learning goal 1 - faculty website index valencia collegefd.valenciacollege.edu/file/jconrick1/test...

13-1. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.

Answer: True LG: 1/LL: 1 Page: 398

13-2. The activities of marketers depend on what needs to be done to satisfy consumers.


13-3. In the evolution of marketing, the production era assumed an unlimited market.


13-4. The four eras of the evolution of marketing are (1) production, (2) selling, (3) advertising, and (4) stakeholder relationships.

Answer: False LG: 1/LL: 1 Page: 398 - 399

13-5. The focus of the production era was on distribution and advertising.

Answer: False LG: 1/LL: 1 Page: 398

13-6.Although marketers are concerned with selling goods and services, they are not involved in designing the products their firm will sell.


Rationale: One of the four elements of the marketing mix is the design of a want-satisfying product.

13-7.Marketing involves developing and promoting a firm's products, but all distribution decisions are handled by a firm's transportation managers.


Rationale: One of the 4 Ps in the marketing mix is "place" which refers to the marketer's role in distributing goods and services.

13-8.The marketing mix provides an analysis of markets to determine opportunities and challenges and gather the information needed to make good decisions.


13-9.Marketing research helps determine what customers have purchased in the past, what situational changes have occurred to change consumer preferences, and what consumers are likely to want in the future.


13-10. In order to be successful, marketers avoid small market segments in favor of larger targets.


Rationale: Marketers have discovered that small market segments can be very profitable. In fact, niche marketing, which finds small but profitable market segments and designs custom-made products for those groups, has become very popular.

13-11. The purpose of market segmentation is to identify the features of a product that will appeal to as many customers as possible.


Rationale: Market segmentation attempts to divide the overall market into several groups that have similar characteristics.

13-12. Maintaining databases of customer information is more important for firms involved in mass marketing than it is for those firms using relationship marketing.


Rationale: Mass marketing tries to develop products that appeal to large groups of consumers without customizing them. Thus the individual preferences of consumers are not critical to firms using mass marketing. However, in relationship marketing the goal is to retain customers over time by offering them products that are customized to precisely meet their needs. This requires the firm to know more about individual customers. Hence, maintaining a database of customer information is critical to the relationship marketing approach.

13-13. B2B marketers include manufacturers, retailers, hospitals, and the government.


13-14. The B2B market involves few trades and less dollars than the consumer market because there are so many more consumers than there are businesses.


13-15. Marketing strategies used effectively in the business-to-business markets are the same as strategies used by marketers in consumer markets.


13-16. Treating employees respectfully is important for firms who hope to provide first-class goods and services to their customers.


13-17. Businesses refer to government buyers in the B2B market as their internal customers.


13-18. Cooperation between manufacturers and their suppliers is essential for firms trying to consistently exceed their customers’ expectations.


13-19. Modern marketing places the needs of customers above the needs of other stakeholders.


13-20. Establishing and maintaining mutually beneficial exchange relationships with all stakeholders is the goal of green marketing.


13-21. Green products are those products whose production, use, and disposal are not harmful to the environment.


13-22. In marketing, the 80/20 rule says that out of every 80 products developed, only about 20 will generate an acceptable profit.


13-23. While the four Ps help us remember the basics of the __________, they don’t include everything that goes into the marketing process. A) production operationsB) marketing mixC) product developmentD) competitive benchmarking

Answer: B LG: 2/LL: 1 Page: 401

13-24. A firm's marketing mix consists of 4 major components, which are sometimes called the four: A) P's. B) keynotes. C) functions of management. D) components of a SWOT analysis.

Answer: A LG: 2/LL: 1 Page: 400

13-25. Which of the following would be considered part of a firm's marketing mix? A) Identifying the best source of funds to finance a firm's marketing activities. B) Determining the best pricing strategy for a product. C) Establishing a production schedule that enables the firm to meet

forecasted sales. D) Designing the most efficient production plan.


Rationale: The marketing mix involves: (1) designing a want satisfying product, (2) setting an appropriate price for the product, (3) distributing the product, and (4) promoting the product. It does not directly involve financing, production, or employment decisions.

13-26. Which of the following involves the analysis of markets to identify opportunities and challenges? A) Market analysis. B) Marketing research. C) Opportunity identification. D) Market prospecting.


13-27. Successful marketing researchers: A) focus their efforts on determining the wants and needs of customers,

since the core value of marketing is that the customer is king. B) develop as much information as possible from primary sources. C) listen to customers and other stakeholders. D) rely on their personal opinions when data available is incomplete.

Answer: C LG: 3/LL: 1 Page: 405

14-1. When consumers calculate the value of a product, they look at the benefits and then subtract the cost.


14-2. Successful businesses constantly monitor consumer wants and needs.


14-3. From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.


14-4. The image created by advertising is part of the total product offer of a product.


14-5. The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.


14-6.In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.


14-7.Marketers utilize pricing, advertising, and packaging to successfully differentiate their products from competitors’ products even when actual differences are quite small.


14-8.Creative product differentiation can enable a small business to increase market share.


14-9.One function of effective packaging is to attract the attention of consumers.


14-10. One function of effective packaging is to protect the goods inside during handling and storage, as well as deter product tampering and theft.


14-11. One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.


14-12. A brand includes practically all means of identifying a product.


14-13. The purpose of a brand name is to establish an image of generic goods or services.


14-14. Brand names can significantly impact consumer perceptions of a product.


14-15. More than 75% of new products fail to reach their business objectives within their first year of introduction.


14-16. New product failures are most often caused by excessively high prices.


14-17. New products often fail because they don’t deliver to consumers their promised benefits.


14-18. The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.


14-19. While the time in each stage may vary, all products progress through each stage of the product life cycle.


14-20. The four stages in the product life cycle are introduction, market, exchange, and disposal.

Answer: False LG: 6/LL: 1 Page: 444, Figure 14.6

14-21. While some products remain in the introductory stage of the product life cycle for years, other products may go through the entire cycle in a few months.


14-22. As consumers evaluate the benefits of a product, price plays a small role.


14-23. A long-run pricing objective of almost all firms is to optimize profit.


14-24. Sometimes a firm will lower prices below their costs in order to build a customer base.


14-25. Despite the fact that microeconomic theory places a great deal of emphasis on price, marketers often try to find ways to compete on product attributes other than price.


14-26. For most firms, price competition is the most important way to gain a competitive advantage over rivals.


14-27. Small firms often rely on nonprice competition when competing against larger firms.

Answer: True LG: 8/LL: 1 Page: 451 - 452

14-28. One way firms can gain a competitive advantage without relying on low prices is by developing close, friendly relationships with their customers.


14-29. A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors. A) trademark B) brand C) logo D) copyright

Answer: B LG: 4/LL: 1 Page: 438 439

14-30. When consumers reach the point of brand ________, the product becomes a specialty good. A) association B) desire C) awareness D) insistence

Answer: D LG: 4/LL: 1 Page: 439

14-31. A leading cause of new-product failure is: A) insufficient competition. B) product promises that are not delivered. C) the automation of the product development process. D) excessive product differentiation.


15-1. Organizations that assist in moving goods and services from producers to business and consumer users are called financial intermediaries.


15-2. Retailers and wholesalers are two major types of marketing intermediaries.


15-3. Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.


15-4. A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.


15-5. Brokers are marketing intermediaries that do not take title to the goods they help distribute.


15-6. Retailers are marketing intermediaries who sell to ultimate consumers.


15-24. To marketers, the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.


15-25. There are a total of four types of utility that are provided by marketers: primary, secondary, marginal, and total.


15-40. Some marketing intermediaries make both wholesale and retail sales.


15-41. A retail sale is a sale to a consumer for his or her own use.


15-42. The sale of goods to a business that is purchasing the items for resale is a wholesale sale.


15-191. Which of the following statements about service utility is most accurate? Service utility is:A) becoming less important to retailers in this age of self-service marketing.B) the one type of utility that online firms provide more efficiently than

traditional retailers.C) more likely to be provided by wholesalers than by retailers.D) becoming crucial to traditional retailers as they try to prevent their

customers from defecting to firms using direct marketing.


Rationale: Service utility is rapidly becoming the most important utility for many retailers, because without it they could lose more customers to direct marketing.

15-193. About ____ percent of all wholesalers are classified as merchant wholesalers. A) 25 B) 50 C) 67 D) 80


15-194. ____________ wholesalers are independently owned and take title to the goods they handle. A) Full service B) Merchant C) Agent D) Primary


15-210. Discount stores, supermarkets, and department stores are all common types of:A) multilevel marketersB) full service wholesalersC) retail storesD) category killers

Answer: C LG: 4/LL: 1 Page: 469 (Figure 15.5)

15-211. Approximately __________ retail stores operate in the United States. A) 70 thousand B) 125 thousand C) 1.5 million D) 2.3 million


15-212. Retailers compete in: A) two ways: advertising and personal selling. B) three ways: price, image, and credit. C) four ways: quantity, quality, adaptability, and reliability. D) five ways: price, service, location, selection, and entertainment.


15-213. __________ is important to retailers because they must make sure that their practices and procedures are competitive with those of the best in their field. A) Earmarking B) Benchmarking C) PERT analysis D) Present value analysis


15-235. ___________ means selling goods and services to ultimate consumers over the Internet. A) Electronic retailing B) B2B distribution C) O-sellingD) Intercommerce


15-236. ___________ is the sale of goods and services by telephone. A) Cel-tailing B) Teleselling C) Telemarketing D) Direct marketing


15-237. Vending machines are most often used to sell: A) shopping goods. B) convenience goods. C) specialty goods. D) inferior goods.


15-255. In a(n) ____________ distribution system all of the organizations in the channel of distribution are owned by one firm. A) administered B) contractual C) supply-based D) corporate


15-256. In a(n) __________ distribution system the producer manages all of the marketing functions at the retail level. A) administered B) contractual C) conglomerate D) master limited


15-257. Franchise systems are one type of __________ distribution system. A) corporate B) wholesale C) contractual D) administered


15-271. _________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.A) Export managementB) Multi-level marketingC) LogisticsD) Shipping control management


15-272. __________ brings raw materials, packaging, other goods and services, and information from suppliers to producers. A) Freight forwarding B) Inbound logistics C) Materials handling D) Supply side logistics


15-283. Currently, in the United States the greatest volume of goods and services is shipped by: A) trucks and vans. B) pipelines. C) rail. D) water.


15-284. ____________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination. A) Containerized shippers B) Freight consolidators C) Mixed merchandisers D) Freight forwarders


16-1. As a component of the promotion mix, advertising includes each of the activities marketers use to inform people about products and persuade them to participate in an exchange.


16-2. A firm’s promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.


16-3. As one of the tools included in a firm’s promotion mix, public relations is intended to inform, remind and persuade people in the target market.


16-4. Integrated marketing communication simplifies the marketing process by replacing personal selling with extensive use of advertising to create a positive brand image.


16-5. Combining a firm’s promotional tools and resources to create a favorable brand image is the goal of integrated marketing communication.


16-6. The first step in creating a promotional campaign is to define the objectives for each element of the marketing mix.


16-7. The last step in creating a promotional campaign is to evaluate the effectiveness of each element of the promotional mix.


16-8.Depending upon the promotional campaign, advertising may include paid and non-paid forms of nonpersonal communication.


16-9.Television and direct mail are the top two advertising media when ranked by total expenditures.

Answer: True LG: 2/LL: 1 Page: 491 and Figure 16.4

16-10. Internet advertising ranks third in terms of total advertising expenditures.

Answer: False LG: 2/LL: 1 Page: 491 and Figure 16.4

16-11. Television and newspaper advertising are the top two advertising media when ranked by total expenditures.

Answer: False LG: 2/LL: 1 Page: 491 and Figure 16.4

16-12. The number one advertising medium in terms of total dollar expenditures is newspapers.

Answer: False LG: 2/LL: 1 Page: 491 and Figure 16.

16-13. ________ refers to the face-to-face presentation and promotion of products and services. This also includes searching for prospects and providing follow-up services. A) Word-of-mouth promotion. B) Personal selling. C) Public relations. D) Internal marketing.


16-14. The activity that evaluates public attitudes and implements a program to earn public understanding and acceptance is called: A) marketing research. B) public relations. C) marketing communication system. D) advertising.


16-15. ________ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for by the sponsor. A) A market presentation B) Promotion C) Public relations D) Publicity


16-16. The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities, such as trade shows, samples, and contests, is known as: A) publicity. B) public relations. C) every day low prices. D) sales promotion.


16-17. Effective sales promotion activities target:: A) employees only. B) customers only. C) employees, dealers and customers. D) dealers only.


16-18. Successful firms realize that each target group requires: A) a separate promotion mix. B) online computer advertising. C) infomercial testimonials. D) customized legislation and training.


16-19. The strategy of directing advertising and sales promotion toward consumers to stimulate them to request the products from their local retailers is called a: A) pull strategy. B) segmentation strategy. C) push strategy. D) product placement strategy.


16-20. The use of promotional tools to persuade wholesalers and retailers to stock and sell merchandise represents a: A) pull strategy. B) segmentation strategy. C) push strategy. D) product placement strategy.


17-1. Though the types of technology used by businesses has changed over the last several decades, the role of business technology has remained remarkably constant.


17-2. In the 1970s business technology was known as data processing.


17-3. Data and information are two different names for essentially the same thing.


17-4. Information is data that has been processed and organized so that it can be used for managerial decision making.


17-5. During the 1970s, the purpose of data processing was to support the existing business by improving the flow of financial information.


17-6. During the 1970s business technology employees often dealt directly with customers.


17-24. A basic truth in management is that you can never have too much information.

Answer: False LG: 2/LL: 1 Page: 523-524

17-25. In this age of the Internet, cellular phones, fax machines, pagers and e-mail, managers can easily become buried in information "infoglut."


17-26. Useful information has three defining characteristics: (1) it is easily accessible, (2) it is efficiently organized, and (3) it is simple to manipulate.


17-40. An intranet is a company-wide network that is based on Internet technology, but closed to public access.


17-41. Intranets use a different, less sophisticated, type of technology than the Internet.


17-42. The software or hardware barrier that a business uses to prevent unauthorized users from gaining access to their intranet is known as a tripwire.


17-70. Moore's Law says that the capacity of computer chips double every year or so.


17-71. Personal computers today are much smaller, cheaper, simpler to operate and more flexible than the mainframe computers of the 1970s, but they do not have as muche raw processing power.


17-72. Hardware includes spreadsheets, databases, and PIMs.


17-93. Computer software provides the instructions that enable users to tell the computer what to do.


17-94. When purchasing a computer system, the best approach is to select the hardware first, then purchase software that will function effectively on that type of hardware.


17-95. Shareware software is software that is not protected by a copyright.


17-96. Shareware is distributed to potential users at no charge, but the users are asked to send a specified fee to the software's developer if the program meets their

needs and they decide to use it.


17-117. The less creative a business task is, the more likely it is that computers will manage the task.


17-118. Many bureaucratic functions can be replaced by computer technology.


17-119. The use of computers increases the number of layers of management, resulting in taller organizations.


17-120. Even high-tech companies that specialize in computer-related products and services often outsource technology training.


17-147. Most workers in the United States never interact with a computer while on the job.


17-148. Although the job market for technology workers cooled off during the economic slowdown in the early 2000s, the general consensus is that the demand for these workers will increase again as the economy improves.


17-149. Even during the economic downturn of the early 2000s, there was still a strong demand for workers who had experience in wireless technology and computer security.


17-150. Most of the occupations that the Bureau of Labor Statistics predicts will grow the fastest over the next few years are in areas that are not related to the field of information technology.


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