Deck 1: An Overview of Strategic Marketing

Question 1

What does it mean for a company to be market oriented? What are the most important factors involved in being market oriented?

Answer 1

A market orientation requires the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it. Market orientation is linked to new product innovation by developing a strategic focus to explore and develop new products to serve target markets. Top management, marketing managers, non-marketing managers (those in production, finance, human resources, and so on), and customers are all important in developing and carrying out a market orientation. Trust, openness, honoring promises, respect, collaboration, and recognizing the market as the raison d'etre are six values required by organizations striving to become more market oriented. Unless marketing managers provide continuous customer-focused leadership with minimal interdepartmental conflict, achieving a market orientation will be difficult. Non-marketing managers must communicate with marketing managers to share information important to understanding the customer. Finally, a market orientation involves being responsive to ever-changing customer needs and wants.

Question 2

Why is marketing important to businesses and to the economy?

Answer 2

Businesses must engage in marketing to survive and grow, and marketing activities are needed to reach customers and provide products. Financial resources generated from sales are necessary for the operations of a firm and to provide financial returns to investors. Innovation in operations and products drive business success and customer loyalty. Marketing activities help to produce the profits that are essential to the survival of individual businesses. Without profits, businesses would find it difficult, if not impossible, to buy more raw materials, hire more employees, attract more capital, and create additional products that, in turn, make more profits. Therefore, marketing helps create a successful economy and contributes to the well-being of society.

Question 3

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

Answer 3

Organizations generally focus their marketing efforts on a specific group of customers called a target market. A target market is the group of customers toward which a company directs a set of marketing efforts.

Question 4

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

Question 5

Organizations should define themselves not according to the products they produce but according to

A) how profitable they are.
B) the price of their stock.
C) the abundance of their product selection.
D) how they treat employees.
E) how they satisfy customers.

Question 6

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 marketers
E) only the most important customers

Question 7

Marketing is the process of

A) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders.
B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
C) delivering a standard of living to a society.
D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives.
E) focusing on customers' needs.

Question 8

Suppose you are a marketing manager at Procter & Gamble for a new, all-purpose cleaning product. List four marketing mix variables and describe the decisions and activities associated with each.

Question 9

Discuss the evolution of the marketing concept through the various types of orientation.

Question 10

The focal point of all marketing activities

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

Question 11

Describe the three different types of products.

Question 12

What is meant by the term marketing concept, and what departments of a company does it affect?

Question 13

The primary value that a marketer expects to receive from a customer in an exchange relationship is

A) the price charged for the product.
B) customer satisfaction.
C) references to other potential customers.
D) quality merchandise that meets expectations.
E) few returns of the merchandise purchased.

Question 14

What are the three ways that marketing environment forces affect a marketer's ability to create satisfying exchange relationships?

Question 15

Discuss the concept of green marketing and why it is important to marketers.

Question 16

What is meant by the term relationship marketing? How does relationship marketing affect the customer?

Question 17

Describe several activities encompassed by the distribution variable.

Question 18

Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships.

Question 19

A target market

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

Question 20

Explain why a knowledge of marketing is beneficial for all students.

Question 21

The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)

A) issue.
B) experience.
C) idea.
D) good.
E) service.

Question 22

Making modifications to packaging or brand names involves the ____ component of the marketing mix.

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

Question 23

The marketing mix is built around the

A) product.
B) company.
C) customer.
D) employee.
E) retail outlet.

Question 24

Which of the following companies is the best example of a service marketer?

A) FedEx
B) Sony
C) Abercrombie & Fitch
D) The Democratic Party
E) General Electric

Question 25

Changing the hours of operation for a service business involves the ____ component of the marketing mix.

A) product
B) price
C) distribution
D) promotion
E) marketing concept

Question 26

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

A) Deciding whether or not 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 the airlines for executive travel
D) Deciding whether or not to have retail outlets in addition to a website
E) Developing a new warranty policy for an existing product

Question 27

Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets

A) goods.
B) ideas.
C) services.
D) political figures.
E) applications.

Question 28

Kashi Heart to Heart cereal is aimed at people concerned about their heart health. These people represent the Kashi

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

Question 29

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

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

Question 30

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines?

A) Product, price, distribution, and promotion variables
B) Marketing environment variables
C) Product and promotion variables
D) Product, price, and customer variables
E) Product, price, customer, and promotion variables

Question 31

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

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

Question 32

A physical product you can touch is a(n)

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

Question 33

The element of the marketing mix used to increase awareness of a product or company is

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

Question 34

Which of the following is most likely to be an idea marketer?

A) Car salesperson
B) Airline pilot
C) Attorney
D) Abuse counselor
E) Orthodontist

Question 35

Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix.

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

Question 36

Distribution, price, promotion, and product are all elements of

A) marketing strategy.
B) the marketing mix.
C) a target market.
D) a consumer good.
E) a business strategy.

Question 37

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

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

Question 38

The three basic forms that a product can take are

A) markets, products, and images.
B) goods, ideas, and intangibles.
C) brands, services, and tangibles.
D) services, ideas, and goods.
E) ideas, services, and things.

Question 39

Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about

A) which market he should target.
B) the best way to distribute his products.
C) how to effectively promote his business.
D) the product he provides to his customers.
E) which supplier he should use.

Question 40

The Church of the Latter Day Saints has used advertising for many years, airing a commercial TV spot that shows parents actively playing games with their children. The Church is using marketing to promote its

A) goods.
B) services.
C) experiences.
D) production.
E) ideas.

Question 41

According to the marketing concept, an organization should try to

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

Question 42

A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ____ that influence(s) the firm's strategy.

A) operating situation
B) marketing environment
C) surroundings
D) economic conditions
E) trends

Question 43

The H&R Block company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, which of the following philosophies is most appropriate?

A) The customer is always right.
B) Making money is our business.
C) Sell, sell, sell.
D) Keep prices low.
E) Focus on today.

Question 44

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

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

Question 45

Which of the following statements about marketing environment forces is correct?

A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
B) They do not 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 tend to be harmful to marketing activities because they change.
E) They are variables that marketers can control.

Question 46

The marketing concept is best defined as

A) a second definition of marketing.
B) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization 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 organization 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 organization.

Question 47

When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle, which costs consumers less than if they had purchased each item individually. Which of the following aspects of the marketing mix is Ikea likely altering?

A) Price
B) Promotion
C) Distribution
D) Product
E) Target market

Question 48

Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship?

A) Profits for the seller
B) A good bargain on the product for the buyer
C) Reducing the seller's inventory
D) One party having to compromise in the exchange
E) Satisfaction for both the buyer and seller

Question 49

The marketing concept is a management philosophy that affects

A) only marketing activities.
B) all efforts of the organization.
C) mainly the efforts of sales personnel.
D) mainly customer relations.
E) only business organizations.

Question 50

The marketing concept affects

A) just the marketing department.
B) all organizational activities.
C) only marketing and finance.
D) only production and marketing.
E) few decisions in an organization.

Question 51

The marketing concept is

A) a management 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 52

Which one of the following statements by a company president best reflects the marketing concept?

A) We have organized our business to make certain that customers get what they want.
B) We believe that the marketing department must organize to sell what we produce.
C) We have organized an aggressive sales force in our company to promote our products.
D) We try to produce only high-quality, technically efficient products.
E) We try to encourage company growth.

Question 53

When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?

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

Question 54

When DataComp Corp., a producer of software, delayed the introduction of its new spreadsheet app to modify the package, its scheduled TV advertisements announcing the new product needed to be revised. In this case, a change in the ____ variable caused changes in the ____ variable of the marketing mix.

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

Question 55

The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they

A) affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix.
B) dictate that changes be made to the existing marketing mix despite any negative reactions from customers.
C) make most new products obsolete very quickly so that research and development must continually develop new products.
D) cause most advertising to be ineffective at communicating product benefits due to rapidly changing environmental forces.
E) change a customer's decisions about the appropriate marketing mix for the company and its various products.

Question 56

The forces of the marketing environment include

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

Question 57

As the Industrial Revolution came to the United States, most firms operated in a(n) ____ orientation.

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

Question 58

The marketing concept focuses on

A) achieving the goals of top executives.
B) creating maximum visibility for the firm.
C) maximizing sales in a way that helps to achieve organizational objectives.
D) maximizing market share in a way that helps to achieve organizational objectives.
E) satisfying customers' needs in a way that helps to achieve organizational objectives.

Question 59

Which of the following is essentially an uncontrollable factor in developing a marketing mix?

A) Product adaptations
B) Pricing strategies
C) Government regulations
D) Advertising campaigns
E) Retail locations

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) dynamic and changing.
E) slow, with infrequent fluctuations.

Question 61

Customer costs include anything the buyer must give up in order 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 62

If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

A) $2,000
B) $1,500
C) $1,000
D) $500
E) $0

Question 63

Wonder introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Wonder was most likely following the ________.

A) selling concept
B) production concept
C) marketing concept
D) customer concept
E) retailing concept

Question 64

Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product's value?

A) Speed of delivery
B) Ease of installation
C) Availability of technical support
D) Availability of training assistance
E) Monetary price

Question 65

Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept? Technological advancement

A) An information system to determine customer needs
B) The organizational structure
C) Top-management commitment
D) Technological advancement
E) Scanning corporate capabilities

Question 66

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

A) marketing synthesis.
B) relationship marketing.
C) a marketing orientation.
D) the marketing concept.
E) strategic marketing.

Question 67

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

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 68

The equation a buyer applies to assess a product's value is

A) value = monetary price − customer benefits.
B) value = customer costs − customer benefits.
C) value = customer benefits − customer costs.
D) value = customer benefits − monetary price.
E) value = customer benefits − time and effort.

Question 69

Long-term relationships with profitable customers is the key objective of

A) personal selling.
B) customer relationship management.
C) production-oriented firms.
D) e-marketing.
E) distribution channels.

Question 70

T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?

A) Production
B) Sales
C) Market
D) Social
E) Development

Question 71

A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on

A) cost-cutting measures.
B) continually selling to new customers and markets.
C) creating and maintaining satisfying exchange relationships.
D) high-volume, low-margin sales.
E) increasing shelf space for their brands.

Question 72

____ 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 73

Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to

A) decrease customer benefits.
B) increase customer costs.
C) increase customer value.
D) increase distribution expenses.
E) decrease promotion expenses.

Question 74

Which of the following best describes the acceptance of the marketing concept by American organizations?

A) The marketing concept has yet to be fully accepted by all organizations.
B) All organizations fully utilize the marketing concept to run their businesses.
C) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.
D) Most organizations have really not accepted the marketing concept because of its many costs and problems.
E) Although American organizations fully accept the marketing concept, many foreign companies do not.

Question 75

Initiatives intended to improve an organization's positive impact on society and the natural environment are called

A) environmental marketing.
B) green marketing.
C) socially-responsible marketing.
D) energy-conscious marketing.
E) socially-conscious marketing.

Question 76

A market orientation is an organization-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 organization.
D) being responsive to customers' ever-changing wants and needs.
E) disseminating marketing intelligence across departments within the organization.

Question 77

Ben is responsible for managing the customer satisfaction of Hampton Inn motel guests. Ben is currently analyzing the customer relationship management (CRM) program at Hampton Inn and is contemplating where he should begin making changes. Which of the following would be the beginning of a CRM program, and therefore the area Ben should consider first?

A) getting rid of the most unprofitable customers.
B) offering new types of hotel rooms for frequent guests.
C) expanding the number and locations of Hampton Inns.
D) providing information to customers through the Web, Facebook, or in person.
E) increasing the promotion budget with a new sweepstakes for frequent customers.

Question 78

From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ____ orientation.

A) production
B) market
C) revolutionary
D) sales
E) reduction

Question 79

Which of the following is not an example of the implementation of the marketing concept?

A) Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork.
B) Ford asks customers to vote online for a new color for next year's Ford Focus.
C) Burger King reduces the labor costs to produce its sausage-egg biscuits.
D) Microsoft offers rewards for users who can find flaws in its new software.
E) Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision.

Question 80

During the Industrial Revolution demand for manufactured goods was

A) weak.
B) nonexistent.
C) declining.
D) strong.
E) mediocre.