CHAPTER 1 An Overview of Marketing

TRUE/FALSE QUESTIONS
Answer whether the following statements are true or false

1 Define the term marketing

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

true
false

2 Describe four marketing management philosophies

2. The owners of the Plane Rubber and Tire Company are pleased with their low unit costs and high production volumes. Salespeople are unnecessary because buyers are always waiting for new tires to come off the assembly line. Plane currently has a production orientation.

true
false

3. The president of Hoppity Flea Collars does not find it necessary to conduct much marketing research because the telephone selling campaign has been such a successful marketing strategy. Hoppity has a marketing orientation.

true
false

4. Having a sales orientation is the same as having a market orientation since both have the ultimate goal of satisfying customer needs.

true
false

3 Discuss the differences between sales and marketing orientations

5. You are about to start manufacturing and selling ferret food. You have met with your board of directors and you all discussed the benefits and sacrifices regarding the purchase of your food. Knowing the ratio of benefits to sacrifices allows you to specify how much customer value you will achieve.

true
false

4 Describe the marketing process

6. The marketing mix variables are product, place, promotion, and price.

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false

MULTIPLE-CHOICE QUESTIONS
Select the response that best answers the question, and write the corresponding letter in the space provided.

1 Define the term marketing

7. Which of the following is NOT true about marketing?

a. Marketing is a philosophy that stresses customer satisfaction.
b. Marketing is a process.
c. Marketing can involve any number of parties.
d. Marketing can be used for ideas, goods, or services.
e. Marketing involves products, pricing, promotion, and distribution.

8. In order for exchange to occur:

a. a complex societal system must be involved
b. each party must have something of value to the other party
c. a profit-oriented organization must be involved
d. money or other legal tender is required
e. organized marketing activities must also occur

9. If you were in the marketing consulting business which of the following clients could you not serve?

a. The Royal Ontario Museum, which needs to determine what exhibits should it offer visitors
b. The province of Manitoba, which needs to attract tourists
c. Dr. Susan Scott, an orthopedic surgeon wishing to open a practice in your home town.
d. The World Gym, which needs to determine where to locate its next outlet for customers
e. All of the above could be served by a marketing consultant

10. You are concerned with managing the exchange between the Red Cross and its blood donators. Which of the following costs would you have to be concerned about to create the ideal exchange?

a. The travel costs incurred by donators visiting the Red Cross blood donation sites.
b. The personal energy and time expended by the donator
c. The opportunity costs lost by not engaging in some other activity
d. All of the above are marketing costs that would be of concern to someone managing the exchange situation
e. None of the above are costs of exchange situations

2 Describe four marketing management philosophies

11. Fred Stone, the owner of Neanderthal Products, Inc. is production-oriented. If you were in charge of his marketing operations, which of the following statements might you use as a guiding principle if you wish to meet Mr. Stone's demand?

a. "I'm a customer and everyone is like me. I buy on price, therefore everyone does, as well."
b. "We need to buy the fastest production equipment as possible to raise productivity and keep prices at the lowest possible level."
c. "We produce the best widgits in the market place."
d. All of the above would be consistent with Mr. Stone's demands.
e. None of the above would be consistent, because all reflect a sales orientation.

12. Peter's company does an excellent and efficient job of churning thousands of NitPickers off the assembly line every day. One problem with this ____________ approach to marketing is the failure to consider whether Nit-Pickers also meet the needs of the marketplace.

a. customer orientation
b. sales orientation
c. discount orientation
d. marketing orientation
e. production orientation

13. Jack Niven's company markets golf club polish. Jack knows that buyers may consider the product nonessential, and he assumes that if he hires a team of aggressive, persuasive salespeople, buyers will buy more of the polish. Jack has a:

a. sales orientation
b. production orientation
c. promotion orientation
d. marketing orientation
e. customer orientation

14. Beth has noticed the lack of specialty recycling centres in her community, although local neighbourhood clubs have repeatedly asked the city to provide such centres. Beth has decided to become certified in waste disposal and hopes to open a battery and motor oil recycling centre next year. She hopes to include the innovative service of home pickup and delivery of recyclables. This business philosophy supports a(n) orientation.

a. production
b. sales
c. retail
d. marketing
e. enterprise

15. The Ajax Insurance Company tells its salespeople to try to sell life insurance to everyone they meet or contact. In contrast, the Family Shelter Insurance Company concentrates on special insurance plans designed for single parents. Family Shelter is:

a. missing out by not concentrating on the average customer
b. a company that would state that they are in the business of selling insurance
c. a selling-oriented company
a company that would state that they are in the business of selling insurance
d. recognizing that different customer groups have different needs and wants
e. aiming at a goal of profit through maximum sales volume

16. Bob & Gary's is a contemporary ice cream manufacturer that donates 10 percent of its earnings to the restoration of the Amazon rain forest. Bob & Gary's has which type of orientation?

a. production
b. sales
c. promotion
d. marketing
e. societal marketing

3 Discuss the differences between sales and market orientations

17. A sales orientation __________, while a marketing orientation __________.

a. achieves profit through customer satisfaction, achieves profit through maximum sales volume
b. targets specific groups of people, targets everybody
c. delivers superior customer value, focuses on selling goods and services
d. has an "outward" focus, has an "inward" focus
e. uses intensive promotion to maximize profits, uses coordinated interfunctional activities

4 Describe the marketing process

18. Which of the following is NOT a part of the marketing process?

a. understanding the organization's mission
b. developing performance appraisals for marketing personnel
c. designing performance measures
d. setting objectives
e. determining target markets

19. The marketing manager for Oil of Olan, a skin care product, is working with an advertising agency to develop a new TV commercial targeting teen-agers. Which of the following marketing mix variables best describes this activity?

a. product
b. price
c. target market
d. distribution
e. promotion

5 Describe several reasons for studying marketing

20. Jackie is a food science major at university and hopes to operate the family restaurant after graduation. Jackie has been advised to take a marketing course in the School of Business as an elective, but she thinks this would be a waste of time. You are her friend and a marketing major. You advise that:

a. marketing is not relevant for a business like a family restaurant
b. Jackie declare a business minor because she needs a backup career
c. more nutrition and gourmet cooking classes will be most useful for Jackie
d. the main reason to take marketing is to teach Jackie how to advertise the restaurant
e. marketing knowledge will help Jackie to understand how she can satisfy consumers' needs and wants

21. Jon owns a small laboratory that makes bifocal contact lenses. His company is growing fast, and there are many things he does not understand about his customers. Should Jon take a marketing course?

a. Yes, because marketing is synonymous with selling, and Jon will want to learn aggressive sales techniques to continue the company's growth
b. No, because he can hire an advertising firm and will not need further knowledge of marketing
c. No, because marketing is a minor function in business
d. Yes, because the concept of marketing will help Jon to better serve and satisfy his customers
e. Yes, because marketing teaches businesses how to sell products that people don't need