1. When Companies Measure the Number of People Who Are Willing and Able to Buy Their Products

1. When companies measure the number of people who are willing and able to buy their products,

they are measuring ______.

a. disposable income

b. standard of living

c. price elasticity

d. real needs

e. demand

2. When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to

______.

a. enter a new market

b. segment the market

c. provide a service

d. develop brand loyalty

e. position its product

3. Industry boundaries are blurring rapidly as companies identify new opportunities at the

intersection of two or more industries. This is called ______.

a. privatization

b. customization

c. disintermediation

d. industry convergence

e. globalization

4. The success of online purchasing resulted in ______in the delivery of products and services

by intervening in the traditional flow of goods through distribution channels.

a. privatization

b. diversification

c. disintermediation

d. deregulation

e. reduced competition

5. Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their

products are carefully designed to meet customer requirements and the entire focus is on

achieving customer satisfaction. Johnny Inc. follows the ______concept in doing business.

a. product

b. social responsibility

c. marketing

d. production

e. selling

6. ______marketing aims to build mutually satisfying, long-term collaboration with key

constituents such as customers, employees, suppliers, distributors, and other marketing

partners in order to earn and retain their business.

a. Demand-based

b. Internal

c. Direct

d. Relationship

e. Integrated

7. Which of the following is most consistent with the integrated marketing approach?

a. Online marketing is less important than traditional marketing efforts.

b. If left alone, consumers are inclined to purchase only inexpensive products.

c. A good product will sell itself.

d. All communication to consumers must deliver a consistent message irrespective of the

medium.

e. In order to succeed, the main focus should be on having an efficient production

process in place.

8. Holistic marketing incorporates ______marketing, an understanding of broader concerns in

the ethical, environmental, legal, and social context of marketing activities.

a. relationship

b. social responsibility

c. internal

d. cultural

e. integrated

9. The task of any business is to ______.

a. deliver customer value at a profit

b. differentiate in terms of cost of production

c. reduce competition

d. create customer needs

e. communicate similar value as provided by competitors

10. In economies with many different types of people, each with his/her own wants, perceptions,

preferences, and buying criteria, ______.

a. all market segments are equally profitable

b. the traditional marketing approach would be the best approach to follow

c. the producers should focus on niche markets

d. companies now see themselves as part of a value delivery process

e. target market strategies are no longer effective

11. The last step in the value creation and delivery sequence is ______the value where the

sales force, sales promotion, advertising, and other communication tools announce and

promote the product.

a. researching

b. reversing

c. developing

d. positioning

e. communicating

12. With respect to the core business processes, the ______process includes all the activities

involved in developing and launching high-quality products quickly and within budget.

a. new-offering realization

b. market-sensing

c. fulfillment management

d. customer relationship management

e. customer acquisition

13. ______management allows the company to discover who its target markets are, how they

behave and what they need or want. It also enables the company to respond appropriately,

coherently, and quickly to different customer opportunities.

a. Marketing

b. Supply chain

c. Network

d. Total quality

e. Customer relationship

14. The key to utilizing organizational core competencies is to ______that make up the essence

of the business.

a. vertically integrate and own all intermediaries

b. own and nurture the resources and competencies

c. emphasize global promotions

d. force organizational departments to justify the budgetary components

e. segment the workforces

15. Most large companies consist of four organizational levels: the corporate level, the ______

level, the business unit level, and the product level.

a. management team

b. major stakeholder

c. board of director

d. division

e. strategic

16. A clear, thoughtful mission statement provides employees with a shared sense of purpose,

direction, and ______.

a. profitability

b. opportunity

c. target market feasibility

d. continuous improvement

e. quality products

17. The ______sphere is the number of channel levels—from raw materials to final product and

distribution—in which a company will participate.

a. competence

b. market segment

c. product/application

d. industry

e. vertical

18. Which of the following is an example of intensive growth?

a. A company develops new products for its existing markets.

b. A company enters a new market with current products.

c. A company developing new products for new markets.

d. A company improves its market share with its current products in the current markets.

e. A company improving sales by integrating backwards.

19. Through its cutting-edge point-of-sale inventory management technology and highly efficient

shipping practices, Walmart is able to keep its inventory expenditure extremely low and to

pass these savings on to consumers in the form of low prices. Walmart’s strategy is best

described as ______.

a. market development

b. a focused approach

c. overall cost leadership

d. differentiation

e. integrative growth

20. The heart of the internal records system is the ______.

a. human resources system

b. expense cycle

c. pay-roll system

d. order-to-payment cycle

e. purchase order cycle

21. A ______is a set of procedures and sources managers use to obtain everyday information

about developments in the marketing environment.

a. sales information system

b. marketing intelligence system

c. viral marketing campaign

d. product management system

e. data warehousing system

22. A company can take several steps to improve the quality of its marketing intelligence. If the

company purchases competitive products for study, attends open houses and trade shows,

and reads competitors’ published reports and stockholder information, the company is using

______to improve the quality of its marketing intelligence.

a. external networks

b. advisory panels

c. sales-force surrogates

d. intermediaries

e. customer feedback systems

23. Elance.com is a service provider that allows contractors to describe their level of satisfaction

with subcontractors. This is an example of a(n) ______.

a. customer complaint site

b. distributor or sales agent feedback site

c. public blog

d. combo site offering customer reviews and expert opinions

e. independent customer goods and service review forum

24. A ______is a direction or sequence of events that has some momentum and durability; it

reveals the shape of the future and can provide strategic direction.

a. trend

b. style

c. megatrend

d. fad

e. fashion

25. The three largest subgroups of the Hispanics in the U.S. are ______, ______, and

______.

a. Brazilian; Mexican; Cuban

b. Mexican; Puerto Rican; Cuban

c. Salvadoran; Dominican; Columbian

d. Puerto Rican; Mexican; Chilean

e. Salvadoran; Cuban; Dominican