Chapter 19 The Marketing Mix

1) A marketing ________ is defined as a group of marketing variables a business controls with the intent of
implementing a marketing strategy directed at a specific target market.
A) plan
B) model
C) mix
D) target
E) optimization
Answer: C

2) In the 1950s concept of the 12 categories of a marketing mix, ________ included decisions about which
products to offer and where to sell them.
A) servicing
B) product planning
C) promotions
D) channels of distribution
E) fact finding and analysis
Answer: B

3) In the 1950s concept of the 12 categories of a marketing mix, ________ included determining whether any
intellectual property would be involved in the marketing plan.
A) branding
B) product planning
C) promotions
D) channels of distribution
E) fact finding and analysis
Answer: A

4) In the 1950s concept of the 12 categories of a marketing mix, ________ included warehousing, inventory
control, and transportation.
A) pricing
B) product planning
C) physical handling
D) servicing
E) fact finding and analysis
Answer: C

5) In the 1950s concept of the 12 categories of a marketing mix, ________ involved decisions about how to
move a product from manufacturer to consumer.
A) channels of distribution
B) product planning
C) physical handling
D) servicing
E) packaging
Answer: A

6) Which of the following 4 Ps was NOT one of the 12 categories of marketing variables in the 1950s concept
of a marketing mix?
A) price
B) package
C) promotion
D) place
E) planning
Answer: D

7) Each of the following is one of the 4 Ps EXCEPT ________.

A) price
B) product
C) promotion
D) place
E) planning
Answer: E

8) Today, the most common classification of the components of a marketing mix is the ________.
A) 4 Cs
B) 4 Ps
C) 7 Ps
D) 7 Cs
E) 12 variables
Answer: B

9) It is most useful to think of the 4 Ps from a(n) ________ perspective.

A) relational
B) customer
C) managerial
D) employee
E) shareholder
Answer: C

10) A ________ is the logic that guides the selection of a particular marketing mix to achieve marketing
objectives.
A) promotional strategy
B) media strategy
C) marketing-mix strategy
D) media plan
E) media-mix model
Answer: C

11) For a marketing-mix strategy to be effective, it is LEAST important for marketers to consider which of the
following factors?
A) How will each marketing mix element interact with the other elements?
B) How consistent is the marketing mix with the company's mission and vision?
C) Does the marketing mix have the ability to achieve business objectives?
D) What is the level of risk and exposure the business will take with the marketing mix?
E) How will customer data be collected?
Answer: E

12) Once a marketing-mix decision is made, the marketing team should ________.
A) keep the strategy in place despite internal changes
B) keep the strategy in place despite market changes
C) monitor market performance and the target market
D) reduce the amount of customer data that is collected
E) wait at least six months before changing an element of the marketing mix
Answer: C

13) Competition and consumer interest are both examples of ________ factors.
A) internal
B) transactional
C) relational
D) market
E) attitudinal
Answer: D
14) The emergence of a new trend or the evolution of a new technology should cause a marketer to ________.
A) change the company's marketing-mix strategy
B) reevaluate the company's marketing-mix strategy
C) identify a new target market for the company's products
D) increase support for the current marketing-mix strategy
E) adopt new methods of measuring the success of the current marketing-mix strategy
Answer: B

15) A company's marketing-mix strategies should be reevaluated ________.

A) every two years
B) every year
C) every six months
D) every other month
E) constantly
Answer: E

16) Your text suggests that business acquisition of a new brand is most common in the ________ industry.
A) real estate
B) luxury services
C) packaged goods
D) retail
E) hotel
Answer: C

17) The marketing team of a company that has acquired a new brand should be most concerned with which of
the following?
A) changing the new brand's positioning
B) determining whether any brands in the portfolio should be repositioned
C) maintaining the new brand's current positioning
D) maintaining the positioning of brands in the portfolio
E) ensuring that the new brand's target market does not overlap with any of the existing brands' target markets
Answer: B

18) Cadillac's portfolio consists of sedans, a crossover, a sport utility vehicle, and a high-performance version
of the sedan. The sedans are sold through the Cadillac dealer network, but the high-performance version is sold
in limited volumes and is not available at all dealers. This difference in availability is an example of how the
products within the Cadillac portfolio are differentiated by the ________ element of the marketing mix.
A) pricing
B) promotion
C) place
D) process
E) product
Answer: C

19) Viral marketing, online videos, and blogs are most closely associated with which type of promotional tool?
A) personal selling
B) word-of-mouth marketing
C) transactional marketing
D) broadcasting
E) advertising
Answer: B

20) Fiskar's "Fiskateers," a program for the company's most loyal customers that has increased online
interaction and sales, is an example of ________.
A) social network marketing
B) sponsorship
C) transactional marketing
D) broadcasting
E) advertising
Answer: A

21) Axe, a brand of male grooming products targeted at males aged 18-24, focused its marketing mix on
creating a Web presence before launching a more traditional advertising campaign that included television
advertising. The decision to focus on the Web at first was based on ________.
A) the reach of the Internet among the general population
B) the hope of securing more easily measurable data from viral marketing
C) the target's level of familiarity with the media
D) the high CPM of network advertising
E) the ineffectiveness of using broadcast to reach mass markets
Answer: C

22) For a marketer repositioning an established brand for a new target audience, understanding of which of the
following is LEAST important?
A) the wants of the new targets
B) the needs of the new targets
C) the substitute products that are important to the new targets
D) the budgeting methods of leaders in the product category
E) the products the new targets are currently purchasing
Answer: D

23) To attract a target audience of 25- to 35-year-olds, Godiva began running advertisements that resembled
fashion advertisements. Godiva also began purchasing ad space in Vogue and Vanity Fair. In doing so, Godiva
altered the ________ element of its marketing-mix strategy.
A) product
B) promotion
C) place
D) physical evidence
E) price
Answer: B

24) A marketer analyzing whether members of the target audience like the product or service offered is
analyzing the ________ element of the marketing mix.
A) product
B) promotion
C) place
D) physical evidence
E) price
Answer: A

25) Which of the following questions most closely involves analysis of the product element of the marketing
mix?
A) What do competitors charge for their products?
B) What is the target's level of awareness for each competitive brand?
C) What are the company's manufacturing costs?
D) Are there any foreseeable changes in the requirements of the target?
E) Will wholesale, retail, or direct-to-consumer channels be used?
Answer: D

26) A marketer analyzing a company's manufacturing costs and the level of sales volume needed to cover those
costs is analyzing the ________ element of the marketing mix.
A) product
B) promotion
C) place
D) physical evidence
E) price
Answer: E

27) Which of the following questions most closely involves analysis of the price element of the marketing mix?
A) What do competitors charge for their products?
B) What is the target's level of awareness for each competitive brand?
C) What type of media is most appropriate to communicate the desired message to the target?
D) Are there any foreseeable changes in the requirements of the target?
E) Will wholesale, retail, or direct-to-consumer channels be used?
Answer: A

28) Advertising, direct marketing, personal selling, and public relations are all tools within the ________
element of the marketing mix.
A) product
B) promotion
C) publicity
D) people
E) process
Answer: B

29) A marketer analyzing the types of media viewed and used by members of a target market is analyzing the
________ element of the marketing mix.
A) product
B) promotion
C) place
D) physical evidence
E) people
Answer: B

30) Which of the following questions most closely involves analysis of the promotion element of the marketing
mix?
A) What do competitors charge for their products?
B) What is the target's level of awareness for each competitive brand?
C) How profitable are the products being sold to the target?
D) Are there any foreseeable changes in the requirements of the target?
E) Will wholesale, retail, or direct-to-consumer channels be used?
Answer: B

31) The ________ were developed in the manufacturing economy of the 1960s when large consumer goods
were serving mass markets.
A) 4 Ps
B) 7 Ps
C) 12 variables
D) 4 Cs
E) 7 Cs
Answer: A

32) In comparison to the manufacturing economy of the 1960s, today's market involves a greater focus on all of
the following EXCEPT which one?
A) market segmentation
B) relationship marketing
C) mass marketing
D) targeting
E) positioning
Answer: C

33) Booms and Bitner added 3 Ps to the traditional 4 Ps primarily in response to the growth of ________.
A) technological innovations
B) service businesses
C) luxury marketing
D) not-for-profit, place, and event marketing
E) interactive media
Answer: B

34) Which of the following is one of the additional Ps that Booms and Bitner added to the 4 Ps to create the 7
Ps classification?
A) packaging
B) price
C) people
D) practice
E) promise
Answer: C

35) In Booms and Bitner's 7 Ps of the marketing mix, physical evidence refers to which of the following?
A) the product image
B) packaging and design
C) the environment in which the service is delivered
D) the way in which the customer uses the product or service
E) the way the service is delivered
Answer: C

36) In Booms and Bitner's 7 Ps of the marketing mix, process refers to which of the following?
A) how the product is moved through the supply chain
B) packaging and design
C) the environment in which the service is delivered
D) the way in which the customer uses the product or service
E) the way the service is delivered
Answer: E

37) Kotler's 4 Cs translate the traditional 4 Ps from the ________ perspective into the ________ perspective.
A) seller's; buyer's
B) buyer's; seller's
C) producer's; channel member's
D) channel member's; producer's
E) customer's; channel member's
Answer: A

38) In Kotler's 4 Cs model, ________ takes the place of promotion in the 4 Ps.
A) customer value
B) channel
C) credit
D) communication
E) convenience
Answer: D

39) Which of the following is NOT among Kotler's 4 Cs?

A) customer value
B) cost
C) credit
D) communication
E) convenience
Answer: C

40) Today the 4 Ps are compared to Kotler's 4 Cs. Product and place are called ________ and ________,
respectively.
A) convenience; customer value
B) cost; convenience
C) communication; customer value
D) customer value; convenience
E) communication; convenience
Answer: D

41) Kotler based his 4 Cs on the idea that ________ is more important than ________.
A) channel communication; customer acquisition
B) customer retention; channel efficiency
C) customer acquisition; customer value
D) channel communication; channel efficiency
E) customer retention; customer acquisition
Answer: E

42) The marketing-mix classifications of the 7 Ps and the 4 Cs both take ________ marketing perspectives.
A) technological
B) partnership
C) transactional
D) relational
E) traditional
Answer: D

43) According to the text, current marketing practice is mainly ________.

A) technological
B) partnership-based
C) transactional
D) relational
E) logistical
Answer: C

44) Which of the following most accurately identifies the purpose of a marketing-mix model?
A) to identify the most appropriate target audience for a new product
B) to evaluate the contribution that each component of a marketing program makes to market performance
C) to identify the most effective media strategies to use to reach a target audience
D) to evaluate the effect of supply and price on level of customer demand
E) to select the most efficient marketing channels for a given product
Answer: B

45) Marketing-mix models came into popular use as a result of the ________.
A) switch to the 4 Cs view of the marketing mix
B) switch to the 7 Ps view of the marketing mix
C) widespread availability of scanner data
D) increased use of digital marketing
E) increased use of one-to-one marketing
Answer: C

46) In a marketing-mix model, ________ are developed from historical information to predict what sales
performance might occur without any changes in marketing activity.
A) baseline data
B) sales-lift models
C) buy-in data
D) implementation models
E) scanner data
Answer: A
47) In a marketing-mix model, ________ are based on those things that contribute to incremental sales, such as
new promotions or increased public relations efforts.
A) baseline models
B) sales-lift models
C) buy-in data
D) implementation models
E) scanner data
Answer: B

48) ________ involves assigning portions of the marketing budget to each marketing-mix element so as to
maximize revenues or profits.
A) Marketing-mix modeling
B) Marketing-mix theory
C) Marketing-mix optimization
D) Return on investment
E) Return on marketing initiatives
Answer: C

49) Companies in the ________ sector were the first to adopt marketing-mix models.
A) health services
B) luxury services
C) restaurant
D) retail clothing and accessories
E) consumer packaged-goods
Answer: E

50) When a company begins to use a marketing-mix model, marketing managers often have to move from
making "gut" decisions to a more ________ approach to decision making.
A) intuitive
B) structured
C) creative
D) personal
E) emotional
Answer: B

51) Red Bull entered the U.S. soft drinks market with a niche product: a carbonated energy drink retailing at
about twice what you would pay for a Coke or Pepsi. Red Bull was sold in unconventional outlets not
dominated by the market leaders. In doing so, Red Bull was using the ________ element of the marketing mix
against the market leaders.
A) price
B) place
C) physical handling
D) packaging
E) promotions
Answer: B

52) Your current assignment at York Foods is to find the major benefits people look for in the packaged goods
market , the kinds of people who look for each benefit, and the major brands that deliver each benefit. Your
assignment involves an analysis of the ________ element of the marketing mix.
A) product
B) promotion
C) people
D) price
E) place
Answer: A

53) Ski Free, a manufacturer of skis and skiing accessories, offers several different types of skis in its product
portfolio marketed to different target groups of skiers. The skis vary in terms of design, style, and price. In
marketing the different types of skis, it is most important for management to ________.
A) ensure that each ski has a distinct and separate target audience
B) ensure that each type of ski has a separate promotion plan that does not overlap with the promotion plans of
other skis in the portfolio
C) understand how each ski type contributes to portfolio performance
D) position each ski in comparison to other skis in the portfolio
E) ensure that the pricing for each type of ski is within a tight range accepted by the majority of amateur skiers
Answer: C

54) NutriSystem has typically targeted its weight loss programs toward women. Recently, however, it stepped
up its efforts to attract male customers. As the company repositioned its brand for a different target audience, it
was most important for NutriSystem to do which of the following?
A) identify what competitors charge for their products
B) understand the wants and needs of the new targets
C) determine what type of sales force will be used
D) identify which marketing channels will be used
E) train salespeople in interacting with new targets
Answer: B

55) Fence Patrol has developed an entirely new mounting system for chain link fences. Although it is a local
company, through the acquisition of a distributor Fence Patrol now has the ability to market its products
nationwide. Which of the following is a promotion question that managers at Fence Patrol should address as
they create a marketing mix for new international markets?
A) What is the average local price for chain link fences?
B) How does the target audience feel about the quality of chain link fences currently on the market?
C) What message about Fence Patrol's chain link fences is most likely to connect with the target?
D) Will wholesalers or retailers be the primary sources for Fence Patrol products in new markets?
E) What will the target in each country be willing to pay for Fence Patrol products?
Answer: C

56) In the battle for "share of stomachs," some supermarkets are moving upscale, providing higher-quality food
offerings and more personalized service, such as home delivery. This strategy represents a shift in the ________
element of the marketing mix.
A) place
B) packaging
C) product
D) promotion
E) price
Answer: C

57) 7-Eleven has recently begun to redesign and restock its stores to offer a more upscale environment and
products, such as house wines and fresh foods. According to the 7 Ps classification of the elements of the
marketing mix, 7-Eleven has changed its ________.
A) physical evidence
B) price
C) promotion
D) process
E) people
Answer: A

58) Costco's surprise offerings of seconds, overstocks, and closeoutsoccasionally including diamondsare
an example of ________ under the 4 Cs model of the marketing-mix.
A) customer value
B) cost
C) credit
D) channel
E) communication
Answer: A

59) Macy's department stores carry a wide range of product lines, including clothing, jewelry, kitchenware, and
home furnishings. Macy's typically charges a relatively high markup, but also holds frequent sales, in particular
offering discounts to customers who use a Macy's credit card. These are examples of Macy's adjusting the
________ element of the 4 Cs of the marketing mix.
A) customer value
B) cost
C) convenience
D) channel
E) credit
Answer: B

60) FreshDirect, an online grocer with a customer-friendly Web site and a fleet of delivery trucks, calls itself
"the new way to shop for food" and emphasizes that it brings quality foods "right to your door." This is an
example of a company differentiating itself through the ________ element of the 4 Cs of the marketing mix.
A) customer value
B) cost
C) convenience
D) channel
E) communication
Answer: C

61) Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the towns are
only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the
product offerings in both locations in an effort to cater to both demographic groups. Under the 4 Cs
classification of the marketing-mix elements, the Cords have primarily adjusted ________.
A) customer value
B) customers
C) cost
D) convenience
E) communication
Answer: A

62) Kirin works as part of the marketing team at a regional supermarket chain. To analyze data collected from
the stores' scanner data in reference to marketing events such as the chain's radio advertisements and weekly
newspaper inserts, Kirin will need to use a ________.
A) media-mix strategy
B) marketing-mix strategy
C) marketing-mix model
D) marketing-mix optimization plan
E) media optimization plan
Answer: C

Refer to the scenario below to answer the following questions. In the 1970s, Shipshewana was only a small
town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two
decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who
are intrigued with the lifestyle of Shipshewana's largest populationthe Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's
popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade
hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included
picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same.
Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three
Amish friends to sew and embroider napkins and other textiles per customer request. In addition, two women
from the Amish community sought permission from the Millers to display home-baked pastries and jellies on
Tuesdays and Wednesdays, the town's busiest tourist days, when Shipshewana attracts swarms of visitors to its
flea market on the south edge of town.
"Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things
made in China or Taiwan. They want real, Amish-made goods."

63) Mary and Ben ask customers to fill out satisfaction surveys after purchasing items from the store.
Customers who complete surveys are entered in a monthly raffle with the prize of a $100 gift certificate to the
store. One of the questions on the survey asks customers what they had expected to pay for their purchases, and
another asks what they would have been willing to pay for their purchases. Mary and Ben most likely asked
these questions to help them evaluate the ________ element of their marketing-mix strategy.
A) promotion
B) positioning
C) price
D) process
E) product
Answer: C

64) Which of the following marketing-mix elements is currently MOST critical to Indiana Wood's success?
A) place
B) price
C) channels of distribution
D) branding
E) physical evidence
Answer: A

65) The Amish décor and shop workers give customers an authentic impression of the pride and skill built into
the shop's products. Under the 7 Ps concept of the marketing mix, these aspects also contribute most directly to
Indiana Wood's ________.
A) product
B) promotion
C) physical evidence
D) packaging
E) positioning
Answer: C

66) The concept of a marketing mix was originally discussed in the 1950s and included the 4 Ps as the
classification of the marketing mix.
Answer: FALSE

67) Decisions made in each of the 4 Ps influence the other elements of the marketing mix.
Answer: TRUE

68) A company that does not respond to changes in the market has, by default, made a decision about its
marketing-mix strategy.
Answer: TRUE

69) A business that practices a marketing orientation does not need to consider elements beyond the 4 Ps of the
marketing mix.
Answer: FALSE

70) A change of business objectives should not lead to a reevaluation of the company's marketing-mix strategy.
Answer: FALSE

71) Introducing a new product to an established market segment through a unique positioning requires a
thorough understanding of market competitors and their products.
Answer: TRUE

72) Alternative media such as viral marketing and social networking are rarely used to build emotional
connections with consumers.
Answer: FALSE

73) Marketing-mix elements should always be evaluated independently rather than in terms of how they work
together.
Answer: FALSE

74) Serving the needs of two different target segments often requires different communications channels.
Answer: TRUE

75) As they were originally designed, the 4 Ps were intended to be both distinct and independent from the other
aspects of a marketing mix.
Answer: FALSE

76) According to Kotler, the 4 Ps concept takes the seller's view of the market.
Answer: TRUE

77) The costs for specific marketing-mix elements are factored into a marketing-mix model.
Answer: TRUE

78) The creation of a marketing-mix model requires the use of a software package that maximizes marketing-
mix elements with respect to particular financial outcomes.
Answer: TRUE

79) Marketing-mix models are used almost exclusively by retail businesses.

Answer: FALSE

80) A marketing department should strive to create a balance between creativity and a strict interpretation of
output from a marketing-mix model.
Answer: TRUE

81) Clean-Eaze, a producer of home cleaning products, has designed a new label for its window cleaner. Under
the original 12 categories of marketing variables, Clean-Eaze has adjusted its promotions.
Answer: FALSE

82) Tammi, a marketing manager of a line of women's facial cleansers, is trying to determine how to better
track her target audience's wants and needs. Under the 4 Ps classification of the marketing-mix elements,
Tammi is considering the product element.
Answer: TRUE

83) Scanner data collected during a one-day 20% off sale at a department store would be used to develop
baseline data in a marketing-mix model.
Answer: FALSE