Release 1st Edition by Grewal, Levy
ISBN: 9781264559190
Correct answers located at the end of the chapter.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Good marketing should mean doing good for the world at large.
⊚ true
⊚ false
2) The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.
⊚ true
⊚ false
3) Understanding the marketplace and especially a consumer's needs and wants, is fundamental to marketing success.
⊚ true
⊚ false
4) In their battle for chocolate lovers, companies like Godiva and Hershey's would divide the population into different categories of consumers, for example, those looking for a quick energy boost versus those looking for a gift. Companies do this in order to satisfy different consumer needs and wants.
⊚ true
⊚ false
5) Sara and her husband had a delicious Italian dinner at Maretta’s. When the meal was over, they paid the bill and left a tip. This is an example of an exchange.
⊚ true
⊚ false
6) The four Ps of the marketing mix are product, promotion, planning, and place.
⊚ true
⊚ false
7) Without a strong and efficient supply chain management system, merchandise isn't available when customers want it.
⊚ true
⊚ false
8) A bottle of Tide laundry detergent is an example of an idea.
⊚ true
⊚ false
9) When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing.
⊚ true
⊚ false
10) Rosa took her wedding dress to the cleaners, where it was cleaned and repaired. This is an example of a good.
⊚ true
⊚ false
11) Paula took her wedding dress to the cleaners, where she paid for it to be cleaned and sealed in a box for storage. This scenario represents a good, not a service.
⊚ true
⊚ false
12) The power adapters that IBM sells with its computers are built by small companies that specialize in power-related accessories. When IBM purchases its power adapters from these small companies, it is engaging in B2B marketing.
⊚ true
⊚ false
13) eBay is an example of C2C marketing.
⊚ true
⊚ false
14) In marketing, an exchange is when the buyer and the seller trade things of value to benefit the other.
⊚ true
⊚ false
15) Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.
⊚ true
false
16) Kendra always stops at the local coffee shop near her house. She uses the drive-through window on her way to work and meets neighbors there after work. In this scenario, the place element of the marketing mix is influencing Kendra’s decision.
⊚ true
⊚ false
17) Supply chain management represents the promotion aspect of the marketing mix.
⊚ true
⊚ false
18) When Microsoft makes innovations compatible with its existing products, it is encouraging consumers to maintain long-term relationships with the company.
⊚ true
⊚ false
19) Value is what you get for what you give. ⊚ true ⊚ false
20) Dillon priced underwater watches and decided on a Timex because it had all the features he wanted at a low price. Dillon was seeking a good value.
⊚ true
⊚ false
21) Relational orientation refers to the efforts of companies to make a profit on each transaction.
⊚ true
⊚ false
22) When Valerie customized M&M candies for her daughter’s graduation party, she was participating in value cocreation.
⊚ true
⊚ false
23) At the beginning of the 20th century, companies like Ford Motor Company were more concerned with satisfying customer wants than product innovation.
⊚ true
⊚ false
24) Firms have come to realize that good corporate citizenship through socially responsible actions should be a priority because it will help their bottom line in the long run.
⊚ true
⊚ false
25) Marketing analytics is one tool marketers can use to collect customer information.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.
26) Which company activity is identified as the set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large?
A) human resources
B) marketing
C) accounting
D) manufacturing
E) sales
27) According to your text, in the broadest terms, the "marketplace" refers to
A) wholesale and retail environments.
B) brick-and-mortar stores and the Internet.
C) the four Ps.
D) channels that are accessible to a given customer.
E) the world of trade.
28) What is one of the core aspects of marketing?
A) Marketing only affects the company and the consumer.
B) Marketing creates value through product, price, and planning.
C) Marketing is an offshoot of distribution.
D) Marketing is about the customer satisfying the sales efforts of the company.
E) Marketing can be performed by individuals and organizations.
29) Marcy sells construction equipment. When she calls on her building contractor customers, she asks if they are having any problems. In doing so, Marcy is addressing which core aspect of marketing?
A) satisfying customer needs and wants
B) completing the exchange function of marketing
C) making product, place, promotion, and price decisions
D) making decisions about the setting in which marketing takes place
E) creating value
30) Kelly sells customer management software to bookstores. When she calls on her customers, she asks if they are having any problems. In doing so, Kelly is addressing which core aspect of marketing?
A) creating value
B) making product, place, promotion, and price decisions
C) completing the exchange function of marketing
D) making decisions about the setting in which marketing takes place
E) satisfying customer needs and wants
31) Tonya is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Tonya is relieved to see that in marketing,
A) understanding consumer needs and wants is fundamental.
B) promotion is the most important consideration, followed by pricing decisions.
C) value creation is driven by corporate interests.
D) customers are not considered until the product is ready for sale.
E) distribution is controlled by customers.
32) In his role as a product developer at Cool-Top Hats, Brett should determine the price of his products carefully based on the potential buyer's interest in his products and
A) a thorough knowledge of his brand messages.
B) the buyer's belief about the products' value.
C) his knowledge of competing products.
D) his ability to negotiate discounts.
E) the customer’s susceptibility to traditional marketing approaches.
33) For marketers, "exchange," refers to
A) the location where products and services are traded.
B) the price charged, adjusted for currency exchange rates.
C) location-based tactics for creating value.
D) promotional offers designed to stimulate barter.
E) the trading of things of value.
34) Si-Lu is an organizational expert. After she works with a new client, she always invites the client to join her e-mail distribution list. In this marketing exchange, the client's e-mail address represents
A) information.
B) promotional capital.
C) pricing data.
D) value cocreation.
E) services.
35) What is a core aspect of marketing?
A) satisfying as many needs as possible
B) creating a product that everyone will want to buy
C) setting prices lower than all competitors
D) making product, place, promotion, and price decisions
E) increasing the company's profit
36) Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, which includes
A) product.
B) planning.
C) performance.
D) persistence.
E) production.
37) Which element of the marketing mix refers to communication that informs, persuades, and reminds potential buyers about a product or service?
A) product
B) promotion
C) place
D) price
E) proposition
38) The four Ps make up the marketing mix, which is the________ set of decisions or activities that the firm uses to respond to the wants of its target markets.
A) unpredictable
B) external
C) predictable
D) controllable
E) global
39) Which of these consumers is involved in an exchange for a service?
A) Rob had to go buy groceries and couldn’t join his friends at the theater.
B) Marlena bought popcorn at the movie theater.
C) Tomas drove to the movie theater in the car he bought last year.
D) Henrik bought a new shirt at the store next to the theater.
E) Meredith purchased her movie ticket online.
40) The scout troops at Northwoods Primary School participate in a program each year that promotes safe choices when viewing information online. This program is marketing
A) a lifestyle.
B) a service.
C) an idea.
D) a belief.
E) a good.
41) A communty center runs a program each summer that promotes making wise environmental choices. This program is marketing
A) an idea.
B) a service.
C) a good.
D) a practice.
E) a lifestyle.
42) The basic difference between a good and a service is that a good
A) provides intangible benefits.
B) can be physically touched.
C) is always less expensive than a corresponding service.
D) generates greater interest among consumers.
E) is more quickly forgotten by consumers.
43) Uptown Art Gallery, known for selling paintings, recently began offering appraisals of customers' art collections at minimal charge. Uptown Art Gallery is
A) shifting its focus from offering just services to also offering goods.
B) implementing a market segmentation strategy.
C) capturing value through multiple pricing strategies.
D) expanding from offering just goods to also offering services.
E) increasing customer value through inflated appraisal evaluations.
44) A bookstore adds a recommended reading list celebrating neurodivergent authors to its existing product offerings. What type of product is this?
A) goods
B) idea
C) service
D) price-dependent
E) value-dependent
45) Marketers must determine the price of a product carefully based on the potential buyer's beliefs about
A) its value.
B) the environment.
C) the cost to manufacture the product.
D) its economic outlook.
E) the product's advertising campaign.
46) Some discount stores place products in large bins, inviting consumers to spend time hunting through them to find a bargain. The price these consumers pay includes
A) only the actual price they pay at the register.
B) the value of their time and energy.
C) the excitement they experience in finding an item they desire.
D) the savings to the store of not having to display the products neatly on shelves.
E) the time the product was full price and didn't sell.
47) Felicity offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on
A) choosing an average price that she will charge all her clients.
B) changes in technology allowing consumers to manage their own affairs.
C) how different customers perceive the value of her services.
D) changes in the economy.
E) how much her competitors charge for similar services.
48) Marketing channel management is concerned with
A) assessing response to the company’s overall marketing strategy.
B) product development and research.
C) price differences among supply chain vendors.
D) production management to meet supply and demand.
E) developing and maintaining relationships within the supply chain.
49) represents all the activities necessary to get the product to the right customer when that customer wants it.
A) Place
B) Promotion
C) Social media
D) Value cocreation
E) Supply chain marketing
50) Not only does GIS technology help Starbucks determine the ideal locations for new stores, but it also enables the company to decide what kinds of stores to open. This technology helps the company with which marketing mix decision?
A) product
B) place
C) price
D) promotion
E) process
51) The marketing goal of getting the "right quantities to the right locations, at the right time" relates to
A) communicating the value proposition.
B) managing the supply chain.
C) performing service marketing.
D) capturing value.
E) managing price and performance.
52) Many marketing students initially overlook the importance of marketing channel management because
A) marketing has no responsibility for supply chain management.
B) marketing channel management doesn't add much value for customers.
C) companies do not want customers to know anything about the supply chain.
D) many of these activities take place behind the scenes.
E) marketing channel management is already transparent.
53) It is Renata’s job to make sure the company’s products are shipped to the distribution center from the production center to fulfill customer orders. Which element of the marketing mix does her job focus on?
A) product
B) price
C) promotion
D) production
E) place
54) UPS, FedEx, and other shipping companies support other firms'________ marketing goals.
A) supply chain management
B) value communication
C) value capture
D) retail management
E) promotion
55) is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response.
A) Pricing
B) Promotion
C) Placement
D) A relational orientation
E) Value cocreation
56) In his marketing plan, Carson included a budget for advertising on television and on local radio stations, as well as on social media. These activities are elements of which of the 4Ps?
A) pricing
B) promotion
C) placement
D) promise
E) place
57) Effective promotion enhances a product or service's
A) supply chain management system.
B) wholesaling capabilities.
C) perceived value.
D) design features.
E) price differential.
58) By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to
A) influence social norms regarding sexuality.
B) encourage consumers to participate in product redesign.
C) stimulate supply chain management cooperation.
D) increase the perceived value of its products.
E) demonstrate social responsibility.
59) When retailers sell to consumers it is considered________ marketing.
A) B2C
B) B2B
C) R2C
D) C2C
E) C2B
60) When a food distributor sells produce to a grocery store, it is an example of ________Blank marketing.
A) manufacturer-to-customer
B) business-to-business
C) consumer-to-consumer
D) business-to-consumer
E) service-to-consumer
61) By allowing consumers to sell their unwanted goods to other consumers, yard sales and Facebook Marketplace exemplify________ marketing.
A) B2B
B) C2C
C) D2C
D) C2D
E) B2G
62) As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers had considered switching from________ to________ marketing.
A) B2C; B2B
B) B2C; C2C
C) B2B; B2C
D) B2B; C2C
E) C2C; B2C
63) A small home-building firm pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. The company rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. This company is engaged in
A) a traditional transactional orientation.
B) C2C value-driven marketing.
C) effective supply chain management.
D) value cocreation.
E) a virtual monopoly.
64) Salena’s current task at work is to determine how much the new product should cost and how it will be promoted. What is Salena most likely working on?
A) sales forecast
B) marketing plan
C) demographics
D) CRM
E) supply chain management
65) An organization on cycling safety visits an elementary school and gives a presentation on the importance of wearing helmets while riding a bike. After listening to the presentation, which action indicates that an exchange of valuable ideas has taken place?
A) The students decide to wear helmets while bicycling.
B) The teachers who are parents go out to purchase new helmets.
C) The students continue to ride without wearing helmets.
D) The organization services their bikes to ensure they are safe to ride.
E) The students stop riding their bicycles.
66) Which statement about marketing is accurate?
A) Marketing affects various stakeholders.
B) Marketing plays no role in creating value.
C) Marketing is about satisfying the company's needs and wants.
D) Marketing requires place, product, promotion, and perception decisions.
E) Marketing is performed by organizations, not individuals.
67) Traditionally, marketing activities have been divided into the four Ps: product, price, place, and promotion. The four Ps represent the marketing
A) mix.
B) channel.
C) plan.
D) era.
E) implementation.
68) Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?
A) place
B) price
C) product
D) promotion
E) proximity
69) The primary purpose of the________ plan is to specify the marketing activities for a specific period of time.
A) marketing
B) business
C) strategic
D) organizational
E) resource
70) Ursula is working on a document for her marketing manager for the company’s new window blinds. She addressed how the blinds would be designed, how much they should cost, where and how they would be promoted, and how they would get to the consumer. What document is Ursula working on?
A) a marketing plan
B) a marketing exchange
C) supply chain logistics
D) production management
E) delivery of the value proposition
71) Ivona is working on a document for her marketing manager about the new smartwatch their company is creating. She addresses how the product would be designed, how much it should cost, where and how it would be promoted, and how it would get to the consumer. What type of document is Ivona working on?
A) supply chain logistics
B) a marketing exchange
C) a marketing plan
D) delivery of the value proposition
E) production management
72) Charlie is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He researched his competition, talked to some customers, and decided on prices he will charge. Charlie has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Charlie still need to work on?
A) place
B) product
C) price
D) promotion
E) planning
73) Faith opened a running shoe store and signed a lease on the property. She also signed an agreement with the manufacturer on the amount of merchandise she will sell and the promotions she will conduct. Based on this description, which aspect of the marketing mix does Faith still need to work on?
A) price
B) place
C) promotion
D) product
E) prototype
74) Corinne went shopping at the mall and bought a dress from a retail store. Which type of transaction was Corinne participating in?
A) B2B
B) C2C
C) B2C
D) R2C
E) C2B
75) Which element of the marketing mix is most relevant to the activity "capturing value"?
A) promotion
B) purchasing
C) product
D) price
E) place
76) Which element of the marketing mix is most relevant to the activity "delivering value"?
A) promotion
B) purchasing
C) product
D) price
E) place
77) Which element of the marketing mix is most relevant to the activity "creating value"?
A) promotion
B) purchasing
C) product
D) price
E) place
78) Which marketing activity is most directly served by the promotion element of the marketing mix?
A) communicating value
B) creating value
C) capturing value
D) delivering value
E) producing value
79) Linda was tired of her winter coat, so she sold it to her friend, Jackie. This is an example of________ marketing.
A) B2B
B) B2C
C) C2B
D) C2C
E) BBC
80) Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase________ marketing.
A) B2C
B) C2B
C) B2B
D) C2C
E) 2BC
81) The "Milk Life" advertising campaign, designed to increase awareness of the health benefits of milk, was intended to help market a(n)
A) service.
B) firm.
C) industry.
D) organization.
E) specific product.
82) When considering price within the marketing mix, price consists of
A) the money the consumer pays to receive the product.
B) the length of time between marketing exchanges.
C) the cost of a product to the producer.
D) the money, time, and energy buyers give up in exchange for a product.
E) the effect of the cost on a company’s bottom line.
83) In which era of the marketing evolution did firms begin to focus on what consumers wanted and needed before designing, making, or selling a product?
A) production-oriented era
B) sales-oriented era
C) value-based marketing era
D) market-oriented era
E) creative-production era
84) When a T-shirt manufacturer states, "Customers can have any color T-shirt they want, so long as it's blue," it is reflecting a view that was popular in which era of the marketing evolution?
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) economics-oriented
85) The idea that a good product will sell itself is associated with the________ era of marketing.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
86) Between 1920 and 1950, most firms relied on personal selling and advertising. What is this era called?
A) sales-oriented era
B) marketing-oriented era
C) relationship-oriented marketing era
D) value-based marketing era
E) production-oriented era
87) The era in which manufacturers were not concerned with satisfying the needs of individual consumers was the________ era of marketing.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
88) Gwynn works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Her boss’s actions are indicative of the________ era of marketing.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
89) Avery creates handcrafted jewelry. He cares about innovation more than customer needs, and sees retail stores as places to store his products until someone is ready to purchase them. His attitude is indicative of the_____Blank era of marketing.
A) technology-augmented
B) market-oriented
C) sales-oriented
D) production-oriented
E) value-based
90) During the________ era of marketing, firms had excess production capacity and used personal selling and advertising to generate customers.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
91) The prevailing marketing strategy of the________ era was to find customers for inventories that went unsold.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
92) Near the end of the model year, an automobile dealership had an unusually high inventory level. The manager increased advertising spending and gave extra incentives to the sales staff. These actions are similar to those in which marketing era?
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
93) After World War II, consumers were able to make purchase decisions based more on their wants and desires than necessity. As a result, more companies discovered the benefits of
A) supply chain management.
B) economies of scale.
C) marketing.
D) mass customization.
E) online shopping.
94) Which statement reflects the philosophy of the market-oriented era?
A) A good product will sell itself.
B) The customer is king.
C) Firms should take advantage of a seller's market.
D) Advertising and personal selling should be emphasized in order to make the sale.
E) Firms should focus on value.
95) Value cocreation refers to
A) outsourcing component parts for production processes.
B) using multiple media sources in a promotional campaign.
C) customers acting as collaborators on a product or service.
D) relying on fewer products to create a profit.
E) the lifelong relationship between customer and company.
96) During the________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
97) The business philosophy that relies on a set of strategies, programs, and systems that focus on identifying and building loyalty among a firm’s most valued customers is called
A) GDP.
B) OEM.
C) GNI.
D) 4Ps.
E) CRM.
98) Derek sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Derek operates as if he were in the________ era.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
99) Padma studies her customer profiles, marketing research data, complaints, and other information for the primary purpose of discovering her customers' wants and needs. Padma’s actions are indicative of the________ era.
A) production-oriented
B) sales-oriented
C) market-oriented
D) value-based marketing
E) retailing-oriented
100) Brigitte would love to buy a new BMW because she likes all the features it offers, but the used BMW with 20,000 miles is $10,000 less and it has all the same features. Even though the warranty on the used BMW isn’t as good, she decides to buy the used BMW. Brigitte is primarily concerned with the BMW’s
A) services.
B) supply chain.
C) competition.
D) promotion.
E) value.
101) From a customer's perspective, value reflects
A) the need for value and the perception of value.
B) explicit versus implicit value.
C) the relationship of benefits to costs.
D) the balance between needs and wants.
E) the need for product improvement.
102) Clara is the new restaurant manager in a major hotel. When considering which changes would most likely increase the restaurant's value to customers, Clara should provide her customers the menu items that they want and the quality service that they deserve, as well as,
A) deliver a better dining experience than her competitors.
B) increase prices to increase revenue.
C) offset higher hotel rates with lower restaurant prices.
D) reduce customer expectations through reduced service.
E) minimize menu items but increase the price of popular entrees.
103) Sun-Jun just started with a travel agency and is offering clients a range of packaged tours. He is concerned because the commissions he earns on sales are lower than he had hoped. His colleague Matt, who has been with the agency for several years, is having a great deal of success by working closely with clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Matt’s approach is based on
A) transaction-oriented marketing.
B) premium pricing.
C) economies of scale.
D) special incentives from tour operators.
E) value cocreation.
104) To build relationships, firms focus on the lifetime________ of the relationship, not how much money is made during each transaction.
A) cost
B) profitability
C) investment
D) expense
E) progress
105) A relational orientation is based on the philosophy that buyers and sellers develop
A) outside interests.
B) a long-term relationship.
C) a price-value comparison matrix.
D) supply chain synergy.
E) a marketing value transaction focus.
106) A local art gallery keeps information on its customers' artist and art style preferences. The gallery uses this information to inform customers when new pieces arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using________ to build loyalty among its customers.
A) value cocreation
B) customer relationship management
C) transactional marketing
D) B2B marketing
E) the supply chain
107) If a firm adopts a CRM business philosophy, it most likely has a(n)________ orientation with its customers.
A) transactional
B) external
C) relational
D) internal
E) divisional
108) After major storms, many ethical home repair and building supply businesses continue to charge pre-storm prices to their customers, even though they know they can charge more due to the huge increase in demand for their services and products. These firms probably recognize that
A) they can make more money from government contracts than from sales to customers.
B) a transactional orientation is the key to long-term profitability.
C) none of their competitors would be raising prices.
D) lifetime profitability of relationships matters more than profits from a particular transaction.
E) if they raised prices they would be in violation of building code regulations.
109) The goal of customer relationship management is to
A) manage every customer relationship differently.
B) manage every customer relationship to maximize short-term profitability.
C) eliminate customers who are profitable, but not highly profitable.
D) identify and build loyalty among a firm's most valued customers.
E) generate relationships with competitors' customers.
110) William uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, William contacts his customers when they are most likely to be "in the buying mode." William’s system is an example of
A) C2C marketing.
B) customer relationship management.
C) a transactional marketing orientation.
D) supply chain management.
E) typical production era marketing practices.
111) A catalog company creates special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This company is using
A) C2C marketing.
B) customer relationship management.
C) a transactional marketing orientation.
D) supply chain management.
E) typical production-oriented era marketing practices.
112) It was during the market-oriented era that firms first discovered "marketing." In what timeframe did this occur?
A) around the turn of the 20th century
B) shortly before the Great Depression
C) just after World War II
D) during the Roaring Twenties
E) during the civil rights movement
113) During the Great Depression, consumers couldn’t afford to purchase items and instead planted gardens for food, patched together broken cars, and didn’t replace items that wore out. This led to the________ era in which manufacturers had to find ways to get rid of product.
A) sales-oriented
B) production-oriented
C) value-based marketing
D) market-oriented
E) customer-oriented
114) After the previous sales representative in his territory infuriated an important customer, Nathan visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Nathan an order. Nathan was providing the important marketing function of
A) advising production on how much product to make.
B) alerting the logistics department when to ship products.
C) creating a relational orientation.
D) identifying opportunities to expand.
E) synthesizing and interpreting sales, accounting, and customer-profile data.
115) During which era of marketing's evolution did customers first find themselves with more buying options and therefore able to make purchasing decisions?
A) market-oriented
B) sales-oriented
C) production-oriented
D) value-based marketing
E) economics-oriented
116) Value-oriented marketers constantly measure
A) promotional effectiveness against ethical advertising standards.
B) the problem of price maximization against cost-efficiency.
C) perceived customer benefits against the costs of their offerings.
D) the desire to achieve against the need for a stable source of supply.
E) the goal of efficiency against the price charged by competitors.
117) A spa allows guests to view their reservation through a mobile app and make special requests. Which of the four main activities of value-driven marketing does this represent?
A) marketing analytics & AI
B) progressive innovation
C) adding value
D) addressing ethical and societal dilemmas
E) social and mobile marketing
118) A university recently began holding regular coffee-hour discussions with current and prospective students and surveying all new and alumni students regarding educational needs and desires. These actions reflect how the university is striving to become more value driven by
A) sharing information across the organization.
B) balancing its customers' benefits and costs.
C) evaluating strategic competitive partnerships.
D) building relationships with customers.
E) keeping the faculty members happy.
119) As the owner of a retail franchise food store, Tonja purchases supplies based on specials advertised nationally throughout the franchise system. Last Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of
A) sharing information across the organization.
B) balancing customers' benefits and costs.
C) evaluating strategic competitive partnerships.
D) building relationships with customers.
E) keeping prices below those charged by competitors.
120) One of the benefits of using customer data to identify customers better is that attention to customer needs and wants will likely result in
A) higher prices than the market leader charges.
B) increased competition.
C) long-term relationships.
D) strong connections among competing firms in the marketplace.
E) lower prices.
121) Companies have turned to social media for marketing products and there is still huge growth potential in this area considering that on average, users spend about________ on social media every day.
A) 90 minutes
B) 1 hour
C) 5 hours
D) 2.5 hours
E) 30 minutes
122) The outside sales rep for a major building supply company read a report stating that building permits were down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, the sales rep will help her company become more value driven if she
A) pushes her customers to buy products whether they need them or not.
B) advises the production and purchasing departments to produce or order smaller quantities of products.
C) avoids contacting her customers until the slowdown ends.
D) avoids contact with competing firms in order to maximize value-driven marketing.
E) keeps the information to herself.
123) Which event was a turning point in the evolution of marketing and gave way to the technology-augmented era?
A) COVID-19 pandemic
B) September 11th attack on World Trade Center
C) Great Depression
D) Economic downturn of 2008
E) World War II
124) Businesses that use geotargeting segment their audience based on
A) their spending habits.
B) a set of criteria developed around the target audience.
C) their current and past locations.
D) the number of connections they have with each other.
E) social media accounts.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
125) Mel has been asked to write a marketing plan for a new restaurant. What questions will Mel likely address in her marketing plan? Be specific and offer questions related to a restaurant.
126) How does the exchange of ideas provide value, and what is the role of marketing in this process? Explain this using the example in the text of groups marketing bicycle helmets or choose your own scenario.
127) The text states, "Good marketing is not a random activity." Create an example to respond to this statement.
128) Your friend is writing a "how-to" book and asks you for marketing advice. You start by exploring the four Ps. What questions will you ask? Be specific.
129) The manager of a restaurant supply company determines prices by adding a standard markup to her costs. What might the manager be missing when it comes to effective pricing decisions?
130) As your first assignment in an advertising agency, your manager asks you to come up with messages for three billboards promoting the university you attended. The manager wants one ad for each of the three types of promotion objectives. Create an example of a onesentence billboard advertising message for each objective: inform, persuade, and remind.
131) Suppose your college roommate sees you reading your marketing textbook and says, "Marketing is just advertising and selling." How do you respond?
132) What are the four Ps of marketing? Give an example of each.
133) Antonio bought a suit at Regency Clothing for Men. Regency bought the suit from a distributor, which bought it from a designer. The designer bought the materials to make the suit from a factory in China, and the suits were made at that same factory. The employees in the factory bought their suits directly from the factory and sold them to their friends. Explain which of these transactions were B2B, B2C, and/or C2C.
134) During the past couple of decades, marketers began to develop a relational orientation as they realized that they need to think about their customers in terms of relationships rather than transactions. How does Apple encourage its customers to maintain a long-term relationship with the company?
135) Over the five marketing eras, how did the emphasis on the four Ps change? List the five eras and describe which of the four Ps were emphasized during each era.
136) How does value cocreation provide additional value to customers?
137) Explain the process of customer relationship management (CRM) in terms of how it impacts marketing activities.
138) Describe the premise of value-oriented marketing.
139) Many U.S. companies now use social media tools for marketing purposes. Demonstrate your knowledge of social media by describing a small company and the ways you would use social media to produce, promote, place, and price your goods or services.
140) You are employed by a marketing firm that needs to become more value driven. Describe the four activities that contribute to this.
Answer Key Test name: Chapter 01
38) D
39) E
40) C 41) A
42) B
43) D
44) B
45) A
46) B
47) C
48) E
49) A
50) B 51) B 52) D 53) E 54) A 55) B 56) B 57) C 58) D 59) A 60) B 61) B 62) C 63) C 64) B 65) A 66) A 67) A 68) A
69) A
70) A
71) C
72) A
73) A
74) C
75) D
76) E
77) C
78) A
79) D
80) D
81) C
82) D
83) D
84) A 85) A
86) A 87) A 88) A 89) D 90) B 91) B 92) B 93) C 94) B 95) C 96) D 97) E 98) D 99) C 100) E 101) C 102) A 103) E 104) B 105) B 106) B 107) C 108) D 109) D 110) B 111) B 112) C 113) A 114) C 115) A 116) C 117) E
118) D
119) A
120) C
121) D 122) B
123) A
124) C
125) Short Answer
126) Short Answer
127) Short Answer
128) Short Answer
129) Short Answer
130) Short Answer
131) Short Answer
132) Short Answer
133) Short Answer
134) Short Answer
135) Short Answer
136) Short Answer
137) Short Answer
138) Short Answer
139) Short Answer
140) Short Answer
Chapter 1 Overview of Marketing
Tools for Instructors
• Chapter Overview
• Brief Chapter Outline
• Learning Objectives
• Extended Chapter Outline
• PowerPoint Slides
• Additional Resources
• Connect Application Exercises
Chapter Overview
In this chapter, the goal is to provide an overview of marketing and encourage students to think about the specific aspects of the marketing mix.
Brief Chapter Outline
What Is Marketing?
The Importance of Marketing over Time How Does Marketing Create Value, and How Do Firms Become More Value Driven?
Learning Objectives
LO1-1 Define the role of marketing
Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing strives to create value in many ways. If marketers are to succeed, their customers must believe that the firm’s products and services are valuable; that is, they are worth more to the customers than they cost. Another important and closely related marketing role is to capture value of a product or service based on potential buyers’ beliefs about its value. Through communications, marketers educate and inform customers about the benefits of their products and services and thereby increase their perceived value. Marketers facilitate the delivery of value by making sure the right products and services are available when, where, and in the quantities their customers want. Better marketers are not concerned about just one transaction with their customers. They recognize the value of loyal customers and strive to develop longterm relationships with them.
LO1-2 Detail the evolution of marketing over time
Marketing has evolved from a production or sales-oriented approach, in which firms told people what they could and should buy, to a market- and value-oriented perspective. In this more recent view, firms look to their markets to tell them what they need to produce and provide, in a way that creates value for them and their customers. Most modern firms, having established value as their primary goal, are turning to technology to augment that value.
LO1-3 Describe how marketers create value for a product or service
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Value stems from at least four main activities that value-driven marketers undertake and are reinforced throughout the book:
• Adding value, such that they leverage various elements of marketing and work to build relationships with partners and customers to ensure that they introduce their product, service, or idea to the marketplace at just the place and time that customers want it.
• Marketing analytics and AI, which companies use to gather vast amounts of information about customers and competitors, and then analyze it and share it across their own organization and with partner firms.
• Social and mobile marketing, to take advantage of new technologies and connect with customers using the latest social media channels.
• Ethical and societal dilemmas, such that firms engage in conscious marketing that takes into account the benefits and costs of their actions for all stakeholders.
Extended Chapter Outline
I. What Is Marketing? (PPT 1-5)
A. Marketing Is About Satisfying Customer Needs and Wants (PPT 1-6 and 1-7)
B. Marketing Entails an Exchange (PPT 1-8)
Adding Value 1.1: Ensuring the Pepsi Generation Is Also the Next, and the Next, and the Next Generation: The Starry Brand Rollout Pepsi strategically targets each new generation to ensure each generation of consumers regards itself as the Pepsi Generation. Pepsi decided to target Gen Z by reformulating Sierra Mist into a new lemon-lime cola designed to appeal to younger consumers. It has comparatively low sugar levels to appeal to more health-conscious cola drinkers, and it uses bright, bold packaging that is designed to have an “Instagrammable” look. The marketing plan relies heavily on social media to reach young consumers who exhibit a tendency to reject existing, tired brands.
C. Marketing Creates Value through Product, Price, Place, and Promotion Decisions (PPT 19 and 1-10)
Social and Mobile Marketing: Data for Sale! Get My Personalized Data for Sale! discusses how increased regulations regarding personal data have led to new platforms like Caden, which allows users to download their personal data and charge a fee to companies that wish to access the data.
1. Product: Creating Value (PPT 1-11)
2. Price: Capturing Value (PPT 1-12)
3. Place: Delivering the Value Proposition (PPT 1-13)
4. Promotion: Communicating the Value Proposition (PPT 1-14)
D. Marketing Can Be Performed by Individuals and Organizations (PPT 1-15)
E. Marketing Affects Various Stakeholders (PPT 1-16)
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Ethical & Societal Dilemma: Marketing Designed to Discourage Purchases: Patagonia’s Unusual Approach to Being a Responsible Company highlights how Patagonia’s long-term commitment to sustainability has led to its revolutionary decision to donate 100 percent of its profits to fighting the climate crisis. Patagonia strives for sustainability in its supply chain and in its marketing, but its CEO reiterates that the company remains “unapologetically a for-profit,” because those profits serve its environmental mission.
✓ Progress Check: Several questions are offered for students to check their understanding of core concepts. (PPT 1-17)
1. What is the definition of marketing?
Answer: Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
2. Marketing is about satisfying _____ and _____.
Answer: Marketing is about satisfying needs and wants.
3. What are the four components of the marketing mix?
Answer: The four components of the marketing mix are product, place, price, and promotion.
4. Who can perform marketing?
Answer: Both individuals and organizations can perform marketing as marketing can entail B2C, B2B, and C2C.
II. The Importance of Marketing Over Time (PPT 1-18)
A. Production-Oriented Era
B. Sales-Oriented Era
C. Market-Oriented Era
D. Value-Based Marketing Era (PPT 1-19)
E. Technology-Augmented Era (PPT 1-20)
✓Progress Check: The following question is offered for students to check their understanding of core concepts. (PPT 1-21)
1. What are the various eras of marketing?
Answer: The eras of marketing include the production-oriented era, sales-oriented era, marketoriented era, value-based era, and technology-augmented era
III. How Does Marketing Create Value, and How Do Firms Become More Value Driven? (PPT 1-22)
A. Adding Value (PPT 1-24)
B. Marketing Analytics & AI (PPT 1-25)
C. Social & Mobile Marketing (PPT 1-27)
Marketing Analytics & AI: Google Leverages AI discusses Google’s AI inventory tool, which uses cameras to assess shelf inventory in retail stores. Although the tool hypothetically allows for greater accuracy in monitoring inventory and makes employees’ jobs easier and more efficient, tests of the tool offer mixed results.
Social & Mobile Marketing: MasterClass Leverages Its Experts and Their Expertise highlights the marketing strategies used by MasterClass, which offers educational programs. MasterClass attracts customers by using celebrity teachers whom potential customers already admire and trust and through online search keywords. MasterClass appears on the first page of many seemingly generic searches, and it answers the question posited in the search and leads users to a related course. It also tracks clicks to identify potential consumers and then delivers ads on those users’ social media feeds.
D. Ethical and Societal Dilemma (PPT-28)
✓ Progress Check: Several questions are offered for students to check their understanding of core concepts. (PP 1-27)
1. Does providing a good value mean selling at a low price?
Answer: Value-based marketing isn’t just about low price; it is also about creating strong products and services.
2. How are marketers connecting with customers through social and mobile media?
Answer: Marketers are steadily embracing new technologies, such as social and mobile media, to allow them to connect better with their customers and thereby serve their needs more effectively.
Ethical & Societal Dilemma 1.2: Fashion Brands’ Environmentalism Sometimes Butts Up against Regulations discusses the potential conflict that occurs when multiple companies within an industry collaborate in their sustainability efforts. After multiple fashion companies joined together and released a shared vision for changes in the industry, the European Union antitrust regulators investigated them for violating rules against restrictive business practices, including price fixing. Similarly, laws in the United States can also make it difficult for companies to coordinate their environmental efforts.
Additional Resources
Place is one of the most difficult concepts for students because it is largely invisible to them as consumers. They touch hard goods, experience services, view and hear promotions, and pay for what they buy, but it can seem that products almost appear magically. One recent trend among environmentally conscious consumers is to seek out products produced within a 100-mile radius of their hometowns. Buying these products reduces costs and detrimental environmental effects by reducing emissions associated with transportation and storage. Students should visit local grocery markets, identify goods, and investigate how
far the products traveled (and by what means) to reach the store’s shelves. From this experience, a rich discussion of both distribution decisions and marketing’s impact on society can evolve.
To make the eras of marketing clear to students, divide the class into groups with each group assigned to a specific era. Ask the students to identify a business that adheres to their assigned era in terms of its business philosophy and approach. They should present the business to the class with evidence of the business’s philosophy. Each brief presentation should include an assessment of whether the orientation is appropriate to the business, given its competitive environment, target audience, and positioning strategy, and if not, what orientation would be best.
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