Strayer University MKT 100 Final Exam (pdf) | 2026/2027 | Principles
of Marketing Q&A | Marketing
1. Which of the following best defines marketing according to the American
Marketing Association?
A) Selling and advertising products to consumers
B) The activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value
C) Maximizing company profit at all costs through distribution
D) Managing supply chain logistics and inventory
Correct Answer: The activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value
Rationale: The AMA defines marketing as the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.
Marketing is broader than just selling and advertising; it involves creating
value through a systematic process.
2. A company that focuses on creating products that customers need rather
than what the firm wants to sell is following which marketing orientation?
A) Product orientation
B) Sales orientation
C) Market orientation
D) Production orientation
Correct Answer: Market orientation
Rationale: Market orientation means focusing on customer needs and wants,
then designing products accordingly. A market-oriented company puts the
,customer at the center of all decisions, in contrast to production or sales
orientations that focus on internal capabilities.
3. Which concept is at the heart of the marketing mix?
A) Place
B) Price
C) Promotion
D) Customer value
Correct Answer: Customer value
Rationale: The marketing mix (4 Ps) is designed to create and deliver
customer value. All elements of the marketing mix—product, price, place,
and promotion—work together to provide value that satisfies customer needs
and builds relationships.
4. The first step in the marketing process is to:
A) Capture value from customers
B) Build profitable relationships
C) Understand the marketplace and customer needs
D) Design a customer-driven strategy
Correct Answer: Understand the marketplace and customer needs
Rationale: The marketing process begins with understanding the marketplace
and customer needs and wants. This foundational step informs all
subsequent marketing decisions and strategies.
5. The lifetime value of a customer is defined as:
,A) The total profit from a customer over the entire relationship
B) The first purchase amount
C) The number of referrals a customer makes
D) The advertising cost to acquire them
Correct Answer: The total profit from a customer over the entire relationship
Rationale: Customer lifetime value (CLV) estimates the total profit a company
can expect from a single customer over time. This concept emphasizes the
importance of long-term customer relationships rather than one-time
transactions.
6. Which marketing management philosophy holds that customers favor
products that are widely available and low-priced?
A) Product concept
B) Production concept
C) Selling concept
D) Societal concept
Correct Answer: Production concept
Rationale: The production concept focuses on high production efficiency and
wide distribution. This orientation assumes that customers will buy products
that are available and affordable, emphasizing quantity over quality.
7. A firm that uses the societal marketing concept would:
A) Ignore environmental concerns
B) Balance company profits, customer satisfaction, and public interest
C) Focus only on short-term sales
, D) Prioritize distribution over product quality
Correct Answer: Balance company profits, customer satisfaction, and public
interest
Rationale: The societal marketing concept considers society's long-term well-
being alongside customer wants and profits. It holds that companies should
balance customer wants, company requirements, and society's long-term
interests.
8. A Harvard Business Review study showed that increasing customer
retention by 5% increases profits by:
A) 1%
B) 5%
C) 25-95%
D) 200%
Correct Answer: 25-95%
Rationale: Retaining existing customers is cheaper and more profitable than
acquiring new ones. This finding highlights the importance of customer
relationship management and building customer loyalty.
9. Which of the following is NOT a core marketing concept?
A) Needs, wants, and demands
B) Market offerings
C) Internal rate of return
D) Exchange and relationships
of Marketing Q&A | Marketing
1. Which of the following best defines marketing according to the American
Marketing Association?
A) Selling and advertising products to consumers
B) The activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value
C) Maximizing company profit at all costs through distribution
D) Managing supply chain logistics and inventory
Correct Answer: The activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value
Rationale: The AMA defines marketing as the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.
Marketing is broader than just selling and advertising; it involves creating
value through a systematic process.
2. A company that focuses on creating products that customers need rather
than what the firm wants to sell is following which marketing orientation?
A) Product orientation
B) Sales orientation
C) Market orientation
D) Production orientation
Correct Answer: Market orientation
Rationale: Market orientation means focusing on customer needs and wants,
then designing products accordingly. A market-oriented company puts the
,customer at the center of all decisions, in contrast to production or sales
orientations that focus on internal capabilities.
3. Which concept is at the heart of the marketing mix?
A) Place
B) Price
C) Promotion
D) Customer value
Correct Answer: Customer value
Rationale: The marketing mix (4 Ps) is designed to create and deliver
customer value. All elements of the marketing mix—product, price, place,
and promotion—work together to provide value that satisfies customer needs
and builds relationships.
4. The first step in the marketing process is to:
A) Capture value from customers
B) Build profitable relationships
C) Understand the marketplace and customer needs
D) Design a customer-driven strategy
Correct Answer: Understand the marketplace and customer needs
Rationale: The marketing process begins with understanding the marketplace
and customer needs and wants. This foundational step informs all
subsequent marketing decisions and strategies.
5. The lifetime value of a customer is defined as:
,A) The total profit from a customer over the entire relationship
B) The first purchase amount
C) The number of referrals a customer makes
D) The advertising cost to acquire them
Correct Answer: The total profit from a customer over the entire relationship
Rationale: Customer lifetime value (CLV) estimates the total profit a company
can expect from a single customer over time. This concept emphasizes the
importance of long-term customer relationships rather than one-time
transactions.
6. Which marketing management philosophy holds that customers favor
products that are widely available and low-priced?
A) Product concept
B) Production concept
C) Selling concept
D) Societal concept
Correct Answer: Production concept
Rationale: The production concept focuses on high production efficiency and
wide distribution. This orientation assumes that customers will buy products
that are available and affordable, emphasizing quantity over quality.
7. A firm that uses the societal marketing concept would:
A) Ignore environmental concerns
B) Balance company profits, customer satisfaction, and public interest
C) Focus only on short-term sales
, D) Prioritize distribution over product quality
Correct Answer: Balance company profits, customer satisfaction, and public
interest
Rationale: The societal marketing concept considers society's long-term well-
being alongside customer wants and profits. It holds that companies should
balance customer wants, company requirements, and society's long-term
interests.
8. A Harvard Business Review study showed that increasing customer
retention by 5% increases profits by:
A) 1%
B) 5%
C) 25-95%
D) 200%
Correct Answer: 25-95%
Rationale: Retaining existing customers is cheaper and more profitable than
acquiring new ones. This finding highlights the importance of customer
relationship management and building customer loyalty.
9. Which of the following is NOT a core marketing concept?
A) Needs, wants, and demands
B) Market offerings
C) Internal rate of return
D) Exchange and relationships
