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.
Answer: True LG: 1/LL: 1 Page: 398
13-3. In the evolution of marketing, the production era assumed an unlimited market.
Answer: True LG: 1/LL: 1 Page: 398
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.
Answer: False LG: 2/LL: 2 Page: 401
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.
Answer: False LG: 2/LL: 2 Page: 401
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.
Answer: False LG: 3/LL: 1 Page: 405
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.
Answer: True LG: 3/LL: 1 Page: 405
13-10.In order to be successful, marketers avoid small market segments in favor of larger targets.
Answer: False LG: 4/LL: 2 Page: 412
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.
Answer: False LG: 4/LL: 2 Page: 411
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.
Answer: False LG: 4/LL: 2 Page: 413
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.
Answer: True LG: 5/LL: 1 Page: 418
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.
Answer: False LG: 5/LL: 1 Page: 419
13-15.Marketing strategies used effectively in the business-to-business markets are the same as strategies used by marketers in consumer markets.
Answer: False LG: 5/LL: 1 Page: 419
13-16.Treating employees respectfully is important for firms who hope to provide first-class goods and services to their customers.
Answer: True LG: 6/LL: 1 Page: 420
13-17.Businesses refer to government buyers in the B2B market as their internal customers.
Answer: False LG: 6/LL: 1 Page: 420
13-18.Cooperation between manufacturers and their suppliers is essential for firms trying to consistently exceed their customers’ expectations.
Answer: True LG: 6/LL: 1 Page: 420
13-19.Modern marketing places the needs of customers above the needs of other stakeholders.
Answer: False LG: 7/LL: 1 Page: 421
13-20.Establishing and maintaining mutually beneficial exchange relationships with all stakeholders is the goal of green marketing.
Answer: False LG: 7/LL: 1 Page: 421
13-21.Green products are those products whose production, use, and disposal are not harmful to the environment.
Answer: True LG: 7/LL: 1 Page: 421
13-22.In marketing, the 80/20 rule says that out of every 80 products developed, only about 20 will generate an acceptable profit.
Answer: False LG: 7/LL: 1 Page: 421
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 operations
B)marketing mix
C)product development
D)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.
Answer: B LG: 2/LL: 2 Page: 401
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.
Answer: B LG: 3/LL: 1 Page: 405
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.
Answer: True LG: 1/LL: 1 Page: 430
14-2. Successful businesses constantly monitor consumer wants and needs.
Answer: True LG: 1/LL: 1 Page: 430
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.
Answer: False LG: 1/LL: 1 Page: 431
14-4. The image created by advertising is part of the total product offer of a product.
Answer: True LG: 1/LL: 1 Page: 432
14-5. The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.
Answer: True LG: 1/LL: 1 Page: 432
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.
Answer: False LG: 2/LL: 1 Page: 434
14-7.Marketers utilize pricing, advertising, and packaging to successfully differentiate their products from competitors’ products even when actual differences are quite small.
Answer: True LG: 2/LL: 1 Page: 434
14-8.Creative product differentiation can enable a small business to increase market share.
Answer: True LG: 2/LL: 1 Page: 434
14-9.One function of effective packaging is to attract the attention of consumers.
Answer: True LG: 3/LL: 1 Page: 437
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.
Answer: True LG: 3/LL: 1 Page: 437
14-11.One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.
Answer: True LG: 3/LL: 1 Page: 437
14-12.A brand includes practically all means of identifying a product.
Answer: True LG: 4/LL: 1 Page: 438
14-13.The purpose of a brand name is to establish an image of generic goods or services.
Answer: False LG: 4/LL: 1 Page: 438
14-14.Brand names can significantly impact consumer perceptions of a product.
Answer: True LG: 4/LL: 1 Page: 438
14-15.More than 75% of new products fail to reach their business objectives within their first year of introduction.
Answer: True LG: 5/LL: 1 Page: 441
14-16.New product failures are most often caused by excessively high prices.
Answer: False LG: 5/LL: 1 Page: 441
14-17.New products often fail because they don’t deliver to consumers their promised benefits.
Answer: True LG: 5/LL: 1 Page: 441
14-18.The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.
Answer: True LG: 6/LL: 1 Page: 443
14-19.While the time in each stage may vary, all products progress through each stage of the product life cycle.
Answer: False LG: 6/LL: 1 Page: 443
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.
Answer: True LG: 6/LL: 1 Page: 444
14-22.As consumers evaluate the benefits of a product, price plays a small role.
Answer: False LG: 7/LL: 1 Page: 446
14-23.A long-run pricing objective of almost all firms is to optimize profit.
Answer: True LG: 7/LL: 1 Page: 447
14-24.Sometimes a firm will lower prices below their costs in order to build a customer base.
Answer: True LG: 7/LL: 1 Page: 447
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.
Answer: True LG: 8/LL: 1 Page: 451
14-26.For most firms, price competition is the most important way to gain a competitive advantage over rivals.
Answer: False LG: 8/LL: 1 Page: 451
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.
Answer: True LG: 8/LL: 1 Page: 452
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.
Answer: B LG: 5/LL: 1 Page: 441
15-1.Organizations that assist in moving goods and services from producers to business and consumer users are called financial intermediaries.
Answer: False LG: 1/LL: 1 Page: 460
15-2.Retailers and wholesalers are two major types of marketing intermediaries.
Answer: True LG: 1/LL: 1 Page: 460
15-3.Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.
Answer: False LG: 1/LL: 1 Page: 460
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.
Answer: True LG: 1/LL: 1 Page: 460
15-5.Brokers are marketing intermediaries that do not take title to the goods they help distribute.
Answer: True LG: 1/LL: 1 Page: 460
15-6. Retailers are marketing intermediaries who sell to ultimate consumers.
Answer: TrueLG: 1/LL: 1Page: 460
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.
Answer: True LG: 2/LL: 1 Page: 463
15-25.There are a total of four types of utility that are provided by marketers: primary, secondary, marginal, and total.
Answer: False LG: 2/LL: 1 Page: 463
15-40.Some marketing intermediaries make both wholesale and retail sales.
Answer: True LG: 3/LL: 1 Page: 466
15-41.A retail sale is a sale to a consumer for his or her own use.
Answer: True LG: 3/LL: 1 Page: 466
15-42.The sale of goods to a business that is purchasing the items for resale is a wholesale sale.
Answer: True LG: 3/LL: 1 Page: 466
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.
Answer: DLG: 2/LL: 3Page: 465
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
Answer: D LG: 3/LL: 1 Page: 467
15-194.______wholesalers are independently owned and take title to the goods they handle.
A)Full service
B)Merchant
C)Agent
D)Primary
Answer: B LG: 3/LL: 1 Page: 467
15-210.Discount stores, supermarkets, and department stores are all common types of:
A) multilevel marketers
B)full service wholesalers
C)retail stores
D)category killers
Answer: CLG: 4/LL: 1Page: 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
Answer: D LG: 4/LL: 1 Page: 468
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.
Answer: D LG: 4/LL: 1 Page: 469
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
Answer: B LG: 4/LL: 1 Page: 469
15-235.______means selling goods and services to ultimate consumers over the Internet.
A)Electronic retailing
B)B2B distribution
C)O-selling
D)Intercommerce
Answer: A LG: 5/LL: 1 Page: 472
15-236.______is the sale of goods and services by telephone.
A)Cel-tailing
B)Teleselling
C)Telemarketing
D)Direct marketing
Answer: C LG: 5/LL: 1 Page: 473
15-237.Vending machines are most often used to sell:
A)shopping goods.
B)convenience goods.
C)specialty goods.
D)inferior goods.
Answer: B LG: 5/LL: 1 Page: 473
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
Answer: D LG: 6/LL: 1 Page: 475
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
Answer: A LG: 6/LL: 1 Page: 476
15-257.Franchise systems are one type of ______distribution system.
A)corporate
B)wholesale
C)contractual
D)administered
Answer: C LG: 6/LL: 1 Page: 476
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 management
B)Multi-level marketing
C)Logistics
D)Shipping control management
Answer: CLG: 7/LL: 1Page: 478
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
Answer: B LG: 7/LL: 1 Page: 478
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.
Answer: C LG: 8/LL: 1 Page: 480
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
Answer: D LG: 8/LL: 1 Page: 480
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.
Answer: False LG: 1/LL: 1 Page: 490
16-2. A firm’s promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.
Answer: True LG: 1/LL: 1 Page: 490
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.
Answer: True LG: 1/LL: 1 Page: 490
16-4. Integrated marketing communication simplifies the marketing process by replacing personal selling with extensive use of advertising to create a positive brand image.
Answer: False LG: 1/LL: 1 Page: 490
16-5. Combining a firm’s promotional tools and resources to create a favorable brand image is the goal of integrated marketing communication.
Answer: True LG: 1/LL: 1 Page: 490
16-6. The first step in creating a promotional campaign is to define the objectives for each element of the marketing mix.
Answer: False LG: 1/LL: 1 Page: 490
16-7. The last step in creating a promotional campaign is to evaluate the effectiveness of each element of the promotional mix.
Answer: True LG: 1/LL: 1 Page: 490
16-8.Depending upon the promotional campaign, advertising may include paid and non-paid forms of nonpersonal communication.
Answer: False LG: 2/LL: 1 Page: 491
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.
Answer: B LG: 3/LL: 1 Page: 498
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.
Answer: B LG: 4/LL: 1 Page: 502
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
Answer: D LG: 4/LL: 1 Page: 503
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.
Answer: D LG: 5/LL: 1 Page: 504
16-17.Effective sales promotion activities target::