MBA 706 Module 1 Si Chen Exam
Questions and Answers 100% PASS
What is marketing? Definition from AMA - CORRECT ANSWER-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.
What is Marketing? Definition from Philip Kotler - CORRECT ANSWER-
CCDVTP = Create, Communicate, and Deliver Value to a Target market at a
Profit.
•Create Value = Product Management
•Communicate Value = Brand Management
•Deliver Value = Customer Management
Traditional Marketing Mix (Also known as the 4 P's) - CORRECT ANSWER-
Product
Price
Place
Promotion
,New Marketing Mix (How many Ps?) - CORRECT ANSWER-•Today, the 4Ps
have been extended to even 7Ps, 8Ps, ... and 20Ps.
•Some examples of those additional Ps: participation, personnel, personality of a
store/brand, etc.
Why do we use the 4 P's? - CORRECT ANSWER-•These Ps are the tools that
firms can use/manipulate to achieve their goals.
What does a wise firm do when in response to spatial and temporal changes in
market segments, industry structure, and competitors' behavior. - CORRECT
ANSWER-alters its strategy
What do decisions on the 4 P's Affect? - CORRECT ANSWER-who buys from
the firm and how many (quantity) they buy, and ultimately affect the profitability of
the firm
What do consumers consider when making decisions regarding when and where
they will shop? - CORRECT ANSWER-the benefits and the costs of shopping
What benefits do consumers consider? - CORRECT ANSWER--Utilities derived
from purchasing goods and services.
-Physical benefits: exercising
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, -Psychic benefits: e.g., retail therapy, satisfaction, social interaction.
-Information gathering: brands, products, etc
What costs do consumers consider? - CORRECT ANSWER--Monetary costs:
dollars
-Physical energy: e.g., driving, walking around, etc.
-Psychic energy: e.g., interacting with others.
-Time: time to get to the store + time spent in the store.
What do firms attempt to do? - CORRECT ANSWER-maximize their profits,
subject to their internal & external environments
Simple Economic Model - CORRECT ANSWER-a retailer's profits = sales
revenue - costs
Sales Revenue = ∑_1^𝑛 𝑃𝑟𝑖𝑐𝑒 ∗𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦= 〗P1 * Q1 + P2 * Q2 + .... + Pn *
Qn
What is a firms costs? - CORRECT ANSWER-costs associated with selling the
goods
what is a firms quantity? - CORRECT ANSWER-determined by consumers - price
(budget), product itself (utilities), place (physical energy required), promotion
(budget), competitor's offerings, & other factors
Questions and Answers 100% PASS
What is marketing? Definition from AMA - CORRECT ANSWER-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.
What is Marketing? Definition from Philip Kotler - CORRECT ANSWER-
CCDVTP = Create, Communicate, and Deliver Value to a Target market at a
Profit.
•Create Value = Product Management
•Communicate Value = Brand Management
•Deliver Value = Customer Management
Traditional Marketing Mix (Also known as the 4 P's) - CORRECT ANSWER-
Product
Price
Place
Promotion
,New Marketing Mix (How many Ps?) - CORRECT ANSWER-•Today, the 4Ps
have been extended to even 7Ps, 8Ps, ... and 20Ps.
•Some examples of those additional Ps: participation, personnel, personality of a
store/brand, etc.
Why do we use the 4 P's? - CORRECT ANSWER-•These Ps are the tools that
firms can use/manipulate to achieve their goals.
What does a wise firm do when in response to spatial and temporal changes in
market segments, industry structure, and competitors' behavior. - CORRECT
ANSWER-alters its strategy
What do decisions on the 4 P's Affect? - CORRECT ANSWER-who buys from
the firm and how many (quantity) they buy, and ultimately affect the profitability of
the firm
What do consumers consider when making decisions regarding when and where
they will shop? - CORRECT ANSWER-the benefits and the costs of shopping
What benefits do consumers consider? - CORRECT ANSWER--Utilities derived
from purchasing goods and services.
-Physical benefits: exercising
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, -Psychic benefits: e.g., retail therapy, satisfaction, social interaction.
-Information gathering: brands, products, etc
What costs do consumers consider? - CORRECT ANSWER--Monetary costs:
dollars
-Physical energy: e.g., driving, walking around, etc.
-Psychic energy: e.g., interacting with others.
-Time: time to get to the store + time spent in the store.
What do firms attempt to do? - CORRECT ANSWER-maximize their profits,
subject to their internal & external environments
Simple Economic Model - CORRECT ANSWER-a retailer's profits = sales
revenue - costs
Sales Revenue = ∑_1^𝑛 𝑃𝑟𝑖𝑐𝑒 ∗𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦= 〗P1 * Q1 + P2 * Q2 + .... + Pn *
Qn
What is a firms costs? - CORRECT ANSWER-costs associated with selling the
goods
what is a firms quantity? - CORRECT ANSWER-determined by consumers - price
(budget), product itself (utilities), place (physical energy required), promotion
(budget), competitor's offerings, & other factors
