Marketing Principles 2nd Edition by William M. Pride - Test Bank

,CHAPTER 1
Key concepts in marketing


SHORT ANSWER

1. The customer expects to gain an advantage or benefit in excess of the costs incurred in a marketing
exchange. The marketer also expects to gain a benefit in return, generally a financial gain. How do these
two opposing ideas result in a benefit to both the marketer and the customer?
AACSB Outcomes: Analytical; Reflective thinking
DF: D LO: 1 Topic Heading: Marketing defined
Type: KN

2. Before marketers can develop a marketing mix, they must collect in-depth information. Describe what
topics this information should cover and provide an example of how Procter & Gamble did this for the
development of one of its products.
AACSB Outcomes: Reflective thinking
DF: E LO: 1 Topic Heading: The strategic variables of marketing – the marketing
mix and the expanded marketing mix
Type: AP

3. Define the term target market and provide an example for a product of your choice.
AACSB Outcomes: Communication
DF: M LO: 1 Topic Heading: People are the focus
Type: KN

4. Describe several activities a marketing manager must consider when dealing with distribution variables.
AACSB Outcomes: Communication
DF: E LO: 1 Topic Heading: The distribution (place) variable
Type: KN

5. Explain why marketing efforts should be oriented towards creating and maintaining satisfying exchange
relationships.
AACSB Outcomes: Analytical; Communication
DF: E LO: 2 Topic Heading: Marketing builds relationships with customers and
stakeholders
Type: KN

6. What is meant by the term relationship marketing? How does relationship marketing affect the customer?
AACSB Outcomes: Communication
DF: E LO: 3 Topic Heading: Managing customer relationships
Type: KN

7. What are the three ways that marketing environment forces affect a marketer’s ability to facilitate
exchanges?
AACSB Outcomes: Communication
DF: M LO: 2 Topic Heading: Marketing occurs in a dynamic environment
Type: KN

8. What is meant by the term marketing concept, and what is its major focus?
AACSB Outcomes: Communication

, DF: E LO: 2 Topic Heading: Understanding the marketing concept and market
orientation
Type: KN

9. Discuss the evolution of the marketing concept with regard to a firm’s orientation.
AACSB Outcomes: Analytical; Strategy
DF: M LO: 2 Topic Heading: The evolution of how marketing has been
interpreted
Type: KN

10. What does it mean for a company to be market-oriented?
AACSB Outcomes: Communication
DF: M LO: 3 Topic Heading: Today’s market orientation
Type: KN

11. Define the term value, and explain how people determine a product’s value.
AACSB Outcomes: Communication
DF: E LO: 3 Topic Heading: Value-driven marketing
Type: KN

12. Define the term marketing management, and describe its four major components.
AACSB Outcomes: Communication
DF: E LO: 4 Topic Heading: The marketing management process
Type: KN

13. How can socially responsible marketing promote the welfare of customers and stakeholders?
AACSB Outcomes: Analytical
DF: M LO: 5 Topic Heading: The role and importance of marketing in a global
economy
Type: KN

MULTIPLE CHOICE

14. Customer satisfaction can come from:
A) lack of service.
B) the bulk and weight of the product being too great.
C) lack of process.
D) anything received when buying and using a product.
E) bad experiences.
Ans: D AACSB Outcomes: Communication
DF: E LO: 1 Topic Heading: Marketing defined
Type: KN

15. The definition of marketing implies that __________ should receive benefits from exchange relationships.
A) only customers
B) only businesses
C) company management
D) both customers and businesses
E) only the most important customers
Ans: D AACSB Outcomes: Communication
DF: E LO: 1 Topic Heading: Marketing defined
Type: KN

, 16. Marketing is the process of:
A) promoting products through personal selling and advertising to facilitate satisfying exchange
relationships.
B) maximising returns to stakeholders by developing relationships with valued customers and creating an
advantage for them.
C) delivering a standard of living to a society.
D) creating, distributing, promoting and pricing goods, services and ideas to facilitate the achievement of
a firm’s objectives.
E) focusing on customers’ needs.
Ans: B AACSB Outcomes: Communication
DF: M LO: 1 Topic Heading: Marketing defined
Type: KN

17. The focal point of all marketing activities is:
A) products.
B) the marketing mix.
C) profits.
D) sales.
E) customers.
Ans: E AACSB Outcomes: Communication
DF: E LO: 1 Topic Heading: People are the focus
Type: KN

18. A target market:
A) involves a large number of customers.
B) is a specific group of customers on whom a company focuses its marketing efforts.
C) already has several competitors vying for customers’ business.
D) is the same thing as a salesperson’s prospective client list.
E) is a customer group classified as people with similar demographic characteristics.
Ans: B AACSB Outcomes: Communication
DF: E LO: 1 Topic Heading: People are the focus
Type: KN

19. The Australian airline Jetstar Airways __________ its domestic flights in Australia to people who want to
fly to a destination without having to pay for meals and other things that are not essential to arriving at the
destination safely and in good spirit.
A) arranges
B) prepares
C) provides
D) targets
Ans: D AACSB Outcomes: Analytical
DF: M LO: 1 Topic Heading: People are the focus
Type: AP

20. The Ford Focus combines an economical vehicle with coordinated distribution, promotion and price
appropriate for the __________ of primarily younger drivers who value technology, driving dynamics and
styling.
A) target market
B) consumer advocates
C) marketing strategy
D) marketing mix
E) marketing tactic
Ans: A AACSB Outcomes: Communication; Marketing plan
DF: E LO: 1 Topic Heading: The strategic variables of marketing – the marketing
mix and the expanded marketing mix
Type: AP