Chapter 1 Marketing and the Organization 1) Which answer best describes the marketing concept? A) Companies maximize sales by promoting their products and services B) Company profits relate directly to the sales of their products C) Companies achieve their profits through the satisfaction of the consumer D) Companies sell their products to specific target markets
2)
is concerned with inputs ands outputs. It involves producing goods economically and doing things right. A) Deficiency B) Efficiency C) Effectiveness D) Reliability
3) Once a product has been bought, customer satisfaction depends upon its perceived
performance compared to a buyer's A) expectations B) income C) efficiency D) effectiveness
.
4) Making marketing work requires much planning and effort across an organization.
Fundamentally, marketing planning functions at two levels: at a product/service level. A) competitor B) business C) price D) distributor
level and at a
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5) At the heart of the marketing planning process is the marketing
, which pulls together the planning process and defines the application of the marketing mix. A) mix B) concept C) matrix D) strategy
6) The management of a production-orientated company focuses on A) having a wide range of products B) becoming cost-focused C) better customer satisfaction D) defining the business in marketing terms
.
7) Which of the following corporate goals suggests a market driven business? A) A search for latent markets B) Maximum production efficiency C) Limited market research D) Relying on price and performance as a key to sales success
8) In response to the assertion that 'most new products fail' a market-driven organization would
most likely choose which response? A) Not if enough money and time is invested on development B) Therefore we must continue to concentrate on our successful markets C) That depends on the level of sales support offered D) Even so we must continue to reward the development of new products
9) Which of the following concepts is not a direct component of the marketing mix? A) Principle B) Product C) Price D) Promotion
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10) In Narver and Slater's study of the relationship between marketing and business performance,
which measure was not used to assess market orientation? A) Price orientation B) Customer orientation C) Competitor orientation D) Interfunctional coordination
11) Booms and Bitner argue that the 4Ps framework is not suitable for services marketing and
that a 7Ps approach is more suitable, which considers people, processes and evidence A) physical B) promotional C) political D) psychological
12) There is a major strike in your delivery firm. As a result all your products will arrive late and
out of date for your customer. Which of the 4Ps does this problem directly relate to? A) Product B) Place C) Price D) Promotion
13) Within marketing-orientated companies, employees who take development risks or make
uncalled for innovations should be . A) reprimanded B) asked to undertake psychological 're-programming' C) rewarded D) transferred to the marketing department
14) In order for a company to apply itself to the modern marketing concept, which of the
following goals is not central to that specific task? A) The integration of the marketing concept throughout the corporate structure B) A shift from producer to customer emphasis C) An increased awareness of production and distribution costs D) Satisfied customers become the essential corporate goal
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15) Which of the following corporate goals belongs to an internally-orientated company? A) A rapid reaction to market stimuli B) A high level of investment in consumer research C) Market segmentation by product D) Innovations and new approaches encouraged
16) Which of the following corporate activities does not fit within the concept of market-driven
management? A) Information gathering B) High levels of internal communication C) Developing implementable sales strategies D) Developing a highly structured, independent marketing department
17) One of the criticisms made about the 4-Ps' approach to marketing is that A) the concept fails to address the issue of distribution B) price should be given higher priority within the 4-Ps C) promotion should be divided into advertising and direct mail sections D) the concept is over simplistic in its approach to marketing
.
18) Recent studies have found a positive relationship between market orientation and business
. Market orientation has been found to have a positive effect on sales growth, market share and profitability. A) control B) performance C) cooperation D) analysis
19) What is the basic premise of the marketing concept? A) Meeting and exceeding customer needs better than the competition will improve
business performance B) Success lies in employing a forceful sales team C) A need to sell more products D) That to market efficiently managers must co-ordinate their efforts with the production department
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20) Which of the following statements does not adhere to a modern marketing concept? A) A set of specific goals B) An aim to meet and exceed customer needs C) An emphasis on producing the best possible product D) A competitive approach to the market
21) Which of the following best describes the creation of customer value? A) If a product or service is cheap enough customers will value it B) A convincing salesperson can persuade a customer that anything is valuable C) Customers must perceive value in the benefits offered by a product or service D) If a new product or service is clever customers will value it
22) From a marketing perspective change is viewed as . A) a continual threat to production levels B) central to the survival of the firm C) an obstacle to success that should be avoided if possible D) a problem primarily only for senior management
23) When faced with intensive competition, which reaction is most important to a company's
performance in a market driven business? A) Ignore the competition B) Greater interest in latent markets C) A continued belief in existing products D) Lower production costs to increase profits
24) Which of the following is not an accepted approach towards marketing? A) Marketing is an independent unit B) Marketing is an ideology C) Marketing is an orientation D) Marketing is a concept
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25) Strategically, product, price, place and promotions are factors that can be used in order to
gain
advantage over competing firms. A) competitive B) financial C) customer D) global
26) Which of the 4-Ps is related only to logistical considerations? A) Product B) Price C) Place D) Promotion
27) All of the following are limitations of the marketing concept, except A) over simplified framework B) constraint on innovation C) customer focussed business philosophy D) source of dullness
.
28) Which of the following is not an indication of marketing success? A) Corporate profitability B) Market share C) Improved economies of scale D) Share price
29) Which of the following is not a valid criticism of the marketing concept? A) Often disregards the importance of the customer B) Views the customer on an individualistic basis C) May discourage major innovation D) Ignores the societal impact of purchases
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30) Building relationships is central to marketing. Which of the following are likely benefits? A) Customers return to re-purchase from the firm B) Cheap products or services will attract customers C) Sales promotions can always persuade a customer to buy a product or service D) Greater profitability from each individual sale
31) What would be the most likely outcome for an effective yet inefficient company? A) Survival B) Rapidly out of business C) Slow death D) Thrives
32) Which of the following attributes is not central to a market-driven organization? A) Skills in understanding customers B) Market-led strategy C) Product performance is key to success D) Implementable marketing plans
33) Which of the following is not beneficial to a marketing-orientated business? A) Welcoming change B) Striving for competitive advantage C) An investment in market research and tracking market changes D) The creation of a tightly defined, independent marketing department
34) Which of the following is likely to influence the price of a product? A) Perceived value by the customer B) Promotional expenditure C) Negotiation margin D) All of the above may influence price
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35) Which of the following factors is most likely to constrain the marketing effort by a firm? A) Strong and efficient marketing staff B) Financial resources C) Company location D) All of the above
36) Customer value equals _ . A) maximum benefits minus maximum costs B) actual benefits minus actual sacrifice C) perceived benefits minus perceived sacrifice D) mean benefits minus mean costs
37) Perceived sacrifice is the sum of . A) monetary, time, energy and locational costs B) monetary, time, energy and psychological costs C) pricing, place, promotional and product costs D) energy, pricing, locational and psychological costs
38) Adopting a long term strategic perspective on markets and brands is a characteristic of a
. A) product orientated company B) marketing orientated company C) sales orientated company D) internally orientated company
39) Businesses that are driven by the market base their segmentation analysis on A) customer differences that have implications for marketing strategy B) the product C) previous sales performance D) profit expectation
.
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40) Which of the following is not one of the main characteristics of the Kano model? A) ‘Must be' B) ‘More is better' C) ‘Wants' D) ‘Delighters'
41) Which of the following is not beneficial to a marketing-orientated business? A) Welcoming change B) Striving for competitive advantage C) An investment in market research and tracking market changes D) The creation of a tightly defined, independent marketing department
42) Making marketing work requires much planning and effort across an organization.
Fundamentally, marketing planning functions at two levels: at a product/service level. A) competitor B) business C) price D) distributor
level and at a
43) Marketing has a central role to play in business success and focuses managers' attention on
attracting and keeping
.
44) To what extent do you think the marketing concept is actually implemented in most firms?
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45) Describe the difference between efficiency and effectiveness, and explain their role in the
future success of the firm.
46) Compare the concepts of customer value and corporate profit. To what extent are they in
conflict?
47) Discuss the key characteristics of a marketing-oriented company and explain how this
orientation differs from a company using a production orientation.
48) Explain how marketing-orientated companies go about creating customer value. Illustrate
your answer with examples.
49) Describe the elements of the classic marketing concept model.
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50) “Another perspective on business philosophy can be gained by understanding the distinction
between efficiency and effectiveness.” Discuss.
51) What is most likely to happen to a company that is efficient, yet ineffective? A) The company dies slowly. B) The company goes out of business quickly. C) The company survives. D) The company thrives.
52) According to Drucker (1999), the basic function of marketing is ... A) To attract and retain customers at a profit B) To attract customers at a profit C) To retain customers at any price D) To attract and retain customers at any price
53) The basic function of marketing is to ... and ... customer at a profit.
54) The costs of attracting new customers have been found to be up to ... times the costs of
retaining current ones. A) six B) ten C) three D) eight
55) Provide the definition of marketing according to Grönroos.
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56) Why is it important to not only understand what customers want but also what competitors
provide? A) Because customers may switch to rival suppliers when they have an offer that suits their needs better. B) Because companies need to do the same as their competitors. C) Because the competition is strong. D) There is no need to understand competitors offering.
57) How has the growth of the digital economy affected marketing practices? A) It has increased opportunities to gather, analyze and exploit customer data. B) It has influenced how we trade. C) It has influenced how we behave, interact and communicate. D) All of the above.
58) Market research found that 42% of companies do not listen to their customers or collect
feedback (Andrews, 2019). What does this suggest? A) A large number of companies do not place sufficient emphasis on their customers and their views. B) The market-oriented approach has not been adopted by the majority of companies. C) All departments in an organization recognize the importance of the customers. D) Companies should focus on their own products first.
59) According to market-driven businesses, marketing research expenditure is ... . A) An investment that yields rewards through understanding customers. B) An investment that is not preferred over anecdotes and received wisdom. C) A cost that must be avoided. D) An investment that increases efficiency
60) Consumers decide upon purchases based on the sum of customers' perceptions, and
reactions to a product or service expectations. A) evaluations; psychological B) evaluations; physical C) experience; psychological D) experience; physical
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61) ASOS, a successful online fashion retailer, focused on young consumers' desire to replicate
the looks of their favorite celebrities by offering affordable versions of celebrity styles. Which of the following have they succeeded in?
A) B) C) D)
creating customer satisfaction creating new products creating profit by lowering prices creating efficiency in their business
62) Customer satisfaction is taken so seriously that it is considered a and is what drives in
many industries. A) key succes factor; competition B) critical factor; competition C) critical factor; innovation D) competitive advantage; innovation
63) What is most likely to happen to a company that is inefficient, yet effective? A) The company survives. B) The company goes out of business quickly. C) The company dies slowly. D) The company does well, thrives.
64) What is most likely to happen to a company that is inefficient and ineffective? A) The company survives. B) The company goes out of business quickly. C) The company dies slowly. D) The company does well, thrives.
65) What is most likely to happen to a company that is efficient and effective? A) The company survives. B) The company goes out of business quickly. C) The company dies slowly. D) The company does well, thrives.
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66) Strategy is defined as a firm's conscious effort to use its resources to leverage advantage, and
adding a marketing perspective brings a valuable focus on how to use these resources to and make it more difficult for other firms to copy. A) stand out from the competition B) create value for the consumer C) create profit from sales D) create original content for the consumer
67) Tactical marketing is often viewed as the deployment of the marking mix and consists of four
major elements: A) product, price, promotion and place B) product, price, content and place C) product, content, promotion and place D) offer, price, promotion and place
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19) The acronym "AIDA" stands for which of the following? A) Awareness, Interest, Desire, Action B) Attention, Idea, Decision, Action C) Attention, Information, Distinguish, Action D) Awareness, Intention, Decision, Action
20) The awareness, trial, reinforcement (ATR) model sees a key role of advertising as which of
the following? A) Sees a key role of advertising as being to defend brands by reinforcing beliefs to retain existing customers B) Sees a key role of advertising as being to maximise the awareness of a brand to ensure that it is in consumers' evoked set of brands C) Sees a key role of advertising as being to maximise the image of a brand so that its promotional strategy is in align to its chosen positioning strategy D) Sees a key role of advertising as being to support personal selling and sales promotions in order to convert trial consumers into loyal customers
21) When developing an advertising strategy, which of the following is the first communication
decision which must be made? A) Define advertising objectives B) Set advertising budget C) Identify and understand target audience D) Identify positioning strategy
22) Which of the following is a method for setting the advertising budget? A) Percentage of purchases B) Percentage of sales C) Objective and goal method D) Authenticity
23) Which of the following is a form of advertising post-testing? A) Concept testing B) Readability tests C) Theatre tests D) Recognition tests
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24) Public relations is referred to as which of the following? A) Public relations is the use of communications tools for the process of managing
investor relations B) Public relations is the management of media relations so that a favourable reputation for the organisation is formed C) Public relations is the use of communications tools designed to create favourable publicity amongst stakeholders D) Public relations is the management of communications and relationships to establish goodwill and mutual understanding between an organization and its public
25) Public relations activities include which of the following? A) Corporate advertising B) Premiums C) Direct mail D) Brand advertising
26) Which of the following is not a public relations activity? A) Providing plant tours to stakeholders B) Management of sales promotion C) Lobbying D) Corporate advertising
27) Which of the following is a major aim of public relations? A) It can foster prestige and reputation B) It can increase short-term sales C) It can increase impulse purchases D) It can stimulate trial
28) The two-way
model of public relations assumes that power is not equally distributed between the stakeholders and the organization and therefore the purpose of PR is to influence attitudes and behaviour through persuasion. A) asymmetric B) symmetric C) systematic D) asystematic
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29) Publicity is which of the following? A) The communication about a product or organization through positive word of mouth
from the general public B) The communication about a product or organization through sponsorships, investor relations, media relations, event marketing and press releases C) The communication about a product or organization by placing news about it in the media without paying for the time or space directly D) The communication about a product or organization by placing news about it in the media through paid advertising and public relations
30) Sponsorship is referred to as which of the following? A) A business relationship between a provider of funds, resources and services and an
individual, event or organization which offers in return some rights and association that may be used for commercial advantage B) A business relationship between a company and a retailer, where the company pays a bonus to salespeople based on the amount of product sold in order to gain a competitive edge C) A business relationship between a company and the media, where the company supplies the media with information on important events in the organization D) A business relationship between a company and its customers that involves the business using incentives and inducements to stimulate purchase
31) Which of the following is the most popular sponsorship medium? A) Arts sponsorship B) Sponsoring community activities C) Sports sponsorship D) Sponsoring fairs
32) Which of the following is a major aim of sponsorship? A) Increase short-term sales B) Benefit from economies of scale C) Move stock D) Create entertainment opportunities
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33)
sponsorship is a growing form of sponsorship that involves sponsoring a television or radio programme. A) Media B) Station C) Broadcast D) Promotional
34) Sports sponsorship transfers which of the following values? A) Young, accessible, friendly, current, innovative and commercial B) Caring, concern, exploitive C) Healthy, young, energetic, fast, vibrant and masculine D) Admirable, concerned, caring, intelligent and explosive
35) The 'target audience' refers to which of the following? A) The group of people at which a product is aimed B) The group of people at which an advertisement or message is aimed C) The group of people which have past, present or future interest in the actions or
behaviour of a company D) The group of people referred to as stakeholders
36) Which type of consumer sales promotion gives added value to the consumer by giving them
extra quantity at no additional cost? A) Premiums B) Bonus packs C) Samples D) Coupons
37) When sales promotion is targeted at the trade, it is described as a A) give B) take C) pull D) push
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38) Which of the following is an objective of trade sales promotions? A) To encourage retailers to purchase smaller pack sizes B) To provide consumers with an incentive to buy C) To create goodwill among consumers D) To gain distribution and shelf space
39) Which of the following forms of consumer sales promotion is most likely to devalue the
brand in the eyes of the consumer if used long-term? A) Prize promotions B) Loyalty schemes C) Premiums D) Money-off promotions
40) Which of the following consumer promotions is an example of promotional 'premium'? A) Self-liquidating offers B) Self-promotional offers C) Off pack gifts D) Pay-in-mail offers
41) Why may a firm engage in trade promotions for retailers? A) Retailer may buy extra quantities B) Retailer may allow in- store demonstrations C) Get greater allocation of retailer shelf space D) All of the above are reasons
42)
-testing research is carried out after a sales promotion campaign ends to assess whether or not promotional objectives have been achieved. A) Post B) After C) Lead D) Lagged
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43) There are two types of research that can be used to evaluate sales promotion:
and
. A) inter-testing; intra-testing B) macro-testing; micro-testing C) pre-testing; post-testing D) in-testing; out-testing
44) Media relations messages are seen to be A) more costly than advertising B) more credible than advertising C) less targeted than advertising D) less organized than advertising
.
45) Which of the following is not a consumer sales promotion tool? A) Premiums B) Coupons C) Money off D) Allowances
46) Which of the following is a reason for the growth in sales promotions? A) Increased impulse purchasing B) Reduced advertising clutter C) Lengthening time horizons D) Decreased impulse purchasing
47) Which of the following is not a key task of a media relations department? A) Responding to requests from the media B) Paying the media for the time and space to promote a company/brand C) Supplying the media with information on events relevant to the organization D) Stimulating the media to carry the information and the viewpoint of the organization
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48) Public relations activities include . A) media relations, corporate advertising and sponsorship B) media relations, lobbying and sales promotions C) media relations, seminars and direct mail D) media relations, seminars and telemarketing
49)
of sales promotion is used to assess whether or not the sales promotional objectives have been achieved. A) Post-testing B) Pre-testing C) Micro-testing D) Macro-testing
50) The reasons why expenditure on sales promotions has grown include . A) increased impulse purchasing, the rising cost of advertising and cultural change B) increased impulse purchasing, the lack of effective alternatives and cultural change C) the rising cost of advertising, cultural change and the lack of effective alternatives D) increased impulse purchasing, the rising cost of advertising and competitor activities
51) In public relations, the two-way
model, communication flow is reciprocal and PR is used as a means of mediating relationships between the organizations and its various stakeholders. A) symmetric B) asymmetric C) systematic D) asystematic
52) Sales promotions have effects on sales. A) short-term only B) long-term only C) short-term positive and long-term neutral D) short-term positive and long-term positive, negative or neutral
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53) Which of the following is not a method used for setting the advertising budget? A) Percentage of sales B) Affordability C) Objective and task D) Share of voice
54) People use advertising for many different kinds of satisfaction. These include
.
(Check all that apply) A) vicarious experience B) risk reduction C) cost reduction D) entertainment E) product informartion F) variable experience
55) Which of the following are creative positioning bases used in advertising? (Check all that
apply) A) B) C) D) E)
Product use Product class Category specific Competition Promotion
56) Boutiques or creative houses are a type of advertising agency that specializes in
services. (Check all that apply) A) media planning B) creative content development C) copywriting D) media planning
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57) Public relations concerns the management of communication and relationships between an
organization and its publics. These publics include A) employees B) the media C) customers D) competitors E) government
. (Check all that apply)
58) Advertising expenditure is often used by salespeople to convince the retail trade to increase
shelf space of existing brands, and to stock new brands. ⊚ true ⊚ false
59) Premiums are any merchandise offered free or at low cost as an incentive to purchase a
brand. ⊚ true ⊚ false
60) For high-involvement decisions, advertising is more likely to follow the
theory of advertising by creating a strong desire to purchase by convincing people that they should find out more about the brand.
61) Discuss the main factors to be considered when selecting which media to use for an
advertising campaign.
62) Discuss the extent to which sales promotion might be used to build a brand.
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63) Explain the importance of consumer sales promotions and discuss some frequently used
consumer sales promotion techniques.
64) Sponsorship provides an opportunity to create publicity and generate media coverage.
Discuss how sponsorship might be used to create different, favourable associations.
65) Explain the function, benefits and risks of product placement.
66) Identify and explain the factors which have caused the rise in the use of sponsorship.
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