maintaining existing ones.

Question 35

The utility of a product or service is its:

A) want-satisfying power.
B) reusability.
C) function as a commodity.
D) design quality.

Question 36

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

Question 37

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

Question 38

Relationship marketing moves customers up a loyalty ladder-from new customers to regular purchasers, then to loyal supporters of the firm and its goods and services, and finally to advocates who not only buy its products but recommend them to others.

Question 39

On average, marketing expenses account for half of the costs involved in a product.

Question 40

Branches of the U.S. military sometimes show recruitment advertisements in cinemas featuring movies that are most likely to attract viewers of military age. This is an example of place marketing.

Question 41

Melissa is campaigning for Janet, her friend, who is contesting for the presidency of the student council at Riverdale Junior College. Melissa's effort is an example of _____ marketing.

A) cause
B) person
C) place
D) organization

Question 42

The emergence of the marketing concept can best be explained by:

A) higher production levels.
B) greater sophistication in the production of goods.
C) the shift from a seller's market to a buyer's market.
D) a focus on product quality.

Question 43

The basic objective of place marketing is to:

A) attract visitors or new businesses to a particular area.
B) influence others to accept the goals of the sponsoring organization.
C) convince people to attend a sporting or cultural event.
D) bring to the attention of the public some charitable issue.

Question 44

A company produces a high-quality product, with a maximum monthly output of 10,000 units. Production levels are constant, and the company relies on its marketing department to find customers for its output. This approach is consistent with which era in marketing history?

A) Production era
B) Relationship era
C) Marketing era
D) Sales era

Question 45

Creating _____ utility is the responsibility of the production function.

A) place
B) form
C) time
D) ownership

Question 46

The process for creating, communicating, and delivering value to the customer is called _____.

A) marketing
B) financing
C) operations
D) administration

Question 47

Banks have recently begun to install ATMs in supermarkets to address customers' wants for instant cash when they go shopping. What type of utility are banks creating for customers?

A) Form
B) Possession
C) Place
D) Ownership

Question 48

A market in which there are more buyers for fewer goods and services is known as a:

A) seller's market.
B) monopoly.
C) buyer's market.
D) oligopoly.

Question 49

Availability of goods and services at convenient locations creates:

A) form utility.
B) time utility.
C) place utility.
D) ownership utility.

Question 50

In the relationship era, firms focus on:

A) short-term relationships with suppliers.
B) long-term relationships with customers and suppliers.
C) short-term relationships with customers and suppliers.
D) short-term relationships with customers.

Question 51

The business philosophy incorporating the marketing concept where the focus is on satisfying the needs and wants of consumers rather than simply producing and selling products is known as:

A) customer persuasion.
B) consumer orientation.
C) aggressive marketing.
D) sales orientation.

Question 52

Which of the following factors contributed to the transition from the production era to the sales era?

A) Increased consumer demand
B) Sophisticated production techniques
C) Increase in urbanization
D) The Great Depression

Question 53

A company with a _____ orientation assumes that customers will resist purchasing nonessential goods and services and that the task of personal selling and advertising is to persuade them to buy.

A) production
B) marketing
C) sales
D) relationship

Question 54

The _____ is a companywide consumer orientation with the objective of achieving long-run success.

A) marketing myopia
B) exchange process
C) marketing concept
D) seller's market

Question 55

State bureaus of tourism and conventions typically engage in _____ marketing.

A) organization
B) person
C) place
D) cause

Question 56

Assume you want to increase the number of customers by applying the marketing concept. Which of the following strategies would be most consistent with this approach?

A) Reduce product costs
B) Offer more product variety than competitors
C) Target markets
D) Employ inexpensive labor

Question 57

A buyer's market is characterized by:

A) more goods and services than buyers to buy them.
B) a small number of firms dominating the production of goods offered.
C) practically no competition in the marketplace.
D) a single firm producing a major share of the products or services offered.

Question 58

The marketing philosophy summarized by the phrase "a high-quality product will sell itself" is a characteristic of the _____ era.

A) production
B) sales
C) marketing
D) relationship

Question 59

Indigo Ltd. wanted to increase its customers by applying the marketing concept. Which of the following would be an appropriate way to apply this approach?

A) Maximize production of goods
B) Focus on meeting the needs of the consumers
C) Offer more product variety than competitors
D) Produce high-quality goods

Question 60

Which of the following is an example of person marketing?

A) A firm creating awareness of the importance of using public transport.
B) A country promoting its sightseeing spots and cuisines.
C) A mall being inaugurated by a popular commercial actor.
D) A firm promoting an inter-state soccer match.

Question 61

Sally Myers, head of marketing at Sally's Salon, serviced six new customers over the past two weeks. Through a feedback form, Sally learned that all of them had acted upon the opinions of their friends and family members. What Sally encountered is an example of:

A) transaction-based marketing.
B) sales orientation.
C) marketing myopia.
D) buzz marketing.

Question 62

Which of the following is a combination of person, cause, and organization marketing?

A) Tiger Woods' endorsement of Nike, a sports company and Accenture, a consulting company.
B) The Nobel Peace Prize for Al Gore for his work on global warming.
C) UNICEF's work to improve the living conditions of children across the world.
D) Angelina Jolie's role as a UN Goodwill Ambassador for refugees.

Question 63

The Tour de Cure is a bicycle ride, not a race, to raise money for the American Diabetes Association and is held in 40 states nationwide. This is an example of:

A) cause marketing.
B) organization marketing.
C) person marketing.
D) place marketing.

Question 64

Some Florida drivers have license plates that say "Save the Manatee." This is an example of _____ marketing.

A) organization
B) cause
C) place
D) event

Question 65

As an official sponsor of the Olympics, The Coca-Cola Company engages in _____ marketing.

A) place
B) event
C) person
D) organization

Question 66

The revenues and intangible benefits accrued to the firm, minus the investment to attract and keep a customer is known as the:

A) gradient of return on investment.
B) intangible benefit stream.
C) investment-benefit differential.
D) lifetime value of the customer.

Question 67

What is the ultimate objective of relationship marketing?

A) Find new customers
B) Create regular purchasers
C) Turn customers into advocates
D) Turn customers into loyal supporters

Question 68

Billboards for the city's national football league team are positioned within 5 miles of the stadium. This is an example of _____.

A) form utility creation
B) place marketing
C) organization utility
D) sports marketing

Question 69

Which of the following is true of relationship marketing?

A) It focuses on finding new customers.
B) It prefers not to maintain existing customers due to high costs.
C) It does not believe in generating repeat sales.
D) It believes in maintaining existing customers.

Question 70

A university sells customized sweatshirts, pullovers, and jerseys to its students and staff. This is an example of _____.

A) cause marketing
B) organization marketing
C) person marketing
D) event marketing

Question 71

Mobile marketing refers to:

A) running promotional campaigns on transport media such as trains and airplanes.
B) marketing messages transmitted via wireless technology.
C) promoting associated products or services alongside mobile technologies.
D) the use of online social media as a communications channel for marketing messages.

Question 72

Define utility and discuss the four types of utility. Give examples and list the functional areas within an organization that are responsible for each.

Question 73

Fred Foods Inc. provides free cereals and biscuits to support a program that aims to end hunger in various emerging nations. This is an example of _____ marketing.

A) organization
B) person
C) cause
D) place

Question 74

Relationship marketing focuses more attention on _____ customers because new customers are _____ to acquire compared to existing customers.

A) existing; less expensive
B) new; less expensive
C) existing; more expensive
D) new; more expensive

Question 75

The application of relationship marketing requires attention to levels of customer loyalty. Which of the following is the highest level as defined by this type of marketing?

A) Loyal supporter of the company and its goods and services.
B) Advocate who not only buys the products but recommends them to others.
C) Regular purchaser of the company's products.
D) Stockholder who literally buys into the organization and its mission.

Question 76

Phoebe was asked to bring a can of food for the local food bank as the "price of admission" for a certain ceremony. This is an example of _____.

A) person marketing
B) organization marketing
C) ownership utility
D) cause marketing

Question 77

By converting indifferent customers into loyal ones through relationship marketing, companies can:

A) increase the cost of maintaining existing customers.
B) start a process by which customers become bound contractually to the business.
C) avoid the necessity of improving customer service in the long run.
D) generate repeat sales.

Question 78

In the practice of relationship marketing, the definition of a customer is taken to another level. Which of the following best illustrates how a company practicing relationship marketing is different from a traditional transaction-based marketer?

A) The city pool allows kids 12 years and younger to swim for free on Fridays.
B) A local coffee shop distributes coupons for $.50 off each cup of coffee.
C) The purchasing department of a defense contractor invites its suppliers to attend an annual golf outing.
D) The heads of the financial departments meet with the Chief Financial Officer to discuss year-end financial reporting.

Question 79

Compare the purchase of an AM/FM radio with the purchase of a satellite radio. Describe the creation of utility from the perspective of the manufacturer and marketer. Describe the utility relationship between the customer and the marketer.

Question 80

Many hotel chains offer free stays and other perks to repeat customers. This is an example of:

A) relationship marketing.
B) transaction-based marketing.
C) interactive marketing.
D) social marketing.