Chapter 01

Question 1

Which of the following statements is correct? a) Marketing is the term used to refer only to the sales function within a firm. b) Marketing managers don't usually get involved in production or distribution decisions. c) Marketing is an activity that considers only the needs of the organization; not the needs of society as a whole. d) Marketing is 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.
Question 2

The term marketing refers to: a) new product concepts and improvements. b) advertising and promotion activities. c) a philosophy that stresses customer value and satisfaction. d) planning sales campaigns.
Question 3

In the history of marketing, when did the production period end? a) In the late 1800s. b) In the early 1900s. c) In the 1920s. d) After the end of the Second World War.
Question 4

A marketing philosophy summarized by the phrase 'a stronger focus on social and ethical concerns in marketing' is characteristic of the _________ period. a) production b) sales c) marketing

d) societal marketing
Question 5

Which of the following factors contributed to the transition from the production period to the sales period? a) Increased consumer demand. b) More sophisticated production techniques. c) Increase in urbanization. d) The Great Depression.
Question 6

An organization with a ______ orientation assumes that customers will resist purchasing products not deemed essential. The job of marketers is to overcome this resistance through personal selling and advertising. a) production b) marketing c) relationship d) sales
Question 7

In relationship marketing firms focus on __________ relationships with __________. a) short-term; customers and suppliers b) long-term; customers and suppliers c) short-term; customers d) long-term; customers
Question 8

Political campaigns are generally examples of: a) cause marketing. b) organization marketing. c) event marketing. d) person marketing.
Question 9

The Coca Cola organization is an official sponsor of the Olympics. The firm is engaging in: a) place marketing. b) event marketing. c) person marketing. d) organization marketing.
Question 10

According to the Marketing and Sales Standards Setting Body (MSSSB), which of the following is not a marketing function? a) Promote marketing intelligence. b) Develop sales tactics. c) Develop the customer proposition. d) Work with other business functions and third parties.
Question 11

Which of the following is not an element of the marketing mix? a) Distribution. b) Product. c) Target market. d) Pricing.
Question 12

The term 'marketing mix' describes: a) a composite analysis of all environmental factors inside and outside the firm. b) a series of business decisions that aid in selling a product. c) the relationship between a firm's marketing strengths and its business weaknesses. d) a blending of four strategic elements to satisfy specific target markets.
Question 13

Newsletters, catalogues, and invitations to organization-sponsored events are most closely associated with the marketing mix activity of:

a) Pricing b) Distribution c) Product development d) Promotion

Question 14

The way in which the product is delivered to meet the customers' needs refers to: a) new product concepts and improvements. b) selling. c) advertising and promotion activities. d) place or distribution activities.
Question 15

The key term in the American Marketing Association's definition of marketing is: a) process. b) sales. c) products. d) value.
Question 16

A critical marketing perspective is the process of determining: a) the value of a product, person, or idea. b) how places compete with each other. c) the worth and impact of marketing activities. d) which type of promotional strategy works best.
Question 17

When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created. a) customer satisfaction b) planning excellence c) a quality rift d) a value line

Question 18

A market orientation recognizes that: a) price is the most important variable for customers. b) market intelligence relating to current and future customer needs is important. c) selling and marketing are essentially the same thing. d) sales depend predominantly on an aggressive sales force.
Question 19

Four competing philosophies strongly influence the role of marketing and marketing activities within an organization. Which if the following is not a component of market orientation? a) Customer orientation. b) Profitability orientation. c) Marketing orientation. d) Competitor orientation.
Question 20

In order for exchange to occur: a) a complex societal system must be involved. b) organized marketing activities must also occur. c) a profit-oriented organization must be involved. d) each party must have something of value to the other party.

Chapter 01
Question 1

Which of the following statements is correct? Correct answer: d) Marketing is 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. Feedback: In their definition of marketing, the American Marketing Association (AMA) concentrates on stakeholders'; value by defining 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' (AMA, 2007). Page reference: 6
Question 2

The term marketing refers to: Correct answer: c) a philosophy that stresses customer value and satisfaction. Feedback: The Chartered Institute of Marketing (CIM) defines marketing as: 'The management process of anticipating, identifying and satisfying

customer requirements profitably' (CIM, 2001). The French definition of Marketing refers to 'the endeavour of adapting organizations to their competitive markets in order to influence, in their favour, the behaviour of their publics, with an offer whose perceived value is durably superior to that of the competition' (Lendrevie, Lvy, and Lindon, 2006). In contrast, the AMA concentrates on 'customer value' by defining 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' (AMA, 2007). Page reference: 6
Question 3

In the history of marketing, when did the production period end? Correct answer: c) In the 1920s. Feedback: The development of marketing was first characterized by a production period that occurred between the 1890s and 1920s. This period of marketing was characterized by a focus on physical production and supply, where demand exceeded supply. There was little competition and the range of products was limited. This phase took place after the industrial revolution. So while some marketing historians regard marketing as an invention of the twentieth century (Keith, 1960), others regard marketing as a process that has evolved over a much longer period of time, without any production era ever having existed at all. Page reference: 9
Question 4

A marketing philosophy summarized by the phrase 'a stronger focus on social and ethical concerns in marketing' is characteristic of the _________ period. Correct answer:

d) societal marketing Feedback: The societal marketing period, from the 1980s to the present day, is characterized by a stronger focus on social and ethical concerns in marketing. This phase took place during the 'information revolution' of the late twentieth century (Enright, 2002). Page reference: 9
Question 5

Which of the following factors contributed to the transition from the production period to the sales period? Correct answer: b) More sophisticated production techniques. Feedback: The development of marketing is characterized by four periods. The first of these was the production period in which the focus was on the production of the product and its attributes. However, as technologies advanced and production techniques became more sophisticated, competition between organizations increased. As such, the focus shifted from production to sales where organizations strove to influence customer purchase behaviour. Page reference: 9-10
Question 6

An organization with a ______ orientation assumes that customers will resist purchasing products not deemed essential. The job of marketers is to overcome this resistance through personal selling and advertising. Correct answer: d) sales Feedback:

Sales emphasizes the process of 'product push' by creating distribution incentives for both salespeople and customers to make exchanges which may, or may not, benefit the customer in the long term. Marketing on the other hand is more focused on creating 'product pull' or demand, amongst customers and consumers. The offering is designed and redesigned through customer and consumer input, and through research, to meet their longer-term needs Page reference: 11
Question 7

In relationship marketing firms focus on __________ relationships with __________. Correct answer: b) long-term; customers and suppliers Feedback: Relationship marketing is an evolution of the marketing concept; there is a shift in focus from the need to engage in short-term transactions towards the need to develop long-term customer and supplier relationships. Relationship marketing concerns not only the development of longer-lasting relationships with customers, but also the development of stronger relationships with other external markets. Page reference: 23
Question 8

Political campaigns are generally examples of: Correct answer: d) person marketing. Feedback: Marketing as a process is used to facilitate the exchange of something of value; usually a product offering. This product offering can be a tangible good, an intangible service or a combination of the two. However, we can also market causes, events, ideas and

people. More often than not, political marketing is used to market a person associated with a particular political party and/or body. Page reference: 18-19
Question 9

The Coca Cola organization is an official sponsor of the Olympics. The firm is engaging in: Correct answer: b) event marketing. Feedback: Marketing as a process is used to facilitate the exchange of something of value; usually a product offering. This product offering can be a tangible good, an intangible service or a combination of the two. However, we can also market causes, events, ideas and people. Coca Cola as an official sponsor of the Olympics is an example of event marketing. Page reference: 18-19
Question 10

According to the Marketing and Sales Standards Setting Body (MSSSB), which of the following is not a marketing function? Correct answer: b) Develop sales tactics. Feedback: The Marketing and Sales Standards Setting Body (MSSSB) works with relevant stakeholders to map out how the marketing function operates. Their consultation indicated that the job covered eight functions: 1. Provide market intelligence and customer insight; 2. Provide strategic marketing direction for the organization; 3. Develop the customer proposition; 4. Manage and provide marketing communications; 5. Use and develop marketing and customer information; 6. Lead marketing operations and programmes;

7. Work with other business functions and third parties; 8. Manage and develop teams and individuals. Page reference: 11-12. See Figure 1.2
Question 11

Which of the following is not an element of the marketing mix? Correct answer: c) Target market. Feedback: Target market is not an element of the marketing mix. The marketing mix comprises: - product: the offering and how it meets the customer need, its packaging and labelling; - place (distribution): how the product is delivered to meet the customers' needs; - price: the cost to the customer, and the cost plus profit to the seller; - promotion: how the product's benefits and features are conveyed to the potential buyer. Page reference: 15-16
Question 12

The term 'marketing mix' describes: Correct answer: d) a blending of four strategic elements to satisfy specific target markets. Feedback: Neil Borden developed the concept of the Marketing Mix in his teaching at Harvard University in the 1950s, although he did not formally write the theory up until 1964. The idea came from the idea that the marketing manager was a 'mixer of ingredients'; a chef who concocted a unique marketing recipe to fit the requirements of the customers' needs at any particular time. The emphasis was on the creative fashioning of a mix of marketing procedures and policies to

produce the profitable enterprise. Page reference: 15

Question 13

Newsletters, catalogues, and invitations to organization-sponsored events are most closely associated with the marketing mix activity of: Correct answer: d) Promotion Feedback: These activities are associated with the promotion element of the marketing mix. e.g. how the product's benefits and features are conveyed to the potential buyer Page reference: 15-16
Question 14

The way in which the product is delivered to meet the customers' needs refers to: Correct answer: d) place or distribution activities. Feedback: The way in which the product is delivered to meet the customers' needs refers to place (distribution); i.e. the way in which the product is delivered to meet the customers' needs. Page reference: 15-16
Question 15

The key term in the American Marketing Association's definition of marketing is: Correct answer: d) value.

Feedback: The AMA concentrates on 'stakeholder value' by defining 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' (AMA, 2007). Page reference: 6
Question 16

A critical marketing perspective is the process of determining: Correct answer: c) the worth and impact of marketing activities. Feedback: Because marketing's contributions to society are not necessarily all good, it is important that we develop a critical approach to understanding marketing. This allows us to constantly evaluate and re-evaluate marketing, to improve it, so that marketing continues to operate in a desirable manner within society. A critical approach to marketing can help us to understand the nature of marketing knowledge. 'Marketing can then be learned from the many varieties of market that exist rather than concentrating on branded, mass consumption products in developed economies' (Easton, 2002), as marketing is so often portrayed. Page reference: 34-35
Question 17

When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created. Correct answer: a) customer satisfaction Feedback:

A customer orientation is concerned with creating superior value by continuously developing and redeveloping product and service offerings to meet customer needs through product quality and value-based pricing. To do this, we must measure customer satisfaction on a continuous basis, and train and develop front-line service staff accordingly. Page reference: 8
Question 18

A market orientation recognizes that: Correct answer: b) market intelligence relating to current and future customer needs is important. Feedback: Developing a market orientation refers to 'the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across the departments, and organization-wide responsiveness to it' (Kohli and Jaworski, 1990). So a market orientation doesn't just involve marketing, it involves all aspects of a company, and gathering and responding to market intelligence; i.e. customers' verbalized needs and preferences, data from customer surveys, sales data, and information gleaned informally from discussions with customers and trade partners. Page reference: 8
Question 19

Four competing philosophies strongly influence the role of marketing and marketing activities within an organization. Which if the following is not a component of market orientation? Correct answer: b) Profitability orientation. Feedback:

Developing a market orientation refers to 'the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across the departments, and organization-wide responsiveness to it' (Kohli and Jaworski, 1990). So a market orientation doesn't just involve marketing, it involves all aspects of a company, and gathering and responding to market intelligence; i.e. customers' verbalized needs and preferences, data from customer surveys, sales data, and information gleaned informally from discussions with customers and trade partners. Developing a market orientation means developing customer orientation, competitor orientation and inter-functional coordination. Page reference: 8
Question 20

In order for exchange to occur: Correct answer: d) each party must have something of value to the other party. Feedback: Marketing is a two-way process. It's not just about the marketing organization doing all the work. The customer also has a strong input. In fact, not only must they specify how we might satisfy customer needs as marketers, because marketers are not mindreaders, but they must also pay for the product or service. In the mid-1970s, there was increasing belief that the underlying phenomenon in marketing related to the exchange process between buyers and sellers and associated supply chain intermediaries. Exchange relationships might not only be economic, such as a consumer buying groceries, but social as well, such as the service undertaken by the social worker on behalf of society paid for by government (Bagozzi, 1975). Page reference: 18-19