THINK Marketing 3rd Edition by Keith J. Tuckwell - Test Bank

Chapter 1 Contemporary Marketing 1) The American Marketing Association’s updated definition of marketing is a process that identifies a need and then offers a means of satisfying that need. Answer: FALSE Diff: 2 Type: TF Page Ref: 4 Skill: Recall LO: 8 2) Organizations that concentrate on what they are capable of producing follow a marketing orientation. Answer: FALSE Diff: 2 Type: TF Page Ref: 6 Skill: Recall LO: 3 3) An organization that focuses on selling more products to drive increased profits is practising the marketing orientation. Answer: FALSE Diff: 2 Type: TF Page Ref: 6 Skill: Recall LO: 3 4) Making what you can market instead of marketing what you can make is a philosophy of the marketing era. Answer: TRUE Diff: 2 Type: TF Page Ref: 7 Skill: Recall LO: 3 5) Marketing is separate and distinct from the overall organizational philosophy of a company. Answer: FALSE Diff: 2 Type: TF Page Ref: 4 Skill: Recall LO: 2 6) A marketing orientation exists when all business revolves around the customer. Answer: TRUE Diff: 2 Type: TF Page Ref: 7 Skill: Recall LO: 3 7) The concept of socially responsible marketing states that business should conduct itself in the best interests of consumers. Answer: TRUE Diff: 1 Type: TF Page Ref: 8 Skill: Recall LO: 2 8) Seeking profits by increasing sales is characteristic of the selling orientation. Answer: TRUE Diff: 2 Type: TF Page Ref: 6 Skill: Recall LO: 3 9) Successful global brands are those that focus on the bottom line, or price tag, of their products. Answer: FALSE Diff: 2 Type: TF Page Ref: 3 Skill: Recall LO: 2 10) If Canadian Tire redesigns their retail stores as a result of feedback from their target markets, they are applying the selling concept. Answer: FALSE Diff: 2 Type: TF Page Ref: 7 Skill: Applied LO: 3 11) Businesses that conduct themselves in the best interests of company executives are socially responsible. Answer: FALSE Diff: 2 Type: TF Page Ref: 8 Skill: Recall LO: 3 12) Socially responsible marketing is demonstrated when a business conducts itself in the best interests of the consumers and society. Answer: TRUE Diff: 2 Type: TF Page Ref: 8 Skill: Recall LO: 3 13) Cause marketing is an example of socially responsible marketing. Answer: TRUE Diff: 2 Type: TF Page Ref: 8 Skill: Applied LO: 3 14) Greenwashing is customer skepticism about a company's environmental claims. Answer: TRUE Diff: 2 Type: TF Page Ref: 8 Skill: Recall LO: 8 15) In a social network environment, it is important for companies to remain formal in the way they communicate with their customers. Answer: FALSE Diff: 2 Type: TF Page Ref: 9 LO: 3 16) Social media gives control of a company's message to the customer. Answer: TRUE Diff: 2 Type: TF Page Ref: 11 Skill: Applied LO: 3 17) Some research suggests that it is five times more costly to get a new customer than to keep an old one. Answer: TRUE Diff: 1 Type: TF Page Ref: 13 Skill: Recall LO: 4 18) A study determined more than half of Canadians have chosen to conduct business with a company because they behaved in a socially responsible manner. Answer: TRUE Diff: 1 Type: TF Page Ref: 8 Skill: Recall LO: 3 19) Consumer analysis is the study of the effect of a price increase on consumer demand. Answer: FALSE Diff: 2 Type: TF Page Ref: 14 Skill: Recall LO: 4 20) Longo’s decision to bypass traditional channels of distribution and open a Grocery Gateway Warehouse is a product decision. Answer: FALSE Diff: 2 Type: TF Page Ref: 20 Skill: Applied LO: 5 21) The most effective way to enhance an organization's public image is through advertising. Answer: FALSE Diff: 2 Type: TF Page Ref: 23 Skill: Applied LO: 5 22) The collection of target markets chosen by the organization is its marketing mix. Answer: FALSE Diff: 2 Type: TF Page Ref: 17 Skill: Recall LO: 5 23) The marketing mix refers to a set of strategic elements including product, price, distribution, and marketing communications. Answer: TRUE Diff: 1 Type: TF Page Ref: 17 Skill: Recall LO: 5 24) Advertising is a persuasive form of marketing that uses only traditional media. Answer: FALSE Diff: 2 Type: TF Page Ref: 20 Skill: Recall LO: 5 25) Coupons and free samples are examples of sales promotions. Answer: TRUE Diff: 1 Type: TF Page Ref: 22 Skill: Recall LO: 5 26) The flow of goods and services to the final consumer is a function of an organization's distribution strategy. Answer: TRUE Diff: 2 Type: TF Page Ref: 20 Skill: Recall LO: 5 27) Marketing unique attributes of a product is a demonstration of a promotions strategy. Answer: FALSE Diff: 2 Type: TF Page Ref: 19 Skill: Recall LO: 5 28) The first step in the marketing process is the identification and selection of a target market. Answer: FALSE Diff: 2 Type: TF Page Ref: 15 Skill: Recall LO: 5 29) A pricing strategy is only concerned with establishing a price that is attractive to consumers. Answer: FALSE Diff: 2 Type: TF Page Ref: 19 Skill: Recall LO: 5 30) Public relations and publicity decisions are part of a company's marketing communications strategy. Answer: TRUE Diff: 2 Type: TF Page Ref: 22 Skill: Recall LO: 5 31) Relationship marketing results in individualized marketing programs. Answer: TRUE Diff: 2 Type: TF Page Ref: 24 Skill: Recall LO: 6 32) A target market is a group of people, typically a smaller geographic area, in which a product or service is tested before it is officially launched. Answer: FALSE Diff: 2 Type: TF Page Ref: 16 Skill: Recall LO: 5 33) President's Choice and No Name products have very different package designs. In marketing, these decisions are considered part of the product. Answer: TRUE Diff: 2 Type: TF Page Ref: 18 Skill: Applied LO: 5 34) A company's sponsorship of a triathlon is a marketing mix decision. Answer: TRUE Diff: 3 Type: TF Page Ref: 22 Skill: Applied LO: 5 35) Customer relationship management refers to personal relationships developed by sales personnel. Answer: FALSE Diff: 2 Type: TF Page Ref: 24 Skill: Applied LO: 6 36) Customer relationship management enables companies to learn about client needs and preferences through information technology and data analysis. Answer: TRUE Diff: 2 Type: TF Page Ref: 24 Skill: Recall LO: 6 37) One focus of Williams Fresh Café’s relationship management efforts is to understand what their best guests prefer and make them offers in real time. Answer: TRUE Diff: 2 Type: TF Page Ref: 25 Skill: Applied LO: 6 38) Product strategy involves the development of packaging that is fair and equitable for the consumer while still being profitable for the organization. Answer: FALSE Diff: 2 Type: TF Page Ref: 18 Skill: Recall LO: 5 39) Experiential marketing is designed to engage new users with the brand in a more personal way. Answer: TRUE Diff: 2 Type: TF Page Ref: 22 Skill: Applied LO: 5 40) Bell Canada's sponsorship of the 2010 Winter Olympics is an example of event marketing. Answer: TRUE Diff: 2 Type: TF Page Ref: 22 Skill: Applied LO: 5 41) Customer satisfaction and relationship marketing are the cornerstones of contemporary marketing. Answer: TRUE Diff: 2 Type: TF Page Ref: 24 Skill: Recall LO: 6 42) Shoppers Drug Mart's Optimum loyalty program collects transaction data in order to tailor offers to loyal customers. Answer: TRUE Diff: 2 Type: TF Page Ref: 24 Skill: Applied LO: 6 43) Which of the following best describes one of the toughest challenges facing a business today? A) increasing customer loyalty B) cost reductions C) currency fluctuations D) attracting new customers E) keeping pace with change Answer: E Diff: 2 Type: MC Page Ref: 2 Skill: Recall LO: 1 44) Which of the following trends does the text suggest are responsible for creating more complex business environments for marketers? A) increased Internet use, higher taxes, and rising household debt B) smaller families, globalization, and political uncertainty C) heightened interest in business ethics, rapidly changing technology, and changes to the population D) conflicting strategic priorities, falling ethical standards, and increased pollution E) reduced consumer spending, decreasing brand loyalty, and growing smartphone use Answer: C Diff: 3 Type: MC Page Ref: 2-3 Skill: Recall LO: 1 45) In addition to constantly assessing changing conditions, marketing also provides A) ways of incorporating technology into the business portfolio. B) strategies to take advantage of a globally changing business environment. C) ways to prevent global changes from interfering with the company's existing plans. D) product improvements to meet changing customer needs. E) ways to communicate the company's social responsibility initiatives to consumers. Answer: B Diff: 3 Type: MC Page Ref: 4 Skill: Recall LO: 2 46) Which of the following is not essential element of marketing practice today? A) designing programs to attract customers and get them to buy for the first time B) assessing customers' needs and finding ways to satisfy those needs C) encourage customer satisfaction and loyalty in order to build a long, profitable relationship D) developing new and innovative products before customers recognize their need for them E) conducting marketing practices in a way that benefits many stakeholders Answer: D Diff: 3 Type: MC Page Ref: 3 Skill: Recall LO: 2 47) Many well-known brands rank high on the reputation list. This is because A) these companies keep their brands and their products separate in the minds of customers. B) they take their time before retiring products that don’t connect with customers. C) they are quick to diversify beyond what they have been known for in the past. D) they have a select, small number of retailers that are better able to develop service. E) they constantly monitor their environments and put plans into place to meet the ever-changing needs of customers. Answer: E Diff: 2 Type: MC Page Ref: 5-6 Skill: Recall LO: 2 48) The marketing concept states that A) only the resources of the marketing department should be dedicated to marketing. B) staying one step ahead of competitors will help firms realize profits. C) production, sales, and distribution departments must work independently to maintain efficiency. D) slogans like “Have It Your Way” lead to companies not meeting consumer expectations. E) all business planning revolves around the marketing department. Answer: B Diff: 3 Type: MC Page Ref: 7 Skill: Applied LO: 3 49) If a company works on the assumption that customers will purchase the products they offer, what is the company's orientation? A) marketing orientation B) profit orientation C) sales orientation D) low-cost orientation E) production orientation Answer: E Diff: 2 Type: MC Page Ref: 6 Skill: Recall LO: 3 50) What is the underlying belief in a selling orientation? A) Selling products with the highest margin will bring success. B) Selling to niche markets is most effective. C) Satisfying customer needs leads to the greatest sales. D) Selling the highest volume leads to the greatest profits. E) Selling product benefits rather than features is the key to customer satisfaction. Answer: D Diff: 3 Type: MC Page Ref: 6 Skill: Applied LO: 3 51) What does a company focus on when it embraces a marketing orientation? A) leadership in socially responsible marketing B) promotions to maximize market share C) maximization of customer options D) satisfying customer needs better than the competition can E) selling product benefits as the key to greatest profitability Answer: D Diff: 3 Type: MC Page Ref: 7 Skill: Applied LO: 3 52) When a company's executives carefully consider the impact of their decisions on employees, the community, and the country, what is the company's orientation? A) marketing orientation B) philosophical orientation C) ethical orientation D) strategic orientation E) socially responsible marketing orientation Answer: E Diff: 1 Type: MC Page Ref: 8 Skill: Recall LO: 3 53) Conducting business in a socially responsible manner should be natural for all businesses because A) consumer studies show many people will choose a product from a responsible company. B) despite pressure on business executives to remain competitive, unethical behaviour can lead to catastrophic losses. C) the planet’s well-being is in everyone’s self-interest. D) aligning business activities with social interest is important for purchase intent. E) all of the above. Answer: E Diff: 1 Type: MC Page Ref: 8 Skill: Recall LO: 3 54) Mrs. Romuldi has perfected the process to replace the ribbon in typewriter cartridges, therefore allowing them to be reused. She expects her business to be successful because she has a great product. What is Mrs. Romuldi's approach to business? A) marketing orientation B) production orientation C) selling orientation D) service orientation E) efficiency orientation Answer: B Diff: 2 Type: MC Page Ref: 6 Skill: Applied LO: 3 55) Which of the following is characteristic of an organization exhibiting the marketing orientation as its business philosophy? A) building products that are great from their point of view B) communicating product attributes to convince customers to buy C) delivering better customer value than competitors D) ensuring products are cost effective to the company E) focusing on the competition Answer: C Diff: 2 Type: MC Page Ref: 7 Skill: Recall LO: 3 56) What is the name for the business philosophy where managers are concerned that their business decisions are balancing the expectations of customers, shareholders, the environment and society at large? A) selling orientation B) production orientation C) socially responsible marketing orientation D) efficiency orientation E) marketing orientation Answer: C Diff: 1 Type: MC Page Ref: 8 Skill: Recall LO: 3 57) Which of the following is a prime driver of the growing importance of socially responsible marketing? A) consumers' belief that companies are primarily greenwashing B) consumer pressure through social media C) the fact that younger demographics watch little TV D) international boycotting of Shell E) Canadians' tendency to pay more for green products Answer: B Diff: 2 Type: MC Page Ref: 7-9 Skill: Applied LO: 3 58) For one day each month, a locally owned bookstore donates the proceeds of the day's children's book sales to the local youth literacy project fund. What is the best way to describe this marketing activity? A) unprofitable B) the marketing concept C) charitable marketing D) cause marketing E) philosophical marketing Answer: D Diff: 2 Type: MC Page Ref: 8 Skill: Applied LO: 3 59) What was the orientation that applied to Henry Ford's business? A) marketing orientation B) societal orientation C) affordability orientation D) production orientation E) selling orientation Answer: D Diff: 1 Type: MC Page Ref: 6 Skill: Recall LO: 3 60) What orientation does a snack food manufacturer that conducts frequent taste tests in order to respond to consumers' preferences use? A) product orientation B) marketing orientation C) production orientation D) selling orientation E) quality orientation Answer: B Diff: 1 Type: MC Page Ref: 7 Skill: Applied LO: 3 61) What orientation is described by the following example? Seagram's Distilleries covers the cost of public transportation on New Year's Eve. A) production B) advanced selling C) socially responsible marketing D) publicity marketing E) non-profit cause marketing Answer: C Diff: 1 Type: MC Page Ref: 8-9 Skill: Applied LO: 3 62) A clothing manufacturer with 300 cases of out-of-fashion sweaters provided a broker with a discounted price to sell the clothes in Europe. This is an example of A) a marketing orientation. B) socially responsible marketing. C) the societal marketing concept. D) a selling orientation. E) a production orientation. Answer: D Diff: 1 Type: MC Page Ref: 6 Skill: Applied LO: 3 63) Cause marketing includes which of the following? A) CIBC's Run for the Cure B) Maple Leaf's handling of the Listeria outbreak C) Avon direct marketing D) Tupperware in-home sales events E) Walmart's low-price strategy Answer: A Diff: 1 Type: MC Page Ref: 8 Skill: Applied LO: 3 64) Molson Breweries' support of the "Dancers for Life" AIDS fundraising event is an example of A) issues marketing. B) public relations marketing. C) socially responsible marketing. D) corporate citizenship. E) niche marketing. Answer: C Diff: 1 Type: MC Page Ref: 8 Skill: Applied LO: 3 65) Which of the following is an example of social media marketing? A) Unilever removing the artificial ingredients from Becel based on customer demand for transparency. B) VH sauces switching from bottles to pouches to meet the needs of millennials who are more sensitive to food waste. C) Marketers retaining control over their messaging on social media networks. D) Posting interesting information about a brand so people pass the information on to their friends. E) A company totally abandoning their traditional media in favour of their website. Answer: D Diff: 3 Type: MC Page Ref: 10-11 Skill: Applied LO: 3 66) The notion of brand democratization states that A) companies must pay their customers to ensure they post the right content. B) companies cannot engage with customers when they create content online. C) consumer-generated content allows customers some control over the marketing of a brand. D) brands should work to maintain traditional one-way communications online. E) consumer manipulation of brand content must be avoided. Answer: C Diff: 2 Type: MC Page Ref: 11 LO: 3 67) A target market is a group of people who A) purchase only from retailers. B) are the least price sensitive when purchasing. C) have the same income. D) have similar characteristics in common. E) live in the same geographical area. Answer: D Diff: 2 Type: MC Page Ref: 16 Skill: Recall LO: 4 68) Coke Zero is marketed to “young males who are clear about what they want” by A) using packaging with black graphics and advertising that suggests a bold personality. B) sticking with what works for other Coke products in their advertising. C) only using unpaid social media. D) focusing on the scientific facts of its low-calorie formula. E) All of the above are correct. Answer: A Diff: 2 Type: MC Page Ref: 14 Skill: Recall LO: 4 69) When conducting a needs assessment, an organization A) reviews its finances and human resources to determine what it needs to develop new products. B) sends surveys to shareholders to determine whether they are able to supply the investment that the company needs. C) considers factors such as market demand, production capabilities, and availability of resources. D) collects appropriate information about consumer needs to determine if a market is worth pursuing. E) reviews the action of the competition to determine how it can best mimic their successful strategies. Answer: D Diff: 2 Type: MC Page Ref: 14 Skill: Recall LO: 4 70) An organization cannot satisfy the needs of all consumers, so it concentrates its efforts on a segment of the population that offers the most promise. This group is called the A) focus group. B) target market. C) profit sector. D) target niche. E) demographic target. Answer: B Diff: 1 Type: MC Page Ref: 16 Skill: Recall LO: 4 71) The first stage in the marketing process is A) needs assessment. B) test marketing. C) product design. D) concept development. E) feasibility testing. Answer: A Diff: 1 Type: MC Page Ref: 15 Skill: Recall LO: 4 72) An airline that collects customer information about proposed new routes is conducting a A) needs assessment. B) competitive analysis. C) market analysis. D) profit analysis. E) consumer analysis. Answer: A Diff: 2 Type: MC Page Ref: 14 Skill: Applied LO: 4 73) When Colgate introduced Colgate 2-in-1 Toothpaste & Mouthwash, the company considered market demand, sales volume potential, and resource availability. The company was engaging in A) consumer analysis. B) needs assessment. C) test market analysis. D) competitive analysis. E) market analysis. Answer: E Diff: 2 Type: MC Page Ref: 14 Skill: Applied LO: 4 74) Canadian female consumers are Kellogg’s Special K’s A) relationship market. B) geographic market. C) market niche. D) prime market. E) target market. Answer: E Diff: 1 Type: MC Page Ref: 16 Skill: Recall LO: 4 75) The target market for a daycare that looks after children aged 1-5 years would be A) couples without children. B) parents with children. C) working parents with children aged 0-5 years. D) anyone who knows young mothers. E) children aged 1-5 years. Answer: C Diff: 2 Type: MC Page Ref: 16 Skill: Applied LO: 4 76) This marketing activity involves monitoring the implementation of marketing strategies and ensuring successful achievement of marketing goals. A) evaluation review B) target market review C) marketing analysis D) customer needs assessment E) customer relationship strategy development Answer: A Diff: 2 Type: MC Page Ref: 25 Skill: Recall LO: 7 77) What area of the marketing mix would involve decisions about selling more on e-commerce? A) price B) product C) technology D) distribution E) marketing communications Answer: D Diff: 1 Type: MC Page Ref: 20 Skill: Applied LO: 5 78) Decisions involving transactions between manufacturers and wholesalers relate to which marketing mix element? A) branding B) distribution C) margins D) price E) product Answer: B Diff: 1 Type: MC Page Ref: 20 Skill: Recall LO: 5 79) When the elements of the marketing mix are combined effectively, the resulting marketing strategy should A) leverage the company's brand image. B) satisfy the needs of the target market and achieve organizational objectives. C) maximize the company's profits and minimize advertising expenditures. D) ensure the company dominates its niche market. E) capitalize on technological advances and simplify distribution. Answer: B Diff: 2 Type: MC Page Ref: 20 Skill: Recall LO: 5 80) You have been hired to create a marketing communication program for Brendo Toys. You will be A) selecting an appropriate advertising campaign. B) monitoring profit per unit. C) suggesting new product features. D) deciding on alternate distribution methods. E) setting a competitive price. Answer: A Diff: 2 Type: MC Page Ref: 20 Skill: Applied LO: 5 81) Quaker Oats’ decision to produce granola bars was a ________ decision. A) distribution B) target market C) brand D) product E) pricing Answer: D Diff: 1 Type: MC Page Ref: 18 Skill: Applied LO: 5 82) Apple separates itself from its competition by offering unique products that deliver combinations of benefits that are unlike other market offerings. This is called A) brand extension. B) price strategy. C) product differentiation. D) product quality. E) product orientation. Answer: C Diff: 2 Type: MC Page Ref: 19 Skill: Applied LO: 5 83) "Mama's Diner" emphasizes its unique recipes, home-cooked taste, and fresh preparation in its marketing plan. What strategy is "Mama's" executing? A) entrepreneurialism B) product differentiation C) service quality D) niche marketing E) intangible benefit Answer: B Diff: 2 Type: MC Page Ref: 19 Skill: Applied LO: 5 84) What activity would considerations of media and message fall under? A) customer relationship management B) experiential marketing C) sales promotions D) public relations E) integrated marketing communications Answer: E Diff: 1 Type: MC Page Ref: 20 Skill: Recall LO: 5 85) Managers making pricing decisions for a product that has low differential advantage will generally A) set prices higher than competitive products. B) set prices below competitive products. C) set prices according to cost of manufacturing. D) be subject to monopolistic pricing laws. E) have little flexibility in setting prices. Answer: E Diff: 2 Type: MC Page Ref: 19 Skill: Recall LO: 5 86) The following factors are considered when a price strategy is established: A) marketing mix, IMC strategy, size of target market, age of consumer. B) durability of packaging, production costs, distributor relationships, and push strategy. C) cost of manufacture, customer location, desired profits, and degree of competition. D) pull strategy, product longevity, intangible value, and competitor's costs. E) service mix, desired profits, applicable taxes, and goals of sales force. Answer: C Diff: 2 Type: MC Page Ref: 19 Skill: Recall LO: 5 87) Pricing strategy decisions consider company guidelines relating to A) test marketing, warranties, and consumer loyalty. B) profits only. C) costs only. D) loyalty programs, communications media, and channel factors. E) trade allowances, discount programs, and credit terms. Answer: E Diff: 2 Type: MC Page Ref: 19 Skill: Recall LO: 5 88) A series of firms or individuals that participate in the flow of goods and services from producer to final users is known as a A) distribution channel. B) marketing channel. C) distributorship. D) selling group. E) target market. Answer: B Diff: 2 Type: MC Page Ref: 20 Skill: Recall LO: 5 89) Organizations that resell a product along a distribution channel are known as A) distributors. B) agents. C) brokers. D) buyers. E) manufacturers. Answer: A Diff: 2 Type: MC Page Ref: 20 Skill: Recall LO: 5 90) Advances in Internet technologies and e-commerce are encouraging a growth in A) price discounts. B) global distribution. C) communications strategies. D) direct channels of distribution. E) generic marketing strategies. Answer: D Diff: 2 Type: MC Page Ref: 20 Skill: Recall LO: 5 91) The premise that it is important for a company to present a clear and consistent message in each medium to achieve the highest possible impact is referred to as A) standardized marketing communications. B) integrated marketing communications. C) direct marketing. D) target marketing. E) customer relationship marketing. Answer: B Diff: 2 Type: MC Page Ref: 20 Skill: Applied LO: 5 92) Media choices are important because A) the younger generation has grown up with mobiles, while older Canadians have not. B) older Canadians only read the newspaper and watch television for their information. C) older Canadians have not learned how to use computers, tablets, and smartphones. D) marketers can always place their ads using the same media to produce consistent results. E) the core product benefits change depending on which media is used. Answer: A Diff: 2 Type: MC Page Ref: 21 LO: 5 93) Coupons and contests are examples of A) price discounting. B) event marketing. C) trade promotion. D) sales promotion. E) target marketing. Answer: D Diff: 1 Type: MC Page Ref: 22 Skill: Recall LO: 5 94) Event marketing is beneficial to companies because it offers A) an opportunity to network with celebrities. B) profit maximization security. C) the ability to reach a target audience directly. D) positive imaging. E) low-cost communications. Answer: C Diff: 2 Type: MC Page Ref: 22 Skill: Recall LO: 5 95) Bell Canada's sponsorship of the 2010 Olympics is an example of A) experiential marketing. B) event marketing. C) promotional marketing. D) public relations. E) cause marketing. Answer: B Diff: 2 Type: MC Page Ref: 22 Skill: Applied LO: 5 96) Advertising to inform the public about its social and environmental activities is known as a firm's A) public relations. B) integrated advertising. C) brand advertising. D) targeted advertising. E) corporate advertising. Answer: E Diff: 2 Type: MC Page Ref: 23 Skill: Recall LO: 5 97) Shell Canada's television commercials featuring Shell employees solving environmentally sensitive challenges in sustainable ways attempt to enhance the company's public image. The commercials are part of which type of advertising campaign? A) sustainable B) corporate C) innovation D) integrated E) greenwashing Answer: B Diff: 2 Type: MC Page Ref: 23 Skill: Applied LO: 5 98) What does the term "customer relationship management" refer to? A) the cooperation of competitive organizations who share the same target markets B) strategies designed to optimize profitability, revenue, customer retention, and customer satisfaction C) privacy legislation for collection of personal information D) the personal selling process E) effective relationship development between brands and customers Answer: B Diff: 2 Type: MC Page Ref: 24 Skill: Recall LO: 6 99) Incentives offered to motivate customers to make repeat purchases are called A) promotions. B) customer profiling. C) strategic alliances. D) loyalty programs. E) database marketing. Answer: D Diff: 2 Type: MC Page Ref: 24 Skill: Recall LO: 6 100) Customer Relationship Management (CRM) refers to A) strategies designed to look beyond individual transactions to the long-term relationship with the customer. B) only two areas: loyalty and programs that analyze data. C) strategies designed to optimize profitability and revenue from loyal customers. D) database marketing techniques. E) strategies to invest in software to track customer transactions. Answer: A Diff: 2 Type: MC Page Ref: 24 Skill: Recall LO: 6 101) When a company analyzes its CRM system to create individualized marketing programs, the company is using a A) target marketing program. B) loyalty program. C) direct marketing program. D) customer relationship management program. E) integrated marketing communications program. Answer: D Diff: 2 Type: MC Page Ref: 24 Skill: Recall LO: 6 102) Points customers receive on their Optimum card when they make a purchase at Shoppers Drug Mart are an example of a A) strategic alliance. B) partnership. C) loyalty program. D) sales promotion. E) price strategy. Answer: C Diff: 2 Type: MC Page Ref: 24 Skill: Applied LO: 6 103) Marketing activity is typically planned A) the moment a business sees a dip in revenue, profit, or market share. B) whenever the marketing department generates a new plan. C) whenever business divisions within the company request a marketing plan. D) on an annual basis. E) as frequently as market conditions dictate. Answer: D Diff: 1 Type: MC Page Ref: 25 LO: 7 104) The objective of a review is to A) only evaluate the marketing plan once per quarter. B) find out if the current plan will achieve the stated goals by the stated deadline. C) quickly change strategies based on competitor behaviour. D) choose a new target market frequently throughout the year. E) evaluate, but not change, the marketing mix elements outlined in the plan. Answer: B Diff: 2 Type: MC Page Ref: 25 LO: 6 105) Mars sourcing sustainable cocoa production and using the M&Ms characters to communicate this to consumers is an example of A) sustainable marketing. B) social network marketing. C) integrated communications. D) corporate sustainability. E) marketing values. Answer: A Diff: 2 Type: MC Page Ref: 27 Skill: Applied LO: 8 106) Which of the following is not a reason for a company to practise ethics when it comes to marketing? A) Consumers are more engaged through social media and will hold companies to their standards. B) Reducing carbon footprint can save money and help reduce negative environmental repercussions. C) The CMA or AMA will fine them for infractions of the code of ethics. D) Breaking social codes is against the law. E) Younger generations expect businesses to consider the impact of their activities. Answer: C Diff: 1 Type: MC Page Ref: 26-27 Skill: Recall LO: 8 107) Would you describe A&W as having a socially responsible marketing orientation? Are their actions driven by corporate philosophy or marketing? Are they "greenwashing" or are they sincere? Justify your answer with specific examples. Answer: Students could indicate "greenwashing" skepticism; however, A&W has taken some leadership in socially responsible marketing. They now sell beef, chicken, and pork raised without antibiotics and eggs fed a diet free of animal by-products. These changes responded to a younger customer group who focus on quality. Skepticism could stem from recognition that these programs generated an 8% growth in sales in 2015, so there are ulterior motives; however, it is important to give credit where it's due, and these are truly important initiatives. Their actions are driven by both corporate philosophy and listening to their customers, which should not be mutually exclusive. Clearly they have undertaken initiatives to make sure their business practices are in the best interests of society, but they are also aware that their clientele is educated and want transparency, so A&W is also "listening" and responding to their customers. Diff: 3 Type: ES Page Ref: 2 Skill: Applied LO: 2 108) Explain the statement, "Marketing is an agent of change." Answer: Marketing is a means to assess changing conditions and provides the expertise to develop strategies that will allow an organization to adapt to change. Marketing uses systems to listen to customers and then takes action to ensure that products and services are continually improved to meet customers' changing needs and wants. Diff: 2 Type: ES Page Ref: 2 Skill: Recall LO: 2 109) What is marketing? Use your own words to define and describe marketing. Answer: Student answers will vary but could include reference to the fact the definition for marketing is changing and dynamic; however, it also involves needing identification, listening to customers, taking steps to satisfy needs (product or service improvements), a mutually beneficial transaction or exchange between a buyer and a seller, planning and execution of conception, pricing, promotion, and distribution of ideas, goods, and services. Diff: 2 Type: ES Page Ref: 4 Skill: Applied LO: 1 110) What are the three elements of socially responsible marketing? Provide examples, either your own, or from the textbook, of each. Answer: - Deliver satisfaction better than the competition (e.g., Newman’s Own founding value that “Quality will always trump the bottom line.”) - Enhance the well-being of society through sound relationships and corporate citizenship (e.g., Bell Canada’s Let’s Talk Day which encourages conversation around mental health and results in donations to related not-for-profits). - Identify and satisfy consumer needs (e.g., Unilever removing artificial ingredients from the Becel product line to respond to consumer demand for transparency). Diff: 2 Type: ES Page Ref: 7-10 Skill: Applied LO: 3 111) List and explain the five stages in the evolution of marketing. Answer: - Production orientation: market in a way that is first and foremost best for the company. Limitations on technology drove this. - Selling orientation: some consideration given to the customer, but this approach is to make first and then find a market. - Marketing orientation: uncover a need and then satisfy it in a way that benefits both the customer and the company. - Socially responsible marketing orientation: satisfy needs in a way that is in society's best interests and in so doing become a good corporate citizen. - Social media marketing orientation: customers interact with a brand. Diff: 1 Type: ES Page Ref: 12 Skill: Recall LO: 3 112) Explain how a manufacturer of personal computers could use each of the different marketing orientations in its sales efforts. Answer: - Production orientation: produce a limited choice of PCs and focus on what is best for the company, especially in terms of profit. - Selling orientation: produce PCs with a wide variety of options and then try to find a market that will find these options attractive. - Marketing orientation: get customer input about desired options in a PC and produce systems that will satisfy those needs. - Socially responsible marketing orientation: satisfy the computer buyer's needs in a manner that indicates the company is a good corporate citizen; sponsor local events, donate used systems to schools. - Social media orientation: ask customers to like the company on Facebook Diff: 2 Type: ES Page Ref: 12 Skill: Applied LO: 3 113) Why do companies need to select target markets? Give an example of how you would communicate to a target market of Generation Y students. What would you consider? Answer: Companies select target markets to concentrate their resources and deploy specific media. Generation Y are tech-savvy social media users who are less likely to read newspapers or watch TV ads. They are trendy and adventurous. Companies can make it easy for a customer to post "likes" about their products on Facebook so that the customer can "spread the positive word" to his or her Facebook friends. Diff: 2 Type: ES Page Ref: 14 Skill: Applied LO: 4 114) A supplier of computer software has decided to create educational apps. A consultant has advised the company that to be successful, a marketer should be employed to implement marketing practices and philosophies within the company. In line with a marketing orientation, what are the first two things this marketing employee should determine about the business this company wishes to start? Answer: - Step 1 includes a needs assessment of the consumer to determine unmet needs and the potential for the new products. This step is done through market research. - Step 2 involves identifying and selecting the target market(s) the firm wants to pursue. Diff: 2 Type: ES Page Ref: 14-16 Skill: Applied LO: 4 115) You are working at Procter and Gamble on their diaper business. You have been asked to review Pampers' target market. Considering what you know about target markets, provide three descriptors you think would be typical of this group. Answer: Student answers will vary but should demonstrate knowledge that target markets have common characteristics that shape their need for the given product, their desire, and their means to purchase it. Answers could include descriptors such as - Parents with children aged newborn to 3 years - These parents must be interested in the convenience of disposable diapers and be able to afford them. Their household income is estimated to be above the poverty line. - These parents prioritize convenience and comfort for their children over the environmental impact of their purchase. Diff: 2 Type: ES Page Ref: 16-17 Skill: Applied LO: 4 116) List the five essential elements of the marketing process. Answer: - Assessment of needs - Identification and selection of target market(s) - Development of strategies to serve target market(s) - Development of a Customer Relationship Strategy - Evaluation and control of strategies' effectiveness Diff: 1 Type: ES Page Ref: 15 Skill: Recall LO: 4 117) Consider Coca-Cola's launch of Coke Zero as an example to illustrate elements of the marketing process. Are there any parts of the marketing mix you think they could improve on? Answer: Application of the marketing process: - Assess customer needs: they looked at social trends toward healthier foods - Identify and select target market: they targeted young, calorie-conscious males. - Develop the marketing mix: they developed Coke Zero and used a targeted and effective communications strategy to build a bold and masculine image of the product. Application of the four marketing mix elements—price, product, distribution, and marketing communications—should be demonstrated in student responses. - Improvements: there are many possibilities, but the company could consider a product change, such as changing the name to target this male audience. Diff: 3 Type: ES Page Ref: 14-15 Skill: Applied LO: 4 118) Assume that you have been hired by your school's cafeteria to improve their marketing. Identify the first step of the marketing process that you would embark upon and describe what you could do to complete that first step. Answer: Step 1 is conducting a needs assessment. Students may describe a variety of market research activities such as surveys, interviews, questionnaires, focus groups, and so on. All suggestions should lead to the discovery of unmet needs among the cafeteria's consumers and the determination of potential for new products. Diff: 2 Type: ES Page Ref: 15 Skill: Applied LO: 4 119) Which elements of the marketing process were most important in the success of products like Coke Zero? Answer: Assess customer needs: low calorie and health; search for options to "indulge" with healthier choices. Identify and select target market: same market, but addressing lower-calorie trend in preferences. Diff: 2 Type: ES Page Ref: 15-16 Skill: Applied LO: 4 120) By outlining the various types of marketing communications decisions, illustrate how this element of the marketing mix is the most visible. Answer: Decisions include selection of advertising media, sales promotions, event marketing, personal selling, public relations, and publicity, all of which focus on creating a favourable image. In all of these elements, both the physical and human resources of the company are very visible. Diff: 2 Type: ES Page Ref: 20-23 Skill: Recall LO: 5 121) Space Age Components Inc., a manufacturer of electronic systems, is considering a package redesign and also bypassing its traditional channel members and marketing directly to clients. Identify and explain the two components of the marketing mix that apply in this example. Answer: - Distribution: Space Age is changing its method of distribution from an indirect to direct approach. - Product: changing a package design is a product decision. Diff: 2 Type: ES Page Ref: 18 - 20 Skill: Applied LO: 5 122) Identify and explain four marketing communications strategies other than mass media advertising that a mutual fund company could use to expand its client base. Answer: - Event marketing: participate in a financial services trade show. - Public relations: company-initiated stories on social media networks. - Experiential marketing: immerse customers in a branded financial planning workshop. - Sales promotion: allow customers to try out their services for free for a limited time. Diff: 2 Type: ES Page Ref: 22 Skill: Applied LO: 5 123) Identify an organization that uses a loyalty program as part of its CRM strategy. Describe the features of the loyalty program and demonstrate how it serves as a CRM program for its organization. Answer: The specific loyalty programs identified by students will vary based on their own shopping behaviours and experiences. However, the demonstrations should include features such as offering incentives for repeat purchases, collecting customer data, generating "customized" offers based on the data, and communicating these offers to the customer. For example, Chapters/Indigo has iRewards. Members complete a registration process and give contact information, demographic info, and so on. All members receive regular and promotional discounts to encourage repeat purchase. The member number is recorded at each sale. The combination of the member profile and the POS information allows Chapters/Indigo to notify members via email when favourite authors publish new books, or to mail promotional incentives just prior to heavy purchase periods. Diff: 2 Type: ES Page Ref: 24-25 Skill: Applied LO: 6 124) Describe the final stage of the marketing process and explain its importance. Answer: Evaluating and control of marketing activity concludes the marketing process. Research is conducted to ensure that the activities of the organization continue to meet the objectives of the marketing plan and also the needs of the customer. Changing market needs (tastes, preferences, habits, and lifestyles) may require the organization to adapt its marketing plans. Evaluation provides control over the marketing process. Diff: 1 Type: ES Page Ref: 25 Skill: Recall LO: 7 125) Define business ethics and explain the role of the Canadian Marketing Association (CMA) and American Marketing Association (AMA) in establishing standards for marketers. Answer: Business ethics is the study and examination of moral and social responsibility in relation to business practices and decision making in business. The CMA and AMA have established a Code of Ethics to detail the standards of practise in the industry. These include truth, honesty, accuracy, fairness, and professionalism. Diff: 2 Type: ES Page Ref: 26 LO: 8 126) Describe how an organization can use sustainable marketing to balance their business objectives and caring for society, using an example from the textbook. Answer: Sustainable marketing involves using an organization’s social and environmental investments as a marketing strategy. Examples include: - Coca-Cola is marketing many of their products in recyclable bottles made of natural plant sugars. - Walmart is the largest buyer of renewable energy in Canada and new stores are 35% more efficient than stores built before 2006. - SC Johnson has removed more than 61 million pounds of volatile organic compounds from their products’ footprint (about the same produced by 656,000 cars in one year). - Mars sourcing sustainable cocoa production and using the M&Ms characters to communicate this to consumers. - Starbucks purchasing only Fair-Trade certified coffee and reducing store construction impacts. - Unilever is moving away from profits in their quarterly reports and instead focusing more on social responsibility objectives, as well as reducing waste and minimizing the negative health impacts of their products. Diff: 2 Type: ES Page Ref: 26-27 LO: 9