Deck 1: An Overview of Marketing

Question 1

Only a firm's salespeople need to be customer-oriented.

Answer 1

False

Question 2

The societal marketing concept considers society's long-term best interests along with the satisfaction of customers' wants and needs.

Answer 2

True

Question 3

In the early 1920's,Ford promised their customers any color that they wanted as long as it was black.Ford's management assumed that anyone buying a car would accept the color black,so it made products affordable by offering only one variety in large quantities.Ford is an example of a market-oriented firm.

Answer 3

False

Question 4

A market-oriented organization targets its products to the average customer.

Question 5

Marketing is defined as producing,promoting,and selling products.

Question 6

The ultimate goal of most marketing-oriented firms is profitability that results from satisfying the wants and needs of its consumers.

Question 7

The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customer's wants and needs while meeting organizational objectives.

Question 8

Both production and sales orientations are focused inward on the organization's needs.

Question 9

Encyclopedia Britannica marketed full sets of encyclopedias that cost a minimum of $1,500,weighed 118 pounds and required four and a half feet of shelf space.For many years,the company had successfully sold its products door-to-door and defined its business as a book publisher.Encyclopedia Britannica had a market orientation.

Question 10

An exchange cannot take place unless each party in the exchange has something that the other party values.

Question 11

While most marketing organizations rely on various forms of promotion to succeed,sales-oriented organizations make the most effective use of their marketing mix.

Question 12

A marketing-oriented firm defines its business in terms of the benefits it offers to its customers.

Question 13

Marketing is an organizational function and a set of processes for creating,communicating,and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Question 14

Approximately three-fourths of the U.S.civilian work force performs marketing activities.

Question 15

Firms try to achieve customer satisfaction and value by ensuring that customer expectations are met or exceeded.

Question 16

Retailers who have give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.

Question 17

Customer value is calculated as the ratio of company profits to company costs

Question 18

Marketing is a job that should be handled by marketers.People in management,accounting,and finance should focus on their own specialties.

Question 19

Salespeople who work for market-oriented organizations are generally perceived by their customers to be order takers.

Question 20

Sara Lee Industries spent considerable money and time developing a crustless bread.The company has not conducted market research among its customers,but it was confident that its science and technology department had produced a successful new product.Based on this example,Sara Lee is a good example of a production oriented company.

Question 21

The concept of exchange is important to marketing because:

A) if all the conditions for an exchange are in place,then the exchange will be completed
B) exchange provides money to marketers
C) marketing activities help to create exchange
D) marketing activities are a requirement for exchange to take place
E) money is the only medium of exchange for business marketers

Question 22

If the local chapter of the American Red Cross sponsors a free lifesaving course,city residents will not have to pay to take the class.An exchange will take place because:

A) people can decide the course has no value.
B) the Red Cross does not have to communicate with class participants.
C) the desirability of the exchange is questionable.
D) both the Red Cross and the people taking the course will trade something of value.
E) people who take the course have to give nothing of value in return.

Question 23

Mimi Couturier is a design company that specializes in formalwear for women.The company is known for challenging fashion mores.The company's fashion innovators use computer-assisted design software to create what they think women should wear.The company regularly hires industry experts to examine construction work areas to find waste and inefficiencies that can be eliminated.Its fashion innovators have expanded the number of products it offers for sale many times.However,for the last two years Mimi Couturier has lost money,and it has had to lay off some of its work force.To avoid this occurrence in the future,the company should:

A) hire more retail efficiency experts to trace down any production problems.
B) increase its sales force to find more potential customers for the firm.
C) have someone to study its target market to see what needs and wants should be met by Mimi Couturier.
D) cut prices so that its prices are at least 10 percent below those of its competitors.
E) design more sophisticated products that use the latest computer-aided techniques.

Question 24

A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally logged from places like Indonesia,where as much as 80 percent is the product of illegal logging.Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests.Exchanges between Home Depot and companies that are selling illegally-logged timber will not occur because:

A) there are more than two parties involved
B) each party has something of value to bring to the exchange
C) one party is free to accept the exchange offer
D) each party believes it is appropriate to deal with the other party
E) nobody sees the exchange as producing value

Question 25

The key term in the American Marketing Association's definition of marketing is:

A) process
B) customers
C) benefit
D) stakeholders
E) relationships

Question 26

The term marketing refers to:

A) new product concepts and improvements
B) selling
C) advertising and promotion activities
D) a philosophy that stresses customer satisfaction
E) planning sales campaigns

Question 27

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products.The typical Indonesian logging company has a(n)_____ orientation.

A) exchange
B) product
C) production
D) sales
E) environmental

Question 28

Researchers at PPG Industries spent considerable time,effort,and money developing a bluish windshield that would let in filtered sunlight but block out the heat.Little market research was done,but the scientists were convinced that this new product would be significantly better than existing windshields even though they were more expensive and of a different color than the current models on the market.PPG most likely has a(n)_____ orientation.

A) exchange
B) production
C) sales
D) promotion
E) customer

Question 29

Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

A) sales
B) production
C) marketing
D) customer
E) customer-benefit

Question 30

A key ingredient in the philosophy of marketing is _____,or the idea that people give up something in order to receive something that they would rather have.

A) exchange
B) synergy
C) promotion
D) sublimation
E) reciprocity

Question 31

In which of the following situations is a firm with a production orientation most likely to survive?

A) There are many small competitors in the marketplace.
B) Demand for the product it produces exceeds supply.
C) Needs of the marketplace are shifting.
D) Supply for the product it produces exceeds demand.
E) What the firm can best produce is not what the market wants.

Question 32

The owner of a company that produces copy paper once said,"People buy whatever copy paper is the cheapest,so I spend my time trying to find ways I can cut my price." This owner has a _____ orientation towards marketing.

A) discount
B) sales
C) production
D) benefit
E) customer

Question 33

_____ is a set of activities used to implement a management orientation that stresses customer satisfaction.

A) Planning strategy
B) Customer management
C) Marketing
D) A control system
E) Reciprocity

Question 34

Kaj Heche wants to sell a Model T Ford that he inherited from his grandfather.A preliminary investigation has shown many people would be interested in this type of automobile.He has taken out an advertisement in his local trade paper and provided customers with a toll-free number to make an appointment to drive the car.He has also read in the auto trade papers that similar cars to the one that he owns are selling for about $4,000.Before selling his Model T,what else should Heche find out?

A) how to price the car so that customers will seek out his vehicle
B) where the car should be located to secure optimum drive-up business
C) how he should approach possible buyers
D) how to promote the car to generate significant visibility for the ad
E) determine if the car can meet the demands of potential customers

Question 35

A business is concerned with many day-to-day activities.Some of the most important are the planning and conception of the product or service,its pricing policy,and the distribution strategy.These activities are all a part of:

A) a control system
B) marketing
C) accounting
D) production
E) human resources

Question 36

One problem with adopting a(n)_____ orientation to marketing is its failure to consider whether what the firm produces most efficiently also meets the needs of the marketplace.

A) customer
B) exchange
C) product
D) market
E) production

Question 37

In order for exchange to occur,:

A) a complex societal system must be involved
B) organized marketing activities must also occur
C) a profit-oriented organization must be involved
D) money or other legal tender is required
E) each party must have something of value to the other party

Question 38

For an exchange to take place:

A) there must be at least two parties
B) money must be present
C) each party must feel obligated to accept the offer
D) at least one person must have something of value
E) communication must not occur

Question 39

Four competing philosophies strongly influence the role of marketing and marketing activities within an organization.Which if the following is NOT a marketing management philosophy?

A) sales orientation
B) societal marketing orientation
C) marketing orientation
D) profitability orientation
E) production orientation

Question 40

A company that sets its goals and strategies based on what the current plant equipment can produce,what products engineering can design,and what the company itself can do best,has a(n)_____ orientation.

A) marketplace
B) sales
C) market
D) exchange
E) production

Question 41

The statement,"Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a _____ orientation.

A) production
B) market
C) retail
D) sales
E) enterprise

Question 42

Wal-Mart has become the leading discount retailer in the United States and the world by focusing on the customer's needs and wants.This philosophy is at the heart of a _____ orientation.

A) sales
B) market
C) retail
D) production
E) exchange

Question 43

The marketing concept and market orientation recognize that:

A) price is the most important variable for customers
B) sales depend predominantly on an aggressive sales force
C) what the customer thinks he or she is buying is what is important
D) a company has to apply scientific management techniques to survive
E) selling and marketing are essentially the same thing

Question 44

The _____ orientation assumes that people are resistant to buying products that are not absolutely necessary.

A) marketing
B) sales
C) customer
D) production
E) exchange

Question 45

The manufacturer of Rossignol brand skis has a market orientation and adheres to the marketing concept.Most likely,the company would react to consumer dissatisfaction by first:

A) hiring more salespeople
B) decreasing its organizational overhead
C) increasing its advertising to underserved markets
D) increasing the number of sporting goods stores that carry Rossignol skis
E) conducting research to determine if its customers' needs have changed

Question 46

Rose is a telephone order taker for Brylane,a catalog retailer of furnishings for bedrooms and baths.A customer called and asked if the sea green in a bedspread that she had purchased matched the green in a lamp that was being offered in the newest Brylane catalog.Rose got the potential customer's phone number,went out to the warehouse,located the items,determined they did not match,and called the potential customer to tell her that information.Rose showed a(n)_____ orientation.

A) societal
B) market
C) sales
D) sales
E) one-to-one

Question 47

An organization with a(n)_____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.

A) sales orientation
B) marketing orientation
C) ethical business mission
D) focused target market strategy
E) societal orientation

Question 48

Lawler Landscaping Company sells all kinds of ornamental plants.Lawler's management believes that its customers will buy more plants if its salespeople use aggressive marketing techniques because ornamental plants are nonessential items for most homeowners.In other words,the company has a _____ orientation.

A) promotion
B) production
C) sales
D) marketing
E) customer

Question 49

You are in charge of the marketing program at Cedarstream,a manufacturer of recreational vehicles,and have been asked to create a company that acts in compliance with the marketing concept and has a market orientation.As your first action,you will most likely:

A) reorganize the company and make marketing the most important department
B) hire new salespeople to find new customers for Cedarstream vehicles
C) expand the advertising budget so that potential customers will be more aware of Cedarstream's products
D) create cross-functional entrepreneurial teams to overcome the difficulty of getting people from different functional areas to work together in developing new products.
E) hire a new product development manager and establish a marketing research department

Question 50

Fujifilm Computer Products has improved the efficiency and productivity of its plant,which manufactures printing technology.For the new fiscal year,the company projects a production increase of 25 percent,and has instructed its sales force to aggressively distribute and promote the product.The CEO is sure that the market will absorb more product if the sales force is determined and assertive.Fujifilm appears to have a _____ orientation.

A) marketing
B) production
C) sales
D) customer
E) marketplace

Question 51

The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:

A) producing a good or service at the lowest possible cost
B) improving the general standard of living
C) constantly increasing sales volumes
D) applying scientific management techniques to improve efficiency
E) simultaneously meeting organization objectives

Question 52

Most companies become sensitized to community issues after they've done enough damage to draw the locals' anger.Dofasco,Inc.,a highly successful steel company in Ontario,tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding what projects to improve the local environment will be implemented.This annual community-wide meeting indicates Dofasco has a _____ orientation.

A) societal marketing
B) sales
C) reciprocal exchange
D) production
E) product

Question 53

The marketing concept involves:

A) focusing on customers' wants so that the organization can distinguish its product (or products)from the competitors' products
B) satisfying management's needs and wants with the idea of maximizing profits in the short run
C) selling as much product as possible under the assumption that people will buy more goods and services if aggressive selling techniques are used
D) selling as much as possible under the assumption that consumers will buy more at lower prices
E) focusing on production in order to increase product quality and lower prices

Question 54

Jacques Torres Chocolate is a factory and retail store in Brooklyn.Its owner is willing to try to produce new products when his customers suggest them-such as chili-pepper laced chocolate candy.His only condition is that when he adds new products,his customers have the final say on whether the product is of any value.According to Torres,"If something doesn't move,that's the last time you see it." By focusing on customers' wants,the chocolate company exhibits a _____ orientation.

A) exchange
B) product
C) production
D) sales
E) market

Question 55

A _____ orientation assumes customers resist buying items that are not essential.It also assumes people will buy more goods and services if aggressive marketing techniques are used.

A) sales
B) production
C) marketing
D) customer
E) marketplace

Question 56

Kinko's copy shops use the equivalent of 10.5 square miles of forest to produce all of the paper needed by the corporation annually.While the company is committed to making a profit,it is also committed to preserving the environment.In 1997,Kinko's wrote an environmental vision in which it committed the company to conserving natural resources.With this 1997 environmental vision,Kinko's adopted a _____ orientation.

A) societal marketing
B) sales
C) reciprocal exchange
D) production
E) product

Question 57

The marketing concept includes a goal orientation to remind managers that:

A) achieving long-term organizational goals is as important as satisfying customers
B) customers must be satisfied no matter what the organizational costs
C) the only reason for any business to exist is to make a profit
D) the objective is to find a target market that differs from that of the competition
E) functional integration of all departments is useful but not essential

Question 58

Which of the following statements about the societal orientation is true?

A) Companies that protect the environment by using all-natural materials in their products are showing a societal marketing orientation.
B) Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers.
C) The societal marketing concept is an important refinement of the market concept.
D) Organizations have both a social and economic justification for their existence.
E) All of these statements about the societal orientation are true.

Question 59

A company that has a market orientation and adheres to the marketing concept does NOT:

A) integrate all the activities of the firm to satisfy customer wants
B) focus on consumer needs and wants
C) differentiate a firm's products from its competitor's products
D) fuel sales growth through the application of aggressive sales techniques
E) concentrate on long-term goal achievement (such as profits and growth)for the firm

Question 60

If a company uses a sales orientation,consumer complaints would most likely result in:

A) a modification of the sales presentation
B) product reinvention
C) continuous market research
D) philanthropy
E) attempts to cut production costs

Question 61

Organizations that sell unsought products like cemetery plots may find themselves adopting a _____ orientation because the companies are marketing products that most people do not want.

A) sales
B) production
C) marketing
D) product
E) customer

Question 62

A retail casket outlet that wishes to offer customer value should:

A) use aggressive marketing techniques to sell pre-burial plans
B) charge $300 for a pine casket instead of the inflated price of $1,000 charged by many funeral homes
C) tell customers that funeral homes like having competition
D) require that all purchases be made with cash or money order
E) provide customers with only a few choices and a minimum of information on what services and caskets are available

Question 63

There is a quandary facing the timber industry there is no effective way to prove the legality of wood from places like Indonesia,where as much as 80 percent is the product of illegal logging.Companies like The Home Depot do not want to be caught with timber from illegally logged forests even though the demand is great for timber from rain forests.To prove an interest in preserving rain forests,two Indonesian logging companies have developed a bar coding system,which proves the timber was legally acquired.This focus on customers' needs indicates a _____ orientation.

A) marketing
B) supplier
C) sales
D) production
E) philanthropic

Question 64

When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet,he gathered up materials totaling almost $70.One his way to checkout,an employee asked him what was he trying to fix.After some discussion,the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble.This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n)_____ orientation.

A) sales
B) market
C) product
D) exchange
E) production

Question 65

Which of the following statements about a typical sales-oriented business is true?

A) The company directs its products to specific groups of people.
B) The primary goal of the company is profit through customer satisfaction.
C) The company invests the majority of its resources in promoting its products and services.
D) The company is in business to satisfy customers' wants and needs and deliver superior value.
E) All of these statements about a typical sales-oriented business are true.

Question 66

Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices.Unfortunately,the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide.Human rights organization have asked jewelers to buy diamonds that are "conflict-free," that is from South Africa,Australia,or Canada.LeeBrant is one retail jewelry store that sells only diamonds that are certified to be from these countries.One could say that LeeBrant has a _____ orientation while those that are not willing to sell the higher priced non-conflict diamonds have more of a _____ orientation.

A) production; sales
B) sales; market
C) societal marketing; market
D) production; societal marketing
E) sales; production

Question 67

Levi Strauss has developed Naturals line of jeans that do not use any chemical dyes to color the pants.Consumers liked the look of the pants,and Levi's use of all-natural dyes is good for the environment.The production of the Naturals line would be consistent with a _____ orientation.

A) societal marketing
B) supplier
C) sales
D) production
E) philanthropic

Question 68

What gives customers the feeling that their concerns are being addressed and gives employees the feeling that their expertise matters?

A) management-employee synergy
B) organizational entropy
C) a hierarchically-responsive organization
D) empowerment
E) delegation

Question 69

When planning a funeral,the most expensive item typically is the casket.Funeral homes commonly show customers only three caskets with people almost invariably choosing the middle-priced one,which tend to cost around $2,200.Many funeral directors describe the lowest-priced model as the "welfare" casket although it is just as serviceable as the more expensive ones.Some funeral directors who do NOT have a _____ orientation actually paint these less expensive caskets ugly colors to lessen the probability they will be purchased.

A) production
B) market
C) product
D) sales
E) promotion

Question 70

_____ is the ratio of benefits to the sacrifice necessary to obtain those benefits.

A) Opportunity cost
B) Marketing utility
C) Market quality
D) Satisfaction percentage
E) Customer value

Question 71

The main focus of a marketing-oriented firm is:

A) inward upon the skills and competitive technological advantages of the firm
B) inward upon the organization's needs
C) outward upon societal responsibilities
D) inward upon the abilities to deliver goods and services
E) outward upon the wants and needs of customers

Question 72

Due to consumer concerns about skin cancer and other negative outcomes associated with sun exposure,the trend in sun-care products throughout most of the 1990s was in favor of higher SPF sunscreens.This seems to be changing now,at least for some target segments.In response to the latest trends of teenagers using baby oil,Crisco,and even motor oil to enhance tanning effects,Coppertone and Hawaiian Tropic have introduced new low-UV-protection products.While giving customers want they want indicates a _____ orientation,creating a potential problem (an increase in skin cancer fatalities)shows a potential absence of a _____ orientation.

A) production; sales
B) sales; market
C) societal marketing; production
D) market; societal marketing
E) business; market

Question 73

For years,the slogan used in all the advertising done by British Airways was "Putting people first." In this short phase,British Airways has captured the idea of:

A) the 80/20 rule
B) Maslow's hierarchy of needs
C) the marketing concept
D) the sales orientation philosophy
E) the societal concept

Question 74

_____ is a strategy that entails forging long-term partnerships with customers.

A) Commitment selling
B) Relationship marketing
C) Transactional marketing
D) Market engineering
E) Organization-customer synergy

Question 75

Marketers interested in offering customer value can:

A) offer products that perform
B) give consumer more than they expect
C) offer organization-wide commitment to service and after-the-sale support
D) avoid unrealistic pricing
E) do all of these

Question 76

Shoppers at an Ingles supermarket can request Smart Partner cards.Before their purchases are rung up at the checkout,customers give the cards to the checkout person who swipes the cards.Then a percentage of the amount of money each shopper spent is given to a school the customer has chosen.The more money customers spend,the larger the donation to local educational institutions.By instituting the Smart Partner program to help local schools,Ingles has shown a _____ orientation.

A) societal marketing
B) supplier
C) sales
D) production
E) philanthropic

Question 77

When customer expectations regarding product quality,service quality,and value-based price are met or exceeded,_____ is created.

A) a value line
B) a quality rift
C) planning excellence
D) customer satisfaction
E) expectation satisfaction

Question 78

For many years,Procter & Gamble (P&G)viewed its Ivory soap as just plain old soap-and not as a cleansing product that could provide other benefits as well.When it came to Ivory soap,P&G focused on how well it made the soap and not on what customers wanted from a bar of soap.It had a _____ orientation.

A) sales
B) production
C) market
D) product
E) customer

Question 79

World Wrestling Entertainment (formerly the World Wrestling Federation)is very focused on what its fans want in terms of product licensing and more importantly in terms of plot lines and character development.All of the company's activities are integrated so that no employee ever loses sight of the company's desire to satisfy its fans.World Wrestling Entertainment has a _____ orientation.

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

Question 80

Achieving a market orientation involves:

A) doing research on customers,competitors,and markets
B) determining how to deliver superior customer value
C) establishing and maintaining mutually satisfying relationships with customers
D) implementing actions to provide value to customers
E) doing all of the activities listed