Chapter 1

1. What is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return? Marketing

2. The first stage of the marketing process focuses on which of the following? Understanding the marketplace, understanding customer needs and wants

3. Put the following steps of the five-step model of the marketing process in numerical order.

Correct Answer

1.

Understanding the marketplace and customer needs and wants

2.

Designing a customer-driven marketing strategy

3.

Constructing an integrated marketing program that delivers superior value

4.

Building profitable relationships and creating customer delight

5.

Capturing value from customers to create profits and customer equity

4. What are the two goals of marketing? Attract new customers by promising superior value, keep and grow current customers by delivering satisfaction

5. The first four steps of the marketing process create value for customers, while the final step allows the company to capture value from customers. True

6. When marketers look beyond the individual attributes of the products and services they sell and instead orchestrate several services and products for their customers, they create: brand experiences.

7. A market is a particular need or want that can be satisfied through an exchange. False. Marketing, not a market, occurs when people satisfy needs and wants through exchange relationships. Rather, a market is the set of actual and potential buyers of a product.

8. In outstanding marketing companies, people at all levels stay close to customers. Correct. Part of the modern marketing concept is that all company employees should understand the customer and focus on creating value for the customer.

9. Marketing myopia refers to: sellers who pay more attention to the specific products they offer than to the benefits and experiences produced by these products.

10. Wants backed by buying power are Demands.11. States of felt deprivation that are part of the human makeup are needs.12. The form human needs take as they are shaped by culture and individual personality are

wants.13. Marketing management is the art and science of choosing target markets and building

profitable relationships with them. Correct. The aim of marketing management is to find, attract, and keep target customers by creating, delivering, and communicating customer value.

14. What are the functions of a value proposition? Differentiates one brand from another,

promises benefits or values to the consumer.15. A computer-manufacturer which dominates the Chinese PC market through low labour

costs, high production efficiency, and mass distribution, making its products more easily available and less expensive than competitors' offerings. Production concept.

16. If companies can 'build a better mousetrap, the world will beat a path to their door'. product concept.

17. Customers who are coaxed into buying a company's product through extensive promotion efforts will like the product or, if they don't like it, possibly forget their disappointment and buy it again later. selling concept.

18. An organisation yields profits by creating lasting relationships with the right customers based on creating customer value and satisfaction. marketing concept.

19. A toy company stresses honesty, integrity and putting the long-run welfare of customers before profits. societal marketing concept.

20. Customers will favour products that are available and highly affordable. production concept.

21. Consumers will favour products that offer the most in quality, performance and innovative features. product concept.

22. Consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. selling concept.

23. Achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. marketing concept.

24. Marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests and society's long-run interests. societal marketing concept.

25. Customer-driven marketing works best when a clear need exists but customers do not know what they want to meet that need. False.

26. A company that believes in balancing short-run consumer wants with the company's requirements, as well as with the consumers' and society's long-run interests would be most likely to follow which of the following marketing strategies? the societal marketing concept.

27. What is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction? customer relationship management.

28. A customer acting on perceived value would most likely base purchases on objective differences among products. False.

29. Today's companies are increasingly focused on mass marketing to all customers. False.30. Which of the following are examples of interactive technologies that marketers are using to

build communities around brands and to relate with consumers? Please select all that apply. blogs, video-sharing sites, social networking sites.

31. The ethical and environmental movements have reached their maximum impact and will not place stricter demands on companies in the future. False.

32. The marketing challenges faced by companies in the 21st century will also provide plenty of opportunities. True.

33. Companies are increasingly taking a global, not just local, view of their industries. True.

Chapter 2

1. How an organisation as a whole will adapt to ensure a fit between its goals and opportunities in changing environments is outlined in its annual plan.

2. The task of selecting an overall company strategy for long-run survival and growth is called: strategic planning.

3. You and fellow Board members are looking into the long-run future of your country, your industry, your competitors and the kinds of businesses that you operate. You are involved in: strategic planning.

4. On its corporate website, Kraft declares that its company vision is 'helping people around the world live and eat better'. This is an example of which of the following? a market-oriented definition

5. Most large firms typically address strategic planning at four levels. Which is not one of the levels? operational level

6. Put the following four steps of the strategic planning process in numerical order.

7. You have developed specific strategies involving target markets, positioning and the marketing mix. Overall, this is known as: marketing strategy.

8. Which of the following are examples of niche marketing? Ferrari selling 500 high-performance cars a year in Australia and New Zealand, Gluten Free Shop marketing cake, cookies and bread mixes that do not contain wheat to individuals with Coeliac Disease

9. A market segment consists of consumers who respond in a wide variety of ways to a given set of marketing efforts. False.

10. Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviours : Market segmentation.

11. evaluating each market segment's attractiveness and selecting one or more segments to enter : market targeting

12. providing distinct market offerings to create superior customer value : differentiation13. arranging for a product to occupy a clear, distinctive and desirable place relative to

competing products in the minds of target consumers : positioning.14. The marketing mix is a set of tools that marketers use to produce the desired response in a

target market. true.15. In today's marketplace, competition increasingly takes place between entire value delivery

networks, rather than individual competitors. True16. In a company's value chain, the job of each department in a company is to: add customer

value.17. Toyota's emphasis on building close relationships with its suppliers is a means of improving

the performance of its customer value delivery network. true.18. A company planning a business portfolio should focus primarily on the company's past

business portfolio and its present business portfolio. False19. A company looking for the most reliable way to build its share of a market would be most

likely to do which of the following? invest in a star20. When a company rids itself of brands or SBUs that are unprofitable, the company is carrying

out which of the following? downsizing

1. Define the company's mission

2. Set company objectives and goals

3. Design the business portfolio

4. Plan marketing and other functional strategies

21. Making more sales to current customers without changing the product : market penetration.

22. identifying and developing new market segments for current products : market development

23. offering modified or new products to current market segments: product development24. starting up or buying businesses outside of the company's current products and markets:

diversification25. Your monthly report states that expected sales are way below predictions. What part of the

control process must you do now? take corrective action26. A company where a specialist such as a marketing research manager heads each marketing

activity is using a/an functional form of organisation.27. Which of the following is not a component of the current market situation analysis? mission

and vision28. All of the following pairs are parts of the marketing plan: Executive summary/Current

marketing situation, Objectives/Marketing strategy, SWOT/Objectives, Action programs/Budgets, Action programs/Controls. True.

29. Which of the following sections of a marketing plan indicates how it will be monitored? Controls.

30. Two types of control are common. Which of these looks at whether the company's basic strategies are well matched to its opportunities? strategic control

31. The firm's current marketing situation, objectives and marketing strategy are contained in the marketing plan

Chapter 3