Deck 1: The Nature of Marketing

Question 1

Four core forms of customer value have been identified. These are price value, performance value, emotional value and _______ value.

A)relational
B)rational
C)cost
D)relative

Answer 1

A

Question 2

Which of these is not part of the marketing concept?

A)Providing customer satisfaction
B)Matching competitors' offering
C)It relies on the integrated effort of numerous departments, not just marketing
D)That corporate goals can be achieved through customer satisfaction

Answer 2

B

Question 3

When consumers are focused on finding products with the latest features and are attracted to products by their functionality and perceived quality levels, they are motivated by _______ value.

A)price
B)performance
C)relational
D)emotional

Answer 3

B

Question 4

Three conditions must be met before the marketing concept cam be applied. Firstly, company activities should be focused on providing customer satisfaction. Secondly, the achievement of customer satisfaction relies on an integrated effort and thirdly, for an integrated effort to come about management must believe that corporate goals can be achieved through _______.

A)scanning the market
B)matching the competition
C)satisfying employees
D)satisfying customers

Question 5

Which of the following is a core form of customer value?

A)Relational value
B)Emotional value
C)Price value
D)All of these are forms of customer value

Question 6

Organizations almost by definition are _______ looking, with a focus on their people, their operations and their products.

A)inward
B)outward
C)downward
D)sideward

Question 7

Which of the following is marketing's central role?

A)Make more sales
B)Create great products
C)Create and keep customers
D)Acquire new customers

Question 8

Which of the following statements is true?

A)It is more expensive to keep customers than to attract new customers
B)It is more expensive to attract new customers than to retain existing ones
C)Existing customers demand more services
D)New customers demand more services

Question 9

Companies such as Ryanair and Aldi focus on providing _______ value to customers. They understand that one of the most powerful motivations to purchase is because a product is perceived as being cheaper than those offered by competitors.

A)price
B)emotional
C)relational
D)performance

Question 10

Which of the following is seen as the key to achieve marketing success?

A)Matching the value offered by competitors
B)Exceeding the value offered by competitors
C)Matching the prices offered by competitors
D)Exceeding the advertising spend of competitors

Question 11

Customer Value =______________?

A)Perceived Costs - Perceived Sacrifice
B)Perceived Sacrifice - Perceived Benefits
C)Perceived Benefits - Perceived Sacrifice
D)Perceived Benefits - Perceived Costs

Question 12

By maintaining a(n) _______ focus, companies can understand what customers value and how to consistently innovate new sources of value that keep bringing them back.

A)inside-out
B)internal-external
C)outside-in
D)micro-macro

Question 13

Why is there a need to monitor and understand competitors?

A)Because companies need to match their competitors' prices
B)Because companies need to create products similar to their competitors'
C)Because customers will buy from competitors if they are cheaper
D)Because customers will turn to competitors if their needs are not being met

Question 14

Why do marketing-orientated companies attempt to create customer value?

A)In order to attract and retain customers
B)In order to attract value conscious customers
C)In order to reduce customer complaints
D)In order to reduce manufacturing costs

Question 15

Many consumer products have similar design, functionality and features. Consequently, the only real difference that exists between these products/brands is in the mind of the consumer, and this is known as _______ value.

A)relational
B)emotional
C)price
D)performance

Question 16

When companies recognize the potential sales, profits and endorsements that come from a repeat customer who stays loyal to the company, they are focused on the _______ value of a customer.

A)lifecycle
B)lifestyle
C)lifetime
D)lifestage

Question 17

An important motive to purchase is the quality of the service received by the customer. This presents a particular opportunity for service businesses to provide _______ value to customers.

A)relational
B)emotional
C)price
D)performance

Question 18

Which of these is not a feature of a market driven business?

A)They display customer concern throughout the business
B)They invest in market research and track market changes
C)They stick with the same products
D)They are fast and flexible in terms of their pursuit of new opportunities

Question 19

There are two core elements that are central to marketing. These are value and _______.

A)profits
B)customers
C)costs
D)sales

Question 20

Organizations are now becoming proficient users of _______ (CRM) systems to get to know their customers better and to interact with them on a regular basis.

A)customer repeat marketing
B)customer repeat management
C)customer relationship monitoring
D)customer relationship management

Question 21

When does customer satisfaction occur?

A)When perceived performance matches or exceeds competitors' offering
B)When perceived performance matches or exceeds expectations
C)When there are no complaints
D)When customers continue to purchase

Question 22

What does the "Product" element of the marketing involve?

A)Deciding what prices should be charged for a product
B)Deciding what goods or services should be offered to a group of customers
C)Deciding on how the product should be distributed
D)Deciding on how to advertise the product

Question 23

A marketing strategy is an idea or conceptualization of how a goal will be achieved, whereas a marketing _______ is an action taken to execute the strategy.

A)audit
B)objective
C)brand
D)tactic

Question 24

Customers' expectations are mainly formed through _______?

A)the company's promises
B)recommendations from friends
C)the company's advertising
D)all of the above

Question 25

Any marketing strategy will be ineffective unless this strategy is converted into _______.

A)action
B)reaction
C)theory
D)costs

Question 26

Which of the following is an example of a "Must Be" characteristic of the Kano model of customer satisfaction?

A)In a hotel, customers expect extra towels
B)In a hotel, customers expect service at reception and a clean room
C)In a hotel, customers expect free room service
D)In a hotel, customers expect satellite television and a bath

Question 27

What does the "Place" element of the marketing involve?

A)Decisions concerning the distribution to be used and the management of the distribution activity, the locations of outlets, methods of transportation and inventory levels to be held
B)Decisions concerning the placement of product on retailers' shelves to ensure that these products obtain the most suitable location
C)Decisions concerning the types of retail outlets allowed to stock a company's products and that these stores' image matches that of the product
D)Decisions concerning the types of retailers allowed to stock a company's product and obtaining the best location for a product to be displayed in a store

Question 28

Which of the following is not a characteristic of the Kano model of customer satisfaction?

A)"Must Be"
B)"More is Better"
C)"Much More"
D)"Delighters"

Question 29

Which of the following is an example of a "More is Better" characteristic of the Kano model of customer satisfaction?

A)In a hotel, customers expect service at reception
B)In a hotel, customers expect a rapid and satisfactory response to a complaint
C)In a hotel, customers expect access to telephony services
D)In a hotel, customers expect room service

Question 30

The marketing mix consists of which of the following four major elements?

A)Promotion, Place, Product and Price
B)Place, Product, Productivity and Plans
C)Price, Place, Plans and Promotion
D)Price, Plans, Product and Promotion

Question 31

Service marketers have argued for a 7-Ps approach for their marketing mix, instead of the traditional 4-Ps approach. What are these 3 extra Ps?

A)Physical Evidence, Planning, People
B)Productivity, People, Planning
C)Planning, Process, Physical Evidence
D)People, Physical Evidence, Process

Question 32

Which of the following is not an important element of the product decision?

A)Packaging
B)New Product Development
C)Distribution
D)Branding

Question 33

What is meant by the term "perceived sacrifice"?

A)The total costs associated with buying the product
B)The monetary costs associated with buying the product
C)The time and energy associated with buying the product
D)The price paid for the product

Question 34

What are distribution channels?

A)Distribution channels are promotional methods used to distribute advertising messages
B)Distribution channels are high street retail outlets who sell goods to customers
C)Distribution channels consist of transport providers who provide transport solutions
D)Distribution channels consist of organizations such as retailers or wholesalers through which goods pass on their way to customers

Question 35

Which of the following is not controlled by the promotional mix?

A)Sales Promotions
B)Trade Prices
C)Direct Marketing
D)Internet Marketing

Question 36

What is the "Delighters" characteristic of the Kano model of customer satisfaction?

A)"Delighters" are highly satisfied customers
B)"Delighters" are extra features of a product/service that a customer receives at no extra cost
C)"Delighters" are dedicated customer service personnel who look after the needs of customers and respond to those needs
D)"Delighters" are the unexpected characteristics that surprise the customer. Their absence does not cause dissatisfaction but their presence delights the customer

Question 37

In order to achieve commercial success in today's competitive climate, what customer needs have to be achieved?

A)Performance needs to match customers' expectations
B)Performance needs to match competitors' performance
C)Expectations need to be exceeded so that customers are delighted with the outcome
D)Expectations need to be matched so that customers are delighted with the outcome

Question 38

Service marketers have argued for a 7-Ps approach for their marketing mix. Which of the following are the 7-P's?

A)Place, Product, Promotion, Planning, Price, People, Process
B)Place, Product, People, Productivity, Promotion, Process, Planning
C)People, Promotion, Price, Process, Physical Evidence, Product, Place
D)People, Place, Price, Process, Planning, Product, Physical Evidence

Question 39

What is the major difference between the "Price" element of the marketing mix and its other elements?

A)All of the other elements can be tightly controlled, however with pricing, companies have to set prices at the market rate
B)All of the other elements represent costs, for example, expenditure on product design (product), advertising and salespeople (promotion) and transportation and distribution (place)
C)All the other elements are of lesser concern than that of price. Setting prices that maximize profit is crucial in order to achieve commercial success and even survival
D)All of the other elements are influenced by internal organizational factors, whereas pricing is influenced by external factors which are outside the organization's control

Question 40

What is the core problem with the "Delighters" characteristic of the Kano model of customer satisfaction?

A)A problem for marketers is that highly satisfied customers are rare
B)A problem for marketers is that those extra features provided cost more money
C)A problem for marketers is that the quality of customer service personnel varies to a great extent
D)A problem for marketers is that over time "delighters" become expected

Question 41

Research has found that there is a positive relationship between marketing and what?

A)Share Prices
B)Revenue
C)Costs
D)Performance

Question 42

Which of the following is not an example of a service business?

A)Hairdresser
B)Bank
C)Airline
D)Restaurant
E) None of the above

Question 43

Which of the following is not one of the key stages in the marketing planning process?

A)Setting objectives for an e-mail campaign
B)Conducting a marketing audit
C)Setting marketing objectives
D)Making decisions about marketing actions

Question 44

Value-based marketing helps achieve which of the following?

A)Helps clarify the importance of investments in marketing assets
B)Helps identify cost drivers of an organization
C)Helps identify customers' needs and wants
D)Helps clarify the importance of producing value for money products/ services

Question 45

Marketing is constantly changing and devising new methods of delivering customer value. Which of the following is an example of a new method?

A)Product orientated marketing
B)Sales orientated marketing
C)Customer relationship management
D)All of the above

Question 46

Dyson got ahead of its competitors primarily due to _______?

A)superior product design
B)highly innovative advertising
C)cost-based pricing
D)using multiple distribution channels

Question 47

What reason is believed to be the main cause for marketing's relatively low status?

A)That marketing is suppressed by other business disciplines
B)That marketing, although good at promoting products, is very poor at promoting the marketing discipline itself
C)That the links between marketing investments and the long-term profitability of the organization have not been well made
D)That marketing status is tarnished by the bad image of sales and public relations disciplines

Question 48

The scope of marketing has extended. Traditionally only used by commercial organizations, it is now evident that many organizations are now using marketing to promote important causes, such as anti- drink driving campaigns, anti-smoking campaigns etc. This form of marketing is known as _______ marketing.

A)political
B)retail
C)promotional
D)social

Question 49

The core elements of marketing strategy relate to market segmentation, targeting and _______,

A)promotion
B)repositioning
C)positioning
D)distribution

Question 50

What is meant by "getting and keeping close to customers"?

A)Finding out how much customers have to spend
B)Finding out what customers are willing pay
C)Finding out customers' current and future needs
D)Finding out where customers purchase

Question 51

Which of the following is not a criticism of marketing?

A)Targeting of vulnerable children
B)Encouraging customers to buy products they do not need
C)Providing customer value
D)Invading every aspect of society

Question 52

Marketing should not be a haphazard activity. Attention to marketing must be _______ as the market changes and nothing lasts forever.

A)latent
B)consistent
C)accurate
D)incompatible

Question 53

Which of the following statements defines value-based marketing?

A)The objective of marketing is seen as developing, producing and promoting products/services at the lowest cost
B)The objective of marketing is seen as developing, producing and promoting value for money products/ services, which match consumers' needs
C)The objective of marketing is seen as contributing to the maximization of shareholder value which has become the overarching goal of chief executives in more and more companies
D)The objective of marketing is seen as satisfying customers' expectations and needs. Where customers are seen as the "Kings & Queens" of a company

Question 54

All the main planning stages, such as the business mission, the marketing audit and the marketing objectives will feed into the marketing _______ that is developed.

A)strategy
B)vision
C)action
D)mix

Question 55

The scope of marketing is _______, involving non-business as well as business contexts.

A)narrow
B)limited
C)small
D)broad

Question 56

What will the adoption of the marketing concept improve?

A)Business price
B)Business performance
C)Market growth
D)Market attractiveness

Question 57

The marketing concept and the use of marketing tools and techniques is used by _______.

A)political parties
B)retailers
C)educational institutions
D)all of the above

Question 58

Which of the following is a key question that needs to be asked when thinking about marketing planning decisions?

A)Where are we now?
B)Where we would like to be?
C)How do we get there?
D)All of the above

Question 59

According to a recent study in the UK, what percentage of chief executive officers (CEOs) in the FTSE 100 had experience of a marketing job?

A)21
B)33
C)55
D)46

Question 60

All the main planning stages, such as _______ will feed into the marketing strategy that is developed.

A)the business mission
B)the marketing audit
C)the marketing objectives
D)all of the above

Question 61

Why is innovation so important in marketing orientated companies?

A)So that new production process can be developed
B)So that new products can be developed to meet the needs of tomorrow's customers
C)So that new products can be developed faster
D)So that new organizations can improve effectiveness

Question 62

A broadly defined, enduring statement of purpose that distinguishes a business from others of its type is referred to as which of the following?

A)A focus statement
B)A tactical plan
C)A business mission
D)A strategic statement

Question 63

Research in the US has found that the majority of chief executives in recent decades are from which of the following backgrounds?

A)Human Resources
B)Marketing
C)Finance
D)Production

Question 64

Which of the following statements best defines the promotional mix?

A)The promotional mix includes advertising
B)The promotional mix includes advertising, personal selling, sales promotions, public relations and direct marketing
C)The promotional mix includes advertising and public relations
D)The promotional mix includes personal selling and sales promotions

Question 65

Which of the following statements is true?

A)Marketing orientated companies are companies with a marketing orientation, who focus on customer needs as the primary drivers of organizational performance
B)Marketing orientated companies are companies with a customer focus, who believe that the customer has to be satisfied at all costs
C)Marketing orientated companies are companies with a specialized marketing department, specializing in the delivery of marketing activities
D)Marketing orientated companies are companies which are happy to adopt a 'me too' philosophy

Question 66

What is the key challenge for marketers?

A)The key challenge for marketers is to monitor competitors and match them in terms of their product, place, price and promotion
B)The key challenge for marketers is to develop a competitive advantage through marketing mix decisions, which are cost effective and maximise the company's profits
C)The key challenge for marketers is to continuously develop new, successful products as older products gradually decline in popularity
D)The key challenge for marketers is to monitor and understand customer needs and develop a competitive advantage through marketing mix decisions

Question 67

Which of the following is true?

A)Marketing achieves company goals by meeting and exceeding customer needs better than the competition and, in turn, contributing to shareholder value
B)Marketing achieves company goals by maximising a company's profits
C)Marketing achieves company goals by helping to develop, produce and promote high priced goods/ services, therefore maximising potential revenues and, in turn, contributing to shareholder value
D)Marketing achieves company goals by helping to sell more of a company's products/ services, thereby contributing to the profitability of the company

Question 68

Which of the following statements is true?

A)The marketing mix is a framework for the tactical management of the customer relationship including product, place, price, promotion (4Ps).
B)The marketing mix is a framework for managing the marketing activities of a company in order to achieve greater sales. It includes product, place, price, promotion (4Ps).
C)The marketing mix is a marketing manager's toolkit helping them to attract new customers. It includes product, place, price, promotion (4Ps).
D)The marketing mix is a marketing manager's toolkit helping them to retain customers. It includes product, place, price, promotion (4Ps).

Question 69

Implementing the marketing mix can lead to which of the following?

A)Better business performance
B)Better value products
C)Lower costs
D)Less customer complaints

Question 70

Marketing orientated companies attempt to achieve which of the following?

A)The ability to make greater profits
B)The ability to reduce costs
C)The ability to attract and retain customers
D)The ability to attract new customers

Question 71

The traditional marketing mix consists of?

A)7 P's
B)4 P's
C)4 C's
D)7 C's

Question 72

Marketing orientated companies show concern throughout the business for which of the following groups?

A)Employees
B)Competitors
C)Customers
D)Retailers

Question 73

Which of the following statements is true?

A)The marketing concept is focused on the support of the sales function
B)The marketing concept is concerned with mainly the achievement of corporate goals through excellent product design, value pricing strategies and excellent promotional strategies
C)The marketing concept is focused on the development of value for money products/ services that are high in quality and which beat the competition
D)The marketing concept is the achievement of corporate goals through meeting and exceeding customer needs better than the competition

Question 74

The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the _______'s and society's well-being.

A)consumer
B)company
C)shareholder
D)distributor

Question 75

Which of the following is true?

A)Value-based marketing helps to dissuade management from making arbitrary cuts in marketing expenditures such as advertising in times of economic difficulty
B)Value-based marketing helps management in their advertising and promotional decisions
C)Value-based marketing helps management to identify benefits and features which consumers value, and furthermore helps them in determining the most effective price for these services and products
D)Value-based marketing helps to inform management on viable new product introductions

Question 76

The societal marketing concept is a newer business orientation which has emerged in recent years. This societal marketing concept is frequently referred to as _______ marketing.

A)sustainable
B)attainable
C)reliable
D)relationship

Question 77

Two essential ingredients are important in any mission statement: they should be _______ and be specific to the individual organization.

A)existing
B)enduring
C)educational
D)efficient

Question 78

Which of the following statements is true?

A)Production orientation is a business approach that focuses on the achievement of corporate goals through meeting and exceeding customer needs
B)Production orientation is a business approach that focuses on creating products which match customers' needs
C)Production orientation is a business approach that focuses on costs and revenues of an organisation
D)Production orientation is a business approach that is inwardly focused either on costs or on a definition of a company in terms of its production facilities

Question 79

Which of the following is not considered by the place element of the marketing mix?

A)Distribution channels
B)Outlet locations
C)Point of sale display materials
D)Methods of transportation

Question 80

Which of the following statements is true?

A)Customer satisfaction is achieved when customers buy again from the same company
B)Customer satisfaction is achieved through the fulfilment of customers' requirements or needs
C)Customer satisfaction is achieved when there are no complaints
D)Customer satisfaction is achieved when products are sold below recommended retail price