Deck 1: Scope and Concepts of Marketing

Question 1

Nations with a higher proportion of their population involved in marketing, characterized by a developed marketing system, also have a higher GDP.

Answer 1

True

Question 2

Firms, in general, spend over $300 billion per year on advertising.

Answer 2

False

Question 3

The sum of all goods and services produced within the boundaries of a country is called the net national product (NNP).

Answer 3

False

Question 4

The objective of marketing is to satisfy the needs, wants, and demands of consumers and businesses through providing value, quality, and satisfaction.

Question 5

Needs are defined as basic human requirements such as physiological needs, safety needs, social needs, self-esteem needs, and self-actualization needs.

Question 6

Wants are shaped by a person's culture.

Question 7

Value, defined as the overall quality of a product, is especially important in the first purchase of a product.

Question 8

Consumers may define value of particular brand or product differently.

Question 9

Satisfaction is the key to whether consumers or businesses purchase again.

Question 10

The level of satisfaction is a function of the quality and perceived value of a product, and whether it adequately meets the need or want for which it was purchased.

Question 11

Goods generally refer to tangible products, such as computers, furniture, and hats.

Question 12

Services refer to intangible activities or benefits that individuals acquire, but do not result in ownership.

Question 13

Taking a taxi from the airport to the hotel would be an example of an idea or experience.

Question 14

A dry cleaner would be an example of a service.

Question 15

The first level of exchange takes place between the manufacturer and a wholesaler.

Question 16

Customer satisfaction is central to marketing.

Question 17

Relationship marketing is the process of developing and nurturing relationships with a company's suppliers.

Question 18

Marketing has evolved over time and, as a result, a firm can take five different approaches to marketing: production, product, selling, marketing, and societal marketing.

Question 19

The production concept assumes that consumers prefer products that are easily accessible and inexpensive.

Question 20

The product orientation works well for mass-market service organizations, such as fast-food restaurants.

Question 21

Medical and dental services are guided primarily by the production concept, but still are very cognizant of the product process and costs.

Question 22

The main disadvantages of the product and production orientation is that the focus is on the product and production processes rather than on the consumer.

Question 23

Research and product development would be a central emphasis for firms using the selling concept.

Question 24

According to the selling concept, consumers need to be aggressively targeted and approached with personal selling and advertising in order to be persuaded to purchase a company's products.

Question 25

When a retail store has a large end-of-season sale to unload excess inventory, they are using the marketing concept.

Question 26

Companies are more likely to use the selling concept when their products are unsought goods, such as insurance.

Question 27

The marketing concept entails a company-wide consumer focus across all functional areas.

Question 28

The outcome of a focus on the selling concept tends to lead to short-term sales while the outcome of a focus on the marketing concept tends to lead to long-term relationships with customers.

Question 29

One method of demonstrating societal marketing is for a firm to become involved in social causes, such as the Boys & Girls Club of America or Cancer Research.

Question 30

Demarketing is a company strategy aimed at reducing the demand for its own products in order to benefit society.

Question 31

The sales era was between 1930 and 1950 when the primary focus of marketing was on selling.

Question 32

The marketing era was from 1950 until the present when the primary focus of marketing shifted to the needs of consumers and society.

Question 33

During the production era, output consisted of limited product lines, and, since demand exceeded supply, there was minimal competition since products practically sold themselves.

Question 34

The term marketing myopia is attributed to Peter Drucker, who noticed that marketers at the time, in the 1950s, were ignoring an important market segment-seniors.

Question 35

Even companies that embrace the societal marketing concept can experience marketing myopia.

Question 36

A marketing orientation calls for an integrated marketing approach.

Question 37

Adopting a marketing orientation necessitates top management commitment.

Question 38

Through data mining, retailers can obtain information about products, services, and marketing practices of the competition.

Question 39

Data mining involves computer analysis of customer data to determine patterns, profiles, or relationships for the purpose of customer profiling or predicting purchase behavior.

Question 40

Through data mining, retailers attempt to increase sales from a company's existing customers, and hence, solidify and increase market share.

Question 41

For optimal performance in the marketplace, a firm must develop a marketing strategy using data mining in a manner that optimally addresses consumer needs.

Question 42

If a good or service performs better than expected, then consumers are likely to be satisfied and to purchase the good or service again in the future.

Question 43

If the performance of a product matches expectations, consumers are somewhat satisfied, but would switch to another good or service without much persuasion.

Question 44

Companies with a value-based philosophy ensure that their customers' needs are addressed in a manner that delivers goods and services of high quality and value that ultimately leads to customer satisfaction.

Question 45

The American Consumer Satisfaction Index is a national economic indicator of the quality of services from various companies that produce about 50% of the national GDP.

Question 46

Societal marketing practices are formally integrated into a process known as customer relationship management (CRM).

Question 47

Customer relationship management (CRM) is defined as the holistic process of identifying, attracting, differentiating, and retaining customers.

Question 48

CRM allows for multichannel marketing so that customers can deal with the firm when they want to and where they want to.

Question 49

Customer lifetime value is defined as the estimated profitability of a customer over the course of his or her entire lifetime.

Question 50

The gross domestic product is the sum of all goods

A) produced within the boundaries of a country
B) and services produced within the boundaries of a country
C) and services produced by a country regardless of where it is produced
D) produced by a country regardless of where it is produced

Question 51

At the heart of marketing is

A) planing and executing price, promotion, and distribution
B) value, quality and satisfaction
C) exchange
D) satisfying consumer's needs

Question 52

According to the American Marketing Association, marketing is defined as an organization function and a set of processes for creating, communicating, and delivering

A) goods and services to consumers and businesses to meet needs, wants, and desires
B) communication messages to consumers and businesses to inform and persuade individuals and businesses to make purchases
C) value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
D) value to consumers and businesses through the delivery of goods and services to meet individual and corporate needs

Question 53

Markets are defined as

A) basic human requirements such as food and water
B) wants based by the ability to buy the good or service brand
C) the execution of the production, pricing, promotion, and distribution of a product
D) all of the actual and potential consumers of a company's products

Question 54

Satisfying basic human requirements is satisfying _____.

A) needs
B) wants
C) desires
D) demands

Question 55

A want becomes a demand when

A) it is backed by the ability to buy the respective good or service
B) it is directed toward a particular product
C) it meets a physiological, safety, social, self-esteem, or self-actualization need
D) it is shaped by one's culture

Question 56

An example of a _____ is the purchase of a bicycle by a college student for transportation to and from class.

A) need
B) want
C) desire
D) demand

Question 57

An example of a _____ is a discerning adult that has the financial resources to purchase an expensive sports car or yacht.

A) need
B) want
C) demand
D) market

Question 58

Quality is defined as the

A) overall level of performance relative to price
B) overall product quality, reliability, and extent to which the product meets the consumer's needs
C) performance of a product relative to consumer expectations of an ideal service
D) match between consumer expectations and consumer satisfaction

Question 59

The overall price given the quality of the product; perceived as important in the purchase decision, is the definition of

A) quality
B) demand
C) value
D) satisfaction

Question 60

A match between consumer expectations and good or service performance, is the definition of

A) quality
B) demand
C) value
D) satisfaction

Question 61

Perceived _____ has the greatest impact on satisfaction.

A) value
B) demand
C) service
D) quality

Question 62

Services refer to

A) tangible products such as clothing
B) intangible products such as a hair cut
C) concepts and experiences such as a trip to the ocean
D) products that are sold through retail outlets

Question 63

All of the following are examples of goods except

A) computer
B) computer software
C) computer repair
D) computer monitor

Question 64

Tangible products, such as a television or stereo, are called

A) goods
B) ideas and experiences
C) services
D) products

Question 65

Having a CPA prepare your federal income taxes would be an example of a(n)

A) good
B) service
C) idea or experience
D) product

Question 66

Relationship marketing is the process of developing and nurturing relationships with

A) a firm's end-users or customers
B) a firm's target market
C) a firm's suppliers, vendors, and contractors
D) all the parties participating in the transactions involving a company's products

Question 67

Communication in the form of advertising, personal selling, sales promotions, and public relations is the _____ component of the 4 P's.

A) promotion
B) price
C) product
D) place

Question 68

Distribution of a company's goods and services is the _____ component of the 4 P's.

A) promotion
B) price
C) product
D) place

Question 69

Marketing has evolved over time and therefore, a firm can take different approaches to marketing. All of the following are possible approaches except

A) placing a heavy emphasis on producing the best product it can, hoping someone will buy it
B) finding out how customers can be reached, then develop promotional materials that will be the most effective at reaching customers
C) finding out what customers want first, then develop products to meet those wants
D) finding out what customers want, then produce products in such a way that will benefit society as well as the customer

Question 70

The product concept assumes that

A) consumers prefer products that are easily accessible and inexpensive
B) consumers, if left alone, will normally not purchase products a firm is selling
C) consumers prefer products that are of the highest quality and optimal performance
D) a company can compete more effectively if it first researches the needs, wants, and preferences of consumers

Question 71

The production concept assumes that

A) consumers prefer products that are easily accessible and inexpensive
B) consumers, if left alone, will normally not purchase products a firm is selling
C) consumers prefer products that are of the highest quality and optimal performance
D) a company can compete more effectively if it first researches the needs, wants, and preferences of consumers

Question 72

When Intel develops a newer, better computer chip because they believe consumers want faster computers, it is using the

A) production concept
B) product concept
C) selling concept
D) marketing concept

Question 73

When Wal-Mart searches for ways to reduce distribution costs so they can reduce the price of products they sell to consumers, Wal-Mart is using the

A) production concept
B) product concept
C) selling concept
D) marketing concept

Question 74

The main disadvantage of the product and the production orientation is that the focus is the product and production process rather than

A) the distribution channels
B) the 4 P's of marketing
C) the consumer
D) the selling process

Question 75

The selling concept assumes that

A) consumers prefer products that are easily accessible and inexpensive
B) consumers, if left alone, will normally not purchase products a firm is selling
C) consumers prefer products that are of the highest quality and optimal performance
D) a company can compete more effectively if it first researches the needs, wants, and preferences of consumers

Question 76

When a telemarketer tries to convince you to sign up for a particular credit card, he or she is using the

A) production concept
B) product concept
C) selling concept
D) marketing concept

Question 77

The main disadvantage of the selling orientation is that the focus is on persuading consumers to make a purchase rather than

A) offering the products that best fit the consumer's needs and wants
B) focusing on reducing costs of production and lower prices for consumers
C) focusing on high quality products
D) where the product can be sold

Question 78

When a retail store has a big back-to-school sale in August, the store is using the

A) production concept
B) product concept
C) selling concept
D) marketing concept

Question 79

The marketing concept assumes that

A) a company will have an advantage over competitors if it applies the marketing concept in a manner that maximizes society's well-being
B) consumers, if left alone, will normally not purchase products a firm is selling
C) consumers prefer products that are of the highest quality and optimal performance
D) a company can compete more effectively if it first researches the needs, wants, and preferences of consumers

Question 80

When Arby's produces sandwiches that are preferred by their target audience, they are using the

A) selling concept
B) product concept
C) societal marketing concept
D) marketing concept