Chapter 01
The Marketing Management Process
True / False Questions
1. There can never be a positive bottom line without the ability to build and
sustain a healthy top line.
True False
2. Everything a company does internally is called a profit center of the
company.
True False
3. Reduced division of labor is one of the most important changes that occur as
societies move from a primitive economy toward higher levels of economic
development.
True False
4. People who buy goods for others in their immediate household are
organizational buyers.
True False
5. An unsatisfied need is a gap between a person's actual and desired states on
some physical or psychological dimension.
True False
6. The need for security, love and belonging are basic physical needs of human
beings.
True False
,7. New needs are created by marketers and other social forces by making
emotional appeals to customers.
True False
8. When people buy products to satisfy their needs, it is the benefits of the
product that they buy rather than the products.
True False
9. Value is a function of extrinsic features related to the environment.
True False
10. Lifetime customer value refers to the present value of a stream of revenue
that can be produced by a customer over time.
True False
11. Brand equity reflects the value of the brand name and logo as promotional
tools for attracting future buyers and building market share and profitability.
True False
12. A brand's value to the company depends on how much value the company
thinks the brand provides customers.
True False
13. Each market segment seeks a different set of benefits from the same product
category.
True False
14. Marketing management involves controlling programs related to the
conception, pricing, promotion, and distribution of products.
True False
,15. The relative strengths and weaknesses of competitors and trends in the
competitive environment is one of the 4 Cs necessary to provide the
foundation for a good strategic marketing plan.
True False
16. A company's available resources and capabilities have no bearing over its
marketing objectives for a particular product-market entry.
True False
17. The controllable elements of a marketing program include product offering,
price, promotion, and place.
True False
18. Advertising and salesforce decisions are part of a company's promotion.
True False
19. A marketing plan is a written document detailing the current situation with
respect to customers, competitors, and the external environment.
True False
20. The marketing manager details the financial and resource implications of the
strategy in the first part of a marketing plan.
True False
21. Internal control of the full range of marketing functions and activities is
referred to as vertical integration.
True False
22. Merchant wholesalers sell goods and services directly to final consumers for
nonbusiness use.
True False
, 23. The purchasing, storage, promotion, and selling activities of wholesalers and
retailers allow customers to buy a wide variety of goods from a single source
in one transaction.
True False
24. Specialization of labor and economies of scale involved in an extensive
marketing system reduces its functional efficiency.
True False
25. A product has greater place utility for a potential customer when it can be
purchased with minimum risk and shopping time.
True False
26. Implementing a marketing plan requires cooperation and coordination across
many specialized functional areas.
True False
27. A service refers to any activity or benefit that one party can offer another and
that results in the ownership of something.
True False
28. Auction sites, such as eBay, QXL are examples of Consumer-to-Consumer
(C2C) channels.
True False
29. Dell allows individuals buy personal computers by placing online orders in the
website. Dell's website is an example of a business-to-business e-commerce
site.
True False
The Marketing Management Process
True / False Questions
1. There can never be a positive bottom line without the ability to build and
sustain a healthy top line.
True False
2. Everything a company does internally is called a profit center of the
company.
True False
3. Reduced division of labor is one of the most important changes that occur as
societies move from a primitive economy toward higher levels of economic
development.
True False
4. People who buy goods for others in their immediate household are
organizational buyers.
True False
5. An unsatisfied need is a gap between a person's actual and desired states on
some physical or psychological dimension.
True False
6. The need for security, love and belonging are basic physical needs of human
beings.
True False
,7. New needs are created by marketers and other social forces by making
emotional appeals to customers.
True False
8. When people buy products to satisfy their needs, it is the benefits of the
product that they buy rather than the products.
True False
9. Value is a function of extrinsic features related to the environment.
True False
10. Lifetime customer value refers to the present value of a stream of revenue
that can be produced by a customer over time.
True False
11. Brand equity reflects the value of the brand name and logo as promotional
tools for attracting future buyers and building market share and profitability.
True False
12. A brand's value to the company depends on how much value the company
thinks the brand provides customers.
True False
13. Each market segment seeks a different set of benefits from the same product
category.
True False
14. Marketing management involves controlling programs related to the
conception, pricing, promotion, and distribution of products.
True False
,15. The relative strengths and weaknesses of competitors and trends in the
competitive environment is one of the 4 Cs necessary to provide the
foundation for a good strategic marketing plan.
True False
16. A company's available resources and capabilities have no bearing over its
marketing objectives for a particular product-market entry.
True False
17. The controllable elements of a marketing program include product offering,
price, promotion, and place.
True False
18. Advertising and salesforce decisions are part of a company's promotion.
True False
19. A marketing plan is a written document detailing the current situation with
respect to customers, competitors, and the external environment.
True False
20. The marketing manager details the financial and resource implications of the
strategy in the first part of a marketing plan.
True False
21. Internal control of the full range of marketing functions and activities is
referred to as vertical integration.
True False
22. Merchant wholesalers sell goods and services directly to final consumers for
nonbusiness use.
True False
, 23. The purchasing, storage, promotion, and selling activities of wholesalers and
retailers allow customers to buy a wide variety of goods from a single source
in one transaction.
True False
24. Specialization of labor and economies of scale involved in an extensive
marketing system reduces its functional efficiency.
True False
25. A product has greater place utility for a potential customer when it can be
purchased with minimum risk and shopping time.
True False
26. Implementing a marketing plan requires cooperation and coordination across
many specialized functional areas.
True False
27. A service refers to any activity or benefit that one party can offer another and
that results in the ownership of something.
True False
28. Auction sites, such as eBay, QXL are examples of Consumer-to-Consumer
(C2C) channels.
True False
29. Dell allows individuals buy personal computers by placing online orders in the
website. Dell's website is an example of a business-to-business e-commerce
site.
True False
