- Information
- AI Chat
Sample/practice exam 18 February 2016, questions and answers
Introduction to business and supply chain management
Dokuz Eylül Üniversitesi
Preview text
1. Suppose you are a marketing manager at Procter & Gamble for a new, all-purpose cleaning product. List four marketing mix variables and describe the decisions and activities associated with each. ANSWER: Marketers consider activities such as product, distribution, promotion, and pricing as the marketing mix because they decide what type of each element to use and in what amounts. The product variable of the marketing mix deals with researching customers’ needs and wants and designing a product that satisfies them. A product can be a good, a service, or an idea. The product variable also involves creating or modifying brand names and packaging and may include decisions regarding warranty and repair services. In dealing with the distribution variable, a marketing manager makes products available in the quantities desired to as many target-market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. The promotion variable relates to activities used to inform individuals or groups about the organization and its products. Promotion can aim to increase public awareness of the organization and of new or existing products. The price variable relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices. Price is a critical component of the marketing mix because customers are concerned about the value obtained in an exchange. Price is often used as a competitive tool, and intense price competition sometimes leads to price wars.
2. Describe several activities encompassed by the distribution variable. ANSWER: When considering the distribution variable, a marketing manager makes products available in the quantities desired to as many target-market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. A marketing manager also may select and motivate intermediaries (wholesalers and retailers), establish and maintain inventory control procedures, and develop and manage transportation and storage systems. The advent of the Internet and electronic commerce also has dramatically influenced the distribution variable. Companies now can make their products available throughout the world without maintaining facilities in each country. 3. Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships. ANSWER: The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit. The customer expects to gain a reward or benefit greater than the costs incurred in a marketing transaction. The marketer expects to gain something of value in return, generally the price charged for the product. To fulfill these expectations, the marketer must deliver on promises made. Over time, this interaction results in relationships between the two parties. 4. What is meant by the term relationship marketing? How does relationship marketing affect the customer? ANSWER: Relationship marketing refers to “long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges.” Relationship marketing continually deepens the buyer’s trust in the company, and as the customer’s confidence grows, this, in turn, increases the firm’s understanding of the customer’s needs. Buyers and marketers can thus enter into a close relationship in which both participate in the creation of value.
Chapter 01: An Overview of Strategic Marketing
5. What are the three ways that marketing environment forces affect a marketer's ability to create satisfying exchange relationships? ANSWER: The marketing environment forces affect a marketer’s ability to facilitate value-driven marketing exchanges in three general ways. First, they influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. Second, marketing environment forces help to determine whether and how a marketing manager can perform certain marketing activities. Third, environmental forces may affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix. 6. What is meant by the term marketing concept, and what departments of a company does it affect? ANSWER: Marketing concept refers to a management philosophy guiding an organization’s overall activities. Departments such as production, finance, accounting, human resources, and marketing must work together to establish the marketing concept. The overall objectives of a business might relate to increasing profits, market share, sales, or a combination of all three. The marketing concept stresses that an organization can best achieve these objectives by being customer oriented. 7. What does it mean for a company to be market oriented? What are the most important factors involved in being market oriented? ANSWER: A market orientation requires the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it. Market orientation is linked to new product innovation by developing a strategic focus to explore and develop new products to serve target markets. Top management, marketing managers, non-marketing managers (those in production, finance, human resources, and so on), and customers are all important in developing and carrying out a market orientation. Trust, openness, honoring promises, respect, collaboration, and recognizing the market as the raison d’etre are six values required by organizations striving to become more market oriented. Unless marketing managers provide continuous customer-focused leadership with minimal interdepartmental conflict, achieving a market orientation will be difficult. Non-marketing managers must communicate with marketing managers to share information important to understanding the customer. Finally, a market orientation involves being responsive to ever-changing customer needs and wants. 8. Define the term value, and explain how people determine a product's value. ANSWER: Value is defined as a customer’s subjective assessment of benefits relative to costs in determining the worth of a product (customer value = customer benefits – customer costs). Consumers develop a concept of value through the integration of their perceptions of product quality and financial sacrifice.
Chapter 01: An Overview of Strategic Marketing
14. Discuss the evolution of the marketing concept through the various types of orientation. ANSWER: The marketing concept may seem like an obvious approach to running a business. However, businesspeople have not always believed that the best way to make sales and profits is to satisfy customers. The first type of orientation is known as production orientation. In production orientation, with new technology and new ways of using labor, products poured into the marketplace, where demand for manufactured goods was strong. According to the sales orientation, businesses viewed sales as the major means of increasing profits, and this period came to have a sales orientation. Businesspeople believed that the most important marketing activities were personal selling, advertising, and distribution. Market orientation requires the "organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it." Market orientation is linked to new-product innovation by developing a strategic focus to explore and develop new products to serve target markets.
15. Marketing is the process of a. promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. b. creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. c. delivering a standard of living to a society. d. creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. e. focusing on customers' needs. ANSWER: b 16. The focal point of all marketing activities a. are products. b. is the marketing mix. c. are profits. d. are sales. e. are customers.
ANSWER: e 17. Organizations should define themselves not according to the products they produce but according to a. how profitable they are. b. the price of their stock. c. the abundance of their product selection. d. how they treat employees. e. how they satisfy customers. ANSWER: a
Chapter 01: An Overview of Strategic Marketing
18. The definition of marketing implies that ____ should receive benefits from exchange relationships. a. only customers b. only businesses c. company management d. both customers and marketers e. only the most important customers ANSWER: d 19. The primary value that a marketer expects to receive from a customer in an exchange relationship is a. the price charged for the product. b. customer satisfaction. c. references to other potential customers. d. quality merchandise that meets expectations. e. few returns of the merchandise purchased.
ANSWER: a 20. A target market a. involves a large number of customers. b. is a specific group of customers on whom an organization focuses its marketing efforts. c. already has several competitors vying for customers' business. d. is the same as a salesperson's prospective client list. e. is a customer group classified as people with similar demographic characteristics. ANSWER: b 21. Kashi Heart to Heart cereal is aimed at people concerned about their heart health. These people represent the Kashi a. marketing mix. b. marketing strategy. c. target market. d. marketing tactic. e. consumer advocates.
ANSWER: c 22. Distribution, price, promotion, and product are all elements of a. marketing strategy. b. the marketing mix. c. a target market. d. a consumer good. e. a business strategy. ANSWER: b
Chapter 01: An Overview of Strategic Marketing
28. The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a. issue. b. experience. c. idea. d. good. e. service.
ANSWER: e 29. Which of the following companies is the best example of a service marketer? a. FedEx b. Sony c. Abercrombie & Fitch d. The Democratic Party e. General Electric ANSWER: a 30. Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets a. goods. b. ideas. c. services. d. political figures. e. applications. ANSWER: b 31. The Church of the Latter Day Saints has used advertising for many years, airing a commercial TV spot that shows parents actively playing games with their children. The Church is using marketing to promote its a. goods. b. services. c. experiences. d. production. e. ideas. ANSWER: e
Chapter 01: An Overview of Strategic Marketing
32. Which of the following is most likely to be an idea marketer? a. Car salesperson b. Airline pilot c. Attorney d. Abuse counselor e. Orthodontist ANSWER: d 33. Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike. a. price b. good c. product d. promotion e. distribution ANSWER: c 34. Making modifications to packaging or brand names involves the ____ component of the marketing mix. a. price b. promotion c. market d. distribution e. product
ANSWER: e 35. Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix. a. distribution b. product c. exchange d. price e. promotion ANSWER: a
Chapter 01: An Overview of Strategic Marketing
40. The element of the marketing mix used to increase awareness of a product or company is a. communication. b. product. c. price. d. distribution. e. promotion. ANSWER: e 41. When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables? a. Price b. Promotion c. Distribution d. Product e. Packaging ANSWER: b 42. When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle, which costs consumers less than if they had purchased each item individually. Which of the following aspects of the marketing mix is Ikea likely altering? a. Price b. Promotion c. Distribution d. Product e. Target market
ANSWER: a 43. When DataComp Corp., a producer of software, delayed the introduction of its new spreadsheet app to modify the package, its scheduled TV advertisements announcing the new product needed to be revised. In this case, a change in the ____ variable caused changes in the ____ variable of the marketing mix. a. distribution; promotion b. distribution; product c. product; price d. product; promotion e. promotion; price ANSWER: d
Chapter 01: An Overview of Strategic Marketing
44. Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? a. Profits for the seller b. A good bargain on the product for the buyer c. Reducing the seller's inventory d. One party having to compromise in the exchange e. Satisfaction for both the buyer and seller
ANSWER: e 45. Which of the following statements about marketing environment forces is correct? a. They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. b. They do not influence customers' reactions to a firm's marketing mix. c. They fluctuate slowly and thereby create threats to a firm's marketing mix. d. They tend to be harmful to marketing activities because they change. e. They are variables that marketers can control.
ANSWER: a 46. The forces of the marketing environment include a. political, legal and regulatory, sociocultural, technological, economic, and competitive. b. sociocultural, legal, regulatory, economic, pricing strategies, and competitive. c. legal, regulatory, political, sociocultural, pricing strategies, and technological. d. legal and regulatory, competitive and noncompetitive forces that affect most lifestyles. e. political, legal and regulatory, pricing strategies, fairly static components. ANSWER: a 47. A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ____ that influence(s) the firm's strategy. a. operating situation b. marketing environment c. surroundings d. economic conditions e. trends
ANSWER: b
Chapter 01: An Overview of Strategic Marketing
52. According to the marketing concept, an organization should try to a. consider short-run objectives and cash flow needs before developing new products. b. define its business as "making a product." c. provide products that satisfy customers' needs and allow the organization to achieve its goals. d. put most of its emphasis on marketing activities and be less concerned with finance, accounting, and personnel. e. view selling activities as the major means of increasing profits.
ANSWER: c 53. The marketing concept is a management philosophy that affects a. only marketing activities. b. all efforts of the organization. c. mainly the efforts of sales personnel. d. mainly customer relations. e. only business organizations. ANSWER: b 54. The marketing concept focuses on a. achieving the goals of top executives. b. creating maximum visibility for the firm. c. maximizing sales in a way that helps to achieve organizational objectives. d. maximizing market share in a way that helps to achieve organizational objectives. e. satisfying customers' needs in a way that helps to achieve organizational objectives.
ANSWER: e 55. The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a. increase market share. b. increase sales. c. achieve the organization's goals. d. produce high-quality products. e. coordinate its activities to increase production. ANSWER: c 56. Which one of the following statements by a company president best reflects the marketing concept? a. We have organized our business to make certain that customers get what they want. b. We believe that the marketing department must organize to sell what we produce. c. We have organized an aggressive sales force in our company to promote our products. d. We try to produce only high-quality, technically efficient products. e. We try to encourage company growth.
ANSWER: a
Chapter 01: An Overview of Strategic Marketing
57. The marketing concept affects a. just the marketing department. b. all organizational activities. c. only marketing and finance. d. only production and marketing. e. few decisions in an organization. ANSWER: b 58. The H&R Block company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, which of the following philosophies is most appropriate? a. The customer is always right. b. Making money is our business. c. Sell, sell, sell. d. Keep prices low. e. Focus on today. ANSWER: a 59. The marketing concept is a. a management philosophy. b. synonymous with exchange. c. a component of the marketing mix. d. a function of the marketing environment. e. focused solely on satisfying customer objectives.
ANSWER: a 60. As the Industrial Revolution came to the United States, most firms operated in a(n) ____ orientation. a. market b. societal c. sales d. evolutionary e. production ANSWER: e 61. During the Industrial Revolution demand for manufactured goods was a. weak. b. nonexistent. c. declining. d. strong. e. mediocre.
ANSWER: d
Chapter 01: An Overview of Strategic Marketing
66. Which of the following is not an example of the implementation of the marketing concept? a. Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork. b. Ford asks customers to vote online for a new color for next year’s Ford Focus. c. Burger King reduces the labor costs to produce its sausage-egg biscuits. d. Microsoft offers rewards for users who can find flaws in its new software. e. Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision.
ANSWER: c 67. Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept? a. An information system to determine customer needs b. The organizational structure c. Top-management commitment d. Technological advancement e. Scanning corporate capabilities ANSWER: a 68. Wonder introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Wonder was most likely following the ________. a. selling concept b. production concept c. marketing concept d. customer concept e. retailing concept
ANSWER: c 69. Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a. marketing synthesis. b. relationship marketing. c. a marketing orientation. d. the marketing concept. e. strategic marketing.
ANSWER: b
Chapter 01: An Overview of Strategic Marketing
70. A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on a. cost-cutting measures. b. continually selling to new customers and markets. c. creating and maintaining satisfying exchange relationships. d. high-volume, low-margin sales. e. increasing shelf space for their brands. ANSWER: c 71. Ben is responsible for managing the customer satisfaction of Hampton Inn motel guests. Ben is currently analyzing the customer relationship management (CRM) program at Hampton Inn and is contemplating where he should begin making changes. Which of the following would be the beginning of a CRM program, and therefore the area Ben should consider first? a. getting rid of the most unprofitable customers. b. offering new types of hotel rooms for frequent guests. c. expanding the number and locations of Hampton Inns. d. providing information to customers through the Web, Facebook, or in person. e. increasing the promotion budget with a new sweepstakes for frequent customers. ANSWER: d 72. Long-term relationships with profitable customers is the key objective of a. personal selling. b. customer relationship management. c. production-oriented firms. d. e-marketing. e. distribution channels.
ANSWER: b 73. ____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a. Marketing orientation b. Monetary price c. Product assessment d. Price assessment e. Value ANSWER: e
Chapter 01: An Overview of Strategic Marketing
78. Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to a. decrease customer benefits. b. increase customer costs. c. increase customer value. d. increase distribution expenses. e. decrease promotion expenses.
ANSWER: c 79. Initiatives intended to improve an organization's positive impact on society and the natural environment are called a. environmental marketing. b. green marketing. c. socially-responsible marketing. d. energy-conscious marketing. e. socially-conscious marketing. ANSWER: b 80. If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities? a. $2, b. $1, c. $1, d. $ e. $
ANSWER: c 81. For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? a. One-half b. One-fifth c. One-fourth d. One-third e. One-sixth ANSWER: a
Chapter 01: An Overview of Strategic Marketing
82. In today's market environment, you might pay $16 for a physical CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a. $10. b. $4. c. $5. d. $8. e. $12.
ANSWER: d 83. Marketing activities are a. used by all sizes of organizations including for-profit, nonprofit, and government agencies. b. limited to use by larger for-profit and nonprofit organizations. c. implemented only to increase profits for the organization and to expand the scope of its customer base. d. used by all types and sizes of businesses but are not used by nonprofit organizations. e. used by small businesses and small nonprofit organizations the most. ANSWER: a 84. Marketing activities a. are aimed at persuading customers through advertising. b. involve mainly distribution and promotion decisions. c. and selling activities are basically the same. d. are important only when a firm is developing new products or entering new markets. e. help sell an organization's products and generate financial resources for the firm.
ANSWER: e 85. Marketing knowledge and skills a. are not necessary for a nonprofit organization. b. are valuable personal and professional assets. c. constitute the marketing mix d. were most important during the production era. e. are most valuable for advertising executives but less important for wholesalers and distributors. ANSWER: b
Chapter 01: An Overview of Strategic Marketing
Sample/practice exam 18 February 2016, questions and answers
Course: Introduction to business and supply chain management
University: Dokuz Eylül Üniversitesi
- Discover more from:
- More from:
