Deck 1: Key Concepts in Marketing

Question 1

The focal point of all marketing activities is:

A)products.
B)the marketing mix.
C)profits.
D)sales.
E)customers.

Answer 1

E

Question 2

Explain why marketing efforts should be oriented towards creating and maintaining satisfying exchange relationships.

Answer 2

no answer

Question 3

The Holden Astra combines an economical vehicle with luxury and sophisticated technology for the __________ of environmentally conscious consumers looking for fuel efficiency with a little more luxury.

A)target market
B)consumer advocates
C)marketing strategy
D)marketing mix
E)marketing tactic

Answer 3

A

Question 4

A target market:

A)involves a large number of customers.
B)is a specific group of customers on whom a company focuses its marketing efforts.
C)already has several competitors vying for customers' business.
D)is the same thing as a salesperson's prospective client list.
E)is a customer group classified as people with similar demographic characteristics.

Question 5

Define the term green marketing and explain two reasons why many companies have embraced the notion.

Question 6

Describe several activities a marketing manager must consider when dealing with distribution variables.

Question 7

Customer satisfaction can come from:

A)lack of service.
B)the bulk and weight of the product being too great.
C)lack of process.
D)anything received when buying and using a product.
E)bad experiences.

Question 8

Marketing managers strive to develop a marketing mix that:

A)minimises marketing costs.
B)matches what competitors are offering.
C)best matches the abilities of the firm.
D)matches the needs of the target market.
E)generates the highest level sales.

Question 9

The customer expects to gain an advantage or benefit in excess of the costs incurred in a marketing exchange.The marketer also expects to gain a benefit in return, generally a financial gain.How do these two opposing ideas result in a benefit to both the marketer and the customer?

Question 10

The Australian airline Jetstar Airways __________ its domestic flights in Australia to people who want to fly to a destination without having to pay for meals and other things that are not essential to arriving at the destination safely and in good spirit.

A)arranges
B)prepares
C)provides
D)targets

Question 11

The definition of marketing implies that __________ should receive benefits from exchange relationships.

A)only customers
B)only businesses
C)company management
D)both customers and businesses
E)only the most important customers

Question 12

What does it mean for a company to be market-oriented?

Question 13

Marketing is the process of:

A)promoting products through personal selling and advertising to facilitate satisfying exchange relationships.
B)maximising returns to stakeholders by developing relationships with valued customers and creating an advantage for them.
C)delivering a standard of living to a society.
D)creating, distributing, promoting and pricing goods, services and ideas to facilitate the achievement of a firm's objectives.
E)focusing on customers' needs.

Question 14

Before marketers can develop a marketing mix, they must collect in-depth information.Describe what topics this information should cover and provide an example of how Fitbit did this for the development of one of its products.

Question 15

Define the term value, and explain how people determine a product's value.

Question 16

What is meant by the term marketing concept, and what is its major focus?

Question 17

Define the term marketing management, and describe its four major components.

Question 18

Discuss the evolution of the marketing concept with regard to a firm's orientation.

Question 19

What is meant by the term marketing environment and how might it affect the marketing mix?

Question 20

Define the term target market and provide an example for a product of your choice.

Question 21

Woolworths works with its primary producers and says they are important partners in the marketing of Woolworths' products.Their primary producers play a key role in:

A)the media.
B)unions and lobby groups.
C)product quality and packaging.
D)government.
E)the local community.

Question 22

For an exchange to occur, four conditions must exist: (1) two or more individuals, groups or organisations must participate, and each must possess 'something of value' that the other desires; (2) the exchange must provide a benefit or satisfaction to both parties; (3) each must have confidence in the promise of the 'something of value' held by the other; and (4):

A)the parties must agree to participate in the trading of 'something of value'.
B)to build trust, parties to the exchange must meet expectations.
C)both parties must participate in the trading of 'something of value'.
D)one party must be willing to compromise.
E)one party must have sufficient bank credit to finance the exchange.

Question 23

Apple has benefitted from technological advances in distributing songs over the Internet via its iTunes store, rather than establishing-brick and-mortar venues to sell music.This is an example of which element of the marketing mix?

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

Question 24

Which of the following statements about marketing environment forces is not correct?

A)They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
B)They may influence customers' reactions to a firm's marketing mix.
C)They fluctuate slowly and thereby create threats to a firm's marketing mix.
D)They can fluctuate quickly and dramatically.
E)They help determine whether and how a marketing manager can perform certain marketing activities.

Question 25

Even funerals are changing as a result of customers' needs and wants.Some funeral companies are developing new products such as:

A)less environmentally friendly coffins.
B)less economical funeral cars.
C)fewer cremation services.
D)cardboard coffins.

Question 26

Which of the following scenarios involves the distribution element of the marketing mix?

A)Deciding whether a certain product should continue to be sold
B)Determining whether an advertising message would be more effective on television or in magazines
C)Choosing between a company jet or an airline for executive travel
D)Deciding whether to have retail outlets in addition to a website
E)Developing a new warranty policy for an existing product

Question 27

The product variable of the marketing mix can include all of the following except:

A)the creation of brand names.
B)consumer perception of the product price.
C)the development of product packaging.
D)warranty issues.
E)repair services.

Question 28

A physical product you can touch is a(n):

A)service.
B)good.
C)idea.
D)concept.
E)philosophy.

Question 29

The forces of the marketing environment include:

A)political, legal and regulatory, sociocultural, technological, economic and competitive forces.
B)sociocultural, legal, regulatory, economic and competitive forces.
C)legal, regulatory, political and sociocultural forces.
D)competitive and non-competitive forces that affect most lifestyles.
E)fairly static components.

Question 30

Responding to health concerns from consumers, McDonald's revamped its menu to include healthier children's menu options, such as fruit and chicken wraps instead of fries and hamburgers.This is an example of marketing mangers responding to:

A)an operating situation.
B)environmental forces.
C)the surroundings.
D)economic conditions.
E)the technological environment.

Question 31

The application of human and/or mechanical efforts to people or objects to provide intangible benefits to customers is:

A)a service.
B)a physical entity.
C)concepts, philosophies, images and issues.
D)a brand name.

Question 32

The concept of exchange is fundamental to the definition of marketing.What is the best description of exchange?

A)Activities that are performed primarily by producers and manufacturers
B)Development of products, distribution channels, promotional strategies and pricing objectives to satisfy customer requirements
C)Transfer of products in return for monetary considerations
D)Provision or transfer of goods, services or ideas in return for something of value
E)Transfer of products that take place only between for-profit organisations

Question 33

The marketing mix includes four marketing activities except which of the following?

A)Product
B)Price
C)Political forces
D)Promotion
E)Place

Question 34

In Australia, Campbell's responded to consumer concerns about their health by introducing a line of reduced sodium soups made with natural sea salt.This illustrates a change in the __________ for Campbell's.

A)marketing mix
B)marketing environment
C)marketing concept
D)marketing task
E)product concept

Question 35

The rising number of incidents of drink-driving in Australia has prompted the Australian government to launch advertising campaigns showcasing what can happen when driving under the influence of alcohol.This calls for activity in which marketing mix variable?

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

Question 36

Those constituents who have a stake in some aspect of an organisation's products, operations, markets, industry and outcomes are known as:

A)shareholders.
B)stakeholders.
C)customers.
D)target markets.
E)marketers.

Question 37

The Australia Zoo in Queensland is in the business of:

A)establishing zoos.
B)making people happy and giving them memorable experiences.
C)making animals perform.
D)teaching about endangered animals.

Question 38

The identified change in consumer behaviour towards online shopping and/or searching for information can be described as a(n) __________ force operating in the dynamic marketing environment.

A)competitive
B)economic
C)political
D)legal
E)sociocultural

Question 39

In the expanded marketing mix, which variable refers to the human element of the product?

A)Physical evidence
B)Processes
C)Promotion
D)People
E)Price

Question 40

Consumers buying products online have dramatically affected the __________ variable of the marketing mix.

A)product
B)price
C)distribution
D)research
E)promotion

Question 41

__________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.

A)Marketing orientation
B)Monetary price
C)Product assessment
D)Price assessment
E)Value

Question 42

At the most basic level, profits can be obtained through relationships in the following ways, except by:

A)acquiring new customers.
B)enhancing the profitability of existing customers.
C)continually selling to only old customers and markets.
D)extending the duration of customer relationships.

Question 43

The marketing concept is:

A)a managerial philosophy.
B)synonymous with exchange.
C)a component of the marketing mix.
D)a function of the marketing environment.
E)focused solely on satisfying customer objectives.

Question 44

The hard-sell days of the 1950s saw 'vacuum cleaner salesmen' arriving at front doors with a charming smile and a product demonstration that would 'make life easier' for housewives.Which orientation were they following?

A)Production
B)Sales
C)Marketing
D)Customer
E)Societal

Question 45

The marketing concept is best defined as:

A)a second definition of marketing.
B)a philosophy stating that an organisation should try to satisfy customers' needs through a coordinated set of activities that allows the organisation to achieve its goals.
C)the performance of business activities that direct the flow of goods and services from producer to customer or user.
D)a philosophy stating that an organisation should attempt to accomplish its goals with no regard for the needs of customers.
E)the inclusion of marketing activities in the activities of an organisation.

Question 46

As a concept, customer relationship management begins its focus on customers with:

A)information.
B)product.
C)distribution.
D)communication.
E)price.

Question 47

Customer relationship management focuses on using __________ about customers to create marketing strategies.

A)internal communications
B)information
C)purchasing power insights
D)marketing mix knowledge
E)implementation knowledge

Question 48

The marketing concept focuses on:

A)achieving the goals of top executives.
B)creating maximum visibility for the firm.
C)maximising sales.
D)maximising market share.
E)customer analysis, competitor analysis and integration of the company's resources to provide customer value and to make the organisation more valuable for its owners and other stakeholders.

Question 49

The evolution of the marketing concept has moved from a production orientation in the late 1800s and early 1900s to a(n) __________ orientation today.

A)sales
B)market
C)customer
D)relationship
E)economic

Question 50

According to the marketing concept, an organisation should try:

A)to consider short-run objectives and cash flow needs before developing new products.
B)to define its business as 'making a product'.
C)to provide products that satisfy customers' needs and allow the organisation to achieve its goals.
D)to put most of its emphasis on marketing activities and be less concerned with finance, accounting and personnel.
E)to view selling activities as the major means of increasing profits.

Question 51

As the Industrial Revolution came during the second half of the nineteenth century, firms operated in a(n) __________ orientation.

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

Question 52

The marketing concept is not a second definition of marketing; it is a marketing philosophy guiding:

A)marketing activities.
B)an organisation's overall activities.
C)the efforts of sales personnel.
D)customer relations.
E)only business organisations.

Question 53

The marketing concept is a philosophy that states that an organisation should try to satisfy customers' needs and:

A)increase market share.
B)increase sales.
C)achieve the organisation's goals.
D)produce high-quality products.
E)coordinate its activities to increase production.

Question 54

When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which of the following philosophies?

A)Selling concept
B)Production concept
C)Customer concept
D)Marketing concept
E)Retailing concept

Question 55

A marketing orientation is an organisation-wide effort that includes all of the following activities except:

A)researching customers' needs.
B)focusing on the marketing department only.
C)generating marketing intelligence for use in the organisation.
D)being responsive to customers' ever-changing wants and needs.
E)disseminating marketing intelligence across departments within the organisation.

Question 56

Businesspeople who believe that personal selling, advertising and distribution are the most important marketing activities are operating in a(n) __________ orientation.

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

Question 57

A mid-level manager has tried for years to get his company to adopt a marketing orientation.Although many in the company are receptive to his ideas, it is unlikely that the company will ever truly become marketing-oriented without:

A)the support of competitors.
B)changes in government regulations.
C)increases in tariffs on foreign products.
D)the support of executives, managers, and customers.
E)the consent of assembly-line workers.

Question 58

The expanded marketing mix includes:

A)product, price, place and promotion.
B)people, physical evidence, process and partnership.
C)people, promotion, place and process.
D)people, physical evidence, process and promotion.

Question 59

Amazon, the online provider of books, music, movies, toys and many other products, follows buyers' purchases and recommends related topics.The firm is exhibiting characteristics associated with the ________ orientation.

A)production
B)sales
C)marketing
D)social
E)development

Question 60

The marketing environment is best described as being:

A)composed of controllable variables.
B)composed of variables independent of one another.
C)an indirect influence on the performance of marketing activities.
D)one that can fluctuate quickly and dramatically.
E)slow, with infrequent fluctuations.

Question 61

Which element of the marketing mix can be used to enhance perceptions of value through images?

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

Question 62

A systematic process of assessing opportunities and resources, determining marketing objectives and developing a marketing strategy and plans for implementation and control describes which of marketing management activity?

A)Strategic planning
B)Marketing control
C)Implementation
D)Organising
E)Planning

Question 63

Which of the following would not be a customer cost considered in determining product value?

A)A product's purchase price
B)Time spent purchasing the product
C)Effort spent purchasing the product
D)Benefits received in the exchange for the products
E)Risk of purchasing the product

Question 64

Customer benefits include __________ a buyer receives in an exchange.

A)the product
B)the service
C)the value
D)anything

Question 65

Use the following to answer questions
Best Friends Hotel is a full-service pet salon and boarding kennel.Best Friends has an interactive website where customers can directly book a grooming appointment, obedience class or overnight accommodations for their dog or cat.Best Friends has several unexpected services, such as a 55-square metre swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool.Customers can also drop off their dog or cat each morning for pet day care.Best Friends has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet furniture so that the cats and dogs can lie on sofas just like at home.Best Friends is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time.
The director of marketing at Best Friends suggested talking to pet owners about what type of services they would like to have available.These discussions led to the pet day care and round-the-clock hours of operation.Previously, Best Friends was more interested in competing based on its prices.
The fact that Best Friends is open 24 hours each day is part of which marketing mix variable?

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

Question 66

Marketing activities:

A)are aimed at persuading customers through advertising.
B)involve mainly distribution and promotion decisions.
C)and selling activities are basically the same.
D)are important only when a firm is developing new products or entering new markets.
E)help sell an organisation's products and generate financial resources for the firm.

Question 67

Marketing management is defined as a process of:

A)maintaining an appropriate and efficient marketing mix for a target market.
B)establishing performance standards and evaluating actual performances against these standards.
C)providing products that satisfy customers' needs through a coordinated set of activities.
D)facilitating satisfying exchanges between an organisation and its customers.
E)planning, organising, implementing and controlling marketing activities to facilitate exchanges effectively and efficiently.

Question 68

How does marketing fuel the global economy?

A)Profits are put towards developing new products and technologies.
B)Lack of profits results in lower standards of living.
C)There is a decrease in economic growth.
D)Only local acceptance of brands occurs.
E)No one buys local brands anymore.

Question 69

Use the following to answer questions
Earth to Earth Cemetery offers a full-service funeral and burial that is non-toxic to the environment.All materials used in the burial are natural and will decompose with no negative impact.Earth to Earth's service is relatively new in Australia, but services of this type are common in Great Britain.A typical burial in Earth to Earth's cemetery includes a casket made from bamboo, wicker, paper or another natural material.There are no headstones of granite or concrete that will detract from the landscape, but trees and plants as 'markers' are allowed.The cost for a burial at Earth to Earth is approximately $3000, compared to about $6000 at most traditional cemeteries.Although business was slow at first, Earth to Earth is now experiencing an increase in the number of burials due to referrals and a newly developed website.The owners of Earth to Earth were previously in the cemetery business and are active conservationists.After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally conscious Australians like themselves.
Earth to Earth's main competitive advantage over traditional cemeteries comes from its attention to which element in the marketing mix?

A)Product
B)Price
C)Promotion
D)Distribution
E)Marketing research

Question 70

What type of guarantee do many eBay-based businesses use to reduce the risk involved in ordering merchandise sight unseen?

A)Photographs
B)Customer satisfaction ratings
C)Email contacts
D)100 per cent satisfaction guarantee
E)Monetary price

Question 71

Customer costs include anything the buyer must give up to obtain the benefits the product provides.The most obvious customer cost is:

A)risk.
B)time.
C)monetary price.
D)effort.
E)availability.

Question 72

Use the following to answer questions
Best Friends Hotel is a full-service pet salon and boarding kennel.Best Friends has an interactive website where customers can directly book a grooming appointment, obedience class or overnight accommodations for their dog or cat.Best Friends has several unexpected services, such as a 55-square metre swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool.Customers can also drop off their dog or cat each morning for pet day care.Best Friends has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet furniture so that the cats and dogs can lie on sofas just like at home.Best Friends is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time.
The director of marketing at Best Friends suggested talking to pet owners about what type of services they would like to have available.These discussions led to the pet day care and round-the-clock hours of operation.Previously, Best Friends was more interested in competing based on its prices.
Best Friends' target market is most likely to be which of the following?

A)The dogs and cats that stay there
B)Pet owners who go on vacation frequently
C)Families with small children and several pets
D)Suburban families with two-income households
E)Urban professionals who travel often

Question 73

Use the following to answer questions
Earth to Earth Cemetery offers a full-service funeral and burial that is non-toxic to the environment.All materials used in the burial are natural and will decompose with no negative impact.Earth to Earth's service is relatively new in Australia, but services of this type are common in Great Britain.A typical burial in Earth to Earth's cemetery includes a casket made from bamboo, wicker, paper or another natural material.There are no headstones of granite or concrete that will detract from the landscape, but trees and plants as 'markers' are allowed.The cost for a burial at Earth to Earth is approximately $3000, compared to about $6000 at most traditional cemeteries.Although business was slow at first, Earth to Earth is now experiencing an increase in the number of burials due to referrals and a newly developed website.The owners of Earth to Earth were previously in the cemetery business and are active conservationists.After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally conscious Australians like themselves.
Referrals and a new website have helped Earth to Earth's business grow.These would come under which marketing mix variable?

A)Product
B)Price
C)Distribution
D)Promotion
E)Promotion and distribution

Question 74

All of the following are marketing management tasks except:

A)planning.
B)implementing.
C)organising.
D)analysing target markets.
E)controlling.

Question 75

Green marketing is:

A)a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting and enhancing the natural environment.
B)when a company applies recycling principles in their production.
C)when a company only uses the Internet to advertise and has no paper-based activities.
D)when a company meets legislative requirements for waste management.

Question 76

Use the following to answer questions
Earth to Earth Cemetery offers a full-service funeral and burial that is non-toxic to the environment.All materials used in the burial are natural and will decompose with no negative impact.Earth to Earth's service is relatively new in Australia, but services of this type are common in Great Britain.A typical burial in Earth to Earth's cemetery includes a casket made from bamboo, wicker, paper or another natural material.There are no headstones of granite or concrete that will detract from the landscape, but trees and plants as 'markers' are allowed.The cost for a burial at Earth to Earth is approximately $3000, compared to about $6000 at most traditional cemeteries.Although business was slow at first, Earth to Earth is now experiencing an increase in the number of burials due to referrals and a newly developed website.The owners of Earth to Earth were previously in the cemetery business and are active conservationists.After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally conscious Australians like themselves.
The owners of Earth to Earth Cemetery are apparently operating under which orientation?

A)Sales orientation
B)Market orientation
C)Production orientation
D)Business orientation
E)Profit orientation

Question 77

Marketing activities are:

A)used by organisations of all sizes, including non-profit organisations and government agencies.
B)limited to use by larger for-profit and non-profit organisations.
C)implemented only to increase profits for the organisation and to expand the scope of its customer base.
D)used by all types and sizes of businesses, except non-profit organisations.
E)used mostly by small businesses and small non-profit organisations.

Question 78

__________ is the process of establishing performance standards, comparing actual performance with established standards and reducing the difference between desired and actual performance.

A)Internal control analysis
B)Marketing control
C)Market flow regulation
D)Environmental market analysis
E)External analysis

Question 79

Use the following to answer questions
Best Friends Hotel is a full-service pet salon and boarding kennel.Best Friends has an interactive website where customers can directly book a grooming appointment, obedience class or overnight accommodations for their dog or cat.Best Friends has several unexpected services, such as a 55-square metre swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool.Customers can also drop off their dog or cat each morning for pet day care.Best Friends has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet furniture so that the cats and dogs can lie on sofas just like at home.Best Friends is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time.
The director of marketing at Best Friends suggested talking to pet owners about what type of services they would like to have available.These discussions led to the pet day care and round-the-clock hours of operation.Previously, Best Friends was more interested in competing based on its prices.
If Best Friends employs the philosophy of building a relationship with its dog and cat customers, and their owners, it will be implementing the:

A)marketing concept.
B)production concept.
C)sales concept.
D)marketing mix.
E)marketing environment.

Question 80

__________ marketing plans hinges on coordination of marketing activities, motivation of marketing personnel and effective communication within the marketing unit.

A)Implementing
B)Designing
C)Organising
D)Creating
E)Strategically planning