84 test bank for MKTG2 2nd asia pacific edition by lamb

84 Test Bank for MKTG2 2nd Asia Pacific Edition by
Lamb

True - False Questions
A market-oriented organisation assumes that each element of the
marketing mix is important.
1.

True

2.

False

Competitive advantage is the idea that a product can solve a set of
customer problems better than any competitor’s product.
1.

True

2.

False

Marketing can be classified as a process used to apply philosophy,
attitude and a management-oriented perspective.
1.

True

2.

False

Relationship marketing orientation expands the marketing orientation
focus from making a sale that meets the needs and wants of the
marketplace to the value of the repeat sale.
1.

True

2.

False

Marketing focuses on selling products and services to customers.
1.

True

2.

False


Marketing is a philosophy, an attitude, a perspective or a management
orientation that stresses customer satisfaction.
1.

True

2.

False

Customer value is the ratio of benefits to what must be forgone to obtain
those benefits.
1.

True

2.

False

Customers value goods and services of the quality they expect, and are
sold at the prices they are willing to pay.
1.

True

2.

False

The Internet is an effective tool for generating relationships with
customers because it allows customer interaction.
1.

True

2.

False

Marketing is a job that should be handled by marketers; people in
management, accounting and finance should focus on their own
specialties.
1.

True

2.

False

A production-oriented company considers whether the product meets the
needs of the marketplace.
1.

True

2.

False


A marketing exchange cannot take place unless each party in the
exchange has something that the other party values.
1.

True

2.

False

Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organisational goals.
1.

True

2.

False

Initially, when Kodak started its production, it assumed that customers
wanted photographic film rather than a way to capture and share
memories. This is an example of a marketing-oriented company.
1.

True

2.

False

Customer satisfaction is the feeling that a product has met or exceeded
the marketer’s expectations.

1.

True

2.

False

Sales-oriented organisations place a higher premium on long-term
customer relationships than making a sale.
1.

True

2.

False


Cable and Wireless Communications, a long-distance carrier, has
generated loyal business clients by providing the best customer support
in the telecommunications industry. Cable and Wireless also provides
direct sales consultation that gives salespeople intimate knowledge of
what makes its customer support successful. This partnership entails
relationship marketing.
1.

True

2.

False

PPG Industries spent considerable time, effort and money developing a
bluish windshield that would let in filtered sunlight but block out heat. The
company had not conducted market research among car manufacturers,
but it was confident that its science and technology department had
provided a successful new item. Based on this example, PPG is a good
example of a production-oriented company.
1.

True

2.

False

Mutiple Chocie Questions
Which of the following is NOT a viable method a company can use to
become more marketing-oriented?
1.

A training employees in the latest aggressive selling techniques

2.

B making sure all employees are customer-oriented

3.

C training employees to understand the company, its philosophy and procedures

4.

5.

D implementing empowerment techniques to help staff make independent
decisions
E training employees to focus on customer satisfaction


_____-oriented companies focus on the internal capabilities of the
organisation to develop products that are better and cheaper.
1.

A Production

2.

B Customer

3.

C Value

4.

D Satisfaction

5.

E Sales

_____ focus on repeat sales and referrals because this philosophy
maintains that keeping customers costs much less than attracting new
ones.
1.

A Relation-oriented companies

2.

B Production-oriented companies

3.

C Sales-oriented companies

4.

D Profitability-oriented companies

5.

E Retail companies

An organisation with a(n) _____ believes that it exists not only to satisfy
customer wants and needs and to meet organisational objectives, but also
to preserve or enhance individuals’ and society’s long-term best interests.
1.

A implementable strategy

2.

B marketing orientation

3.

C ethical business mission

4.

D societal orientation


A hospital canteen manager said, ‘Our hospital only allows the visitors to
have food from the canteen due to health and safety reasons. Our team
spends time to find ways of cutting costs on each meal.’ The manager is
putting the _____ philosophy into practice.
1.

A production orientation

2.

B sales orientation

3.

C marketing orientation

4.

D customer orientation

5.

E profit orientation

When using a credit card for purchases, customers are often asked if they
have a ‘Fly-buys’ card. After purchasing a certain monetary amount on
this card, the frequent-flyer program participant earns a free flight or some
other reward, such as free lodging. Airlines that use frequent-flyer
programs are practising:
1.

A sales-closing marketing

2.

B customer-needs marketing

3.

C marketing contribution

4.

D marketing engineering

5.

E relationship marketing

When a customer’s expectations are exceeded, _____ occurs.
1.

A confirmation

2.

B satisfaction

3.

C value creation

4.

D achievement

5.

E need


The marketing concept and marketing orientation involve all of the
following EXCEPT:
1.

A integrating all the activities of the company to satisfy customer wants

2.

B focusing on consumer needs and wants

3.

C differentiating a company’s products from its competitor’s products

4.

D fuelling sales growth through the application of aggressive sales techniques

5.

E long-term goal achievement (such as profits and growth) for the company

A _____ orientation assumes that customers resist buying items that are
not essential and that people will buy more goods and services if
aggressive marketing techniques are used.
1.

A sales

2.

B production

3.

C marketing

4.

D customer

5.

E marketplace

The final step in the marketing process is:
1.

A evaluation

2.

B implementation

3.

C development of marketing strategies

4.

D development of marketing objectives

Marketers interested in offering customer value can:

1.

A offer products that perform

2.

B give consumers more than they expect

3.

C offer organisation-wide commitment to service and after-sales support

4.

D avoid unrealistic pricing


5.

E do all of these things

Megan is a telephone order-taker for Myer Direct. A customer called and
asked if the blue in a tablecloth that she had purchased matched the blue
in a rug that was being offered in Myer Direct’s newest catalogue. Megan
got the potential customer’s phone number, went out to the warehouse,
located the items, determined they did not match and called the potential
customer to tell her that information. Megan showed a _____ orientation.
1.

A societal

2.

B market

3.

C sales

4.

D relationship

5.

E production

A business is concerned with many day-to-day activities. Some of the
most important are the planning and conception of the product or service,
its pricing policy and the distribution strategy. These activities are all a
part of:
1.

A engineering

2.

B marketing

3.

C accounting

4.

D production

5.

E human resources

When a company’s focus is on keeping existing customers and suppliers,
it is said to have a _____ orientation.
1.

A marketing

2.

B sales

3.

C customer

4.

D relationship

5.

E production

The term ‘marketing’ refers to:
1.

A new product concepts and improvements

2.

B selling

3.

C advertising and promotion activities

4.

D a philosophy that stresses customer satisfaction

5.

E planning sales campaigns

A retail outlet that wishes to offer customer value should:
1.
2.

A require customers to pick up and deliver their purchases

B charge a realistic price for the product instead of the inflated price charged by
many competitors

3.

C tell customers that other outlets like having them as a competitor

4.

D require that all purchases are made with cash or money order

Most of the successful companies are focused on packaging with less
toxic, more durable and reusable materials. This is an example of a
company using _____ orientation.
1.

A production

2.

B relationship marketing

3.

C profitability

4.

D sales

5.

E societal

The philosophical approach of which the development and maintenance
of a customer database is an integral part, is called:
1.

A the implementable strategy

2.

B the relationship marketing orientation


3.

C the ethical business mission

4.

D the focused target market strategy

5.

E societal orientation

The marketing process commences with an understanding of:
1.

A a marketing opportunity analysis

2.

B the marketing mix

3.

C environmental scanning

4.

D marketing strategy

5.

E organisation mission

Danny Miller wants to sell his four-wheel-drive truck. A preliminary
investigation has shown that many people would be interested in this type
of truck. He has taken out an advertisement in his local trade paper and
provided customers with a toll-free number to make an appointment to
drive the truck. He has read in the auto trade papers that similar trucks to
the one that he owns are selling for about $15 000. Before accepting this
opportunity, what else should Miller find out about?
1.

A production

2.

B customers

3.

C value

4.

D satisfaction

5.

E sales

Your friend gave you the Sonic Hedge video game and you gave him the
Narnia the Lion video game. This is an example of:
1.

A exchange

2.

B marketing

3.

C bargaining

4.

D reciprocity

5.

E promotion

Understanding your competitive arena and competitors’ strengths and
weakness is a critical component of _____ orientation.
1.

A marketing

2.

B sales

3.

C customer

4.

D production

5.

E relationship

There are many reasons to study marketing. These reasons include all of
the following EXCEPT that marketing:
1.
2.

A teaches businesses how to sell products that people do not need
B plays an important role in society, coordinating the huge numbers of
transactions needed to provide goods and services

3.

C is a key function in business

4.

D offers outstanding career opportunities

5.

E affects your day-to-day life as a consumer

_____ is an (are) effective tool(s) in generating relationships with
customers.
1.

A Sales personnel

2.

B The Internet

3.

C Coupons

4.

D Publicity

5.

E Product placements


Which of the following is NOT an element of the marketing mix?
1.

A price

2.

B place

3.

C positioning

4.

D product

5.

E promotion

You are in charge of the marketing program at Sarah Toys and have been
asked to implement the relationship marketing orientation within the
marketing division at the company. Which of the following actions are you
likely to take first in implementing the relationship marketing concept?
1.

A reorganise the company and make marketing the most important department

2.

B hire new salespeople to find new prospects for Sarah Toys

3.

4.
5.

C expand the advertising budget so that customers will be more aware of Sarah
Toys’ new line of dolls
D create a database of customers’ buying patterns and develop reward programs
E hire a new product-development manager and establish a marketing research
department

Gathering, analysing and interpreting information about an organisation’s
environment is called:

1.

A environmental scanning

2.

B data scanning

3.

C data scouring

4.

D environmental scouring

The philosophy stating that buyers resist purchasing non-essentials, and
that buyers will buy more goods and services if aggressively persuaded to
do so, is the _____ orientation.
1.

A promotion


2.

B production

3.

C sales

4.

D marketing

5.

E customer

In a situation where there is weak competition or when the demand
exceeds supply, a _____-oriented company can be very successful.
1.

A marketing

2.

B societal

3.

C retailing

4.

D production

5.

E sales

The philosophy that assumes people are resistant to buying products that
are not absolutely necessary is called the _____ orientation.
1.

A marketing

2.

B sales

3.

C customer

4.

D production

5.

E discount

Fujifilm Computer Products has improved the efficiency and productivity
of its plant, which manufactures printing technology. For the new financial
year, the company projects a production increase of 25 per cent and has
instructed its sales force to aggressively distribute and promote the
product. The CEO is sure that the market will absorb more product if the
sales force is determined and assertive. Fujifilm appears to have a _____

orientation.
1.

A marketing


2.

B production

3.

C sales

4.

D customer

5.

E marketplace

Exchange can take place only if _____ is given or received.
1.

A money

2.

B something of value

3.

C cost of time

4.

D cost of travel

5.

E opportunity cost

Marketers interested in customer value focus on all of the following
EXCEPT:
1.

A offering products that perform

2.

B giving customers more than they expect

3.

C setting a high price to indicate quality

4.

D providing company facts and figures to customers

5.

E offering organisation-wide commitment in service

An area which is relatively new in business study and likely to be modified
as academics and practitioners understand more about it is called:
1.

A science

2.

B marketing

3.

C sports management

4.

D management

5.

E psychology


Consumer complaints are an important aspect of business. A company
receiving customer complaints and focusing on a sales orientation is

likely to:
1.

A modify the sales presentation

2.

B change the product

3.

C analyse the target market and revise distribution

4.

D coordinate feedback into future product offerings

5.

E change the pricing structure

The Paul’s Milk company asks the consumer to return the top of the
plastic container to the shop so that it may help in generating finances for
local schools. The more milk-bottle tops, the larger the donation to local
educational institutions. Paul’s Milk is displaying:
1.

A sales-closing marketing

2.

B customer-need marketing

3.

C marketing contribution

4.

D marketing engineering

5.

E societal marketing

The philosophy which focuses on the repeat sale rather than the one-time
sale is _____ orientation.
1.

A production

2.

B relationship marketing

3.

C profitability

4.

D sales

5.

E business


When Target was losing sales to newer specialty stores, superstores and
discounters, the giant retailer refocused its efforts on doing a better job of
satisfying customer needs and wants and adopted a(n) _____ orientation.
1.

A production

2.

B market

3.

C retail

4.

D sales

5.

E enterprise

When a company uses its resources to resolve questions like, ‘What can
we do best?’, ‘What can our engineers design?’ and ‘What is easy to
produce with our equipment?’, it is said to have a _____ orientation.
1.

A sales

2.

B customer

3.

C marketing

4.

D production

5.

E value

At the core of every business are the activities that determine survival,
profits and growth. Marketing contributes to these activities through five
principal means. The first one is assessing the wants of customers, and
the other four include all of the following EXCEPT:
1.

A aggressive human resource practices

2.

B pricing policies

3.

C communication with customers

4.

D distribution strategies


A firm that lacks an understanding of the needs and wants of the
marketplace is called:
1.

A market-oriented

2.

B sales-oriented

3.

C profit-oriented

4.

D customer relationship-oriented

5.

E promotional-oriented

One problem with the _____ approach to marketing is its failure to
consider whether what the company produces most effectively also meets
the needs of the marketplace.
1.

A production orientation

2.

B sales orientation

3.

C marketing orientation

4.

D customer orientation

5.

E profit orientation

For an exchange to occur:
1.

A money is essential

2.

B organisational profit is required

3.

C third-party involvement is required

4.

D each party must have something that is of value to the other party

5.

E the buyer cannot reject the offer once the offer is accepted

_____-oriented companies have long-term goals of improving products
and services by focusing more on the welfare of the community.
1.

A Production

2.

B Societal

3.

C Marketing

4.

D Satisfaction

5.

E Sales


Free Text Questions
At the core of marketing is _____, an idea that people will sacrifice
something to acquire something else.
Answer Given

exchange

_____ programs are examples of financial incentives given to customers
in exchange for their continuing patronage.
Answer Given

Reward

How is marketing important to business?
Answer Given

Marketing contributes directly to the achievement of business objectives, including
survival, profits and growth. Marketing is concerned with assessing the wants and
satisfactions of customers, designing and managing product offerings, determining
prices, developing distribution strategies and communicating with customers.
These activities are vital to business organisations. A fundamental understanding
of marketing is important to all businesspeople so that an organisation can
operate cohesively.

_____ orientation focuses on the internal capabilities of the company,
rather than on the desires and needs of the marketplace.
Answer Given

Product

_____ advantage is the idea that a product can solve a set of customer
problems better than any competitor’s product.
Answer Given

Competitive


The ratio of benefits to the sacrifice necessary to obtain those benefits is
referred to as _____ value.
Answer Given

customer

You are a marketing adviser to a womenswear retailer who is interested in
applying the marketing concept in her store. What should be the focus of

her retail outlet?
Answer Given

Marketing concepts are said to be market-oriented. When a retailer wants to put
marketing concept into practice, she should consider the following: •Focus on
customer wants and needs so that the organisation can distinguish its product(s)
from competitors’ offerings. For example, if the retail outlet is located in the city
centre where a majority of women work, this group of customers will need to
purchase formal clothes for work. Therefore, a variety of products like formal
pants, shirts, shoes and other accessories (in various colours, designs and sizes)
could be offered, catering for the needs of working women; •Integrate all of the
organisation’s activities, including production, to satisfy these wants. For example,
a sales assistant could be hired who understands the needs of working women,
especially in clothing lines. Also, the servicescape (wall colour, flooring, music,
scent) of the shop should be attractive to working women; •Achieve long-term
goals for the organisation by satisfying customer wants and needs, legally and
responsibly. For example, the retailer could be socially responsible by donating a
few cents per item sold to women’s charity organisations.

Most successful relationship marketing strategies depend on _____
personnel, effective training programs, employee empowerment and team
work.
Answer Given

customer-oriented

Marketing has two components or facets. Name and describe each of
these two facets.
Answer Given

The first facet of marketing is its philosophy. This philosophy is an attitude,
perspective or management orientation that stresses the importance of customer


satisfaction. The second facet of marketing is the set of activities used to
implement this philosophy. These activities include (but are not limited to)
planning, pricing, promotion, distribution, selling, advertising and inventory
management.

_____ marketing is a strategy that entails forging long-term partnerships
with customers and is based on the marketing orientation.
Answer Given

Relationship

Some organisations practise _____ orientation by striving to help the lessprivileged communities receive fair and reputable payment for their goods
and labour, and they only deal with other like-minded organisations.
Answer Given

societal marketing

A _____-oriented organisation seeks to generate sales volume through
intensive _____ activities.
Answer Given

sales; promotional

_____ orientation assumes that a sale depends on a customer’s decision
to purchase a product.
Answer Given

Marketing

The text mentions five orientations/philosophies that strongly influence
the role of marketing and marketing activities within an organisation.
Name and briefly describe each of these orientations.
Answer Given

PRODUCTION ORIENTATION: This orientation focuses companies on their
internal production capabilities rather than the desires and needs of the
marketplace; SALES ORIENTATION: This orientation assumes that buyers resist


purchasing items that are not essential and that buyers will purchase more of any
item if aggressive selling techniques are used. Again, this orientation does not
address the needs and wants of the marketplace; MARKETING ORIENTATION:
This orientation is the foundation of contemporary marketing philosophy. It
recognises that a sale is dependent on the customer’s decision to purchase a
product and provides increased responsiveness to customer needs and wants;
RELATIONSHIP MARKETING ORIENTATION: This orientation focuses on
marketing activities to keep existing customers and suppliers; SOCIETAL
MARKETING ORIENTATION: This orientation refines the marketing orientation by
stating that the social and economic justification for an organisation’s existence is
the satisfaction of customer wants and needs while meeting the organisation’s
objectives and preserving or enhancing both individuals’ and society’s long-term
best interests.

Explain the steps in the marketing process.
Answer Given

The marketing process begins with an understanding of the organisation’s
mission. This is a set of values that the organisation wishes to pursue through its
business activities. The next step is to look for and understand any opportunities
that exist in the markets that the organisation currently services or is considering
serving. From there, the organisation sets marketing objectives (aims, goals) and
selects a set of consumers they wish to target with their marketing mix (their
product, price, promotion and distribution strategies). The next stage is to
implement the marketing mix strategies. Finally, the marketing organisation
evaluates its performance against the objectives that were previously set.

The idea that the social and economic satisfaction for an organisation’s
existence is the satisfaction of customer wants and needs while meeting
organisational objectives, is called the _____ concept.
Answer Given

marketing

_____ marketing orientation focuses on keeping existing customers and
suppliers.
Answer Given

Relationship


You are a luxury car dealer. How can your business create value for your
customers through products and services?
Answer Given

Your strategy could be outlined as follows: •Offer products that perform: your
customer could be put off by shoddy cars; •Give the customer more than

expected: offer promising after-sales service and warranties; c. Avoid unrealistic
pricing: do not increase the prices of small services, like addressing the immediate
failure of some car parts, minor repairs and maintenance; •Give facts to the buyer:
underpromise and overdeliver. Do not exaggerate the quality of the car; •Offer an
organisation-wide commitment to service, including after-sales service: all the
employees must have good knowledge of the cars on offer, their features and the
procedure of after-sales service.

The orientation that focuses on aggressive selling techniques to
encourage high sales volume and high profits is called _____ orientation.
Answer Given

sales

Discuss how a cigarette company can ethically promote its product.
Answer Given

A company that manufactures cigarettes can ethically promote its product. A good
example of this was the 2001 launch of the slow-burning cigarette and the nonsmoker cigarette by Philip Morris. The slow-burning cigarette was promoted as the
cigarette that would restrict the starting of bushfires by smokers who carelessly
disposed of their cigarette butts. The second, no- or little-smoke cigarette was
promoted as a device that would catch the smoke from a cigarette while it was
burning. These two campaigns were successful in the ethical promotion of
cigarettes by Philip Morris.

What types of marketing careers are available? What is the current
percentage of marketing employees in the Australian or New Zealand
civilian workforce and what is the future forecast for marketing
employment?
Answer Given

One-fourth to one-third of the Australian and New Zealand civilian workforce
performs marketing activities in areas such as professional selling, research,


advertising, retail buying, distribution management, product management and
development, and wholesaling. Marketing career opportunities exist in both
business and non-business organisations. Demand for marketing-educated
personnel is growing. Marketing employment is projected to grow at a faster rate
than that of all other jobs. Additionally, marketing is now the fastest route to the
top in today’s corporate world.

_____ marketing is a strategy that creates long-term partnerships with
_____ and is based on the _____ orientation.
Answer Given

Relationship; customers; marketing