TRUE AACSB Standard: analytic Bloom's Taxonomy: knowledge Difficulty: Easy Learning Objective: Define marketing 3.. TRUE AACSB Standard: analytic Bloom's Taxonomy: knowledge Difficulty:
Trang 1Chapter 01 Marketing in Today's Business Milieu
Trang 28 Don Peppers and Martha Rogers popularized the term one-to-one marketing,
True False
9 Fred Wiersema's book The New Market Leaders states that marketers will continue to more
power than customers in both B2B and B2C markets
True False
10 Firms today have learned to be open about products and services with consumers who have endless sources of information, including blogs, chat rooms and independent Web sites True False
11 Customer orientation and market orientation are opposing concepts Customer-oriented firms look at customers as individuals and market-oriented firms look at the market as a whole
True False
12 Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients on Web sites enable them to self-diagnose and self-prescribe and saves the physician time
Trang 315 Big M marketing refers to the strategic, long-term, firm-level commitment to investing in
Multiple Choice Questions
18 The _ aspect of a firm is generally the most visible to people outside the organization
B Designing a great product
C Offering the lowest price
D Word-of-mouth endorsements
E Selling a product where customers can easily find it
Trang 420 Entrepreneurs and Fortune 500 firms alike should recognize that marketing efforts
D Should include training only people who interact with customers to have a marketing focus
E None of the above
21 Last year, a professional golfer made $100,000,000 dollars from celebrity endorsements This illustrates why many people think of marketing as primarily about
A Adding costs to products
B Overstating claims
C Advertising
D Pushy salespeople
E Celebrities sponsor the best products
22 Marketing misnomers occur because many people think of marketing as
A Pushy salespeople
B Advertising and celebrity spokespersons
C The firm's department of advertising
D Overstated product claims
E All of the above
23 When you tell someone you are a marketing major in college, he or she may think you want a career in
Trang 524 is not a marketing function
A Research
B Advertising
C Brand development
D Public relations
E Research and development
25 Peter Drucker, the father of modern management, stated that the only purpose of an organization is _
A To create products
B To make products affordable and accessible to the majority of the public
C To improve the quality of life for all people
D To create a customer
E To respect the environment
26 Peter Drucker, the father of modern management, believed that marketing
_
A Should be a separate function within the business
B That it is the business as seen from an internal point of view
C That it is the business as seen from the customer's point of view
D That is so basic that it is a central dimension of the entire business
E Should improve the quality of life for society
27 AMA's first official definition of marketing was released in
A 1925
B 1948
C 1967
D 1985
28 AMA's first official definition reflected its roots in
A Advertising of all kinds of products
B Sales of consumer packaged goods
C Production in factories
Trang 629 AMA's second official definition of marketing was released in
B Focused on tactics like using electronic commerce and new media like You Tube
C Focused on relationships with suppliers and customers
D Focused on value, through creating, communicating, delivering and exchanging offering
that create value
E A and D
Trang 733 After a recent 141-day strike, members of the union members in California went back to work at area grocery stores The union negotiated raises, better healthcare benefits, and a one-tier pay scale The role of the union may best be described as a
A Until some environmental groups found out and complained
B Since it did not have to change under the law
C Because engineers were working on more profitable designs
D Until it spent millions of dollars and many years to get a good new design
E A and D
Trang 837 Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's web site Bryan is practicing the central tenet of marketing called
38 Value may be defined as the ratio of bundled benefits received to the cost incurred by the
customer to receive those benefits is not thought of as one of the costs
Trang 941 High pressure selling _
A Is practiced today by many companies
B Has a marketing orientation
C Sparked laws to protect consumers
D A and C
E None of the above
42 Companies that conduct research using focus groups, consumer surveys, and in-person interviews most likely have a
43 The marketing concept was introduced
A After the Civil War
B After World War I
C After the Great Depression
Trang 1045 Making a change in any of the marketing mix elements will _
A Leave the other elements unchanged
B Possibly have an impact on another element
C Have a domino effect on the other elements
D Require the firm to introduce new products
E Require an increase in promotion
46 Creating, communicating, delivering and exchanging offerings that have value may be thought of as _
A The marketing mix or 4 Ps
B The firm's strategic plan
E All of the above
48 Communicating and delivering value focuses on _
A Supply chain management
B Branding and positioning
C retailing
D integrated marketing communication
E A, B, and D
Trang 1149 The Clean-O company makes an all-purpose cleaner for the hospital and nursing home market that is guaranteed to kill 99% of staphylococcus germs, a major concern for medical facilities The company is not interested in pursuing the consumer market Clean-O has adopted a _
Trang 1253 The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service to feel tailored is known as
A XYZ is short-term oriented and ABC is long-term oriented
B XYZ is focused on selling and ABC is focused on relationship building
C Both firms are trying to achieve the same goal of profitability so tactics do not matter
D XYZ must be more successful since it advertises every week
E Both a and b
Trang 1357 Relationship-oriented firms are _;
A Driven by meeting this quarter's financial projections
B Seeking the most profitable customers who are highly satisfied with the firm's offering
C Constantly investing in new customers and hope they become long-term
D Often scrambling to replace lost customers
E Trying to retain all customers
58 Jack wants to get his new computer from the most famous mass customization marketer
He should purchase from
59 Customer Relationship Management is designed to
A Assign a sales representative to a particular customer
B Allow software to manage marketing
C Facilitate higher levels of customer satisfaction
D Identify the most profitable customers
E C and D
60 is not one of the new market realities identified by Fred Wiersema
A Increase in demand
B Customers have less time than ever
C Information overwhelms and depreciates
D All secrets are open secrets
E Competitors proliferate
Trang 1461 The wristwatch industry was surprised when consumers began telling time by looking at their cell phones This trend is identified by Wiersema's new market reality of
_
A Increase in demand
B Customers have less time than ever
C Information overwhelms and depreciates
D All secrets are open secrets
B Customers have less time than ever
C Information overwhelms and depreciates
D All secrets are open secrets
E Competitors proliferate
63 Jim got over 21 million hits when he visited a search engine to find out how to build his own web site This trend is identified by Wiersema's new market reality of
_
A Easy growth makes hard times
B Customers have less time than ever
C Information overwhelms and depreciates
D All secrets are open secrets
Trang 1565 The average consumer is exposed to about _ paid commercial messages everyday
A Competitors proliferate
B All secrets are open secrets
C Innovation is universal
D Information overwhelms and depreciates
E Easy growth makes hard times
68 Kraft Foods planned to introduce more than 80 new products in 2008 This illustrates FredWiersema's new market reality of
A Competitors proliferate
B All secrets are open secrets
C Innovation is universal
D Information overwhelms and depreciates
E Easy growth makes hard times
Trang 1669 In 2008, Verizon announced its intentions to purchase Alltel Wireless This illustrates Fred Wiersema's new market reality of
A Competitors proliferate
B All secrets are open secrets
C Innovation is universal
D Information overwhelms and depreciates
E Easy growth makes hard times
70 The Internet has made it easy for customers to access information, disinformation, post their opinions and read other people's opinions From a marketer's point of view, this has caused _
A A shift to product glut and customer shortage
B A shift in generational values and preferences
C A shift in power from marketers to consumers
D A shift to demanding return on marketing investment
E A shift to Marketing (Big M) and marketing (little m)
71 Generational shifts impact marketing in terms of human resources Older and younger generations may have _
A Different attitudes towards work life versus family life
B Expectations about job satisfaction and rewards
C Preferred modes of learning and working
D All of the above
E None of the above
72 State Farm Insurance offers products through a network of 16,000 independent agents Assume that the company wants to launch a marketing campaign towards college students Which marketing tactic would you recommend?
A TV advertising during the evening news
B Sponsoring National Public Radio during morning drive time
C Setting up a My Space contest to win gas money
D Sponsorship of a Rolling Stones concert tour
E Direct mail
Trang 1773 In a series of chatty podcasts called "Talking About the Benjamins", Michael Patrick Duffy, CEO of a credit union, offered tips on money management to increase membership Most likely these talks were aimed at _
75 Strategic marketing refers to
A The firm's commitment to long-term growth through internal focus on production and customer satisfaction
B Working with competitors, when appropriate, and with suppliers
C Understanding the market, competitors, and other external forces, and focus on internal capabilities to plan for the future
D Making a non-wavering commitment on which customers to serve
E The study of promotion, distribution, delivery, and production
76 The long-term objective of strategic marketing is
A Customer satisfaction at all costs
B Profitability through building a customer-oriented organization
C Understanding where the company with be in 10, 20, 30 years
D Getting ahead while doing well in society
E Studying the competition
Trang 1877 Southwest Air was the only airline in the U.S that did not lose money in the year following the 9/11 terrorist attacks on the United States in 2001 This decision most likely reflects the company's _
78 Customer orientation must be understood by _
A The sales force
B Top management
C Top management and middle management
D Frontline personnel
E Everyone in the organization
79 All internal organizational practices should be aligned around
A The billing system
B Management
C Manufacturing
D The customer
E Information technology
80 In order for Marketing (Big M) to succeed, it must be championed by
A The sales force
Trang 1981 Sheila and Barbara are billing department managers in a call center Senior management has given employees only a limited amount of time to spend with each customer who phones Sheila and Barbara want to make strategic marketing changes They must have the support of in order to succeed
A The sales force
B Top management
C Top management and middle management
D Frontline personnel
E Everyone in the organization
82 (Little m) marketing includes
A Marketing is viewed internally as an investment
B There has been an increased demand for marketing accountability by CEOs and
shareholders
C Effective planning requires metrics
D If it can't be measured, it can't be managed
E All of the above
Trang 2085 Today many CEOs and shareholders expect to measure results of marketing efforts because _
A Marketing metrics today are designed to assign specific results to specific marketing programs
B They are unrealistic in believing that all marketing is measurable
C It is easy to do
D All of the above
E A and C
86 Marketing today is
A Essentially the same as 20 years ago
B Not impacted by the rest of the world
C Seeks to add value by understanding the past of marketing and change drivers for the future
D So confusing no one understands it
E Accountable only to shareholders and management
87 The purpose of marketing metrics is to key benchmarks for improvement just as financial metrics guide the financial management of the firm
Trang 21Short Answer Questions
88 How does the American Marketing Association define marketing?
89 Identify marketing stakeholders
90 Define societal marketing and give an example of a firm that practices it
91 Give an example of an industry or firm that has transformed environmentally harmful products to environmentally friendly products
Trang 2292 How has the Internet empowered customers? Give an example
93 How can a firm create marketing-driving strategies? Give an example
94 Discuss the difference in being market-driven and market-driving Give examples of each
95 What does "everyone in the firm owns marketing" mean?
Trang 2396 Give an example of a brand to which you have an emotional attachment What has the firm done to create that emotional appeal?
Essay Questions
97 George inherited his family business 30 years ago The company makes shelving for grocery and drug store chains Three customers account for 85% of revenue Recently, one of the grocers went out of business and George is struggling to find a customer to replace the lostrevenue His attitude towards marketing has always been that it is an unnecessary expense George has asked you to give him advice How can you dissuade him from the outdated ideas
he has about this and other marketing misnomers
98 Erin, a tenacious entrepreneur, has grown her closet organizer company to $20 million in sales and has 65 employees She has directed the firm's marketing since its inception and believes she instinctively knows which marketing efforts will bring success Her new assistantHeather, who just completed a Marketing Management course, wants to find a way to
measure results What should Heather say to Erin to convince her this is necessary?
Trang 2499 Paul and Bryce are writing a business plan to submit to a bank to ask for a loan to start a French restaurant Paul has worked in finance for five years and Bryce is a chef
Unfortunately, neither has much experience in marketing and they think that marketing equalsadvertising They have asked you to explain the marketing concept as it is viewed today What do you say?
100 State Farm Insurance offers products through a network of 16,000 independent agents Assume that the company wants to launch a marketing campaign towards college students What does State Farm need to know about the way Gen X communicates? What marketing tactics would you recommend and why?
101 What conditions existed after World War II that caused the marketing concept to
emerge? What marked the transition from the selling concept to the marketing concept?
Trang 25102 Firms such as General Electric and Starbucks try to practice the concept of "doing well
by doing good" What does this mean? What are some of the challenges faced by a firm that wants to create products that fit this concept?
103 Long-term oriented firms need to be aware of change drivers that most likely will have a significant impact on the future of marketing and business in general What areas of shift do you recommend these firms study?
Trang 26104 Bedtime Mattress Company is sales-driven The company has high levels of employee turnover, frequent sales, and is short-term oriented What do you believe management should know about Big M Marketing and little m marketing?
105 Which two brands do you think do a good job of connecting emotionally to the
consumer? Support your answer with examples of what the firm has done to make that emotional appeal to the consumer Can you defend your claims with tactics in addition to advertising?
Trang 27Chapter 01 Marketing in Today's Business Milieu Answer Key
AACSB Standard: analytic
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Identify marketing misnomers
2. (p 4) The American Marketing Association defines marketing as "the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large"
TRUE
AACSB Standard: analytic
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Define marketing
3. (p 4) Marketing is relevant only to people in the organization that work directly in the marketing department
FALSE
AACSB Standard: reflective thinking
Bloom's Taxonomy: comprehension
Difficulty: Easy
Learning Objective: Identify marketing misnomers
Trang 284. (p 6) Of all the business fields, marketing is most visible to people outside the organization
TRUE
AACSB Standard: analytic
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Define marketing and marketing management
5 (p 9) Sustainability refers to practices of socially responsible firms that incorporate doing
well by doing good
TRUE
AACSB Standard: ethics
Bloom's Taxonomy: comprehension
Difficulty: Easy
Learning Objective: Understand the evolution of marketing
6 (p 12) A firm with a production orientation assumes that "if you build it, they will come"
TRUE
AACSB Standard: reflective thinking
Bloom's Taxonomy: knowledge
Difficulty: moderate
Learning Objective: Understand the evolution of marketing
7. (p 16) Dell Computers employs one-to-one marketing by allowing a customer essentially to customize the product features that he or she desires
TRUE
AACSB Standard: analytic
Bloom's Taxonomy: application
Difficulty: moderate
Learning Objective: Understand the evolution of marketing
Trang 298. (p 15) Don Peppers and Martha Rogers popularized the term one-to-one marketing,
TRUE
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: moderate
Learning Objective: marketing evolution
9 (p 16) Fred Wiersema's book The New Market Leaders states that marketers will continue to more power than customers in both B2B and B2C markets
FALSE
AACSB Standard: reflective thinking
Bloom's Taxonomy: knowledge
Difficulty: moderate
Learning Objective: Understand the evolution of marketing
10 (p 18) Firms today have learned to be open about products and services with consumers who have endless sources of information, including blogs, chat rooms and independent Web sites
TRUE
AACSB Standard: information technology
Bloom's Taxonomy: application
Difficulty: moderate
Learning Objective: Understand the evolution of marketing
Trang 3011. (p 15) Customer orientation and market orientation are opposing concepts oriented firms look at customers as individuals and market-oriented firms look at the market
Customer-as a whole
FALSE
AACSB Standard: analytic
Bloom's Taxonomy: knowledge
Difficulty: difficult
Learning Objective: Evolution of marketing
12. (p 19) Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients on Web sites enable them to self-diagnose and self-prescribe and saves the physician time
FALSE
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: moderate
Learning Objective: Define marketing and marketing management
13 (p 21) Gen Yers tends to value relationships with marketers like State Farm Insurance in exactly the same way their parents do
FALSE
AACSB Standard: analytic
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Understand the evolution of marketing
Trang 3114. (p 21) Little m marketing refers to tactics and programs the firm uses to reach its
stakeholders
TRUE
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Define marketing and marketing management
15. (p 20) Big M marketing refers to the strategic, long-term, firm-level commitment to
investing in marketing
TRUE
AACSB Standard: analytic
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Define marketing and marketing management
16. (p 21) It is important that everyone in the organization understand the concept of customer orientation After all, every employee has an internal customer
TRUE
AACSB Standard: Communication
Bloom's Taxonomy: comprehension
Difficulty: Easy
Learning Objective: Define marketing and marketing management
17. (p 22) Firms today are beginning to understand the importance of marketing metrics to assess marketing performance
TRUE
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Understand the evolution of marketing
Trang 32Multiple Choice Questions
18. (p 5) The _ aspect of a firm is generally the most visible to people outside the organization
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Define marketing and marketing management
19. (p 3) Great marketing starts with
A Listening to customers
B Designing a great product
C Offering the lowest price
D Word-of-mouth endorsements
E Selling a product where customers can easily find it
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: moderate
Learning Objective: Define marketing and marketing management
20. (p 3) Entrepreneurs and Fortune 500 firms alike should recognize that marketing efforts _
A Need to instill basic marketing orientation in the entire organization including engineering,
finance, and administrative staffs
B Include telling other people in the firm need to know what the marketing department is doing but others have no marketing responsibility
C Should be the job for the "marketing department" Other departments should only be concerned with their core activities like manufacturing or finance
D Should include training only people who interact with customers to have a marketing focus
E None of the above
Trang 3321. (p 5) Last year, a professional golfer made $100,000,000 dollars from celebrity
endorsements This illustrates why many people think of marketing as primarily about
E Celebrities sponsor the best products
AACSB Standard: reflective thinking
Bloom's Taxonomy: Analysis
Difficulty: moderate
Learning Objective: Identify marketing misnomers
22. (p 4) Marketing misnomers occur because many people think of marketing as
A Pushy salespeople
B Advertising and celebrity spokespersons
C The firm's department of advertising
D Overstated product claims
E All of the above
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Identify marketing misnomers
Trang 3423. (p 5) When you tell someone you are a marketing major in college, he or she may think youwant a career in
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: Easy
Learning Objective: Identify marketing misnomers
24. (p 7) is not a marketing function
A Research
B Advertising
C Brand development
D Public relations
E Research and development
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: moderate
Learning Objective: Identify marketing misnomers
25. (p 8) Peter Drucker, the father of modern management, stated that the only purpose of an organization is _
A To create products
B To make products affordable and accessible to the majority of the public
C To improve the quality of life for all people
D To create a customer
E To respect the environment
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: difficult
Learning Objective: Understand the evolution of marketing
Trang 3526. (p 8) Peter Drucker, the father of modern management, believed that marketing _
A Should be a separate function within the business
B That it is the business as seen from an internal point of view
C That it is the business as seen from the customer's point of view
D That is so basic that it is a central dimension of the entire business
E Should improve the quality of life for society
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: difficult
Learning Objective: Understand the evolution of marketing
27. (p 9) AMA's first official definition of marketing was released in
A 1925
B 1948
C 1967
D 1985
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: difficult
Learning Objective: Understand the evolution of marketing
28 (p 9) AMA's first official definition reflected its roots in
A Advertising of all kinds of products
B Sales of consumer packaged goods
C Production in factories
D Distribution of agricultural products
E Public relations and publicity
AACSB Standard: Communication
Bloom's Taxonomy: knowledge
Difficulty: difficult
Learning Objective: Understand the evolution of marketing
29 (p 9) AMA's second official definition of marketing was released in
A 1925
B 1948