Chapter 01
Marketing Fundamentals

True / False Questions
 
1. Marketing revolves primarily around promotion. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-01 The Role of Marketing
 
2. In most organizations, the Marketing function provides the connection to customers. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-01 The Role of Marketing
 
3. Creating products with added value is achieved only through pricing strategies. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value

4. Successful marketing is focused on customer needs and wants. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-02 Focusing on Customer Needs and Wants
 
5. A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value
 
6. The marketing mix refers to the 4 Ps - product, price, promotion, and place. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
7. Place refers only to a physical store where consumers can purchase a product. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

8. The marketing process is a continuous one that requires marketers to pay attention to detail and apply strategic, analytical, and creative-thinking skills. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process
 
9. Exchange is described as the process of planning and managing goods, services, or ideas to meet consumer needs and organizational objectives. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process
 
10. In marketing, a product is defined as something tangible that you can touch and own but not experience. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Differentiate between goods; services; and ideas.
Topic: 01-06 What Can Be Marketed?
 
11. An idea is a concept that typically looks for support. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-06 What Can Be Marketed?

12. Market describes the potential consumers who have both the willingness and ability to buy a product. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Differentiate between goods; services; and ideas.
Topic: 01-07 What Is a Market?
 
13. In the production orientation stage, companies tried to hard-sell in order to make a profit. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
14. The sales orientation stage focused on satisfying the needs of consumers while trying to achieve organizational goals. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
15. The marketing orientation stage set in when organizations started focusing on satisfying the needs of consumers while achieving organizational objectives. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

16. The marketing orientation stage sees organizations considering the lifetime value of their customers and striving to offer better products and services. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
17. Relationship marketing involves a personal, ongoing relationship between an organization and its customers that often starts before a sale occurs and lasts well beyond the point when a sale has concluded. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
18. CRM or Customer Relationship Management is a tool typically utilized by firms in the production orientation stage. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
19. Many large firms measure the effectiveness of purchase incentives through a measure called share of wallet. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

20. Customer relationship management is rooted in the knowledge that it is less expensive to service and maintain current customers than to obtain new ones. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
21. Database technology has surfaced as a tool that facilitates relationship marketing by putting a focus on corporate social responsibility (CSR) for the marketing industry, and is often facilitated by CSR software. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
22. Digital technology drives how consumers gather information, want to be entertained, and purchase products. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-10 Digital Marketing
 
23. Content marketing refers to firms sharing blogs, research papers, infographics and other digital resources with current and potential customers. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-10 Digital Marketing

24. Mobile marketing refers to any form of advertising, such as those on trains, buses or cars, that are not fixed in location. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-10 Digital Marketing
 
25. Real-time marketing is easily planned out over extended time periods with little management. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-11 Real-Time Marketing
 
26. Popular events like the Superbowl, Academy Awards and Olympics lend themselves to real-time marketing approaches. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-11 Real-Time Marketing
 
27. Experiential marketing seeks to build opportunities for consumers to interact with a brand. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-12 Experiential Marketing

28. Partnership marketing is an approach where marketers create opportunities for consumers to interact directly with a brand. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-13 Partnership Marketing
 
29. Strategic alliance involves long-term arrangements between companies with similar values and objectives that extend beyond short-term promotional offers into long-term business agreements. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-13 Partnership Marketing
 
30. Strategic alliance is a form of partnership marketing. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-13 Partnership Marketing
 
31. Metrics are an important area that measures and monitors business performance. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-14 Metrics and Analytics

32. Dashboards are business websites that help consumers navigate complex product choices. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-14 Metrics and Analytics
 
33. Digital technologies have reduced the need for consumer protections in marketing. 
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-15 Marketing Regulations and Ethical Considerations
 
34. Consumers' rights to privacy and do-not-track policies are important issues for marketers. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-15 Marketing Regulations and Ethical Considerations
 
35. Typical entry-level positions in marketing include: marketing coordinator, marketing assistant, marketing analyst, and sales representative. 
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-07 Summarize careers that exist in marketing.
Topic: 01-16 Marketing Careers

Multiple Choice Questions

36. Often, students believe marketing revolves around slick commercials and fancy promotions. But the ultimate objective is to _______ for a company. 
A. create a loyalty program
B. drive profits
C. add value for the customer
D. retention plan
For our purposes, marketers' ultimate objectives are to drive profits for a company, or if working the non-profit sector, to generate revenue and support to fund programs and run operations.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-01 The Role of Marketing
 
37. What is the essence of successful marketing? 
A. focusing on customers' needs
B. making money
C. making the exchange
D. retention plan
The essence of successful marketing is focusing on customer needs and developing programs that delight customers and encourage loyalty.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-02 Focusing on Customer Needs and Wants

38. The unique combination of benefits received by targeted consumers that include quality, price, convenience, delivery, and both before-sale and after-sale service is called customer _____. 
A. loyalty program
B. value
C. convenience
D. retention plan
For our purposes, customer value is the unique combination of benefits received by targeted consumers that includes quality, price, convenience, delivery, and both before-sale and after-sale service.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value
 
39. Walmart's mission includes developing a combination of benefits for its customers through quality products at reasonable prices with quality service, and giving its customers the best products at the best price. This statement represents the company's strategies at achieving _____. 
A. production orientation
B. a diverse marketing mix
C. a societal marketing concept
D. customer value
Customer value is the unique combination of benefits received by targeted consumers that includes quality, price, convenience, delivery, and both before-sale and after-sale service.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value

40. Chang, the marketing manager of Urban Companies, is analyzing the specific group of existing and potential customers for the launch of Urban's new product. Which of the following is Chang identifying? 
A. marketing mix
B. promotional programs
C. target market
D. marketing process
A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value
 
41. The specific group(s) of existing and potential consumers to which marketers direct their marketing efforts is referred to as a _____. 
A. mass market
B. tangent market
C. market aggregation
D. target market
A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value

42. A target market is: 
A. one or more specific groups of existing and potential consumers toward which a marketer directs its marketing efforts.
B. the one specific group of potential consumers on which an organization concentrates its marketing efforts.
C. the distribution chain by which products reach consumers.
D. a means of communication between buyers and sellers.
A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value
 
43. Sound and Cinema is a 10-year-old company that turns an ordinary basement into a home theatre. It advertises in publications that are mailed to homeowners in subdivisions in which the least expensive home costs $475,000. These homeowners are the _____ market for Sound and Cinema. 
A. mass
B. tangent
C. experiential
D. target
A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value

44. An educational software company is developing a new line of computer software to teach preschoolers letter and number recognition. What is the primary target market for this new product? 
A. only preschoolers
B. only adults
C. adults with preschool-aged children
D. adults who have an interest in educational toys
A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts. While the market for this new line of computer software is parents with children three to six years old, the marketing also needs to focus on the children, who may exert some influence over their parents. Therefore, we see the target market for the product includes both children and parents.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value
 
45. Which of the following is not an element of the marketing mix? 
A. product
B. price
C. politics
D. promotion
The elements of the marketing mix—known as the 4 Ps, product, price, place, and promotion—need to be carefully managed by marketers to ensure that they are well coordinated and that each appeals to the distinct characteristics of the target market. Politics is not an element of the marketing mix.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

46. Jack Farms Gourmet Bread Base is the brand name for a mix designed for use in bread machines. The mixes are sold in two-pound packages for $14.99 plus postage. The products are available only through mail. People learn about the product through word-of-mouth and through bread machine demonstrations the company's founder gives to groups in the Greater Toronto Area, where she lives. This is a description of the company's _____. 
A. growth plan
B. market segmentation strategy
C. mission statement
D. marketing mix
The elements of the marketing mix—known as the 4 Ps, product, price, place, and promotion—need to be carefully managed by marketers to ensure that they are well coordinated and that each appeals to the distinct characteristics of the target market.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
47. Product design, pricing strategies, and service elements create _____. 
A. customer value
B. sales orientation
C. a marketing concept
D. relationship marketing
Creating products with added value is often achieved through a combination of (1) product design, (2) pricing strategies, and (3) service elements.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value

48. Roxta Confectioners has launched two new products—Big Bear Candy for children and Dark Coffee Sticks for adults. Roxta has set up a different approach for each product. Big Bear Candy will be sold at $0.99 at all retail stores, close to the cash counters. Dark Coffee Sticks will be sold at $4.99, and instead of being merchandised at cash counters, it will be on the shelves of many grocery stores. Roxta has decided to advertise Big Bear Candy to children through television ads. It has also conducted events and games to "Meet Big Bear." For Dark Coffee Sticks, Roxta has tried to connect with adults through newspaper ads and social media. Roxta has been successful in realizing profits through its two products. Roxta has developed two products for two specific groups of potential customers. What are these groups called? 
A. consumers
B. target market
C. strategic market
D. loyalty program members
A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts. In this case, the small children and the adults are Roxta's target market.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value

49. Roxta Confectioners has launched two new products—Big Bear Candy for children and Dark Coffee Sticks for adults. Roxta has set up a different approach for each product. Big Bear Candy will be sold at $0.99 at all retail stores, close to the cash counters. Dark Coffee Sticks will be sold at $4.99, and instead of being merchandised at cash counters, it will be on the shelves of many grocery stores. Roxta has decided to advertise Big Bear Candy to children through television ads. It has also conducted events and games to "Meet Big Bear." For Dark Coffee Sticks, Roxta has tried to connect with adults through newspaper ads and social media. Roxta has been successful in realizing profits through its two products. Which of the following elements of the marketing mix explains Roxta's activity to sell Big Bear Candy at the cash counters and Dark Coffee Sticks on the shelves? 
A. place
B. promotion
C. price
D. packaging
Place reflects the distribution channels, retail formats, and merchandising used to sell the product. In this scenario, place reflects Roxta's decision to sell Big Bear Candy at the cash counters and Dark Coffee Sticks on the shelves.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

50. Roxta Confectioners has launched two new products—Big Bear Candy for children and Dark Coffee Sticks for adults. Roxta has set up a different approach for each product. Big Bear Candy will be sold at $0.99 at all retail stores, close to the cash counters. Dark Coffee Sticks will be sold at $4.99, and instead of being merchandised at cash counters, it will be on the shelves of many grocery stores. Roxta has decided to advertise Big Bear Candy to children through television ads. It has also conducted events and games to "Meet Big Bear." For Dark Coffee Sticks, Roxta has tried to connect with adults through newspaper ads and social media. Roxta has been successful in realizing profits through its two products. Roxta used television ads and "Meet the Bear" events for its Big Bear Candy, while it used social media and newspaper ads for Dark Coffee Sticks. Which element of the marketing mix has Roxta used? 
A. price
B. place
C. packaging
D. promotion
This refers to the promotion element of the marketing mix. Promotion refers to the communication tools needed to inform consumers about the product, including advertising, public relations, sales promotion, public relations, direct response, event marketing and sponsorship, and personal selling.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

51. Roxta Confectioners has launched two new products—Big Bear Candy for children and Dark Coffee Sticks for adults. Roxta has set up a different approach for each product. Big Bear Candy will be sold at $0.99 at all retail stores, close to the cash counters. Dark Coffee Sticks will be sold at $4.99, and instead of being merchandised at cash counters, it will be on the shelves of many grocery stores. Roxta has decided to advertise Big Bear Candy to children through television ads. It has also conducted events and games to "Meet Big Bear." For Dark Coffee Sticks, Roxta has tried to connect with adults through newspaper ads and social media. Roxta has been successful in realizing profits through its two products. By identifying the needs of the two different target groups for its two products, and devising a marketing mix to launch its products successfully, Roxta shaped the elements of the marketing mix to create a _____. 
A. sales strategy
B. marketing program
C. promotional offer
D. marketing process
In short, the marketing process involves (1) identifying consumer needs, (2) managing the marketing mix to meet these needs, and (3) realizing profits, or in the case of non-profits, securing revenues or providing services to those in need.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
52. An attribute that makes up a good, a service, or an idea, including product design, features, colour, packaging, warranty, and service levels is called _____. 
A. a good
B. distribution
C. pricing
D. a product
All the attributes that make up a good, a service, or an idea, including product design, features, colour, packaging, warranty, and service levels.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

53. Event marketing is an example of _____. 
A. distribution
B. a product
C. promotion
D. pricing strategy
The communication tools needed to inform consumers about the product, including advertising, public relations, sales promotion, public relations, direct response, event marketing and sponsorship, and personal selling.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
54. Helga is responsible for identifying communication tools needed to connect with the consumers and inform them about her company's product. Which of the following aspects of the marketing mix does Helga deal with? 
A. pricing
B. packaging
C. product
D. promotion
Promotion refers to the communication tools needed to inform consumers about the product, including advertising, public relations, sales promotion, public relations, direct response, event marketing and sponsorship, and personal selling.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

55. The Whirlpool Corporation creates home appliances to make life easier and more enjoyable for people. This statement concerns the _____ element of the marketing mix. 
A. product
B. process
C. price
D. place
Product refers to the attributes that make up a good, a service, or an idea, including product design, features, colour, packaging, warranty, and service levels.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
56. Which element of the marketing mix is demonstrated when a company manufactures a low-calorie chocolate chip cookie? 
A. product
B. price
C. promotion
D. place
Product refers to all the attributes that make up a good, a service, or an idea, including product design, features, colour, packaging, warranty, and service levels.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

57. The owners of Old School Brand Authentic Antique Foods researched cookbooks to come up with recipes for the old-fashioned products they market. Concern about the _____ element of the marketing mix would make them eager to be featured in an upcoming edition of Taste of Home magazine. 
A. product
B. price
C. promotion
D. place
Promotion refers to the communication tools needed to inform consumers about the product, including advertising, public relations, sales promotion, public relations, direct response, event marketing and sponsorship, and personal selling.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
58. The element of the marketing mix demonstrated when a company places an ad in the Yellow Pages is _____. 
A. product
B. price
C. promotion
D. place
Promotion refers to the communication tools needed to inform consumers about the product, including advertising, public relations, sales promotion, public relations, direct response, event marketing and sponsorship, and personal selling.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

59. Which element of the marketing mix is demonstrated when an art gallery suggests a $2.00 donation at the door? 
A. product
B. price
C. promotion
D. place
Price refers to the expected regular retail or sale price for a product, which in this case is the viewership of the art gallery.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
60. To attend the winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall door. This statement is most closely related to the _____ element of the marketing mix. 
A. product
B. process
C. production
D. price
Price refers to the expected regular retail or sale price for a product. In this case, the unwrapped toy is the price of the winter concert.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

61. The element of the marketing mix demonstrated when a newspaper carrier throws a paper on the front porch is _____. 
A. product
B. price
C. place
D. promo
Place refers to the distribution channels, retail formats, and merchandising used to sell the product. In this case, the newspaper carrier throwing the paper on the front porch refers to the place element of the marketing mix.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix
 
62. The ability to buy a soda from a vending machine demonstrates the _____ element of the marketing mix. 
A. product
B. price
C. promotion
D. place
Place refers to the distribution channels, retail formats, and merchandising used to sell the product. In this case, the vending machine is the place element of the marketing mix.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-02 Define and analyze elements of the marketing mix.
Topic: 01-04 Coordinating the Marketing Mix

63. Which of the following is true of the marketing process? 
A. It is the process of drawing attributes that make up a good, a service, or an idea, including product design, features, colour, packaging, warranty, and service levels.
B. It refers to the process of analysing distribution channels, retail formats, and merchandising used to sell the product.
C. It involves defining the specific group of existing customers to which marketers direct their marketing efforts.
D. It involves identifying consumer needs, managing the marketing mix for these needs, and realizing profits and revenues.
In short, the marketing process involves (1) identifying consumer needs, (2) managing the marketing mix to meet these needs, and (3) realizing profits, or in the case of non-profits, securing revenues or providing services to those in need.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process
 
64. _____ is the trade of things of value between buyers and sellers so that each benefits. 
A. Exchange
B. Promotion
C. Marketing
D. Production
Exchange is the trade of things of value between buyers and sellers so that each benefits.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process

65. After an assessment of needs, a marketing manager must: 
A. develop a marketing strategy.
B. manage the marketing mix.
C. create a macromarketing program.
D. design a micromarketing program.
The marketing process involves (1) identifying consumer needs, (2) managing the marketing mix to meet these needs, and (3) realizing profits, or in the case of non-profits, securing revenues or providing services to those in need.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process
 
66. _____ is described as the process of planning and managing goods, services, or ideas to meet consumer needs and organizational objectives. 
A. Creative planning
B. Advertising
C. Selling
D. Marketing
Marketing is described as the process of planning and managing goods, services, or ideas to meet consumer needs and organizational objectives.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process

67. Which of the following is true of marketing? 
A. It seeks to fulfill the objectives of the buyers.
B. It seeks to generate revenue and profits for the sellers.
C. It refers to the activity of communicating the product to the target market.
D. It includes the conception of a product, and its pricing, placing, and promotion to make a profit.
It includes the conception of these products, and the pricing, promotion, and distribution programs designed to make a profit and generate revenue or support for an organization.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process
 
68. The two central concerns of marketing are: 
A. market share and customer satisfaction.
B. to meet customer needs and organizational objectives.
C. promotion and sales.
D. maximizing an organization's sales and products.
Marketing is described as the process of planning and managing goods, services, or ideas to meet consumer needs and organizational objectives.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process

69. Which of the following is an example of a good? 
A. an airline flight
B. a new dinner set
C. a blood donation to the Red Cross
D. participation in a walk to raise funds to fight multiple sclerosis
A good is a product you can touch and own, such as a dinner set.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Differentiate between goods; services; and ideas.
Topic: 01-06 What Can Be Marketed?
 
70. _____ includes the conception of products, and the pricing, promotion, and distribution programs designed to make a profit and generate revenue or support for an organization. 
A. Marketing strategy
B. Marketing
C. A macromarketing program
D. A micromarketing program
Marketing includes the conception of these products, and the pricing, promotion, and distribution programs designed to make a profit and generate revenue or support for an organization.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process

71. Which of the following is an example of a service? 
A. a new minivan
B. a donation to a church
C. wearing a ribbon for breast cancer awareness
D. professional landscaping of a front yard
A service is an intangible product you cannot touch, such as the services provided by a professional for landscaping a front yard.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Differentiate between goods; services; and ideas.
Topic: 01-06 What Can Be Marketed?
 
72. Which of the following is an example of an idea? 
A. a political campaign
B. new kitchen appliances
C. income tax return preparation
D. chocolate chip cookies
An idea is a concept that typically looks for support.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-04 Differentiate between goods; services; and ideas.
Topic: 01-06 What Can Be Marketed?

73. The term market is best defined as: 
A. people with a need and a want for a product.
B. organizations with the need and desire for a product.
C. organizations with products that satisfy people's needs and wants.
D. potential consumers with both the willingness and ability to buy.
The term market is used in marketing to describe potential consumers who have both the willingness and ability to buy a product.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-04 Differentiate between goods; services; and ideas.
Topic: 01-07 What Is a Market?
 
74. The _____ stage refers to the stage when organizations focused efforts on manufacturing goods, up until the 1930s. 
A. relationship orientation
B. production orientation
C. marketing concept
D. sales
Up until the 1930s, businesses were in the production orientation stage. This stage focused on manufacturing, which until the industrial revolution was not a widespread phenomenon.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

75. In the early 1900s, goods tended to sell, regardless of their quality, because they were in short supply, while consumer needs were not a priority. This is true of the _____ stage. 
A. production orientation
B. sales
C. marketing concept
D. societal marketing concept
The production orientation stage focused on manufacturing, which until the industrial revolution was not a widespread phenomenon. Manufactured goods tended to sell, regardless of their quality, because they were in short supply. Consumer needs were not a priority.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
76. In the 1930s, it was thought that production creates its own demand, and American companies began to produce more goods than their regular buyers could consume. At the same time, competition became more significant, and the problems of reaching the market became more complex. These changes led to the _____ stage. 
A. product orientation
B. production orientation
C. sales orientation
D. marketing concept orientation
In the sales orientation stage, the market became more competitive, production became more efficient, and products were in abundance. Companies started to hard-sell to make a profit, and consumer needs were still not a major consideration.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

77. In the _____ stage, manufacturers focused organizational efforts on selling as many products as possible, and started to hard-sell to make a profit. 
A. Great Depression
B. production orientation
C. marketing concept
D. sales orientation
The second stage, from the 1930s to the 1960s, was the sales orientation stage. This stage focused on selling as many products as possible. Companies started to hard-sell to make a profit, and consumer needs were still not a major consideration.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
78. Which of the following statements explains why businesses moved from the production orientation stage to the sales orientation stage? 
A. The population was moving away from urban areas.
B. There were too many customers to serve.
C. Competition grew as the production of goods increased.
D. Advertising was becoming a major marketing force.
The second stage, from the 1930s to the 1960s, was the sales orientation stage. This stage focused on selling as many products as possible. The market had become more competitive, production had become more efficient, and products were in abundance.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

79. In the 1960s, organizations focused on the idea that an organization should strive to satisfy the needs of consumers while trying to achieve organizational goals. This is true of the _____ orientation stage. 
A. marketing
B. production
C. sales
D. societal marketing
The marketing orientation stage focuses on the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve an organization's goals.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
80. The _____ orientation stage focuses organizational efforts to collect and use information about customers' needs to create customer value. 
A. production
B. marketing
C. advertising
D. sales
The marketing orientation stage focuses on the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve an organization's goals.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

81. Which of the following statements about the marketing orientation stage is true? 
A. During the marketing orientation stage, companies tried to satisfy the needs of consumers while also achieving the organization's goals.
B. During the marketing orientation stage, companies tried to satisfy the wants of the consumer at all costs.
C. During the marketing orientation stage, companies believed that if you produced as much as possible, at the highest quality level, for the lowest price, the product will sell itself.
D. All firms are now operating with a marketing orientation philosophy.
The marketing concept stage focuses on the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve an organization's goals. The marketing orientation stage follows this idea.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
82. An organization that focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value is said to: 
A. put stress on the societal marketing concept.
B. have a focus on macromarketing.
C. have a non-profit orientation.
D. have a marketing orientation.
An organization that has a marketing orientation focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

83. Which of the following businesses is least likely to be able to engage in relationship marketing? 
A. a beach shop that sells tourist mementos
B. a local restaurant that specializes in home-style food
C. a neighbourhood convenience store
D. a movie theatre
Formally, the concept of relationship marketing is when organizations create long-term links with their customers, employees, suppliers, and other partners to increase loyalty and customer retention.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
84. Stagistics and v3 Technologies, two top vendors of supply chain management software, have recently launched their own online trading exchange aimed at increasing the ease with which their customers can distribute products and ideas. Both of these organizations provide exceptional, ongoing service to their business customers. These two organizations hope to benefit from _____. 
A. customer relationship management
B. societal marketing concept
C. customer orientation
D. product valuation
Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

85. Happy Traveller Ltd. has designed a program that allots its customers reward points each time its members hire the company to book their holidays. It has also introduced discounted Christmas and New Year holiday vacation packages only for its members and long time customers. Happy Traveller Ltd. has also expressed its support for a cancer foundation, donating a substantial sum of money to the foundation. The cancer foundation has announced Happy Traveller Ltd. as one of its patrons. Which stage of business is Happy Traveller Ltd. most likely at? 
A. production orientation
B. sales orientation
C. relationship marketing orientation
D. promotional orientation
The relationship marketing stage sees organizations considering the lifetime value of their customers and striving to offer better services, higher-quality product, and meaningful long-term relationships. Happy Traveller Ltd. is providing these through its loyalty and membership programs.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

86. Happy Traveller Ltd. has designed a program that allots its customers reward points each time its members hire the company to book their holidays. It has also introduced discounted Christmas and New Year holiday vacation packages only for its members and long time customers. Happy Traveller Ltd. has also expressed its support for a cancer foundation, donating a substantial sum of money to the foundation. The cancer foundation has announced Happy Traveller Ltd. as one of its patrons. Happy Traveller's reward points program for its members is an example of _____. 
A. customer relationship management
B. sales orientation
C. corporate social responsibility
D. promotional partnership
Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. These approaches emphasize customer retention and ongoing customer satisfaction rather than short-term transactions. Happy Traveller Ltd. carefully uses information on customer interests to develop relationships with customers and retain their loyalty.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

87. Happy Traveller Ltd. has designed a program that allots its customers reward points each time its members hire the company to book their holidays. It has also introduced discounted Christmas and New Year holiday vacation packages only for its members and long time customers. Happy Traveller Ltd. has also expressed its support for a cancer foundation, donating a substantial sum of money to the foundation. The cancer foundation has announced Happy Traveller Ltd. as one of its patrons. Which of the following is true of Happy Traveller's support of the cancer foundation? 
A. The company aims to deliver superior customer value and satisfaction through improvised products and services.
B. The company is striving to satisfy the needs of consumers and achieve organizational goals.
C. The company aims to identify consumer needs and manage the marketing mix to meet these needs.
D. The company aims to establish a socially responsible image and express that it shares its customers' values and interests.
Corporate social responsibility (CSR) has become an important part of the relationship marketing stage with companies realizing that consumers want to be associated with companies that share their values and interests. Happy Traveller Ltd. aims to do so by supporting the cancer foundation.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

88. _____ is an approach rooted in the knowledge that it is less expensive to service and maintain current customers than to obtain new ones. 
A. Relationship marketing
B. A customer-oriented marketing mix
C. Market orientating
D. Customer relationship management
Database technology has surfaced as a tool that facilitates relationship marketing by putting a focus on customer relationship management (CRM) for the marketing industry. This approach is rooted in the knowledge that it is less expensive to service and maintain current customers than to obtain new ones.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
89. _____ is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. 
A. Chain marketing
B. Viral marketing
C. Hard-sell strategy
D. Customer relationship management
Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

90. In the non-profit world of the performing arts, box office technology has essentially remained the same since the 1980s. A company named Intellitex is trying to change that. Intellitex is able to track every transaction with patrons on one database—from tickets and fundraising to volunteering and gift shop purchases. This technology will allow arts groups to develop detailed customer profiles, which helps symphonies, operas, and theatres tailor their sales pitches to individuals. In other words, Intellitex is going to allow arts groups to engage in: 
A. market aggregation.
B. customer relationship management.
C. industry reciprocity.
D. customer aesthetics.
Intellitex, through its initiatives, is going to allow arts groups to engage in customer relationship management. Database technology has surfaced as a tool that facilitates relationship marketing by putting a focus on customer relationship management (CRM) for the marketing industry.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
91. A business traveller joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he accumulates enough points, he can trade them in for a free night's stay. As a member of this program, the traveller receives periodic updates on new hotels and learns of ways to earn additional points. This is an example of _____. 
A. customer relationship management
B. societal marketing
C. partnership marketing
D. customer valuation
This is an example of customer relationship management. Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

92. Which of the following statements about customer relationship management is true? 
A. Relationship management has a short-term focus on increasing profits.
B. Relationship management is easy to implement.
C. In an ideal setting, relationship management is a personal, ongoing, long-term relationship.
D. Very few companies today are engaged in relationship management.
The relationship marketing stage sees organizations considering the lifetime value of their customers and striving to offer better services, higher-quality product, and meaningful long-term relationships.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
93. Corporate social responsibility (CSR) is: 
A. the moral principles and values that govern the actions and decisions of an entire group.
B. the view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society's well-being.
C. the process of actively trying to understand customer needs and satisfying them as well as the firm's goals.
D. a concept where organizations voluntarily consider the well-being of the larger society.
Corporate social responsibility (CSR) has become an important part of the relationship marketing stage with companies realizing that consumers want to be associated with companies that share their values and interests.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

94. Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each a month? 
A. the profit motive
B. the regulatory environment
C. its internal environment
D. the corporate social responsibility concept
Corporate social responsibility (CSR) explains Pfizer's actions in this example. CSR is an approach where companies consider the well-being of society as part of their business approach, with companies such as the Bank of Montreal reducing its greenhouse gas emissions by 5 percent over a three-year period. CSR is a concept where organizations voluntarily consider the well-being of society by taking responsibility for how their businesses impact consumers, customers, suppliers, employees, shareholders, communities, the environment, and society in general.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

95. In the past, Burger King, Wendy's, and McDonald's used to market their burgers in non-biodegradable Styrofoam containers. In response to calls from the public to use more environmentally friendly materials, most fast-food marketers use paper containers for their burgers. Indeed, many such containers are made from recycled materials. This is an example of _____. 
A. macromarketing by the fast-food chains
B. corporate social responsibility marketing
C. reverse marketing
D. consumer valuation
This is an act of corporate social responsibility (CSR) marketing by the fast-food manufacturers. CSR is an approach where companies consider the well-being of society as part of their business approach, with companies such as the Bank of Montreal reducing its greenhouse gas emissions by 5 percent over a three-year period. CSR is a concept where organizations voluntarily consider the well-being of society by taking responsibility for how their businesses impact consumers, customers, suppliers, employees, shareholders, communities, the environment, and society in general.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
96. Myworld Ltd. is one of the organizations that voluntarily considers the well-being of society by taking responsibility for how their businesses impact society in general. By doing so, Myworld is engaging in _____. 
A. corporate social responsibility
B. customer relationship management
C. the essence of marketing
D. a marketing mix
CSR is a concept where organizations voluntarily consider the well-being of society by taking responsibility for how their businesses impact consumers, customers, suppliers, employees, shareholders, communities, the environment, and society in general.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

97. A cosmetics-selling company decides to manufacture and sell a new range of products under the label "environment friendly," promising that the products are not animal-tested and are made with natural ingredients. This is an example of _____. 
A. customer relationship management
B. production orientation stage
C. marketing orientation stage
D. societal marketing
The marketing community is also putting an increased focus on the well-being of society and the environment. It is commonplace to now see marketing programs include a component that addresses these needs, an approach described as the societal marketing concept.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
98. The societal marketing concept: 
A. includes the moral principles and values that govern the actions and decisions of an entire group.
B. believes in the idea that organizations are a part of a larger society and organizations should develop a relationship with them to be able to sell their products.
C. aims to actively try to understand customer needs and satisfy them as well as the firm's goals.
D. refers to the view that an organization should focus on the consumer and the well-being of society and the environment.
The marketing community is also putting an increased focus on the well-being of society and the environment. It is commonplace to now see marketing programs include a component that addresses these needs, an approach described as the societal marketing concept.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

99. The businesses in a particular neighbourhood of Winnipeg are of the view that an organization should assess and satisfy the needs of customers in a way that also provides for society's well-being. This view is referred to as _____. 
A. the societal marketing concept
B. experiential marketing
C. consumerism
D. customer relationship management
The marketing community is also putting an increased focus on the well-being of society and the environment. It is commonplace to now see marketing programs include a component that addresses these needs, an approach described as the societal marketing concept.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
100. Starbucks interacts with customers using Facebook, Twitter and Instagram. They also encourage customers to use mobile payments and submit suggestions through their Starbucks app. These approaches exemplify: 
A. Content marketing
B. Societal marketing
C. Digital marketing
D. Partnership marketing
Digital marketing uses electronic means to reach consumers through computers and mobile devices.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-10 Digital Marketing

101. Many business-to-business marketers use _____ to attract customers through blogs, research papers and webinars. 
A. real time marketing
B. content marketing
C. partnership marketing
D. social media marketing
With content marketing, companies focus on providing customers with information and expertise designed to inform and engage them.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-10 Digital Marketing
 
102. When brands make themselves relevant online during popular events or newsworthy occurrences, it is called: 
A. Content marketing
B. Societal marketing
C. Partnership marketing
D. Real-time marketing
Real-time marketing focuses on engaging consumers online with connection to popular events or news items.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-11 Real-Time Marketing

103. Engaging customers online during the buzz that accompanies the Super Bowl or Academy Awards is an example of: 
A. Partnership marketing
B. Content marketing
C. Real-time marketing
D. Societal marketing
With real-time marketing, companies try to join or start conversations with customers in ways that connect to current events.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-11 Real-Time Marketing
 
104. Experiential marketing is an approach where marketers: 
A. create a loyalty card system where customers redeem gifts in exchange for points.
B. apply social marketing techniques.
C. create opportunities for consumers to interact directly with brands.
D. track radio media results.
Experiential marketing is an approach where marketers create opportunities for consumers to interact directly with a brand. Instead of relying on mass media, a brand creates an occasion for a few consumers to interact personally with it and then spread the word to others.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-12 Experiential Marketing

105. Word-of-mouth awareness is generated by _____. 
A. customer relationship management
B. sales orientation stage
C. experiential marketing
D. outbound telemarketing
Experiential marketing is an approach where marketers create opportunities for consumers to interact directly with a brand. Instead of relying on mass media, a brand creates an occasion for a few consumers to interact personally with it and then spread the word to others. This builds awareness and generates word-of-mouth buzz and other forms of publicity for the brand.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-12 Experiential Marketing
 
106. When Absolut vodka launched the CUT brand, no traditional media was used during the launch. Instead, the company used nightclub venues and created a spot for people to try the product for free. This is an example of _____. 
A. pricing strategies
B. direct marketing
C. customer relationship marketing
D. experiential marketing
Experiential marketing is an approach where marketers create opportunities for consumers to interact directly with a brand. Instead of relying on mass media, a brand creates an occasion for a few consumers to interact personally with it and then spread the word to others.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-12 Experiential Marketing

107. Instead of using mass media, Mycoffee Ltd. creates an occasion for a few consumers to interact personally with the brand, taste its coffees, and spread the word to their friends. This is referred to as _____. 
A. experiential marketing
B. sales orientation stage
C. marketing mix
D. corporate social responsibility
Experiential marketing is an approach where marketers create opportunities for consumers to interact directly with a brand. Instead of relying on mass media, a brand creates an occasion for a few consumers to interact personally with it and then spread the word to others.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-12 Experiential Marketing
 
108. Seven Eleven Shopping Mart has launched an offer to attract more customers. It will be giving discounted movieonline.com coupons to all customers who make purchases of $75 and above at any Seven Eleven store. The offer is valid on three special days. Seven Eleven is also hosting a "Have Fun Fair" at all stores, which includes children's scavenger hunts, a jumping castle, bingo, and educational demonstrations. Seven Eleven will be presenting the winners with free shopping coupons worth $100 at its stores. Which marketing practice has Seven Eleven adopted when hosting fairs at all its stores and giving out prizes to winners at the fair? 
A. digital marketing
B. strategic marketing
C. strategic alliance
D. experiential marketing
Seven Eleven has adopted experiential marketing. Experiential marketing is an approach where marketers create opportunities for consumers to interact directly with a brand. Instead of relying on mass media, a brand creates an occasion for a few consumers to interact personally with it and then spread the word to others. This builds awareness and generates word-of-mouth buzz and other forms of publicity for the brand.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-12 Experiential Marketing

109. Seven Eleven Shopping Mart has launched an offer to attract more customers. It will be giving discounted movieonline.com coupons to all customers who make purchases of $75 and above at any Seven Eleven store. The offer is valid on three special days. Seven Eleven is also hosting a "Have Fun Fair" at all stores, which includes children's scavenger hunts, a jumping castle, bingo, and educational demonstrations. Seven Eleven will be presenting the winners with free shopping coupons worth $100 at its stores. Which of the following strategies of marketing has Seven Eleven Shopping Mart adopted when giving out discounted movieonline.com coupons to its customers? 
A. partnership marketing
B. digital marketing
C. experiential marketing
D. strategic alliance
The intent of partnership marketing is to create formal associations between brands that will result in incremental business for both brands that could not have been achieved separately. In this scenario, Seven Eleven has adopted partnership marketing with movieonline.com.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-13 Partnership Marketing
 
110. Seven Eleven Shopping Mart has launched an offer to attract more customers. It will be giving discounted movieonline.com coupons to all customers who make purchases of $75 and above at any Seven Eleven store. The offer is valid on three special days. Seven Eleven is also hosting a "Have Fun Fair" at all stores, which includes children's scavenger hunts, a jumping castle, bingo, and educational demonstrations. Seven Eleven will be presenting the winners with free shopping coupons worth $100 at its stores. Which of the following is true of Seven Eleven's partnership with movieonline.com? 
A. Seven Eleven and movieonline.com have a formal strategic alliance to increment their business.
B. The parties have a promotional partnership.
C. Their partnership is an example of traditional marketing.
D. Seven Eleven and movieonline.com are practising the societal marketing concept.
Partnerships can be simple promotional partnerships and involve short-term offers.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-13 Partnership Marketing

111. With any promotional campaign, measuring impact and effectiveness are critical to success. Digital marketing offers marketers detailed measures of impact through: 
A. Sales reports
B. Metrics and analytics
C. Partnership marketing
D. Marketing audits
Metrics and analytics software can measure and track online sales activity and drill down into the origin of each sale.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-14 Metrics and Analytics

Short Answer Questions
 
112. What is customer value? 
Customer value is the unique combination of benefits received by targeted consumers that includes quality, price, convenience, delivery, and both before-sale and after-sale service. Marketers work diligently to deliver this value by carefully managing each element of the marketing mix (product, price, place, and promotion) so that this value is evident to consumers who in turn purchase or use the products.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value

113. What is a target market? Give an example. 
Students' examples may vary.

A target market can be formally defined as the specific group of existing and potential consumers to which marketers direct their marketing efforts. Marketing efforts are geared to appeal to a product's specific target market, ensuring that each element of the marketing mix appeals to the characteristics of the target group. For example, the target market for candies will most likely be children.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-03 Creating Customer Value
 
114. The marketing process is a continuous one that requires marketers to pay attention to detail and apply their strategic, analytical, and creative-thinking skills. List the three steps of the marketing process cycle. 
1) Identify consumer needs

2) Manage the marketing mix to meet these needs

3) Realize profits. Throughout the cycle, marketers constantly evaluate the success of their programs, implementing and recommending future changes to make the programs more competitive and alluring to their consumers.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process

115. Marketing is NOT simply advertising or selling. Explain. 
Initially, students have trouble distinguishing between advertising/sales and marketing. Good explanations must discuss identification of wants/needs before any product is produced or advertised or sold. Ultimately, marketing is about people and not products.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-01 The Role of Marketing
 
116. What is exchange? Give an example of consumer exchange without money. 
Students' examples may vary.

Exchange is the trade of things of value between buyers and sellers so that each benefits. Typically, the trade is money for a product or service. However, there is more to exchange than just money. A consumer may volunteer time with a non-profit organization such as Habitat for Humanity or the Canadian Lung Association, which in turn may satisfy the consumer's need to support the cause.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-03 Outline the steps in the marketing process.
Topic: 01-05 The Marketing Process

117. In marketing, the term product encompasses goods, services, and ideas. Explain each with an example. 
Students' examples may vary.

A good is a product you can touch and own. Example: a pair of running shoes. A service is an intangible product you cannot touch. It does not result in something you can take home. Example: a physiotherapy session. An idea is a concept that typically looks for your support. Example: Earth Hour encouraging Canadians to turn off their lights for one hour.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 01-04 Differentiate between goods; services; and ideas.
Topic: 01-06 What Can Be Marketed?
 
118. What is marketing? 
Marketing is described as the process of planning goods, services, and ideas to meet consumer needs and organizational objectives. The concept should be expanded throughout an entire organization and ensure that marketing is conducted ethically and will effectively serve the interests of society and the organization.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the role of marketing in an organization and the importance of meeting customer needs.
Topic: 01-02 Focusing on Customer Needs and Wants
 
119. What did the production orientation stage focus on? 
The production orientation stage focused on manufacturing, which until the industrial revolution was not a widespread phenomenon. Manufactured goods tended to sell, regardless of their quality, because they were in short supply. Consumer needs were not a priority.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

120. What does the marketing orientation stage focus on? 
The marketing orientation stage focuses on the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve an organization's goals. An organization that has a marketing orientation focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies
 
121. Explain the concept of corporate social responsibility (CSR). Give an example of an organization that includes CSR in its business plans. 
Students' examples may vary.

Corporate social responsibility is a concept where organizations voluntarily consider the well-being of society by taking responsibility for how their business impact consumers, customers, suppliers, employees, shareholders, communities, the environment, and society in general.

Marketing programs are beginning to include a component that addresses these needs, an approach described as the societal marketing concept. An example is when Maxwell House coffee instituted its "Brew Some Good" marketing program, raising awareness for Habitat for Humanity.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 01-05 Describe the evolution of different business philosophies.
Topic: 01-08 The Evolution of Business Philosophies

122. How have digital technologies like social media and mobile applications changed the world for marketers? 
Students should identify how much easier it has become to engage potential customers through social media. It is important that they also recognize the increased ability of marketers to target specific groups and measure results quickly.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 01-06 Describe new and evolving marketing practices.
Topic: 01-10 Digital Marketing