,Marketing, 7e (Grewal)
Chapter 1 Overview of Marketing
1) Marketing is an activity that only large firms with specialized departments can perform.
Answer: FALSE
Explanation: Marketing activities can be performed by organizations of all sizes and also by
individuals.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The marketing plan is broken down into various components—how the product or service will
be conceived or designed, how much it should cost, where and how it will be promoted, and how
it will get to the consumer.
Answer: TRUE
Explanation: The marketing plan is broken down into various components—how the product or
service will be conceived or designed, how much it should cost, where and how it will be
promoted, and how it will get to the consumer.
Difficulty: 2 Medium
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Understanding the marketplace and a customer's needs and wants is fundamental to marketing
success.
Answer: TRUE
Explanation: Understanding the marketplace, and especially the needs and wants of the
customer, is fundamental to marketing success.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,4) When the publisher of the well-known Babar books wanted to celebrate the 80th anniversary
of the series, it initiated a $100,000 campaign. This initiative represented the price component in
the four Ps.
Answer: FALSE
Explanation: When the publisher of the well-known Babar books wanted to celebrate the 80th
anniversary of the series, it initiated a $100,000 campaign. This initiative represented the
promotion component in the four Ps. Promotion is communication by a marketer that informs,
persuades, and reminds potential buyers about a product or service to influence their opinions
and elicit a response.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The four Ps of the marketing mix include product, promotion, planning, and place.
Answer: FALSE
Explanation: The four Ps of the marketing mix are product, price, place, and promotion.
Difficulty: 1 Easy
Topic: The Four Ps
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Supply chain management is the set of approaches and techniques that firms employ to
efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other
firms involved in the transaction into a seamless value chain in which merchandise is produced
and distributed in the right quantities, to the right locations, and at the right time.
Answer: TRUE
Explanation: Supply chain management is the set of approaches and techniques that firms
employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores,
and other firms involved in the transaction (e.g., transportation companies) into a seamless value
chain in which merchandise is produced and distributed in the right quantities, to the right
locations, and at the right time, while minimizing systemwide costs and satisfying the service
levels required by the customers.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 7) Value is what you get for what you give.
Answer: TRUE
Explanation: Value reflects the relationship of benefits to costs, or what you get for what you
give.
Difficulty: 1 Easy
Topic: Product Value Creation
Learning Objective: 01-02 Detail the evolution of marketing over time.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) In value cocreation, the customer participates in the creation of a good or service, which
provides additional value to the customer.
Answer: TRUE
Explanation: A creative way to provide value to customers is to engage in value cocreation. In
this case, customers can act as collaborators to create the product or service. When clients work
with their investment advisers, they cocreate their investment portfolios; when Nike allows
customers to custom design their sneakers, they are cocreating.
Difficulty: 2 Medium
Topic: Product Value Creation
Learning Objective: 01-02 Detail the evolution of marketing over time.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Ninety-seven percent of marketers assert that they use social media tools for their businesses.
Answer: TRUE
Explanation: Ninety-seven percent of marketers assert that they use social media tools for their
businesses.
Difficulty: 2 Medium
Topic: Define Marketing
Learning Objective: 01-03 Describe how marketers create value for a product or service.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1 Overview of Marketing
1) Marketing is an activity that only large firms with specialized departments can perform.
Answer: FALSE
Explanation: Marketing activities can be performed by organizations of all sizes and also by
individuals.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The marketing plan is broken down into various components—how the product or service will
be conceived or designed, how much it should cost, where and how it will be promoted, and how
it will get to the consumer.
Answer: TRUE
Explanation: The marketing plan is broken down into various components—how the product or
service will be conceived or designed, how much it should cost, where and how it will be
promoted, and how it will get to the consumer.
Difficulty: 2 Medium
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Understanding the marketplace and a customer's needs and wants is fundamental to marketing
success.
Answer: TRUE
Explanation: Understanding the marketplace, and especially the needs and wants of the
customer, is fundamental to marketing success.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,4) When the publisher of the well-known Babar books wanted to celebrate the 80th anniversary
of the series, it initiated a $100,000 campaign. This initiative represented the price component in
the four Ps.
Answer: FALSE
Explanation: When the publisher of the well-known Babar books wanted to celebrate the 80th
anniversary of the series, it initiated a $100,000 campaign. This initiative represented the
promotion component in the four Ps. Promotion is communication by a marketer that informs,
persuades, and reminds potential buyers about a product or service to influence their opinions
and elicit a response.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The four Ps of the marketing mix include product, promotion, planning, and place.
Answer: FALSE
Explanation: The four Ps of the marketing mix are product, price, place, and promotion.
Difficulty: 1 Easy
Topic: The Four Ps
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Supply chain management is the set of approaches and techniques that firms employ to
efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other
firms involved in the transaction into a seamless value chain in which merchandise is produced
and distributed in the right quantities, to the right locations, and at the right time.
Answer: TRUE
Explanation: Supply chain management is the set of approaches and techniques that firms
employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores,
and other firms involved in the transaction (e.g., transportation companies) into a seamless value
chain in which merchandise is produced and distributed in the right quantities, to the right
locations, and at the right time, while minimizing systemwide costs and satisfying the service
levels required by the customers.
Difficulty: 1 Easy
Topic: Define Marketing
Learning Objective: 01-01 Define the role of marketing.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 7) Value is what you get for what you give.
Answer: TRUE
Explanation: Value reflects the relationship of benefits to costs, or what you get for what you
give.
Difficulty: 1 Easy
Topic: Product Value Creation
Learning Objective: 01-02 Detail the evolution of marketing over time.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) In value cocreation, the customer participates in the creation of a good or service, which
provides additional value to the customer.
Answer: TRUE
Explanation: A creative way to provide value to customers is to engage in value cocreation. In
this case, customers can act as collaborators to create the product or service. When clients work
with their investment advisers, they cocreate their investment portfolios; when Nike allows
customers to custom design their sneakers, they are cocreating.
Difficulty: 2 Medium
Topic: Product Value Creation
Learning Objective: 01-02 Detail the evolution of marketing over time.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Ninety-seven percent of marketers assert that they use social media tools for their businesses.
Answer: TRUE
Explanation: Ninety-seven percent of marketers assert that they use social media tools for their
businesses.
Difficulty: 2 Medium
Topic: Define Marketing
Learning Objective: 01-03 Describe how marketers create value for a product or service.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
