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103 Test Bank for Marketing Management 1st Edition by Marshall Multiple Marshall True - False Questions Customer orientation and market orientation are opposing concepts Customer-oriented firms look at customers as individuals and market-oriented firms look at the market as a whole True False Little m marketing refers to tactics and programs the firm uses to reach its stakeholders True False Sustainability refers to practices of socially responsible firms that incorporate doing well by doing good True False The American Marketing Association defines marketing as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large" True False Don Peppers and Martha Rogers popularized the term oneto-one marketing, True False Of all the business fields, marketing is most visible to people outside the organization True False It is important that everyone in the organization understand the concept of customer orientation After all, every employee has an internal customer True False Firms today are beginning to understand the importance of marketing metrics to assess marketing performance True False Gen Yers tends to value relationships with marketers like State Farm Insurance in exactly the same way their parents True False Firms today have learned to be open about products and services with consumers who have endless sources of information, including blogs, chat rooms and independent Web sites True False Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients on Web sites enable them to self-diagnose and self-prescribe and saves the physician time True False Fred Wiersema's book The New Market Leaders states that marketers will continue to more power than customers in both B2B and B2C markets True False A firm with a production orientation assumes that "if you build it, they will come" True False Even with great marketing, vast numbers of potential customers have never heard of some products or services True False Big M marketing refers to the strategic, long-term, firm-level commitment to investing in marketing True False Marketing is relevant only to people in the organization that work directly in the marketing department True False Dell Computers employs one-to-one marketing by allowing a customer essentially to customize the product features that he or she desires True False Multiple Choice Questions - Page Customers may visit the Land's End clothing web site and order a pair of jeans that will be made especially for them Land's End has adopted a _ approach A Market orientation B Mass customization orientation C Differentiation orientation D Product orientation E Relationship orientation The marketing concept was introduced A After the Civil War B After World War I C After the Great Depression D In the 1950s E In the 1960s AMA's first official definition reflected its roots in A Advertising of all kinds of products B Sales of consumer packaged goods C Production in factories D Distribution of agricultural products E Public relations and publicity Entrepreneurs and Fortune 500 firms alike should recognize that marketing efforts _ A Need to instill basic marketing orientation in the entire organization including engineering, finance, and administrative staffs B Include telling other people in the firm need to know what the marketing department is doing but others have no marketing responsibility C Should be the job for the "marketing department" Other departments should only be concerned with their core activities like manufacturing or finance D Should include training only people who interact with customers to have a marketing focus E None of the above Fernandez Brothers, Inc provides accounting services to small businesses Before and after tax season, the partners meet with each client company It sends a monthly newsletter to update clients with tax changes The firm's business practices revolve around putting the customer at the center when developing services and practices Smith Brothers has adopted a approach A Market orientation B Mass customization orientation C Differentiation orientation D Relationship orientation E Product orientation Creating value focuses on _ A Product development B Branding and positioning C Attention to service D Pricing E All of the above AMA's current official definition of marketing reflects the view towards marketing activities as A Focused on strategy B Focused on tactics like using electronic commerce and new media like You Tube C Focused on relationships with suppliers and customers D Focused on value, through creating, communicating, delivering and exchanging offering that create value E A and D It took Nike years to replace the greenhouse gas in the heels of Nike Air shoes A B C 10 D 14 E 18 AMA's current official definition of marketing was released in A 1965 B 1985 C 2000 D 2007 After a recent 141-day strike, members of the union members in California went back to work at area grocery stores The union negotiated raises, better healthcare benefits, and a one-tier pay scale The role of the union may best be described as a A Governmental body B Stakeholder C Vendor D Internal customer E Management group The _ aspect of a firm is generally the most visible to people outside the organization A Financial management B Accounting C Marketing D Information technology E Operations management Marketing misnomers occur because many people think of marketing as A Pushy salespeople B Advertising and celebrity spokespersons C The firm's department of advertising D Overstated product claims E All of the above Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T This is an example of _ A Production orientation B Selling orientation C Marketing orientation D Buzz marketing orientation E Business orientation Peter Drucker, the father of modern management, believed that marketing _ A Should be a separate function within the business B That it is the business as seen from an internal point of view C That it is the business as seen from the customer's point of view D That is so basic that it is a central dimension of the entire business E Should improve the quality of life for society AMA's second official definition of marketing reflected the view of that time towards marketing activities as A Advertising B Production C Ps D Selling E Distribution AMA's first official definition of marketing was released in A 1925 B 1948 C 1967 D 1985 Communicating and delivering value focuses on _ A Supply chain management B Branding and positioning C retailing D integrated marketing communication E A, B, and D Don Peppers and Martha Rogers promote the idea of A Market orientation B Mass customization orientation C Differentiation orientation D One-to-one marketing orientation E Relationship orientation Making a change in any of the marketing mix elements will _ A Leave the other elements unchanged B Possibly have an impact on another element C Have a domino effect on the other elements D Require the firm to introduce new products E Require an increase in promotion High pressure selling _ A Is practiced today by many companies B Has a marketing orientation C Sparked laws to protect consumers D A and C E None of the above When you tell someone you are a marketing major in college, he or she may think you want a career in A Management B Information technology C Sales D Customer service E Financial planning Great marketing starts with A Listening to customers B Designing a great product C Offering the lowest price D Word-of-mouth endorsements E Selling a product where customers can easily find it Nike Air shoes were discovered to have a greenhouse gas in the heel air pocket The company did not change the design _ A Until some environmental groups found out and complained B Since it did not have to change under the law C Because engineers were working on more profitable designs D Until it spent millions of dollars and many years to get a good new design E A and D The marketing concept was first articulated in writing in the Annual Report of A Ford Motor Company B AT&T C RCA D General Motors E General Electric Value may be defined as the ratio of bundled benefits received to the cost incurred by the customer to receive those benefits is not thought of as one of the costs A Monetary cost B Time to shop C Skill or expertise D Poor service quality E Customer satisfaction The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy This is an example of _ A Production orientation B Selling orientation C Marketing orientation D Buzz marketing orientation E Business orientation Last year, a professional golfer made $100,000,000 dollars from celebrity endorsements This illustrates why many people think of marketing as primarily about A Adding costs to products B Overstating claims C Advertising D Pushy salespeople E Celebrities sponsor the best products Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's web site Bryan is practicing the central tenet of marketing called A Value B Exchange C Growth D Sustainability E Barter Companies that conduct research using focus groups, consumer surveys, and in-person interviews most likely have a A Production orientation B Selling orientation C Marketing orientation D Buzz marketing orientation E Business orientation Creating, communicating, delivering and exchanging offerings that have value may be thought of as _ A The marketing mix or Ps B The firm's strategic plan C Sales orientation D Production orientation E Exchange Companies that promote sustainability practices like Starbucks, that has a stringent recycling program, or General Electric, that makes compact fluorescent light bulbs (CFLs), are practicing A Green marketing B Public relations C Publicity D Shotgun marketing E One-to-one marketing Peter Drucker, the father of modern management, stated that the only purpose of an organization is _ A To create products B To make products affordable and accessible to the majority of the public C To improve the quality of life for all people D To create a customer E To respect the environment AMA's second official definition of marketing was released in A 1925 B 1948 C 1967 D 1985 The Clean-O company makes an all-purpose cleaner for the hospital and nursing home market that is guaranteed to kill 99% of staphylococcus germs, a major concern for medical facilities The company is not interested in pursuing the consumer market Clean-O has adopted a _ A Market orientation B Mass customization orientation C Differentiation orientation D Relationship orientation E Product orientation is not a marketing function A Research B Advertising C Brand development D Public relations E Research and development 70 Free Test Bank for Marketing Management 1st Edition by Marshall Multiple Choice Questions Page The long-term objective of strategic marketing is A Customer satisfaction at all costs B Profitability through building a customer-oriented organization C Understanding where the company with be in 10, 20, 30 years D Getting ahead while doing well in society E Studying the competition XYZ department store advertises the "biggest sale of the year" every weekend and offers extra bargains to early bird customers ABC department store advertises seasonal sales and employees send handwritten notes to customers who spend more than a certain amount of money This implies that _ A XYZ is short-term oriented and ABC is long-term oriented B XYZ is focused on selling and ABC is focused on relationship building C Both firms are trying to achieve the same goal of profitability so tactics not matter D XYZ must be more successful since it advertises every week E Both a and b Sheila and Barbara are billing department managers in a call center Senior management has given employees only a limited amount of time to spend with each customer who phones Sheila and Barbara want to make strategic marketing changes They must have the support of in order to succeed A The sales force B Top management C Top management and middle management D Frontline personnel E Everyone in the organization Kraft Foods planned to introduce more than 80 new products in 2008 This illustrates Fred Wiersema's new market reality of A Competitors proliferate B All secrets are open secrets C Innovation is universal D Information overwhelms and depreciates E Easy growth makes hard times State Farm Insurance offers products through a network of 16,000 independent agents Assume that the company wants to launch a marketing campaign towards college students Which marketing tactic would you recommend? A TV advertising during the evening news B Sponsoring National Public Radio during morning drive time C Setting up a My Space contest to win gas money D Sponsorship of a Rolling Stones concert tour E Direct mail The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service to feel tailored is known as A Market orientation B Product orientation C Differentiation orientation D One-to-one marketing orientation E Relationship orientation Generational shifts impact marketing in terms of human resources Older and younger generations may have _ A Different attitudes towards work life versus family life B Expectations about job satisfaction and rewards C Preferred modes of learning and working D All of the above E None of the above Today many CEOs and shareholders expect to measure results of marketing efforts because _ A Marketing metrics today are designed to assign specific results to specific marketing programs B They are unrealistic in believing that all marketing is measurable C It is easy to D All of the above E A and C In a series of chatty podcasts called "Talking About the Benjamins", Michael Patrick Duffy, CEO of a credit union, offered tips on money management to increase membership Most likely these talks were aimed at _ A Tweens B Gen X C Gen Y D Silent Generation E Young Boomers F Older Boomers In 2008, Verizon announced its intentions to purchase Alltel Wireless This illustrates Fred Wiersema's new market reality of A Competitors proliferate B All secrets are open secrets C Innovation is universal D Information overwhelms and depreciates E Easy growth makes hard times _ is an example a market-driving firm A Apple B Microsoft C Disney D None of the above E A, B, and C The wristwatch industry was surprised when consumers began telling time by looking at their cell phones This trend is identified by Wiersema's new market reality of _ A Increase in demand B Customers have less time than ever C Information overwhelms and depreciates D All secrets are open secrets E Competitors proliferate Relationship-oriented firms are _; A Driven by meeting this quarter's financial projections B Seeking the most profitable customers who are highly satisfied with the firm's offering C Constantly investing in new customers and hope they become long-term D Often scrambling to replace lost customers E Trying to retain all customers Southwest Air was the only airline in the U.S that did not lose money in the year following the 9/11 terrorist attacks on the United States in 2001 This decision most likely reflects the company's _ A Advertising budget B Marketing (Big M) C Marketing (little m) D Relationship orientation E Sales orientation Customer Relationship Management is designed to A Assign a sales representative to a particular customer B Allow software to manage marketing C Facilitate higher levels of customer satisfaction D Identify the most profitable customers E C and D Jim got over 21 million hits when he visited a search engine to find out how to build his own web site This trend is identified by Wiersema's new market reality of _ A Easy growth makes hard times B Customers have less time than ever C Information overwhelms and depreciates D All secrets are open secrets E Competitors proliferate There are about _ of new packaged goods products introduced each year A 10,000 B 25,000 C 50,000 D 100,000 E over 500,000 Jack wants to get his new computer from the most famous mass customization marketer He should purchase from A Compaq B Hewlett–Packard C Apple D Dell E Gateway In order for Marketing (Big M) to succeed, it must be championed by A The sales force B Top management C Top management and middle management D Frontline personnel E Everyone in the organization is not one of the new market realities identified by Fred Wiersema A Increase in demand B Customers have less time than ever C Information overwhelms and depreciates D All secrets are open secrets E Competitors proliferate Starbucks does not use advertising to promote its stores This decision most likely reflects the company's _ A Advertising budget B Marketing (Big M) C Marketing (little m) D Relationship orientation E Sales orientation The purpose of marketing metrics is to key benchmarks for improvement just as financial metrics guide the financial management of the firm A identify B track C evaluate D provide E all of the above The Internet has made it easy for customers to access information, disinformation, post their opinions and read other people's opinions From a marketer's point of view, this has caused _ A A shift to product glut and customer shortage B A shift in generational values and preferences C A shift in power from marketers to consumers D A shift to demanding return on marketing investment E A shift to Marketing (Big M) and marketing (little m) Many companies today pay their advertising agencies based on how much sales or market share increase after a particular advertising campaign is executed This most likely occurs because _ A Marketing is viewed internally as an investment B There has been an increased demand for marketing accountability by CEOs and shareholders C Effective planning requires metrics D If it can't be measured, it can't be managed E All of the above The average American eats out _ times a week A B C D E 12 The average consumer is exposed to about _ paid commercial messages every day A 500—1,000 B 1,000—2,000 C 600—3,000 D 2,000—4,000 E over 4,000 All internal organizational practices should be aligned around A The billing system B Management C Manufacturing D The customer E Information technology Customer orientation must be understood by _ A The sales force B Top management C Top management and middle management D Frontline personnel E Everyone in the organization When Chili's, TGI Friday's , Outback Steakhouse and other fast-casual restaurants began offering curbside delivery for call-in customers, the trend seemed unnoticed by the ‘fast-food' chains like McDonalds This illustrates Fred Wiersema's new market reality of A Competitors proliferate B All secrets are open secrets C Innovation is universal D Information overwhelms and depreciates E Easy growth makes hard times Walk into almost any grocery store today and the first thing you may see is ready-to-eat meals This trend is identified by Wiersema's new market reality of _ A Increase in demand B Customers have less time than ever C Information overwhelms and depreciates D All secrets are open secrets E Competitors proliferate _ is not part of the marketing mix A Product B Distribution C Promotion D Price E Manufacturing (Little m) marketing includes A Marketing strategy B Advertising C Brand image D A and C E B and C Strategic marketing refers to A The firm's commitment to long-term growth through internal focus on production and customer satisfaction B Working with competitors, when appropriate, and with suppliers C Understanding the market, competitors, and other external forces, and focus on internal capabilities to plan for the future D Making a non-wavering commitment on which customers to serve E The study of promotion, distribution, delivery, and production High tech media options like cell phones and the internet have had a huge impact the aspect of marketing A Product B Promotion C Price D Distribution E Research Marketing today is A Essentially the same as 20 years ago B Not impacted by the rest of the world C Seeks to add value by understanding the past of marketing and change drivers for the future D So confusing no one understands it E Accountable only to shareholders and management Free Text Questions Which two brands you think a good job of connecting emotionally to the consumer? Support your answer with examples of what the firm has done to make that emotional appeal to the consumer Can you defend your claims with tactics in addition to advertising? Answer Given Example: ● iPod had great advertising from Day with the dancing silhouettes I want to be cool and have as much fun as the people listening in the ads! iPhones led the way in user-friendly technology convergence Apple has an image of being a rebel, cooler, and anti-establishment Look at the ads for Apple computer and Microsoft MS is painted as a stodgy conservative company and the products don't work as well as Apple's Apple goes to great length to keep products top-secret until they are released In fact, the press gives the company so much free publicity that people line up hours before retailers open to say they got and iPod or iPhone on the first day Define societal marketing and give an example of a firm that practices it Answer Given Societal marketing refers to marketing that views society at large as a stakeholder One example in the forefront today is many firms' emphasis on green marketing These firms are committed to communicating sustainability practices to the public One example is GE's ‘Imagineering' advertising Give an example of an industry or firm that has transformed environmentally harmful products to environmentally friendly products Answer Given The air conditioning industry stopped using the hazardous product Freon and began to use Puron, a refrigerant that reduces chlorine emissions and the depletion of the ozone layer Identify marketing stakeholders Answer Given Any person inside or outside the firm with whom marketing interacts, impacts, and is impacted by This includes all internal stakeholders—like finance, accounting, production, etc and external stakeholders—customers, shareholders, vendors, governmental bodies, and labor unions What does "everyone in the firm owns marketing" mean? Answer Given It means that anyone in the company may interact with customers, suppliers, and other stakeholders All employees represent the brand and need to be trained to think about their interactions this way Give an example of a brand to which you have an emotional attachment What has the firm done to create that emotional appeal? Answer Given Answers with vary depending on the student Examples are as follows: Coors Light beer is a brand that students seem to like because of the funny advertising campaign on TV Budweiser is another brand that has created tug-at-theheartstrings ads like the one where the dog trains the Clydesdale so that he can make the team! How does the American Marketing Association define marketing? Answer Given Marketing the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large What conditions existed after World War II that caused the marketing concept to emerge? What marked the transition from the selling concept to the marketing concept? Answer Given ● Pent-up demand for consumer goods and services after the war; ● Euphoric focus on family and a desperate need to regain a normalcy of day-to-day life after years of war (which, of course, ultimately produced the Baby Boomer generation); ● Opening up of production capacity dominated for years by war production; ● Advent of readily available mainframe computing capability, and especially the associated statistical analytic techniques that allowed for more sophisticated market research In the 1950s, these forces, combined with growing frustration with high pressure selling sparked a shift in the focus of American business Long-term oriented firms need to be aware of change drivers that most likely will have a significant impact on the future of marketing and business in general What areas of shift you recommend these firms study? Answer Given ● Shift to product glut and customer shortage; ● Shift in information power from marketer to customer; ● Shift in generational values and preferences; ● Shift to demanding return on marketing investment; ● Shift to Marketing (“Big M”) and marketing (“little m”) State Farm Insurance offers products through a network of 16,000 independent agents Assume that the company wants to launch a marketing campaign towards college students What does State Farm need to know about the way Gen X communicates? What marketing tactics would you recommend and why? Answer Given SF should recognize that a generational shift in values and preferences has occurred Gen X is much less likely to value the personal relationships their parents and grandparents have with their insurance agents Gen X is much more receptive to electronic commerce SF should make it easy to apply for coverage and pay bills online The company may try to reach college students through My Space or Facebook or hiring a text messaging marketing firm How has the Internet empowered customers? Give an example Answer Given The Internet has provided people all over the world with information at their fingertips Pricing has become more transparent, the availability of products has increased, and anyone can share an opinion of a product, service, person, government, or idea For example, Amazon.com allows customers to rate products Firms such as General Electric and Starbucks try to practice the concept of "doing well by doing good" What does this mean? What are some of the challenges faced by a firm that wants to create products that fit this concept? Answer Given ● Some industries have more trouble than others in creating environmentally responsible products (Freon vs Air Nike shoes); ● minimize environmental waste Bedtime Mattress Company is sales-driven The company has high levels of employee turnover, frequent sales, and is short-term oriented What you believe management should know about Big M Marketing and little m marketing? Answer Given Big M is strategic marketing, which means a long-term, firm-level commitment to investing in marketing – supported at the highest organization level – for purpose of enhancing organizational performance Little m serves the firm and its stakeholders at a functional or operational level – hence marketing (little m) might be thought of as tactical marketing Marketing (little m) takes place at the functional or operational level of a firm Paul and Bryce are writing a business plan to submit to a bank to ask for a loan to start a French restaurant Paul has worked in finance for five years and Bryce is a chef Unfortunately, neither has much experience in marketing and they think that marketing equals advertising They have asked you to explain the marketing concept as it is viewed today What you say? Answer Given The 2007 AMA definition: ● Focuses on the more strategic aspects of marketing, which positions marketing as a core contributor to overall firm success; ● Recognizes marketing as an activity, set of institutions, and processes – that is, marketing is not just a "department" in an organization; ● Shifts the areas of central focus of marketing to value – creating, communicating, delivering, and exchanging offerings of value to various stakeholders Discuss the difference in being market-driven and marketdriving Give examples of each Answer Given A firm that is market-driven seeks to understand current customer needs and wants and finds ways to fulfill them Southwest Airline is a good example of a firm that understands passengers want to spend little time in the gate area, get on and off a plane as quickly as possible, and obtain luggage without delays A marketdriving firm seeks to fulfill needs that the consumer does not realize exist or are possible Apple changed the way consumers look at telecommunication when it introduced the iPhone It created a new market How can a firm create marketing-driving strategies? Give an example Answer Given Apple uncovered needs that consumers did not know they had When Apple launched the iPhone, many non-Apple computer users lined up to get the phone and paid a premium price for a device that made it easy to use a phone, camera, the Internet, and created a new market ... is not a marketing function A Research B Advertising C Brand development D Public relations E Research and development 70 Free Test Bank for Marketing Management 1st Edition by Marshall Multiple. .. Apple D Dell E Gateway In order for Marketing (Big M) to succeed, it must be championed by A The sales force B Top management C Top management and middle management D Frontline personnel... system B Management C Manufacturing D The customer E Information technology Customer orientation must be understood by _ A The sales force B Top management C Top management and middle management