TOPIC: An Overview of Marketing

TRUE/FALSE

1. Marketing is defined as producing, promoting, and selling products.

2. An exchange cannot take place unless each party in the exchange has something that the other party
values.
3. Sara Lee Industries spent considerable money and time developing a crustless bread. Prior to the
introduction, the company had not conducted market research among its customers, but it was
confident that its science and technology department had produced a successful new product. Based
on this example, Sara Lee is a good example of a production-oriented company.
4. The marketing concept states that the social and economic justification for an organization's
existence is the satisfaction of customers’ wants and needs while meeting organizational objectives.
5. The societal marketing concept considers society's long-term best interests along with the
satisfaction of customers' wants and needs.
6. Both production and sales orientations are focused inward on the organization's needs.
7. Customer value is the relationship between company profits and company costs.
8. Firms try to achieve customer satisfaction and value by ensuring customer expectations are met or
exceeded.
9. 3D Systems is a company that uses computers to generate new product prototypes. It has generated
loyal business clients by providing the best customer support in the industry. The company also
provides direct sales consultations that gives its salespeople intimate knowledge about what exactly
its customers want. This partnership between 3D Systems and its customers entails relationship
marketing.
10. Only a firm's salespeople need to be customer-oriented.
11. Retailers who give their sales clerks the authority to handle customer complaints without having to
get approval from a supervisor are using empowerment.
12. In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was
black. Ford's management assumed anyone buying a car would accept the color black, so it made
products affordable by offering only one variety in large quantities. Ford is an example of a
market-oriented firm.
13. The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants
and needs of its consumers.
14. While most marketing organizations rely on various forms of promotion to succeed, sales-oriented
organizations make the most effective use of their entire marketing mix.
15. Marketing is a job that should be handled by marketers. People in management, accounting, and
finance should focus on their own specialties.

MULTIPLE CHOICE

1. The term marketing refers to:

a. new product concepts and improvements
b. selling
c. advertising and promotion activities
 d. a philosophy that stresses customer satisfaction
e. planning sales campaigns

2. A business is concerned with many day-to-day activities. Some of the most important of these activities
are the planning and development of a product, its pricing policy, and the distribution strategy. These
activities are all a part of:
a. a control system
b. marketing
c. accounting
d. production
e. human resources

3. _____ is a set of activities used to implement a management orientation that stresses customer
satisfaction.
a. Planning strategy
b. Customer management
c. Marketing
d. A control system
e. Reciprocity

4. _____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in
order to receive something that they would rather have.
a. Exchange
b. Synergy
c. Transformation
d. Leveraging
e. Reciprocity

5. In order for exchange to occur:

a. a complex societal system must be involved
b. organized marketing activities must also take place
c. a profit-oriented organization must be involved in the process
d. money or other legal tender is required
e. each party must have something the other party considers to be valuable

6. Domino's Pizza is offering racing fans a chance to earn points toward NASCAR-branded
merchandise via the NASCAR RacePoints loyalty program. Consumers who buy $20 worth of
Domino's Pizza will receive 100 NASCAR RacePoints. Consumers save their box receipt and mail in
their points slip. NASCAR RacePoints will be credited to members' accounts. Racing fans can rack up
points to earn NASCAR merchandise, including apparel and hats or one-of-a-kind experiences, such as
driving a real racecar. A(n) _____ will occur when a NASCAR fan trades in his or her points for a mug
autographed by a favorite driver.
a. synergy
b. sublimation
c. exchange
 d. entropy
e. reciprocity

7. Indonesian logging companies harvest the rain forests for timber and assume that a market exists for
their products. The typical Indonesian logging company has a(n) _____ orientation.
a. exchange
b. product
c. production
d. sales
e. environmental

8. To increase interest in rodeos, the local chapter of the National Rodeo Cowboys Association (NRCA) is
offering free roping lessons to students in the sixth and seventh grades. An exchange will take place
because:
a. students and their parents can decide for themselves if the lessons have any value
b. the NRCA does not have to communicate directly with participants in the free lesso
c. the desirability of the exchange is questionable
d. both the NRCA and the students taking the lessons will trade something of value
e. students who learn to rope will have to give nothing of value in return

9. Which of the following is NOT a marketing management philosophy?

a. sales orientation
b. societal marketing orientation
c. market orientation
d. profitability orientation
e. production orientation

10. Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires
and needs of the marketplace.
a. sales
b. production
c. market
d. customer
e. customer-benefit

11. A company that sets its goals and strategies based on what its current equipment can produce, what
products engineering can design, and what the company itself can do best, has a(n) _____ orientation.
a. marketplace
b. sales
c. market
d. exchange
e. production

12. Researchers at PPG Industries spent considerable time, effort, and money developing a bluish
windshield that would let in filtered sunlight but block out the heat. Little market research was done, but
 the scientists were convinced this new product would be significantly better than existing windshields
even though it was more expensive and of a different color than the current models on the market. This
scenario suggests PPG most likely has a(n) _____ orientation.
a. exchange
b. production
c. sales
d. promotion
e. customer

13. A town of 50,000 has two maternity hospitals. A billboard for one of the hospitals reads, “We have the
most modern delivery rooms,” and indicates a _____ orientation. A billboard for the other hospital
reads, “We love babies,” and indicates a _____ orientation.
a. sales; production
b. product; customer
c. market; sales
d. customer; production
e. production; market

14. A firm with a production orientation is most likely to survive if:

a. there are many small competitors in the marketplace
b. demand for the product it produces exceeds supply
c. the needs of the marketplace are constantly shifting
d. supply for the product it produces exceeds demand
e. any of the above conditions exist

15. A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm
produces most efficiently also meets the needs of the marketplace.
a. customer
b. exchange
c. product
d. market
e. production

16. A _____ orientation assumes marketing means selling things and collecting money. It also assumes
people will buy more goods and services if aggressive marketing techniques are used.
a. sales
b. production
c. market
d. customer
e. marketplace

17. Colorado Silversmith creates and markets silver and turquoise jewelry, which it sells to retailers in the
western states. The company’s management believes its retail customers will stock more jewelry if its
salespeople use aggressive marketing techniques. In other words, the company has a _____ orientation.
 a. promotion
b. production
c. sales
d. market
e. customer

18. Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and
wants. This philosophy is at the heart of an _____ orientation.
a. sales
b. market
c. retail
d. production
e. exchange

19. As it evolves from a credit-card company to one with greater emphasis on electronic payments, Visa is
launching its first major re-branding campaign in 20 years. The company's new promotional slogan is
"Life Takes Visa." Through the use of this slogan, Visa shows how much it wants to become an integral
part of its customers' every day lives. Visa is using a _____ orientation.
a. transactional
b. sales
c. product
d. societal
e. market

20. Companies that rely on the marketing concept and that have implemented a market orientation strategy
recognize that:
a. price is the most important variable for customers
b. sales depend predominantly on an aggressive sales force
c. what the customer thinks he or she is buying is what is important
d. a company has to apply scientific management techniques to survive
e. selling and marketing are essentially the same thing

21. The statement, "Marketing should be introduced at the beginning rather than the end of the production
cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.
a. production
b. market
c. retail
d. sales
e. enterprise

22. Minor League Baseball (MiLB) suffers from sluggish attendance. To attract more fans to MiLB games,
owners often resort to gimmicks--free hot dogs nights, events designed to get into the Guinness Book of
Records, and celebrity visits. Since baseball fans are seldom asked what would make them want to
attend more games, this suggests most MiLB teams do not have an_____ orientation.
a. sales
 b. empowerment
c. community
d. societal
e. market

23. An expert in library science stated in Library Journal, “It should be fairly clear that librarians do not
market and that they never have marketed." He concludes, "What librarians need to tell people is not
how wonderful our public libraries are but rather how wonderful they could be." The library science
expert is saying that libraries:
a. should focus on satisfying the needs of their customers
b. have not implemented the production concept
c. need to adopt a sales orientation
d. do not use empowerment
e. have a customer orientation

24. The manufacturer of Omega brand watches has a market orientation and adheres to the marketing
concept. Which of the following describes the first action the company would most likely take if it
learned its customers were dissatisfied with its watches?
a. hire more salespeople
b. decrease its organizational overhead
c. increase its advertising to underserved markets
d. increase the number of jewelry stores that carry Omega watches
e. conduct research to determine if its customers' needs have changed

25. Rose is a telephone order taker for Brylane, a catalog retailer of furnishings for bedrooms and
baths. A customer called and asked if the sea green in a bedspread she had purchased matched the green
in a lamp offered in the newest Brylane catalog. Rose got the potential customer's phone number, went
out to the warehouse, located the items, determined they did not match, and called the potential
customer to tell her that information. Rose’s actions illustrate a(n) _____ orientation.
a. societal
b. market
c. sales
d. production
e. one-to-one

26. The marketing concept involves:

a. focusing on customers' wants so that the organization can distinguish its product (or
products) from the competitors' products
b. satisfying management's needs and wants with the idea of maximizing profits in the
run
c. selling as much product as possible under the assumption people will buy more goo
services if aggressive selling techniques are used
d. selling as much as possible under the assumption consumers will buy more at lower
e. focusing on production in order to increase product quality and lower prices
27. The marketing concept includes a goal orientation to remind managers that:
a. achieving long-term organizational goals is as important as satisfying customers
b. customers must be satisfied no matter what the long-term effect on the firm
c. the only reason for any business to exist is to make a profit
d. the objective is to find a target market that differs from that of the competition
e. functional integration of all departments is useful but not essential

28. The marketing concept stresses that the social and economic justification for an organization's existence
is the satisfaction of customer needs and wants while:
a. producing a good or service at the lowest possible cost
b. improving the general standard of living
c. constantly increasing sales volumes
d. applying scientific management techniques to improve efficiency
e. simultaneously meeting organization objectives

29. An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and
to meet organizational objectives but also to preserve or enhance individuals' and society's long-term
best interests.
a. sales orientation
b. market orientation
c. ethical business mission
d. focused target market strategy
e. societal orientation

30. Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce
new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only
condition is that when he adds new products, his customers have the final say on whether the product is
of any value. According to Torres, "If something doesn't move, that's the last time you see it." By
focusing on customers' wants, the chocolate company exhibits an_____ orientation.
a. exchange
b. product
c. production
d. sales
e. market

31. Most companies become sensitized to community issues after they've done enough damage to draw the
locals' anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business
and community issues by annually bringing together representatives from the local area and deciding
what projects to improve the local environment will be implemented. This annual community-wide
meeting indicates Dofasco has a _____ orientation.
a. societal marketing
b. sales
c. reciprocal exchange
d. production
 e. product

32. Kinko's copy shops use the equivalent of 10.5 square miles of forest to produce all of the paper needed
by the corporation annually. While the company is committed to making a profit, it is also committed to
preserving the environment. In 1997, Kinko's wrote an environmental vision in which it committed the
company to conserving natural resources. With this 1997 environmental vision, Kinko's adopted a _____
orientation.
a. societal marketing
b. sales
c. reciprocal exchange
d. production
e. product

33. Procter & Gamble decided to address the fact that Hispanic women are more likely to die from breast
cancer because they're reluctant to get mammograms or discuss screening. So P&G brought screening
to the supermarket, parking mobile mammography vehicles in grocery store parking lots in Texas and
inviting shoppers in for free x-rays. Tie-ins with local hospitals assured that women with suspicious
films got follow-up care. P&G adopted a _____ orientation to achieve this goal.
a. promotional
b. societal marketing
c. customer
d. marketing
e. product

34. Which of the following statements about the societal orientation is true?
a. Companies that protect the environment by using all-natural materials in their produ
are showing a societal marketing orientation.
b. Marketers cannot deliver all benefits sought by customers because these benefits m
be in the long-term best interests of the customers.
c. The societal marketing concept is an important refinement of the market concept.
d. Organizations have both a social and economic justification for their existence.
e. All of these statements about the societal orientation are true.

35 Due to consumer concerns about skin cancer and other negative outcomes associated with sun exposure,
the trend in sun-care products throughout most of the 1990s was in favor of higher SPF sunscreens. This
seems to be changing now, at least for some target segments. In response to the latest trends of teenagers
using baby oil, Crisco, and even motor oil to enhance tanning effects, Coppertone and Hawaiian Tropic
have introduced new low-UV-protection products. While giving customers what they want indicates a
_____ orientation, creating a potential problem (an increase in skin cancer) shows a potential absence of
a _____ orientation.
a. production; sales
b. sales; market
c. societal marketing; production
d. market; societal marketing
e. business; market
36. For many years, Procter & Gamble (P&G) viewed its Ivory soap as just plain old soap--and not as a
cleansing product that could provide other benefits as well. When it came to Ivory soap, P&G focused
on how well it made the soap and not on what customers wanted from a bar of soap. It had a _____
orientation.
a. sales
b. production
c. market
d. product
e. customer

37. Organizations that sell products that are often unsought (such as life insurance and retirement plans) may
find themselves adopting a _____ orientation because the companies are marketing products that most
people do not want.
a. sales
b. production
c. marketing
d. product
e. customer

38. When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet, he
gathered up materials totaling almost $70. On his way to checkout, an employee asked him what was he
trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement
part would fix the problem better than the materials he thought he needed and with less trouble. This sort
of discussion between employees and customers is commonplace at The Home Depot and indicates the
retail store has a(n) _____ orientation.
a. sales
b. market
c. product
d. exchange
e. production

39. World Wrestling Entertainment (formerly the World Wrestling Federation) is very focused on what its
fans want in terms of product licensing and more importantly in terms of plot lines and character
development. All of the company's activities are integrated so that no employee ever loses sight of the
company's desire to satisfy its fans. World Wrestling Entertainment has a _____ orientation.
a. sales
b. market
c. product
d. societal
e. production

40. A company that wants to implement a market orientation would need to:
a. do research on its customers, competitors, and markets
b. determine how to deliver superior customer value
 c. establish and maintain mutually satisfying relationships with customers
d. implement actions that provide value to customers
e. do all of the activities listed

41. Levi Strauss has developed the Naturals line of jeans that do not use any chemical dyes to color the
pants. Consumers like the look of the jeans, and Levi's use of all-natural dyes is good for the
environment. The production of the Naturals line would be consistent with a _____ orientation.
a. societal marketing
b. supplier
c. sales
d. production
e. philanthropic

42. There is a quandary facing the timber industry. There is no effective way to prove the legality of wood
from places like Indonesia, where as much as 80 percent is cut illegally. Retailers like The Home Depot
do not want to sell timber from illegally logged forests even though the demand is great for timber from
rain forests. To prove an interest in preserving rain forests, two Indonesian logging companies have
developed a bar coding system, which proves the timber was legally acquired. This focus on customers'
needs indicates a _____ orientation.
a. market
b. supplier
c. sales
d. production
e. philanthropic

43. Market-oriented firms primarily focus their efforts upon:

a. improving the technological skills and competitive advantages of the firm
b. satisfying the organization's needs for low overhead
c. achieving the company’s societal responsibilities inexpensively
d. distributing goods and services
e. satisfying the wants and needs of their customers

44. Which of the following statements about a typical sales-oriented business is true?
a. The company develops its products to meet the needs of specific groups of people.
b. The primary goal of the company is profit through customer satisfaction.
c. The company invests the majority of its resources in promoting its products and ser
d. The company is in business to satisfy customers' wants and needs and deliver super
value.
e. All of these statements about a typical sales-oriented business are true.

45. _____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
a. Opportunity cost
b. Marketing utility
c. Market quality
d. Satisfaction percentage
 e. Customer value

46. Marketers interested in offering customer value can:

a. offer products that perform
b. give the consumer facts
c. offer organization-wide commitment to service and after-the-sale support
d. avoid unrealistic pricing
e. do all of these

47. When customer expectations regarding product quality, service quality, and value-based price are
met or exceeded, _____ is created.
a. a value line
b. a quality rift
c. planning excellence
d. customer satisfaction
e. expectation satisfaction

48. Domino's Pizza is offering racing fans a chance to earn points toward NASCAR-branded merchandise
via the NASCAR RacePoints loyalty program. Consumers who buy $20 worth of Domino's Pizza will
receive 100 NASCAR RacePoints. Consumers save their box receipt and mail in their points slip.
NASCAR RacePoints will be credited to members' accounts. Racing fans can rack up points to earn
NASCAR merchandise, including apparel and hats or one-of-a-kind experiences, such as driving a real
racecar. Domino’s is engaging in:
a. transactional marketing
b. sports distribution
c. relationship marketing
d. one-to-one marketing
e. customer transformation

49. _____ is a strategy that entails forging long-term partnerships with customers.
a. Commitment selling
b. Relationship marketing
c. Transactional marketing
d. Market engineering
e. Organization-customer synergy

50. Taxi companies in many large metropolitan areas are requiring newly licensed taxi drivers to undergo a
two-day training seminar during which they learn basic etiquette and acquire a familiarity with common
landmarks and street names. The purpose of this training is to:
a. improve customer service
b. give higher education benefits to employees
c. promote the company image by increasing public awareness
d. reduce the need of empowerment
e. increase employment levels
 51. _____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.
a. Price
b. Promotion
c. Product design
d. Place (distribution)
e. Production

52. For a market-oriented organization, the primary tool used to achieve its goals is:
a. a blend of product, place, promotion, and pricing decisions
b. price
c. product design
d. place (distribution)
e. promotion

TOPIC: Strategic Planning for Competitive Advantage

1. The marketing plan is a written document that acts as a guidebook of marketing activities for a
marketing manager.
2. A firm's mission statement should answer the question, "What products do we produce best?"
3. Marketing objectives should be consistent with organization objectives, they should be measurable, and
they should specify the time frame during which they are to be achieved.
4. A situation analysis is a small part of the more all-encompassing SWOT analysis.
MULTIPLE CHOICE

1. Compaq Computer's decision to charge customers for phone technical support to defray the high cost of
phone support and encourage customers to read documentation was a failure because consumers like the
human touch. Customer rebellion forced Compaq to rethink this policy. As a result, Compaq decided to
focus its resources on reaching the inexpensive home computer market segment through enhanced
customer service. This company engaged in:
a. benchmarking
b. tactical resource realignment
c. alternative selection
d. portfolio evaluation
e. strategic planning

2. With hospitals nationwide facing budget cuts and slimmer profit margins, Dekalb County's Medical
Center decided to cash in on one of the most consistently profitable services--delivering babies. It
initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and
delivery suites. When the hospital decided to commit its resources to obstetrics, it was engaging in:
a. benchmarking
 b. alternative problem solving
c. strategic planning
d. portfolio evaluation
e. tactical control

3. Strategic plans require:

a. Long-term resource commitments
b. A change in organizational structure
c. the addition of new personnel
d. new product development
e. changes in prices

4. _____ is the managerial process of creating and maintaining a fit between the organization's objectives
and resources and evolving market opportunities.
a. Tactical management
b. The market audit
c. Functional planning
d. Environmental scanning
e. Strategic planning

5. In 2004, Giorgio Armani, the Italian fashion group, announced plans to launch a $1 billion international
luxury hotel chain containing ten hotels and four resorts before the end of 2015. This _____ will take
advantage of an international trend toward luxury lifestyle consumerism and allow the company to
achieve its growth objectives.
a. tactical objectifying
b. contingency plan
c. strategic planning
d. marketing implementation
e. horizon planning

6. Which of the following statements about a marketing plan is true?

a. Marketing plans can exist as oral traditions.
b. The marketing plan should be viewed as a series of sequential steps.
c. All marketing plans have basically the same content.
d. A marketing plan is created so an organization can meet its marketing objectives.
e. All of the statements about a marketing plan are true.

7. _____ is the process of anticipating events and determining strategies to achieve organizational
objectives.
a. Planning
b. Portfolio evaluation
c. Forecasting
 d. Implementation
e. Evaluation

8. Obstetrics is a the most lucrative service provided by most hospitals. Area hospitals compete to make
their delivery rooms the most profitable by designing marketing activities that will allow them to reach
their growth objectives. To reach their objectives, hospitals must rely on:
a. strategic activation
b. resource realignment
c. marketing planning
d. a service-based mission statement
e. trend analysis

9. Which of the following is one of the elements of the marketing plan?

a. A business mission statement
b. A situation analysis
c. A target market strategy
d. the marketing mix
e. all of the choices

10. The _____ answers the question, "What business are we in, and where are we going?"
a. mission statement
b. financial statement
c. situation analysis
d. market strategy
e. strategic plan

11. In its stockholders' report, PepsiCo has a _____ that states "our business is to increase the value of our
shareholder's investment. We do this through sales growth, cost controls and wise investment of
resources. We believe our commercial success depends upon offering quality and value to our
consumers and customers; providing products that are safe, wholesome, economically efficient and
environmentally sound; and providing a fair return to our investors while adhering to the highest
standards of integrity."
a. marketing mix strategy
b. quantifiable goal
c. mission statement
d. statement of economic potential
e. market segmentation strategy

12. Copan Italia is a distributor of laboratory products and manufacturer of laboratory commodities,
including transfer pipettes and flexible hematology cups used on a variety of automatic instruments to
count blood corpuscle elements. Copan's _____ says that the company’s business is to continually work
to improve the quality of the collection and preservation of the microbiological sample in the
“pre-analytical phase,” as the demand for better protection of the specimen is growing day by day.
a. market synergy
b. product entropy
 c. marketing mix strategy
d. mission statement
e. qualified objective

13. The focus of an organization's mission statement should be on:

a. the products it wishes to sell
b. the market it wishes to serve
c. its social responsibilities
d. the desires of government regulators
e. technologies it understands well

14. ______ occurs when a business is defined in terms of goods and services rather than by the benefits
customers seek from it.
a. A circle trap
b. A market barrier entry
c. A reactive focus
d. Unempowerment
e. Marketing myopia

15. When an organization creates a mission statement that is too narrow, _____ results.
a. marketing synergy
b. marketing myopia
c. directional marketing
d. an internal threat
e. sustainable competitive advantage

16. Coca-Cola drink vending machines are found all over the world. The newest machines have an
interactive screen that runs advertisements and allows users to obtain free photos of themselves and
ringtones after they have bought a drink. The reason for the introduction of this new style vending
machine is to "allow the company to interact more directly with its customers." According to a SWOT
analysis, the technology used by these machines and the need to interact with customers are both
examples of:
a. strengths because they are part of Coke’s external environment
b. advantages because they are part of Coke’s marketing environment
c. weaknesses because Coke cannot control technology or consumer behavior
d. opportunities because they are part of Coke’s external environment
e. benefits because Coke has the resources to make use of the new technology and the
changing consumer behavior

17. Baths From the Past is a small company that sells reproduction sinks, bathtubs, toilets, and faucets for
people who are trying to make their bathroom more stylish. The company's management is currently
conducting a formal study of its current strengths and weaknesses by looking at the company's profit and
sales histories and searching for opportunities and threats by studying consumer trends. Baths From the
Past is conducting a(n):
a. marketing audit
 b. SWOT analysis
c. environmental scan
d. market differentiation scan
e. strategic window search

18. The SWOT acronym refers to a firm’s analysis of its:

a. sales, width of product mix, observations, and technology
b. situations, wealth, organizational strengths, and target markets
c. strengths, weaknesses, opportunities, and threats
d. service levels, willingness to spend, organizational culture, and total revenues
e. strategies, willingness to change, objectives, and trends

19. Coca-Cola drink vending machines are found all over the world. The newest machines have an
interactive screen that runs advertisements and allows users to obtain free photos of themselves and
ringtones after they have bought a drink. Critics of these new vending machines are concerned that
entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this
concern would be an example of a(n):
a. weakness
b. strength
c. advantage
d. opportunity
e. threat

20. A U.S. soft drink company conducting a SWOT analysis of market potential in India should be aware
that all the following are potential threats EXCEPT:
a. religious differences that could led to terroristic acts
b. Strict governmental regulation of foreign businesses
c. a low gross domestic product
d. fierce competition dominated by Thums Up brand soft drink
e. a high demand for U.S.-made products

21. CentralPulse is Europe's largest manufacturer of hip and knee replacement joints. The company's
_____ strategy would identify the surgeons and hospitals as two market segments on which the
CentralPulse will focus its marketing efforts.
a. target market
b. marketing sample
c. sales unit
d. strategic business unit
e. target sample

22. Ocean Spray's development of Craisins sweetened dried cranberries to compete against raisins most
directly affected the _____ element of the company's marketing mix.
a. place
b. production
c. product
 d. distribution
e. target market

23. Canadian discount retail giant Zellers hopes to strengthen its position as one of the country's leading
sellers of infant products with a sixty-page catalog that offers buyers the ability to purchase products via
the phone or Internet. This new strategy reflects a change in the _____ element of its marketing mix.
a. price
b. production
c. product
d. distribution
e. target market

24. The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to
produce mutually satisfying exchanges with a target market.
a. internal environmental mix
b. marketing mix
c. product mix
d. product line
e. market portfolio

25. The starting point of any firm's marketing mix is the:

a. analysis of what production equipment is available and owned by the company
b. design of the promotion campaign to be used for the product
c. selection of the places through which the good or service will be sold
d. determination of the product's price, enabling future revenues and budgets to be est
e. development of the good or service to be sold

26. Solitude Nurseries is a retailer that helps homeowners create backyard sanctuaries for pondering the
wonders of nature. Its owner believes he maintains the loyalty of the store's customers by stocking only
the highest quality merchandise and offering a customer satisfaction guarantee. With which element of
the marketing mix is the manager most concerned?
a. price
b. distribution
c. personalization
d. promotion
e. product

27. Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the
company had trouble financing the development and marketing of products for the microwave, so it
chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn
in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this
arrangement?
a. product
b. place
 c. price
d. public relations
e. promotion

28. Making sure products are available when and where customers want them is the job of which element of
the marketing mix?
a. advertising strategies
b. production strategies
c. product strategies
d. promotion strategies
e. distribution strategies

29. The promotion strategy of the marketing mix deals exclusively with:
a. personal selling and advertising
b. advertising and public relations
c. personal selling, advertising, sales promotion, and public relations
d. advertising, publicity, and pricing
e. personal selling and purchased mass media time or space

30. SoBe nutritional beverages uses twin lizards on every bottle of its products and in all of its promotion
efforts. It even has its own Team Lizard made up of skateboarders, mountain bike riders, and inline
skaters that it sponsors. The lizard is used to remind consumers of the product and its benefits. To which
of the four Ps does this strategy relate?
a. promotion
b. price
c. publicity
d. place
e. product

31. CFM Corporation of Canada learned that many of its Sequoia brand wood burning stoves had
insufficient insulation and posed fire threats. Which one of the marketing mix strategies should the stove
manufacturer use to alert buyers to this problem?
a. product
b. promotion
c. production
d. pricing
e. distribution

32.Which of the marketing mix strategies is the most flexible?

a. product
b. promotion
c. publicity
d. place
e. pricing
33.C-Ice is a canned beverage made from tea and cannabis that is marketed in Europe as a nutritional drink that
can boost the user's immune system. It can only be purchased at health food stores. This limitation on
the _____ element of its marketing mix strategy supports the product’s competitive advantage.
a. planning
b. product
c. promotion
d. distribution
e. production

TOPIC: Consumer Decision Making

TRUE/FALSE

1. If consumer behavior is not well understood, a marketer will have difficulty creating an appropriate
marketing mix.

MULTIPLE CHOICE QUESTIONS

1. Marketers often study _____, the processes used and the factors that influence the consumer when
making purchase decisions.
a. psychographics
b. business buying behavior
c. consumerism
d. consumer behavior
e. perceptual mapping

2. A product is defined as a business product rather than consumer good on the basis of its:
a. intended use
b. physical characteristics
c. price
d. distribution method
e. tangible attributes

3. The Solar Group, a Mississippi-based mailbox manufacturer, sells mailboxes to contractors who are
building mega-subdivisions, to hardware stores, and directly to new homeowners. What kind of products
is the Solar Group selling?
a. business products only
b. both business and consumer goods
c. installations
d. consumer goods only
e. supplies

4. Which of the following is the best example of a sale that could only take place in the business market?
a. A park ranger is purchasing an azalea bush for her garden.
 b. A music store owner is ordering the newest Faith Hill CD for her mother.
c. A dentist is buying postage stamps to mail invitations to his son's birthday party.
d. A university controller is ordering more computers for classroom labs.
e. All of these are examples of business sales.

TOPIC: Segmenting and Targeting Markets

TRUE/FALSE

1. AkPharm, Inc. has developed Cat-Sip, a lactose-free milk designed to be digestible by cats. The market
for this product is cats.
2. Global Travel Agency is a small business that creates personalized vacations for its customers and is
now in the process of identifying groups of travelers who have relatively similar vacation dreams. The
business is engaged in the process of market segmentation.
3. A market segment is deemed to have substantiality if it contains large numbers of potential customers.
4. A segmentation plan must produce segments that exhibit responsiveness. In other words, if all customers
are equally concerned about protecting the environment, there is no need to offer regular and all-natural
versions to the segment.
5. Geography, psychographics, and benefits sought are examples of possible segmentation variables used
by marketers.
6. U.S. paint manufacturers traditionally use different formulae for developing paint to be used in the
humid Southeast, the frigid Midwest, and the hot and dry Southwest. This is an example of how
demographic segmentation is used.
7. A market segmentation study done by the University of Thessaly in Greece classified recreational
skiers in terms of their gender, age, and educational levels. The study used demographic segmentation
variables.
8. Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife
Gets Home. It is an advice book for new fathers. The market for this books is based on demographics.
9. The Hispanic American market can always be treated as a single segment.
10. When Holiday Inn used the slogan, "Pleasing people the world over,” it was relying on demographic
segmentation.
11. Reality-based television shows are targeted to people who like to believe they could become a part of
such a show and find their way to fame and fortune. This is an example of psychographic segmentation.
12. HK Magazine is a free, Hong Kong-based English-language weekly magazine published by Asia City
Publishing Limited. It targets young metropolitans with a focus on how to live well in the city. Its
publisher most likely used geodemographic variables to segment its market.
MULTIPLE CHOICE QUESTIONS:
1. A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular
product categories, has the ability to purchase these products, and is willing to exchange resources for
the products.
a. firm
b. buyer
c. market
d. consumer
e. target
2. A group of middle school students stop by a sporting goods store. The store has just received a new
shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the
students want one of these new bikes, but none has the means to buy one. Is this group of consumers a
potential market for the expensive bikes?
a. Yes, they are a potential market since they are all about the same age.
b. No, they do not have the ability to purchase at this time.
c. No, to qualify as a market, they must need the product.
d. Yes, they are a market because this product could satisfy their consumer wants and
desires.
e. Yes, they are a market because this group shares relatively similar product needs an
purchasing characteristics.

3. A market is people or organizations that have:

a. the ability, willingness, and power to buy
b. a medium of exchange and products they desire
c. needs and wants and an ability and willingness to buy
d. unmet needs or wants and products or services that satisfy those unmet needs or wa
e. communication, financial, and capital resources

4. A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause
them to have relatively similar product needs.
a. market universe
b. market segment
c. aggregated market
d. segmentation base
e. population sample

5. _____ is the process of dividing a market into meaningful groups that are relatively similar and
identifiable.
a. Perceptual mapping
b. Positioning
c. Micromarketing
d. Market sampling
e. Market segmentation

6. E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians. At one time it
used the same marketing mix for all of its customers, but it has discovered that it needs a different
marketing mix to appeal to its ethnic customers. For example, Chinese brides want elaborate red gowns,
and Vietnamese brides wear a brocaded gown with long sleeves and a Mandarin collar. E&V Bridal
Studios uses a procedure called _____ to divide its large market.
a. micromarketing
b. positioning
c. market segmentation
d. cannibalization
e. perceptual mapping
 7. The purpose of market segmentation is to:
a. reduce the market down to a specific size that the firm can handle
b. divide the market into equal size and profit regions for sales territories
c. group a large number of markets together enabling a company to serve them
simultaneously
d. develop a generalized definition of the market as a whole
e. enable the marketer to tailor marketing mixes to meet the needs of one or more spec
groups

8. Market segmentation can assist marketers to do all of the following EXCEPT:

a. develop more precise definitions of customer needs and wants
b. identify which variable base should be used for segmenting
c. more accurately define marketing objectives
d. improve resource allocation
e. evaluate performance

9. The process of market segmentation involves breaking down a heterogeneous market into homogeneous
and identifiable segments. If this process is carried to its extreme, then one could say that:
a. this is the reason segmentation cannot be used by small firms
b. all individuals have the same needs in spite of cultural differences
c. everyone belongs to the same segment
d. segmentation controls the demand for products
e. every individual in the world is a market segment

10. ProtecTV is a product that selectively mutes words and phrases some people find objectionable. It can
be connected to a television, VCR, DVD player, or a satellite TV system. The manufacturer of ProtecTV
targeted parents who did not want their children exposed to what they consider to be offensive language.
The primary market segment for ProtecTV is:
a. all parents
b. educators
c. children under the age of 12
d. parents with preteens in their households
e. all those interested in screening out offensive language

11. Market segmentation helps businesses to:

a. define customer needs and wants more precisely
b. more accurately define marketing objectives
c. more efficiently allocate resources
d. better evaluate their performances
e. do all of these things

12. Which of the following is NOT one of the four criteria identified in the text for successful market
segmentation?
a. substantiality
 b. identifiability and measurability
c. accountability
d. accessibility
e. responsiveness

13. To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria
are:
a. segmentable, targetable, reliable, and homogeneous
b. tangibility, flexibility, causality, and accessibility
c. substantiality, identifiability and measurability, accessibility, and responsiveness
d. reliability, flexibility, tangibility, and accessibility
e. responsiveness, reliability, homogeneity, and causality

14. You would expect to find more stores targeting hunters in Idaho than in Delaware because hunting is a
more popular pastime in the Rocky Mountain state than it is in the Eastern Seaboard state. A national
chain of sporting goods stores would likely use _____ segmentation when stocking hunting
merchandise.
a. geographic
b. economic
c. demographic
d. benefit
e. geodemographic

15. A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area
where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where
mild winters require fewer and lighter covers for the bed. Segmenting the market according to climate is
an example of _____ segmentation.
a. psychographic
b. lifestyle
c. perceptual
d. demographic
e. geographic

16. Almost all cell phones sold in the United States sold are black or gray. Almost all cell phones sold in
Europe are color, and very few black phones are sold. A cell phone manufacturer knowing this
information could use _____ segmentation when selling its phones internationally.
a. geographic
b. economic
c. demographic
d. benefit
e. multi-positioning

17. Budweiser beer was one of the official sponsors of the 2006 World Cup soccer championship held in
Germany. As such, Budweiser beer was the only beer available in the soccer stadium where the games
were played. Germans were outraged because they prefer dark, more full-bodied beer and equate
 drinking Bud beer to drinking water. In this case, _____ segmentation was not incorporated into the
marketing strategy.
a. geographic
b. economic
c. demographic
d. usage-rate
e. multi-positioning

18. Marketers use _____ to segment markets because this information is widely available, and factors such
as age or gender are often related to consumer purchasing and consumption behavior.
a. benefits
b. psychographics
c. demographics
d. usage rates
e. sociocultural attributes

19. Income, ethnic background, gender, and age are all examples of _____ segmentation bases.
a. geodemographic
b. organizational
c. demographic
d. socioeconomic
e. psychographic

20. Finding that having to pester mom to take them to get their film processed inhibited kids from
taking pictures, Kodak introduced a camera set that included a single-use camera packaged with an
envelope to mail the film back to Kodak for developing. Kodak's segmentation plan used _____
segmentation.
a. ethnicity
b. income
c. age
d. gender
e. occupation

21. General Mills, Inc., is the owner of the Betty Crocker brand. The Betty Crocker catalog sells cooking
equipment and tableware and was initially targeted to women 45 and older. In 2001, General Mills
decided to revamp the catalog to reach women between the ages of 25 and 45. What demographic
variables did General Mills use to segment its market?
a. gender and age
b. lifestyle, gender, and age
c. gender, age, benefit, and family life cycle
d. benefit and age
e. benefit and gender

22. Women have been treated as second-class citizens by the sporting goods industry, but in 2002, sporting
goods manufacturers and retailers began aggressively pursuing this market. Nike opened two
 women-only boutiques called Nike Goddess to test how receptive women are to its new merchandising
concepts. Which type of demographic segmentation is the sporting goods industry using?
a. lifestyle
b. usage rate
c. benefit
d. age
e. gender

23. Johnson Publishing Company, the world’s largest African American-owned publishing company and
home of Ebony magazine, has forged an alliance with Dan River, Inc., to create luxury bed and bath
products for the newly developed Ebony Home brand. This brand will use the strong relationship the
publisher has with the African American market to sell the brand. What form of demographic
segmentation will be used to market the Ebony Home brand?
a. geographic
b. income
c. ethnic
d. benefit
e. lifestyle