1 INCORRECT _____ mean(s) that an organization should seek to make a profit by serving the needs of customer groups.

A) The marketing concept Feedback: Page: 2 marketing concept means that an organization should seek to make a profit by serving the needs of customer groups. 2 CORRECT What is defined as "the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals?" A) Marketing Feedback: Page:3 &nbsp The American Marketing Association defines marketing as "the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals."
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3 INCORRECT Which type of marketing is designed to create exchanges for intangible products? B) Service 4 INCORRECT Lyton's Teton Cabins advertises its product by stating "For a relaxed vacation, we invite you to be our guests. Lyton's Teton Cabins is located in northern Jackson Hole, with just a short drive to Grand Teton and Yellowstone National Parks." Identify the type of marketing being exemplified here. C) Place 5 INCORRECT Which of the following, if performed successfully, helps in achieving equilibrium between the short and the long term by balancing acceptable financial performance? B) Strategic planning Feedback: Page: 5 Strategic planning, if performed successfully, plays a key role in achieving equilibrium between the short and the long term by balancing acceptable financial performance 6 CORRECT Imagine a chain of steak restaurants that had as its mission statement to provide its customers with the world's best steaks. Changes in consumer tastes resulted in fewer customers for the steakhouse. In response to the decreased demand, the chain added chicken, vegetarian lasagna, seafood, and pizzas to its menu over a period of time. The chain of restaurants can be best described as a(n) C) drifting organization. Feedback: Page: 8 The organization's original purpose may become irrelevant as the organization expands into new products, new markets, and even new industries. The result of this condition is a "drifting" organization. 7 INCORRECT The direction in which the organization is heading and how it will succeed in reaching its desired goal is defined by its A) mission statement. Feedback: Page: 6 The mission statement defines the direction in which the organization is heading and how it will succeed in reaching its desired goal.
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8 CORRECT In developing a statement of mission, management must take into account three key elements. They include the organization's C) history, distinctive competencies, and environment. Feedback: Page: 7 In developing a statement of mission, management must take into account three key elements: the organization's history, its distinctive competencies, and its environment. 9 INCORRECT Honeywell's exceptional ability to design, manufacture, and distribute a superior line of thermostats gives it an advantage over similar organizations. Such abilities are referred to us D) distinctive competencies.
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Feedback: Page: 7 Distinctive competencies are things that an organization does well so well in fact that they give it an advantage over similar organizations.
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10 CORRECT An effective mission statement should B) be focused on markets rather than products. Feedback: Page: 7 When completed, an effective mission statement will be focused on markets rather than products, achievable, motivating, and specific.
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11 INCORRECT Which of the following strategies focus primarily on increasing the sale of present products to present customers? D) Market penetration Feedback: Page: 10 Market Penetration Strategies: These strategies focus primarily on increasing the sale of present products to present customers.
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12 INCORRECT The ability to outperform competitors in providing something that the market values is called C) competitive advantage. Feedback: Page: 11-12 Competitive advantage is an ability to outperform competitors in providing something that the market values. 13 INCORRECT Identify the final phase of the strategic planning process.
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B) Formulation of the portfolio plan. Feedback: Page: 13 The final phase of the strategic planning process is the formulation of the organizational portfolio plan 14 INCORRECT Strategic business units (SBUs)
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B) have their own competitors. Feedback: Page: 13 Characteristics of SBUs: They have a distinct mission; have their own competitors; are a single business or collection of related businesses; and can be planned independently of the other businesses of the total organization
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15 INCORRECT All of the following are elements constituting the marketing plan except A) portfolio plan. 16 INCORRECT Factors such as high inflation and unemployment levels can limit the size of the market that can afford to purchase a firm's top-of-the-line product. This is a constraint brought about by the B) economic environment. Feedback: Page: 15 The economic environment: The state of the macroeconomy and changes in it also bring about marketing opportunities and constraints.
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17 INCORRECT Once a marketing opportunity is recognized, an appropriate strategy must be planned for taking advantage of it. This involves three interrelated tasks which include all of the following except C) finding new opportunities. Feedback: Page: 16 The three interrelated tasks are: (1) establishing marketing objectives, (2) selecting the target market, and (3) developing the marketing mix.
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18 CORRECT Identify the set of controllable variables that constitute the marketing mix classified according to four major decision areas.

B) product, price, promotion, and place Feedback: Page: 17 The marketing mix is the set of controllable variables that are usually classified according to four major decision areas: product, price, promotion, and place. 19 INCORRECT What is not a basic step involved in controlling the marketing plan? A) Develop the marketing mix. Feedback: Page: 18 Controlling the marketing plan involves three basic steps. First, the results of the implemented marketing plan are measured. Second, these results are compared with objectives. Third, decisions are made on whether the plan is achieving objectives 20 INCORRECT If done properly, which of the following helps in clearly defining a blueprint for management action in all functional areas of the organization? B) Strategic planning Feedback: Page: 19 If done properly, strategic planning results in a clearly defined blueprint for management action in all functional areas of the organization.
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