Chapter 01
Overview of Marketing

Multiple Choice Questions
 
1. Basic necessities of life, such as food, clothing, shelter, or safety are referred to as: 
A. demands.
B. wants.
C. exchanges.
D. desires.
E. needs.
A feeling of physiological deprivation of the basic necessities of life, such as food, clothing, shelter, or safety is a need. Understanding and satisfying consumer needs and wants is fundamental to marketing success.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants
 
2. Which one of the followings is NOT true about marketing? 
A. Marketing help create value
B. Marketing always entails an exchange
C. Marketing is always performed by an organization
D. Marketing is about satisfying customer needs and wants
E. Marketing requires product, price, place and promotion decisions
Marketing can be performed by both individuals and organizations

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-01 What Is Marketing?

3. The particular way in which a person chooses to satisfy the requirement for any of the basic necessities of life is a(n): 
A. demand.
B. want.
C. exchange.
D. necessity.
E. need.
The particular way in which a person chooses to satisfy the requirement for any of the basic necessities of life is a want. Marketing is about satisfying customer needs and wants.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants
 
4. A non-governmental organization provides food and shelter to homeless people. Food and shelter are included in the definition of: 
A. demand.
B. want.
C. exchange.
D. necessity.
E. need.
Food and shelter are included in the definition of need. The basic necessities of life, such as food, clothing, shelter, or safety refer to needs.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants

5. In the context of understanding consumer needs and wants, which of the following is true of wants? 
A. They are the basic necessities, such as food, clothing, shelter, and safety.
B. They are similar for all individuals.
C. They do not vary across cultures.
D. They do not influence people's buying behaviour.
E. They are shaped by a person's knowledge, culture, and personality.
A want is the particular way in which a person chooses to fulfill his or her need, which is shaped by the person's knowledge, culture, and personality. Understanding and satisfying consumer needs and wants is fundamental to marketing success.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants
 
6. Human beings require clothes to cover their bodies. Some of them may wear designer clothes, while others may pick up clothes from the flea market. This example illustrates different ways to satisfy a basic requirement of life and describes the concept of a(n): 
A. demand.
B. want.
C. exchange.
D. necessity.
E. need.
This example illustrates different ways to satisfy a basic requirement of life and describes the concept of a want. The particular way in which a person chooses to satisfy the requirement for any of the basic necessities of life is a want.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants

7. A trader in the market trades his goods for the money that is paid for the goods offered by him. This is an example of a(n): 
A. demand.
B. want.
C. exchange.
D. necessity.
E. need.
It is an example of an exchange. An exchange is the trade of things of value between a buyer and a seller so that each is better off as a result.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-03 Marketing Entails an Exchange
 
8. The customer segment or group to whom a firm is interested in selling its products and services is the: 
A. commodity market.
B. stock market.
C. target market.
D. currency market.
E. artificial market.
The customer segment or group to whom a firm is interested in selling its products and services is the target market. A viable target market is those consumers who want and can afford such a product.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants

9. The trade of things of value between a buyer and a seller so that each is better off as a result is referred to as a(n): 
A. demand.
B. want.
C. exchange.
D. necessity.
E. need.
The trade of things of value between the buyer and the seller so that each is better off as a result is referred to as an exchange. Sellers provide goods or services, then communicate and facilitate the delivery of their offering to consumers. Buyers complete the exchange by giving money and information to the seller.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-03 Marketing Entails an Exchange
 
10. The controllable set of activities that a firm uses to respond to the wants of its target markets is referred to as: 
A. a supply chain.
B. the marketing mix.
C. value cocreation.
D. the marketing plan.
E. relational orientation.
The controllable set of activities that a firm uses to respond to the wants of its target markets is referred to as the marketing mix. Marketing traditionally has been divided into a set of four interrelated decisions known as the marketing mix, or four Ps: product, price, place, and promotion.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

11. The fundamental purpose of marketing is to create value by: 
A. hiring the right people for the promotion of the products being manufactured.
B. educating employees about sales and customer preferences.
C. fixing the measure of sacrifice that a customer is willing to make in order to acquire a specific product.
D. developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
E. delivering a product on offer to a customer.
One main purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. The marketing mix is the controllable set of activities that a firm uses to respond to the wants of its target markets.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
12. Which of the following holds true for the term "goods"? 
A. They refer to tangible customer benefits that are produced by people or machines and can be separated from the producer.
B. They refer to intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
C. They refer to the sacrifices a consumer is willing to make in terms of money, time, and energy in order to acquire a specific product or service.
D. They refer to thoughts, opinions, philosophies, and intellectual concepts that can be marketed.
E. They refer to the price that needs to be paid in exchange for a service offered by a company.
Goods refer to tangible customer benefits that are produced by people or machines and can be separated from the producer. Goods are items that can be physically touched.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

13. Which of the following holds true for the term "services"? 
A. They refer to the tangible customer benefits that are produced by people or machines and can be separated from the producer.
B. They refer to the intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
C. They refer to the overall sacrifice a consumer is willing to make in terms of money, time, and energy in order to acquire a specific product or service.
D. They refer to thoughts, opinions, philosophies, and intellectual concepts that also can be marketed.
E. They refer to the physical attributes that a customer obtains through purchase of a commodity in exchange of a price paid for it.
Services refer to the intangible customer benefits that are produced by people or machines and cannot be separated from the producer. Air travel, banking, insurance, beauty treatments, and entertainment all are services.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
14. An artist in an opera performs for the benefit of the audience. The live performance of the artist would be termed a(n): 
A. idea.
B. good.
C. service.
D. commodity.
E. price.
In this case, the live performance would be termed as a service. Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

15. Which of the following include thoughts, opinions, philosophies, and intellectual concepts that can be marketed? 
A. Desires
B. Ideas
C. Needs
D. Wants
E. Exchanges
Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed. Groups promoting bicycle safety go to schools, give talks, and sponsor bike helmet poster contests for the members of their primary target market: children.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
16. Since women constitute 90 percent of Karen's—a pharmacy chain's—customers, the chain decided to implement changes that would make the shopping experience more pleasant for them. Karen introduced a system for shorter waiting time at the check-out counters, wider and better-lit passageways, and more beauty products. Women constitute Karen's: 
A. commodity market.
B. target market.
C. currency market.
D. secondary target market.
E. niche market.
In this case, women constitute Karen's primary target market. Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed to target markets.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants

17. A commercial roofing company provides commercial roofing services as its primary service. It also takes up residential roof repair and replacement for a few individual customers. The residential market provides solid revenue and constitutes the: 
A. primary commodity market.
B. primary target market.
C. secondary retail market.
D. secondary target market.
E. niche market.
The residential market constitutes the secondary target market. Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed to primary and secondary target markets.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
18. Sports Inc., a global sports brand, wants to present an effective campaign across many markets. The company wants to engage the youth across key markets in Europe, and the campaign's main objective is to generate awareness about the company. These efforts are made by Sports Inc. to attract the youth as they constitute the company's: 
A. primary commodity market.
B. primary target market.
C. primary currency market.
D. secondary target market.
E. niche market.
The youth constitute the company's primary target market. Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed to primary and secondary target markets.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

19. Tangerine Inc. conducts art contests for kindergarteners across many schools. The company encourages parents and siblings to be involved in these contests to encourage and support the participants. Parents and siblings constitute the: 
A. primary commodity market.
B. primary target market.
C. primary currency market.
D. secondary target market.
E. niche market.
Parents and siblings constitute the secondary target market. Ideas include thoughts, opinions, philosophies, and intellectual concepts that primary and secondary target groups purchase through such events.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
20. Which of the following holds true for the term "price"? 
A. It refers to the tangible customer benefits that are produced by people or machines and can be separated from the producer.
B. It refers to the intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
C. It refers to the overall sacrifice a consumer is willing to make in terms of money, time, and energy in order to acquire a specific product or service.
D. It refers to thoughts, opinions, philosophies, and intellectual concepts that also can be marketed.
E. It refers to the value a customer receives through the purchase of a company's product or service.
The term "price" refers to the overall sacrifice a consumer is willing to make in terms of money, time, and energy in order to acquire a specific product or service. Marketers must determine the price of a product carefully on the basis of the potential buyer's belief about its value.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

21. Maria wants to buy a bike. She spends a lot of time and energy trying to find the right bike. She does find one and then pays $200 to buy it. The time and energy spent along with the sum of money constitute the: 
A. idea.
B. good.
C. service.
D. exchange.
E. price.
The time and energy spent for the bike along with the sum of money constitutes the price. Price is everything the buyer gives up in exchange for the product.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
22. For marketers, the key to determining prices is to: 
A. vary the price of products frequently before finalizing.
B. focus exclusively on high organizational profitability.
C. figure out how much customers are willing to pay.
D. rely on the price range of competitors to determine pricing strategies.
E. involve employees in making price decisions.
For marketers, the key to determining prices is figuring out how much customers are willing to pay so that they are satisfied with the purchase, and the seller achieves a reasonable profit.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

23. A company manufactures soaps. It selects a small number of retail outlets to distribute the product. Among the four Ps of marketing, this exemplifies: 
A. people.
B. price.
C. place.
D. policy.
E. promotion.
Among the four Ps of marketing, the third P, place, describes all the activities necessary to get the product from the manufacturer or producer to the right customer when that customer wants it. Place deals specifically with retailing and marketing channel management.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
24. Which element of the marketing mix is responsible for communicating value to customers? 
A. Place
B. Promotion
C. Price
D. People
E. Produce
Companies can use promotional strategies to communicate values to customers.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

25. What is the most flexible element of the marketing mix? 
A. Promotion
B. Place
C. Price
D. Product
E. Target market
Developing promotional strategies, product development/improvements and finding right partners for a marketing channel are all time consuming and cannot happen overnight. Price is the most flexible element of marketing mix as the company can change it overnight.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
26. A company is developing an efficient system for merchandise to be distributed in the right quantities, to the right locations, and at the right time in the most efficient way. It is making: 
A. people decisions.
B. price decisions.
C. place decisions.
D. product decisions.
E. promotion decisions.
The firm is making place decisions. Place deals specifically with retailing and marketing channel management.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

27. Which of the following components of the four Ps of marketing includes all the activities necessary to get a product from the manufacturer or producer to the right customer when that customer wants it? 
A. people
B. price
C. place
D. product
E. promotion
The place component of the four Ps of marketing includes all the activities necessary to get a product from the manufacturer or producer to the right customer when that customer wants it. Place deals specifically with retailing and marketing channel management.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
28. A major sporting goods company distributes its products via retailers. It offers attractive subsidies on its products to encourage retailers to sell higher volumes. Among the four Ps of marketing, this exemplifies the use of: 
A. people
B. price
C. place
D. product
E. promotion
This case shows the use of promotion to attract customers. Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

29. Among the four Ps of marketing, the component that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response is the component of: 
A. people.
B. price.
C. place.
D. product.
E. promotion.
Among the four Ps of marketing, the component of promotion includes the communication that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response. Promotion can enhance a product or service's value.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
30. The process in which businesses sell to consumers is referred to as: 
A. C2C marketing.
B. C2B marketing.
C. B2B marketing.
D. B2C marketing.
E. D2R marketing.
The process in which businesses sell to consumers is referred to as B2C (business-to-customers) marketing. Some companies are engaged in both B2B (business-to-business) and B2C marketing at the same time.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

31. The process of selling merchandise or services from one business to another is referred to as: 
A. C2C marketing.
B. C2B marketing.
C. B2B marketing.
D. B2C marketing.
E. D2R marketing.
The process of selling merchandise or services from one business to another is referred to as B2B marketing. The process in which businesses sell to consumers is referred to as B2C (business-to-customers) marketing.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
32. Social media has become an integral part of marketing and communication strategies for organizations or individuals that are engaged in ______ 
A. B2C marketing
B. B2B marketing
C. B2B and B2C marketing
D. C2C marketing
E. B2B, B2C, or C2C marketing
Regardless of whether organizations or individuals are engaged in B2B, B2C, or C2C marketing, social media has become an integral part of their marketing and communication strategies.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

33. A daycare business provides babysitting services as well as structured preschool education and learning simulation for kids. This is an example of: 
A. B2C marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. C2B marketing.
The daycare business in the scenario is involved in B2C marketing. The process in which businesses sell to consumers is referred to as B2C (business-to-customers) marketing. Marketing intermediaries, such as retailers, accumulate merchandise from producers in large amounts and then sell it to consumers in smaller amounts.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
34. An automobile manufacturer buys tires, glass for windscreens, and rubber hoses for its vehicles. The suppliers of these products are other companies that specialize in the manufacturing of this equipment. This is an example of: 
A. B2C marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. C2B marketing.
The automobile manufacturer that buys material from suppliers is an example of B2B marketing. The process of selling merchandise or services from one business to another is referred to as B2B (business-to-business) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

35. Mir Air is one of the largest airlines in the world. It provides scheduled and chartered air transport for passengers to 200 destinations worldwide. Together with its regional partners, the airline operates, on an average, more than 1,500 scheduled flights daily. This is an example of: 
A. B2C marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. C2B marketing.
Mir Air airlines is involved in B2C marketing. The process in which businesses sell to consumers is referred to as B2C (business-to-customers) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
36. Bank International was created to provide the working class with a means of saving. The bank accepts all deposits between $1 and $500. The bank encourages people who save a very small amount every month to continue to save. This is an example of: 
A. C2C marketing.
B. C2B marketing.
C. B2B marketing.
D. B2C marketing.
E. D2R marketing.
Bank International is involved in B2C marketing. The process in which businesses sell to consumers is referred to as B2C (business-to-customers) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

37. Spatialtech, an aerospace company, is a major service provider for space research organizations. This is an example of: 
A. C2C marketing.
B. C2B marketing.
C. B2B marketing.
D. B2C marketing.
E. D2R marketing.
The aerospace company is involved in B2B marketing. The process of selling merchandise or services from one business to another is referred to as B2B (business-to-business) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
38. Teal Corp. manufactures passenger car and automobile tires. It offers radial and tubeless tires to dealers and automobile companies. This is an example of: 
A. C2C marketing.
B. C2B marketing.
C. B2B marketing.
D. B2C marketing.
E. D2R marketing.
Teal is involved in B2B marketing. The process of selling merchandise or services from one business to another is referred to as B2B (business-to-business) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

39. Hisign is a company that allows customers to have a unique experience in that they can open a virtual shop that includes an online storefront. This virtual shop also offers other facilities such as website hosting, order management, fulfillment, payment processing, and customer service. The products uploaded by customers can be bought by people visiting the website. This shop is an example of: 
A. C2C marketing.
B. C2B marketing.
C. B2B marketing.
D. B2C marketing.
E. D2R marketing.
This "shop" is an example of C2C marketing. The process of selling merchandise or services from one consumer to another consumer is referred to as C2C (consumer-to-consumer) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
40. May's, a social shopping website, launched a marketing platform that enables shoppers to recommend products to their friends. Friends discover these recommendations through Facebook, Twitter, email, and the May's website and search engine. This is an example of: 
A. C2B marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. B2C marketing.
This is an example of C2C marketing. The process of selling merchandise or services from one consumer to another consumer is referred to as C2C (consumer-to-consumer) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

41. Mary buying an iPod from Tom on eBay is an example of: 
A. B2C marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. C2B marketing.
Mary buying an iPod from Tom on eBay is an example of C2C marketing. The process of selling merchandise or services from one consumer to another consumer is referred to as C2C (consumer-to-consumer) marketing.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
42. Zen Associates is a company that sells gaming consoles. It started a Facebook fan page that discusses current topics of interest in the world of virtual gaming. In this scenario, Zen Associates is using: 
A. broadcast advertising.
B. print media.
C. social media.
D. earned media.
E. visual merchandising.
In the scenario, Zen Associates is using social media for marketing. Social media is the use of digital tools to create and share content to foster dialogue, social relationships, and personal identities.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-08 How Do Firms Become More Value Driven?

43. A martial arts training institute has uploaded quick two- to three-minute training tutorial videos on YouTube in order to advertise the institute. In this scenario, what is the institute using to advertise itself? 
A. Secondary merchandising
B. Social media
C. Out-of-home marketing
D. Broadcast advertising
E. Print media
In this scenario, the institute is using social media to advertise itself. Social media is the use of digital tools to create and share content to foster dialogue, social relationships, and personal identities.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
44. Which of the following involves the use of digital tools to easily and quickly create and share content to foster dialogue, relationships, and personal identities? 
A. Broadcast advertising
B. Print media
C. Social media
D. Out-of-home marketing
E. Visual merchandising
Social media is the use of digital tools to easily and quickly create and share content to foster dialogue, relationships, and personal identities. Social media is quickly becoming an integral part of marketing and communications strategies.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

45. GoBagged is a leading producer of travel bags. It uses blogging sites to connect with its customers and get daily updates about new marketing trends. What is GoBagged using to connect with its customers? 
A. Visual merchandising
B. Print media
C. Out-of-home marketing
D. Social media
E. Broadcast advertising
In this scenario, GoBagged is using social media to connect with its customers. Social media is the use of digital tools to easily and quickly create and share content to foster dialogue, relationships, and personal identities.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
46. Which of the following is true about the impact of marketing on stakeholders? 
A. Marketing is often designed to benefit an entire industry.
B. Many firms cannot be benefitted simultaneously by marketing.
C. Most people think of marketing as a way for firms to satisfy customer needs.
D. Governments do not rely on marketing to communicate their messages to their constituents.
E. Marketing does not work well in the nonprofit sector.
Marketing is often designed to benefit an entire industry, which can help many firms simultaneously. Most people think of marketing as a way for firms to make profits, but marketing works equally well in the nonprofit sector.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-06 Marketing Impacts Many Stakeholders

47. The four different marketing orientations are: 
A. competition, service, resource, and team based.
B. promotion, operations, technology, and profit based.
C. production, sales, market, and value based.
D. price, customer, location, and segment based.
E. innovation, strategy, cost, and customer based.
The four different marketing orientations or philosophies are production orientation, sales orientation, market orientation, and value-based orientation. Marketing didn't get to its current prominence among individuals, corporations, and society at large overnight.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
48. Which of the following holds true for product-oriented companies? 
A. They focus on selling as many of their products as possible rather than focusing on making products consumers really want.
B. They focus on giving customers better worth (monetary and nonmonetary) for products than their competitors.
C. They focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.
D. They focus on the extension of a single brand name to market products in different product categories.
E. They focus on what consumers want and need before they design, make, or attempt to sell their products and services.
Product-oriented companies focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs. Companies with a product orientation try selling the product after it is developed.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

49. Which of the following holds true for sales-oriented companies? 
A. They try to sell as many of their products as possible rather than focusing on making products consumers really want.
B. They focus on giving their customers better worth (monetary and nonmonetary) for the products than their competitors.
C. They focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.
D. They focus on the extension of a single brand name to market products in different product categories.
E. They focus on what consumers want and need before they design, make, or attempt to sell their products and services.
Sales-oriented companies try to sell as many of their products as possible rather than focus on making products consumers really want. These firms typically depend on heavy doses of personal selling and advertising to attract new customers.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

50. Which of the following holds true for market-oriented companies? 
A. They focus on selling as many of their products as possible rather than focusing on making products consumers really want.
B. They focus on giving their customers better worth (monetary and nonmonetary) for the products than their competitors.
C. They focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.
D. They focus on the extension of a single brand name to market products in different product categories.
E. They focus on what consumers want and need before they design, make, or attempt to sell their products and services.
Market-oriented companies focus on what consumers want and need before they design, make, or attempt to sell their products and services. There is a focus on making marketing an integrated process throughout the entire company rather than just in one department.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

51. Which of the following holds true for value-oriented companies? 
A. They focus on selling as many of their products as possible rather than focusing on making products consumers really want.
B. They focus on giving their customers better worth for products than their competitors.
C. They focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.
D. They focus on the extension of a single brand name to market products in different product categories.
E. They focus on what consumers want and need before they design, make, or attempt to sell their products and services.
Value-oriented companies focus on giving their customers better worth for the products than their competitors. Value reflects the relationship of benefits to costs, or what consumers get for what they give.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
52. Which of the following types of companies focus on each transaction rather than building long-term customer relationships? 
A. Cause-oriented companies
B. Value-oriented companies
C. Market-oriented companies
D. Sales-oriented companies
E. Product-oriented companies
Sales-oriented companies focus on each transaction rather than building long-term customer relationships. They generally believe that if consumers try their products, they will like them.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

53. Innovatives Inc. is a phone manufacturing company that creates phones with unique features and distributes them among retailers. The devices are created with little or no concern about customers' needs and wants. In this case, Innovatives is most likely a: 
A. brand-oriented company.
B. market-oriented company.
C. customer-oriented company.
D. value-oriented company.
E. product-oriented company.
Innovatives Inc. is a product-oriented company. Product-oriented companies focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
54. A sports goods manufacturing company attempts to sell consumers as many of their products as possible without focusing on what they really want. It mainly focuses on advertising its products in order to attract customers. It believes that customers will like its products once they try them. This is an example of a: 
A. brand-oriented company.
B. market-oriented company.
C. sales-oriented company.
D. value-oriented company.
E. customer-oriented company.
The sports goods manufacturing company is an example of a sales-oriented company. Companies that have a sales orientation basically view marketing as a selling function where companies try to sell as many of their products as possible rather than focus on making products consumers really want.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

55. Mirrors is a company that believes that every idea and technical solution should be focused on meeting customers' needs. It emphasizes understanding specific customer needs. Mirrors is an example of a: 
A. brand-oriented company.
B. market-oriented company.
C. sales-oriented company.
D. value-oriented company.
E. product-oriented company.
Mirrors is an example of a market-oriented company. Market-oriented companies focus on what consumers want and need before they design, make, or attempt to sell their products and services.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
56. A certain wine retailer sells what it calls QPR wines. QPR refers to quality price ratio. It simply means getting the best quality wine for the lowest possible price. The wine retailer would be an example of a: 
A. brand-oriented company.
B. market-oriented company.
C. sales-oriented company.
D. value-oriented company.
E. product-oriented company.
The wine retailer would be an example of a value-oriented company. Value-based companies provide their customers with greater value than their competitors. Value reflects the relationship of benefits to costs, or what one gets for what one gives.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

57. Home Bakers introduced a new cake in the market. It was created as a product to be sold and not based on what customers wanted at that time. Therefore, the company concentrated on selling and paid little attention to the whether it satisfied customers' needs. Home Bakers is a: 
A. product-oriented company.
B. customer-oriented company.
C. market-oriented company.
D. value-oriented company.
E. brand-oriented company.
Home Bakers is a product-oriented company. Product-oriented companies focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
58. A company sells cars of a single colour and advertises that the cars have many innovative features. The company refuses to change the colour of the car irrespective of the desire of the public to have a different-coloured car. This is an example of: 
A. customer orientation.
B. value orientation.
C. market orientation.
D. product orientation.
E. brand orientation.
This is an example of product orientation. Product-oriented companies focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

59. Drakes Inc. manufactures dirt bikes. The company mass-produces bikes based on the resources available. It does not focus on the needs of the customer. This is an example of: 
A. sales orientation.
B. value orientation.
C. market orientation.
D. customer orientation.
E. brand orientation.
This is an example of sales orientation. Companies that have a sales orientation basically view marketing as a selling function where companies try to sell as many of their products as possible rather than focus on making products consumers really want.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
60. An airline was launched as a no-frills, heavy-discount carrier. One bottle of water was provided free of cost to all passengers, and the airline staff provided free board games to entertain passengers. All this was based on the understanding of what customers needed. This airline has a: 
A. sales orientation.
B. value orientation.
C. market orientation.
D. product orientation.
E. brand orientation.
The airline has a market orientation. Market-oriented companies focus on what consumers want and need before they design, make, or attempt to sell their products and services.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

61. A coffee shop attempted to discover what customers really wanted from their coffee-drinking experience. It found that people liked to chat over their cup of coffee without anybody disturbing them. Therefore, the coffee shop allowed its customers to stay as long as they liked, without requiring them to order a new cup of coffee every 20 minutes to stay in the shop. This is an example of: 
A. value orientation.
B. brand orientation.
C. product orientation.
D. market orientation.
E. sales orientation.
This is an example of market orientation. Market-oriented companies focus on what consumers want and need before they design, make, or attempt to sell their products and services.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
62. Which of the following is a requirement for making a firm value driven? 
A. Self-contained independent units with little capacity to influence or be influenced
B. High-priced goods with more emphasis on branding than quality control
C. Innovative product range with low emphasis on customers' needs
D. Sharing information about customers and competitors across one's own organization
E. One-time transactional interaction rather than building relationships with customers
Sharing information about customers and competitors across one's own organization is a requirement for making a firm value driven. Sharing and coordinating such information represents a critical success factor for any firm.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-09 Sharing Information

63. Nutrieat, a digestive cookie manufacturer, sold its products only in high quality, air-tight cans of 16oz and 32oz. To better satisfy customer needs, it recently introduced smaller packs of the biscuits in paper packages at reduced rates. Which of the following requirements for a value-driven firm does Nutrieat exemplify? 
A. Sharing supplier information
B. Balancing benefits with costs
C. Building competitor relationships
D. Social media marketing
E. Gathering customer feedback
In this case, Nutrieat exemplifies the practice of balancing benefits with costs. Value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offering.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-10 Balancing Benefits with Costs
 
64. An automobile manufacturer maintains a database of when and how repeat customers buy its products, the options they choose, the way they finance the purchase, and so on. This database enables the company to understand its customers and make offers that appeal to them. Because of this initiative, a long-term bond is established between the buyer and seller. This is an example of: 
A. transformational orientation.
B. transactional orientation.
C. live-in orientation.
D. relational orientation.
E. optimal orientation.
The automobile manufacturer exemplifies the use of relational orientation. It is a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers

65. The method that helps buyers and sellers develop a long-term bond is called: 
A. transformational orientation.
B. transactional orientation.
C. live-in orientation.
D. relational orientation.
E. optimal orientation.
The method that helps buyers and sellers develop a long-term bond is called relational orientation. To build relationships, firms focus on the lifetime value of the relationship, not how much money is made during each transaction.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers
 
66. Which of the following holds true for customer relationship management (CRM)? 
A. It helps a company to allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.
B. It is a strategic performance management tool that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.
C. It is a set of strategies, programs, and systems that focus on identifying and building loyalty among a firm's most valued patrons.
D. It is a framework for industry analysis and business strategy to determine the competitive intensity and, therefore, the attractiveness of a market.
E. It is a system of processes that enables organizations to centrally manage deployment of surveys while dispersing authoring and analysis throughout an organization.
Customer relationship management (CRM) is a set of strategies, programs, and systems that focus on identifying and building loyalty among a firm's most valued patrons. Firms that employ CRM use information about their customers' needs to target them with the products, services, and special promotions that appear most important to them.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers

67. Mountaindale Hotels is a hotel chain that treats its customers like family. The company further influences its bond with customers with its quality of staff, reliability, consistent overall high quality, and global social responsibility programs. This is an example of: 
A. transformational orientation.
B. transactional orientation.
C. live-in orientation.
D. relational orientation.
E. optimal orientation.
Mountaindale Hotels employs relational orientation. It is a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers
 
68. Fly Air offers airline credit cards and bonus flyer miles for a specific flight. If a Fly Air flight is late, the company gives the miles back to the customers before they even complain about it. Therefore, Fly Air has maintained excellent customer satisfaction ratings. This policy creates long-term bonds with passengers and makes them loyal to the company. This is an example of: 
A. relational orientation.
B. transactional orientation.
C. transformational orientation.
D. live-in orientation.
E. optimal orientation.
Fly Air uses relational orientation to satisfy its customers. Marketers have begun to develop a relational orientation as they have realized the need to think about customers in terms of relationships rather than transactions. To build relationships, firms focus on the lifetime value of the relationship, not how much money is made during each transaction.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers

69. Crimson Inc., a fruit-juice manufacturer, employs a set of feedback forms to collect information about customers' favourite flavours and the new flavours they want to try in future. The company then uses this information to focus on identifying and building loyalty among the firm's most valued patrons. This is an example of: 
A. customer relationship management.
B. the BCG matrix.
C. Porter's five forces.
D. transformational marketing.
E. live-in marketing.
The process used by Crimson to build loyalty is an example of customer relationship management (CRM). It is a set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued patrons.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers
 
70. In order for firms to build relationships with customers, they must focus on: 
A. Implementation of effective price
B. Developing new product
C. Lifetime Value of the relationship
D. Collection of information as much as possible
E. Use of social media
To build relationships, firms focus on the lifetime value of the relationships, not just one transaction.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers

71. Which of the following is NOT true about social media and mobile marketing: 
A. It allows companies to connect better with their customers
B. Majority of companies in North America are using social media marketing
C. Majority of customers worldwide have a Facebook account.
D. Location-based services are appealing but also create concern for some customers
E. Some hotel chains develop their mobile applications to provide a better service for their customers
Facebook penetration in the world is not very high. About 16% of world's population uses Facebook.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-12 Connecting with Customers Using Social and Mobile Media
 
72. A firm that wishes to expand globally should ideally: 
A. analyze new customers' needs and wants on a segment-by-segment, region-by-region basis.
B. think about new customers in terms of transactions rather than relationships.
C. try to sell as many of its products as possible rather than focusing on making products consumers really want.
D. focus on developing and distributing innovative products before understanding customers.
E. encourage its employees to invest heavily in socially responsible actions and charities.
A firm that wishes to expand globally should ideally analyze new customers' needs and wants on a segment-by-segment, region-by-region basis. Without the knowledge that can be gained by analyzing new customers' needs and wants on a segment-by-segment, region-by-region basis—one of marketing's main tasks—it would be difficult for a firm to expand globally.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-14 Marketing Expands Firms' Global Presence

73. The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as: 
A. stock iodation.
B. demand optimization.
C. inventory control.
D. demand chain.
E. supply chain.
The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as a supply chain. Excellent supply chains effectively and efficiently integrate their supply chain partners to produce and distribute goods in the right quantities, to the right locations, and at the right time.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members
 
74. When a customer visits the website of a company selling computers, the website provides the customer with information regarding pricing, product variety, and product availability. The customer makes a product choice. The order then goes to the assembly plant and then to all of the company's vendors and their vendors. This is an example of a(n): 
A. stock valuation.
B. demand optimization.
C. inventory control.
D. demand chain.
E. supply chain.
The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as a supply chain. Excellent supply chains effectively and efficiently integrate their supply chain partners to produce and distribute goods in the right quantities, to the right locations, and at the right time.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members

75. Firms have come to realize that good corporate citizenship through socially responsible actions should be a priority because it: 
A. communicates their products' value to customers.
B. will result in high employee turnover.
C. will make it easier for them to expand globally.
D. will help their bottom line in the long run.
E. enables them to sell goods in large quantities.
Firms have come to realize that good corporate citizenship through socially responsible actions should be a priority because it will help their bottom line in the long run. In a world in which consumers constantly hear about negative examples of ethics, the need for companies to live up to their ethical promises becomes even more important.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-16 Marketing Enriches Society
 
76. More and more Canadian companies are adopting corporate social responsibility programs because: 
A. It reduce costs of doing business
B. It allows companies to operate globally
C. It helps bottom line both in short run and long run
D. It is required by government
E. It is in both their and their customers best interest
Canadian companies recognize that a strong social orientation is in both their and their customers' best interest.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-16 Marketing Enriches Society

77. The key to the success of many entrepreneurs is that they launch ventures that: 
A. aim to satisfy unfilled needs.
B. have a product orientation.
C. exclusively focus on distributing innovative products.
D. depend on heavy doses of personal selling and advertising.
E. have a sales orientation.
Key to the success of many entrepreneurs is that they launch ventures that aim to satisfy unfilled needs. Whereas marketing plays a major role in the success of large corporations, it also is at the centre of the successes of numerous new ventures initiated by entrepreneurs, or people who organize, operate, and assume the risk of a business venture.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-17 Marketing Can Be Entrepreneurial
 
78. In the context of entrepreneurial marketing, great and distinguished entrepreneurs: 
A. focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.
B. try to sell as many of their products as possible rather than focus on making products consumers really want.
C. have realized the need to think about customers in terms of transactions rather than relationships.
D. have a vision of how certain combinations of products and services can satisfy unfilled needs.
E. try selling a product after it is developed rather than starting with an understanding of the customers' needs and then developing a product to satisfy those needs.
Great and distinguished entrepreneurs have a vision of how certain combinations of products and services can satisfy unfilled needs. They find and understand a marketing opportunity (i.e., the unfilled need), conduct a thorough examination of the marketplace, and develop and communicate the value of their products and services to potential consumers.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-17 Marketing Can Be Entrepreneurial

 Marco wants to buy a bike. He spends a lot of time and energy trying to find the right bike. When he does find one, he persuades his father to buy it for him and arranges for its transportation from the store to his college. The bike is delivered to him at the college by a transport company arranged by the store.
 
79. The time and energy spent by Marco along with the sum of money that he had spent to buy the bike constitute the: 
A. idea.
B. good.
C. service.
D. exchange.
E. price.
The time and energy spent along with the sum of money constitute the price. Price is everything the buyer gives up in exchange for the product.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants
 
80. The bike that Marco buys is an example of a(n): 
A. idea.
B. good.
C. service.
D. exchange.
E. price.
The bike that Marco buys is an example of a good. Goods are items that can be physically touched.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

81. The bike is delivered to Marco by a transport company. This is an example of a(n): 
A. idea.
B. good.
C. service.
D. exchange.
E. price.
The bike being delivered to Marco by a transport company is an example of a service. Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
 Ochre Cars International launches a new car in the market, priced at $300,000 and aimed at the premium segment. It selects a small number of exclusive outlets to distribute the product. The car is endorsed by popular Hollywood celebrities.
 
82. Which of the four Ps of marketing represents the exclusive outlets where the new model will be displayed and sold? 
A. People
B. Price
C. Place
D. Product
E. Promotion
The exclusive outlets where the new model will be displayed and sold represent the place. The place describes all the activities necessary to get the product from the manufacturer or producer to the right customer when that customer wants it.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

83. Which of the four Ps of marketing does the $300,000 tag represent? 
A. People
B. Price
C. Place
D. Product
E. Promotion
The $300,000 tag represents the price. The time and energy spent along with the sum of money for the product constitute the price.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
84. Which of the four Ps of marketing do the international rock stars who perform at the ceremony to launch the car and the popular Hollywood celebrities who endorse the car represent? 
A. People
B. Price
C. Place
D. Product
E. Promotion
The international rock stars who perform at the ceremony to launch the car and the popular Hollywood celebrities who endorse the car represent the promotion component of marketing. Promotion generally can enhance a product or service's value.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

85. The new car that is being launched in the market represents which of the four Ps of marketing? 
A. People
B. Price
C. Place
D. Product
E. Promotion
The new car launched in the market represents the product component of marketing. The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
 Mechalium Autos is an original equipment supplier that supplies tires, glass for windscreens, and rubber hoses to International Autos, which manufactures sport-utility vehicles. International Autos fits the equipment into its vehicles and sells them to individual customers. Mariam buys one such vehicle and uses it for five years and then resells it to her friend, Jake.
 
86. The selling of equipment by the equipment supplier to the automobile company is called: 
A. B2C marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. C2B marketing.
The selling of equipment by the equipment supplier to the automobile company is called B2B marketing. The process of selling merchandise or services from one business to another is called B2B (business-to-business) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

87. The sale of a sport-utility vehicle by International Autos to Mariam is called: 
A. B2C marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. C2B marketing.
The selling of sport-utility vehicles by International Autos to Mariam is called B2C marketing. The process in which businesses sell to consumers is known as B2C (business-to-consumer) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
88. Mariam sells her sport-utility vehicle to Jake. This is an example of: 
A. B2C marketing.
B. D2R marketing.
C. B2B marketing.
D. C2C marketing.
E. C2B marketing.
Mariam selling her sport-utility vehicle to Jake is an example of C2C marketing. The process in which consumers sell to other consumers is called customer-to-customer (C2C) marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
 A vegetable farm supplies potatoes to Kiwito, a company that produces potato chips. The potato chips are manufactured, packaged, and sent to different outlets from Kiwito's manufacturing units. Tim is a student who often buys Kiwito's potato chips from a local supermarket.

89. In this case, Kiwito is a: 
A. distributor
B. consumer
C. retailer
D. supplier
E. manufacturer.
Kiwito is a manufacturer. Manufacturers buy raw materials and components from suppliers, which they sell to retailers or other businesses after they have turned the materials into their products.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members
 
90. The vegetable farm that potatoes to Kiwito is a: 
A. consumer.
B. distributor.
C. supplier.
D. manufacturer.
E. buyer.
The vegetable farm is a supplier. Manufacturers buy raw materials and components from suppliers, which they sell to retailers or other businesses after they have turned the materials into their products.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members

91. The local supermarket from where Tim buys the potato chips is an example of a: 
A. manufacturer
B. consumer
C. supplier
D. distributor
E. producer
The local supermarket is an example of a distributor. It sells the products of the manufacturer to the consumers.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members
 
92. Tim, who buys the potato chips from a local supermarket, is a: 
A. manufacturer
B. distributor
C. retailer
D. supplier
E. consumer
Tim is a consumer. He is the one who buys and uses the end product. The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as a supply chain.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members

 A chart representing the importance of marketing

 
93. Chronium, a luxury watchmaker, had its products available in its own retail outlets in its home country until five years ago. Now, its products are available in outlets across many countries. Which important aspect of marketing is specifically exemplified in this case? 
A. Reduction of accessibility
B. Feedback monitoring
C. Entrepreneurial stagnancy
D. Expansion of global presence
E. Mismanagement across supply chain
The expansion of a firm's global presence is exemplified in this case. Without the knowledge that can be gained by analyzing new customers' needs and wants on a segment-by-segment, region-by-region basis—one of marketing's main tasks—it would be difficult for a firm to expand globally.

Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-14 Marketing Expands Firms' Global Presence

94. A dairy farm sells milk to a company that makes milk-based products and sells it under the brand name Whiteshed. Shania, a loyal customer, always buys Whiteshed cheese. Which of the following impacts of marketing is illustrated in this case? 
A. New market research
B. Global expansion of the market
C. Supply chain management
D. Turnaround strategies
E. Limited choice of products
This case illustrates the impact of marketing on supply chain management. The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as a supply chain.

Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members
 
95. The Old Oven, a multinational bakery chain, donated its worldwide revenue of a month for the rehabilitation activities in a country affected by an earthquake. Which of the following is specifically exemplified in this case? 
A. Marketing enriching society
B. Marketing aiding entrepreneurship
C. Marketing helping global expansion
D. Marketing impacting supply chain management
E. Marketing through social media
The impact of marketing in enriching a society is illustrated in this case. Corporate firms encourage their employees to participate in activities that benefit their communities and invest heavily in socially responsible actions and charities.

Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-16 Marketing Enriches Society

96. Mark starts his own company concentrating on producing products that satisfy customers' unfulfilled needs. He thoroughly analyzes the marketplace and develops products based on customers' needs and wants and then communicates the value of his products to potential customers. Which of the following does this scenario exemplify? 
A. Marketing enriching society
B. Marketing aiding entrepreneurship
C. Marketing helping global expansion
D. Marketing impacting supply chain management
E. Marketing through social media
Mark is an entrepreneur who uses marketing to satisfy customers' unfulfilled needs. Whereas marketing plays a major role in the success of large corporations, it also is at the centre of the successes of numerous new ventures initiated by entrepreneurs, or people who organize, operate, and assume the risk of a business venture.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-17 Marketing Can Be Entrepreneurial

True / False Questions
 
97. A marketing plan is broken down into various components and specifies the marketing activities for a specific period of time. 
TRUE
A marketing plan is broken down into various components and specifies the marketing activities for a specific period of time. It includes how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-01 What Is Marketing?

98. If customers want product A more than product B, the demand for product A will be more than product B. 
FALSE
Needs and wants must be backed by demand. Demand is demonstrated by customers' ability and willingness to act on those needs and wants. Wants and demands are different concepts. Customer want would not always create demand!

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants
 
99. Marketers find it practical to sell their products and services to everyone. 
FALSE
Marketers do not find it practical to sell their products and services to everyone. Because marketing costs money, good marketers carefully seek out potential customers who have both an interest in the product and an ability to buy it.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants
 
100. The process of identifying customer segments that a company wants to target with its products and services requires market research. 
TRUE
The process of identifying customer segments the company wants to target with its products and services requires market research. There are many types of market research that help marketers make good decisions about various aspects of the marketing mix.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants

101. Marketing mix is the controllable set of activities that a firm uses to respond to the wants of its target markets. 
TRUE
Marketing mix is the controllable set of activities that a firm uses to respond to the wants of its target markets. Marketing traditionally has been divided into a set of four interrelated decisions known as the marketing mix, or four Ps.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
102. Services are tangible customer benefits that are produced by people or machines and can be easily separated from the producer. 
FALSE
Services are intangible customer benefits that are produced by people or machines and cannot be easily separated from the producer. Air travel, banking, insurance, beauty treatments, and entertainment all are services.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

103. Ideas include thoughts, opinions, philosophies, and intellectual concepts that cannot be marketed. 
FALSE
Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed. The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
104. Price doesn't always have to be calculated in monetary terms. 
TRUE
Price doesn't always have to be calculated in monetary terms. It is everything a buyer gives up—money, time, and energy— in exchange for a product.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
105. Promotion generally can enhance a product or service's value. 
TRUE
Promotion generally can enhance a product or service's value. Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

106. Marketers can deliver greater value to consumers by treating the four Ps as separate components rather than configuring them as a whole. 
FALSE
Marketers cannot deliver greater value to consumers by treating the four Ps as separate components rather than configuring them as a whole. The four Ps work together for better results.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
107. Some companies engage in both B2B and B2C marketing at the same time. 
TRUE
Some companies engage in both B2B and B2C marketing at the same time. The process in which businesses sell to consumers is known as B2C (business-to-consumer) marketing, whereas the process of selling merchandise or services from one business to another is called B2B (business-to-business) marketing.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations
 
108. Marketing cannot be designed to benefit an entire industry at a time. 
FALSE
Marketing is often designed to benefit an entire industry, which can help many firms simultaneously. Marketing works well in both profit-orientated and nonprofit sectors.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-06 Marketing Impacts Many Stakeholders

109. Marketing is now an activity that is designed exclusively to produce and sell products. 
FALSE
Marketing is not an activity that is designed exclusively to produce and sell products. It has evolved to become an integral business function aimed at creating value for consumers and companies' shareholders.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-08 How Do Firms Become More Value Driven?
 
110. Product-oriented companies start the product development process within the company; whereas market-oriented companies start the process by looking at the market. 
TRUE
Product-oriented companies focus on developing and distributing products with little concern about whether the product best satisfy customers' needs. They generally start out by thinking about the product they want to and can build. They try selling the product after it is developed.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
111. Product-oriented companies focus on whether the products best satisfy customers' needs. 
FALSE
Product-oriented companies do not focus on whether the products best satisfy customers' needs. Product-oriented companies focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

112. Marketing creates mutually valuable relationships between a company and the firms from which it buys. 
TRUE
Marketing advises production about how much of the company's product to make and then tells logistics when to ship it. It creates mutually valuable relationships between the company and the firms from which it buys.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-11 Building Relationships with Customers

Short Answer Questions
 
113. Differentiate between a need and a want and provide one example for each. 
Understanding and satisfying consumer needs and wants is fundamental to marketing success. A need is when a person feels deprived of the basic necessities of life, such as food, clothing, shelter, or safety. A want is the particular way in which the person chooses to fulfill his or her need, which is shaped by a person's knowledge, culture, and personality. For example, when we are hungry, we need something to eat. Some people want a submarine sandwich to satisfy that hunger, whereas others want a salad and some soup instead.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-02 Marketing Is About Satisfying Customer Needs and Wants

114. Define the marketing mix and list its four Ps. 
The marketing mix is the controllable set of activities that a firm uses to respond to the wants of its target markets. It includes the four Ps that are product, price, place, and promotion.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
115. Differentiate between goods and services. 
Goods are items that one can physically touch. Roots clothing, Molson Canadian beer, Kraft Dinner, and countless other products are examples of goods. Unlike goods, services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer. Air travel, banking, insurance, beauty treatments, and entertainment all are services. Getting money from the bank by using an ATM or teller is another example of using a service.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions
 
116. Differentiate between B2C and B2B marketing and provide one example for each. 
The process in which businesses sell to consumers is known as B2C (business-to-consumer) marketing, whereas the process of selling merchandise or services from one business to another is called B2B (business-to-business) marketing. Some companies, such as GE (General Electric), are engaged in both B2B and B2C marketing at the same time.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-05 Marketing Can Be Performed by Both Individuals and Organizations

117. Explain the features of product-oriented companies. 
Product-oriented companies focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs. Manufacturers believed that a good product would sell itself, and retail stores typically were considered places to hold the merchandise until a consumer wanted it. Companies with a product orientation generally start out by thinking about the product they want to build; they try selling the product after it is developed rather than starting with an understanding of the customers' needs and then developing a product to satisfy those needs.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
118. Alex has set up a company to provide "air duct cleaning" service to residential and commercial buildings in Mississauga. He has decided a "sales orientation" would best suit his new company. What are important considerations for this business? What are potential problem of this orientation? 
Companies that adopt a sales orientation view marketing as a selling function. Therefore, the focus is to sell as much as possible rather than focus on offering services consumers really want. The main consideration for Alex, if he goes with sales orientation, is to use aggressive sales techniques such as hiring salespeople, intensive door to door sales, and making cold calls to sell the service. Such company tends to focus on making a sale or on each transaction rather than building long-term customer relationships.
Potential problem: by focusing on sales rather than consumers need, the company may miss opportunities. Furthermore, the company needs to find new customers all the time as profits come from sales volume rather than from repeat business from satisfied customers.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing

119. Differentiate between companies that have a sales orientation and companies that have a market orientation. 
Companies that have a sales orientation basically view marketing as a selling function where companies try to sell as many of their products as possible rather than focus on making products consumers really want. These firms typically depend on heavy doses of personal selling and advertising to attract new customers. Companies with a selling orientation tend to focus on making a sale or on each transaction rather than building long-term customer relationships. They generally believe that if consumers try their products, they will like them. Market-oriented companies start out by focusing on what consumers want and need before they design, make, or attempt to sell their products and services. They believe that customers have choice and make purchase decisions based on several factors, including quality, convenience, and price. Basically, the "customer is king," and the market is a buyer's market since consumers wield tremendous power. In this orientation, marketers' role is to understand and respond to the needs of consumers and to do everything possible to satisfy them.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-07 The Four Orientations of Marketing
 
120. Explain value-based orientation. 
Marketing firms recognized that there was more to good marketing than simply discovering and providing what consumers wanted and needed; to compete successfully, they would have to give their customers greater value than their competitors. Value reflects the relationship of benefits to costs, or what you get for what you give. In a marketing context, customers seek a fair return in goods and/or services for their hard-earned money and scarce time. They want products or services that meet their specific needs or wants and that are offered at a price that they believe is good value. Every value-based marketing firm must implement its strategy according to what its customers value.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-08 How Do Firms Become More Value Driven?

121. Explain customer relationship management and why it is important for an organization. 
Firms that practise value-based marketing also use a process known as customer relationship management (CRM), a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers. Firms that employ CRM systematically collect information about their customers' needs and then use that information to target their best customers with the products, services, and special promotions that appear most important to those customers. Building strong relationships with customers is important to creating value for an organization as it maximizes the long-term value of the buyer-seller relationship rather than trying to maximize the profit from each transaction.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-11 Building Relationships with Customers
 
122. Explain how social and mobile media have helped the sellers to connect with their customers. 
Marketers are steadily embracing new technologies, such as social and mobile media, to allow them to connect better with their customers and thereby serve their needs more effectively. Businesses take social and mobile media seriously, including these advanced tools in the development of their marketing strategies. Approximately three-quarters of North American companies now use social media tools for marketing purposes, and 46 percent of Internet users worldwide interact with social media on a daily basis. The explosive growth of mobile phones in India and China means that more than 77 percent of the world's population subscribes to mobile services. Beyond social media sites, online travel agencies have become the first place that users go to book travel arrangements. Several restaurant chains are exploiting location-based social media applications. The result of using social and mobile media for marketing is that users are driving the way brands and stores are interacting with social media.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-12 Connecting with Customers Using Social and Mobile Media

123. Explain the concept of the supply chain. 
Firms typically do not work in isolation. Manufacturers buy raw materials and components from suppliers, which they sell to retailers or other businesses after they have turned the materials into their products. Every time materials or products are bought or sold, they are transported to a different location, which sometimes requires that they be stored in a warehouse operated by yet another organization. The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as a supply chain.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members

124. You are planning to set up an educational institution to cater to the educational needs of students between the ages of 4 and 16. Formulate a marketing plan indicating the various aspects that you would have to consider to set up this institution. 
Student answers will vary. A marketing plan is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements. The following are some of the issues that might be addressed by the marketing plan:

 Funding
 Recruitment Geographic Range
 Image Building/Promotion of the Institution
 Website/E-recruiting
 Target Audiences
 Promotion of Academic Programs
 Scholarship Development
 Internal Communication
 Internal Marketing
 TV and Radio
 Media Relations
 Visit Programs
 Community Involvement

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-01 What Is Marketing?

125. Explain the exchange process in marketing. Describe the marketing exchange process for an individual who donates blood to Canadian Blood Services. 
Marketing is about an exchange; the trade of things of value between the buyer and the seller so that each is better off as a result. When a customer donate blood, she is giving up her time and blood in an exchange for a "good feeling". In other words, she is buying "good feeling" in an exchange for her blood and time. After the exchange, customer is at a better state; feeling better, and Canadian Blood Services is at a better state; obtain more blood units to distribute to hospitals.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-01 Define the role of marketing and explain its core concepts.
Topic: 01-03 Marketing Entails an Exchange
 
126. Explain in detail the concept of the marketing mix and explain how your university/college use marketing mix elements to market its offerings. 
Marketing traditionally has been divided into a set of four interrelated decisions known as the marketing mix, or four Ps: product, price, place, and promotion. Together, the four Ps comprise the marketing mix, which is the controllable set of activities that a firm uses to respond to the wants of its target markets. The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. Everything has a price, though it does not always have to be monetary. Price, therefore, is everything the buyer gives up—money, time, energy—in exchange for the product. Marketers must determine the price of a product carefully on the basis of the potential buyer's belief about its value. The third P, place, describes all the activities necessary to get the product from the manufacturer or producer to the right customer when that customer wants it. Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response.

Accessibility: Keyboard Navigation
Blooms: Apply
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: 01-04 Marketing Requires Marketing Mix Decisions

127. Describe how sharing information helps a firm to be value-driven. Provide an example to support your explanation. 
In a value-based, market-oriented firm, marketers share information about customers and competitors that has been collected through customer relationship management and integrate it across the firm's various departments. The fashion designers for Zara, the Spain-based fashion retailer, for instance, collect purchase information and research customer trends to determine what their customers will want to wear in the next few weeks; simultaneously, the logisticians—those persons in charge of getting the merchandise to the stores—use the same purchase history to forecast sales and allocate appropriate merchandise to individual stores. Sharing and coordinating such information represents a critical success factor for any firm. Imagine what might happen if Zara's advertising department were to plan a special promotion but not share its sales projections with those people in charge of creating the merchandise or getting it to stores.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-08 How Do Firms Become More Value Driven?
 
128. You want to start a chain of fast-food restaurants serving Mexican food, including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "value menu" items. You want to draw in a young crowd to your restaurants. What different social media tools can you use to promote your chain of restaurants? 
Student answers will vary. They might suggest having a Facebook page where people can post their preferences regarding the menu or post suggestions. The page could feature discussions about the different choices offered by the restaurant. Student might also suggest using a Twitter account to allow people to share their experiences in the restaurants. The restaurants would benefit from the insights provided by the customers. YouTube can also be used to upload videos with demonstrations, celebrities endorsing the product, and so on.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-03 Summarize the four orientations of marketing.
Topic: 01-12 Connecting with Customers Using Social and Mobile Media

129. "Marketing is pervasive across marketing channel members." Explain with an example. 
Firms typically do not work in isolation. Manufacturers buy raw materials and components from suppliers, which they sell to retailers or other businesses after they have turned the materials into their products. Every time materials or products are bought or sold, they are transported to a different location, which sometimes requires that they be stored in a warehouse operated by yet another organization. The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as a supply chain. Excellent supply chains effectively and efficiently integrate their supply chain partners—suppliers, manufacturers, warehouses, stores, and transportation intermediaries—to produce and distribute goods in the right quantities, to the right locations, and at the right time.
Consider Loblaw, Canada's largest food distributor, and its relationships with its manufacturers and trading partners. A few years ago, Loblaw's supply chain system suffered from several inefficiencies that drove up its costs substantially. For example, inaccurate demand forecasts led trading partners to stock huge inventory to meet unpredictable demand. Inefficient use of customer data meant that stock replenishment was made by estimation rather than true customer data. Disconnected supply chain systems, limited collaboration, reduced information sharing, and supply variability led to poor quality information on which to base sales forecasts, production plans, and replenishment schemes. The company has since made many changes to improve the efficiency of its supply chain. Loblaw's participation in a radio frequency identification (RFID) pilot project for the grocery industry conducted by the Canadian RFID Centre has helped it improve its operations. Preliminary results seem to indicate that Loblaw has improved its inventory management and use of promotions.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-15 Marketing Is Pervasive Across Marketing Channel Members

130. With one example, explain how marketing enriches society. 
Students' example will vary. Many Canadian corporations have recognized the importance of being a good corporate citizen. Strong social orientation is known to be in both corporations and their customers' best interests. Customers and investors trust companies with high levels of corporate responsibility and this will help corporations' bottom line in the long run. Therefore, corporations are likely to adopt corporate social responsibility programs which enrich society.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-04 Understand the importance of marketing both within and outside the firm.
Topic: 01-16 Marketing Enriches Society