Which of the following statements is not true of the marketing concept philosophy?

Q: Which of the following statements best describes marketing concept philosophy?

Which of the following statements best explains the marketing concept? All of a firms activities and resources should be focused on fulfilling the needs of its customers while making a profit.

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Chapter 01: An Overview of Marketing
Multiple Choice
1. Which of the following statements is NOT true of marketing?
a. Marketing focuses on practices that deliver value and benefits to customers.
b. Marketing focuses primarily on selling goods, services, and/or ideas to customers.
c. Marketing employs the combined use of communication, distribution, and pricing strategies.
d. Marketing involves building long-term, mutually rewarding relationships with customers.
2. Which statement expresses the American Marketing Association (AMA)’s core definition of marketing?
a. Marketing is a philosophy, an attitude, a perspective, or a management orientation that stresses employee
satisfaction.
b. Marketing is an organization function and a set of processes that have value for customers, clients, partners,
and society at large.
c. Marketing refers to personal selling that focuses solely on selling goods, services, and/or ideas to customers.
d. Marketing involves building long-term, mutually rewarding relationships that are beneficial exclusively to the
3. We "give up" money to "get" the goods and services we want. Giving up something in order to receive something else
is an example of the basic marketing principle of _______.
a. exchange
b. distribution
c. production
4. The Standard, a cloud computing company in Dallas, captured the number-one position in Fortune ’s "100 Best
Companies to Work For" because the company _______.
a. had a large increase in profits
b. provided jobs to unemployed workers
c. fostered trust, growth, innovation, and
d. produced innovative goods and services
5. Which of the following is a facet of marketing?
a. Marketing is a philosophy.
b. Marketing focuses solely on selling services.
c. Marketing focuses only on advertising.
d. Marketing focuses solely on selling goods.
6. The co-founder of Hewlett Packard said, "Marketing is too important to be left only to the marketing
department." This comment means all of the following EXCEPT _______.
Chapter 01: An Overview of Marketing
a. marketing involves more than just activities performed by a department
b. marketing entails processes that focus on delivering value and benefits to customers
c. marketing means selling and promoting products and services
d. marketing involves building long-term, mutually rewarding relationships
7. Which of the following is NOT required for an exchange to take place?
a. There must be at least three parties.
b. Each party has something that might be of value to the other party.
c. Each party is capable of communication and delivery.
d. Each party is free to accept or reject the exchange offer.
8. Marketing is based on the understanding that organizations have employees, suppliers, stockholders, and
distributors as _______.
a. stakeholder "partners"
b. competitors
d. consultants
9. Gentech, a cloud-computing company, is rated as a top company to work for. It offers rich monetary and
psychological rewards. It has developed software that identifies strong performers who have not been promoted
for 18 months and helps them seek new challenges. Gentech has shown that _______.
a. employee commitment does not add to productivity
b. companies rated by employees as the top places to work outperform their competitors
c. marketing includes benefits for customers but not employees
d. employees are not considered connected "stakeholder partners"
10. Kendall Wong has a car to sell and advertises it online. Several potential buyers test drive the car. All five
conditions that are necessary for an exchange to occur exist in this scenario. Has an exchange occurred?
a. An exchange has occurred because all the conditions have been met.
b. An exchange has occurred because Kendall has identified prospective buyers.
c. Until Kendall sells the car, an exchange has not taken place.
d. Until Kendall and a buyer decide on the price, an exchange has not occurred.
11. Marketing can occur even if an exchange does not occur. When Sally Rodriguez sold her car, she put an ad
in the local newspaper and allowed potential customers to test drive the vehicle. Sally engaged in marketing by
_______, even if no one bought her used automobile.
a. advertising
b. hiring a used car dealer
c. preparing the car for sale
Chapter 01: An Overview of Marketing
16. A firm could benefit from a production orientation when _______.
a. it produces exactly what the market wants
b. the market demand is less than the products supplied by the firm
c. competition is strong
d. it focuses on what products company management thinks should be produced and hopes customers want
17. The Brooks Machine Shop is known for adopting a strategy that focuses on designing new products based
on its assessment of the capabilities of its engineers and on the easy availability of resources. The firm’s
approach, which emphasizes the ease of production and the talents of its resources rather than the needs and
wants of the marketplace, can be attributed to its _______ orientation.
a. production
d. societal marketing
18. A sales orientation is common for businesses selling products or services in _______.
a. markets with a low level of competition
b. highly competitive markets
c. situations when intermediaries do not push manufacturers’ products
d. situations that convince people to buy products they do not want
19. Apple has a history of _______, creating computers, operating systems, and other gadgetry that it hopes the
public will want and buy because of Apple’s reputation for innovation.
a. market orientation
b. production orientation
c. sales orientation
d. societal marketing orientation
20. The management at DND Computers believes that an increased level of transactions will result in high
profits. Together with the company team members, management devises a strategy to promote its new line of
convertible laptops based on the assumption that consumers will purchase a product if the company promotes it
aggressively. This hypothesis can be attributed to the company’s _______ orientation.
a. production
d. societal marketing
21. According to the _______, an organization exists not only to satisfy customer wants and needs but also to
preserve or enhance individuals’ and the community’s long-term best interests.
Chapter 01: An Overview of Marketing
a. societal marketing orientation
b. market orientation
c. production orientation
d. sales orientation
22. Walgreens has addressed the health problems of local communities. To help solve the nation’s opioid crisis,
Walgreens instituted opioid utilization management protocols, installed drug disposal collection units, and is
updating its pharmacists on the dangers of prescription drugs. Walgreens is an example of a company with a
a. market orientation
b. societal marketing orientation
c. production orientation
d. sales orientation
23. The Biking Company bikers told the manufacturer that they wanted lighter, more powerful bikes and a better
way to handle corners. The Biking Company follows a market orientation. What did the company do?
a. It added more aggressive sales force employees.
b. It developed heavier bikes with wide angles for better cornering.
c. It created bikes with bigger engines and lighter, stronger frames.
d. It increased its internal capabilities by hiring more engineers.
24. The ABC Lawn Company aims for a high number of clients that result in high profits. To meet its goal ABC
markets its landscaping service vigorously because there are many lawn services and nurseries in the local
community. As a sales-oriented company, ABC focuses on _______.
a. the needs and wants of the customers
b. aggressive trading techniques
c. enhancing individuals’ and society’s long-term best interests
d. the internal capabilities of the firm
25. Which of the following is a similarity between a production orientation and a sales orientation?
a. Both ignore the importance of assessing a firm’s internal capabilities.
b. Both lack an understanding of the needs and wants of the marketplace.
c. Both place little emphasis on the assessment of manufacturing plants and facilities.
d. Both fail in a market where demand exceeds supply.
26. The management of Intel believes that success can be achieved with a thorough understanding of its
competitive arena and by developing products that satisfy the needs, wants, and expectations of customers.
Therefore, Intel can be said to have a _______ orientation.
a. production
Chapter 01: An Overview of Marketing
today’s marketplace because it/they finds/find out what customers want and what they need.
a. The Brown Company
b. The Columbia Company
32. The relationship between benefits and the sacrifice necessary to obtain those benefits is known as _______.
a. teamwork
b. customer value
c. customer satisfaction
d. empowerment
33. Great Burger is a burger restaurant that targets those who care about how food tastes and where the food
comes from. Prices are higher than average, but Great Burger uses hormone-free meat from humanely raised
animals. The meat is shipped fresh, not frozen. This restaurant prides itself on its superior service. This example
shows that _______.
a. customer value is the relationship between benefits and the sacrifice necessary to obtain them
b. customer satisfaction is the relationship between benefits and the sacrifice necessary to obtain them
c. empowerment is the relationship between benefits and the sacrifice necessary to obtain them
d. teamwork is the relationship between benefits and the sacrifice necessary to obtain them
34. Jamal, a customer of Associated Bank, feels that the bank has met his expectations for high-quality service.
He gives the bank high ratings on its feedback form and also recommends the bank to his friends and family.
Jamal’s evaluation of Associated Bank is a reflection of _______.
a. customer value
b. customer satisfaction
c. customer relations
d. consumer management
35. One vision, a publisher of video games, monitors social media conversations that are relevant to its products
and follows up on those conversations. This long-term focus on customer needs is the hallmark of _______.
a. customer value
b. relationship marketing
c. teamwork
d. empowerment
36. The strategy of improving affiliations with existing customers, which is based on the assumption that most
customers prefer to maintain an ongoing rapport with one organization rather than switch continually among
providers in their search for value, is defined as _______.
Chapter 01: An Overview of Marketing
a. customer value
b. relationship marketing
c. teamwork
d. empowerment
37. Employees at the Lucerne luxury hotels developed service guidelines. The guidelines include brief
statements such as "I own and immediately resolve guest problems." These employees sustain the company’s
success in addition to taking responsibility for their actions because they are _______.
a. empowered to put values into actions
b. offered extensive training
c. given less work
d. not pressurized with deadlines
38. All of the following are advantages of defining a firm’s mission in terms of benefits that customers seek
except for which one?
a. Keeping the firm focused on its customer, instead of becoming preoccupied with its internal needs
b. Encouraging innovation, creativity, and developing new ways to satisfy customer expectations
c. Stimulating an awareness of changes in customer desires and preferences so that product offerings remain
d. Allowing management to focus on creating an aggressive sales force
39. Bob Mills furniture aims to improve the lives of many people. The mission statement could have focused on
affordable furniture (product oriented), but instead it focuses on making life better for its customers. This
example shows that _______.
a. market-oriented firms shape their mission statement in terms of customer benefits
b. sales-oriented firms create a connection with their customers and employees
c. market-oriented firms shape their mission statement in terms of goods and services
d. a sales-oriented firm defines its mission statement in terms of goods and services
40. The Lee Corporation is a sales-oriented firm that focuses on high sales. It does not take into account the
customer’s wants and needs, and instead concentrates on manufacturing products that will reap high profits.
This attitude might lead to the firm’s missing business opportunities because _______.
a. its focus on manufacturing specific products may not meet customer needs and wants
b. it focuses on providing value and benefits to its customers instead of meeting company objectives
c. it emphasizes enhancing individuals’ and society’s long-term best interests
d. it concentrates on relationship building, empowerment, and teamwork
41. BCD Sportswear has introduced initiatives to attract millennial shoppers, who typically avoid department
stores. These include themed pop-up shops, shop-in shops featuring new fashion designers, and concept shops.
Chapter 01: An Overview of Marketing
47. Which of the following vital business activities is NOT included in marketing?
a. Assessing the needs and wants of consumers
b. Designing and managing product offerings
c. Determining pricing and pricing policies
d. Recruiting and selecting qualified employees
48. Which of the following is NOT a career opportunity in marketing?
a. Product management
b. Retail buying
c. Distribution management
d. Human resources management
49. All of the following nonbusiness organizations offer careers in marketing EXCEPT _______.
a. the armed forces
b. religious institutions
c. social service agencies
d. universities
50. Lucia is an accounting major at a university in Texas. What is the best reason for her to be familiar with the
fundamentals of marketing and marketing terminology?
a. She needs to be able to communicate with specialists in other areas.
b. She plans to work in a not-for-profit organization.
c. She wants to spend a semester abroad.
d. She wants to broaden her scope of learning.
51. Marketing contributes directly to achieving all of the following business objectives EXCEPT _______.
a. survival
c. stagnation
52. Tshawna is opening up an online jewelry store that sells handmade necklaces, bracelets, and earrings. What
is the best reason for her to study marketing?
a. She will better understand the buying process.
b. She will be able to negotiate less effectively with sellers.
c. She will achieve customer satisfaction.
d. She will be a better-informed consumer.
Chapter 01: An Overview of Marketing
53. The total population of the United States exceeds 328 million people. Many transactions each day are
needed to feed, clothe, and shelter a population of this size. The number is huge. It all works because the US
economic system distributes the output of farms and factories. This example shows that _______.
a. marketing is important to business
b. marketing dominates supply chain activities
c. distribution is not part of marketing activities
d. distribution is the focus of marketing
54. You are discussing your career plans with a friend. Your friend is majoring in finance. You explain to your
friend why she should study marketing. What do you say?
a. Marketing plays an important role in society.
b. Marketing will help you increase your salary potential.
c. Jobs in marketing are easy to find.
d. Job openings are plentiful.
55. Carolina conducts marketing research for a pharmaceutical company in California. Carolina oversees
telephone surveys to determine the satisfaction of those who use her company’s products. This example shows
that _______.
a. marketing can assess the needs and wants of present and potential customers
b. marketing can advertise the characteristics of a product
c. marketing can increase company revenues
d. marketing can effectively distribute goods and services
True / False
56. The all-inclusive definition of marketing is that it involves making products available in stores, arranging
displays, and maintaining inventories of products.
ANSWER: False
57. Marketing has two facets. First, it is a philosophy, an attitude, and a perspective that stresses customer
satisfaction. Second, marketing is an organizational function and a set of processes used to implement this
philosophy.
ANSWER: True
58. Two (or more) people may barter or trade such items as baseball cards or oil paintings. This is not
considered an exchange because this transaction does not require money.
Chapter 01: An Overview of Marketing
ANSWER: False
66. A high price for a product or service assures the customer that the product or service is of a good value.
ANSWER: False
67. Companies create strategy from the outside in by offering distinct and compelling customer value. This can
be accomplished only by carefully studying customers and using deep market insights to inform and guide
companies’ outside-in view.
ANSWER: True
68. Training plays an important role in customer service and relationship building.
ANSWER: True
69. The organizations that are frequently noted for delivering superior customer value and providing high levels
of customer satisfaction assign employees to teams and teach them team-building skills.
ANSWER: True
70. A sales-oriented firm targets its products at the average customer, while a market-oriented organization aims
at selling its products to a specific customer group.
ANSWER: True
71. Having a market orientation and a focus on customer wants does not mean offering customers everything
ANSWER: True
72. Salespeople who work for market-oriented organizations are generally perceived by their customers to be
problem solvers and important links to supply sources and new products.
ANSWER: True
73. Market-oriented organizations recognize that promotion decisions are the most important of four basic
marketing mix decisions that must be made.
Chapter 01: An Overview of Marketing
ANSWER: False
74. Marketing determines prices and pricing policies that typically contribute to achieving the fundamental
objectives of most businesses.
ANSWER: True
75. Marketing career opportunities almost exclusively exist in nonbusiness organizations.
ANSWER: False
76. By developing a better understanding of marketing, you will become a better-informed consumer.
ANSWER: True
77. Since marketing is carried out exclusively by the marketing professions in an organization, it is not
necessary for all businesspeople in an organization to have a basic understanding of marketing.
ANSWER: False
78. Marketing makes food available when we want it, in desired quantities, at accessible locations, and in
sanitary and convenient packages and forms (such as instant and frozen foods).
ANSWER: True
79. Between one-fourth and one-third of the entire civilian workforce in the United States performs marketing
activities.
ANSWER: True
80. According to the text, all businesspeople, regardless of specialization or area of responsibility, need to be
familiar with the terminology and fundamentals of accounting, finance, management, and marketing.
ANSWER: True
Which of the following statements is true of the marketing concept?
What is the philosophy of the marketing concept?
Which of the following statements best describes marketing concept philosophy?
What are the 4 concepts of marketing?

Chapter 01: An Overview of Marketing

Multiple Choice

1. Which of the following statements is NOT true of marketing?

a. Marketing focuses on practices that deliver value and benefits to customers.

b. Marketing focuses primarily on selling goods, services, and/or ideas to customers.

c. Marketing employs the combined use of communication, distribution, and pricing strategies.

d. Marketing involves building long-term, mutually rewarding relationships with customers.

ANSWER: b

2. Which statement expresses the American Marketing Association (AMA)’s core definition of marketing?

a. Marketing is a philosophy, an attitude, a perspective, or a management orientation that stresses employee

satisfaction.

b. Marketing is an organization function and a set of processes that have value for customers, clients, partners,

and society at large.

c. Marketing refers to personal selling that focuses solely on selling goods, services, and/or ideas to customers.

d. Marketing involves building long-term, mutually rewarding relationships that are beneficial exclusively to the

sellers.

ANSWER: b

3. We "give up" money to "get" the goods and services we want. Giving up something in order to receive something else

is an example of the basic marketing principle of _______.

a. exchange

b. distribution

c. production

d. selling

ANSWER: a

4. The Standard, a cloud computing company in Dallas, captured the number-one position in Fortune ’s "100 Best

Companies to Work For" because the company _______.

a. had a large increase in profits

b. provided jobs to unemployed workers

c. fostered trust, growth, innovation, and

equality

d. produced innovative goods and services

ANSWER: c

a. Marketing is a philosophy.

b. Marketing focuses solely on selling services.

c. Marketing focuses only on advertising.

d. Marketing focuses solely on selling goods.

ANSWER: a

6. The co-founder of Hewlett Packard said, "Marketing is too important to be left only to the marketing

department." This comment means all of the following EXCEPT _______.

Chapter 01: An Overview of Marketing

a. marketing involves more than just activities performed by a department

b. marketing entails processes that focus on delivering value and benefits to customers

c. marketing means selling and promoting products and services

d. marketing involves building long-term, mutually rewarding relationships

ANSWER: c

7. Which of the following is NOT required for an exchange to take place?

a. There must be at least three parties.

b. Each party has something that might be of value to the other party.

c. Each party is capable of communication and delivery.

d. Each party is free to accept or reject the exchange offer.

ANSWER: a

8. Marketing is based on the understanding that organizations have employees, suppliers, stockholders, and

distributors as _______.

a. stakeholder "partners"

b. competitors

c. clients

d. consultants

ANSWER: a

9. Gentech, a cloud-computing company, is rated as a top company to work for. It offers rich monetary and

psychological rewards. It has developed software that identifies strong performers who have not been promoted

for 18 months and helps them seek new challenges. Gentech has shown that _______.

a. employee commitment does not add to productivity

b. companies rated by employees as the top places to work outperform their competitors

c. marketing includes benefits for customers but not employees

d. employees are not considered connected "stakeholder partners"

ANSWER: b

10. Kendall Wong has a car to sell and advertises it online. Several potential buyers test drive the car. All five

conditions that are necessary for an exchange to occur exist in this scenario. Has an exchange occurred?

a. An exchange has occurred because all the conditions have been met.

b. An exchange has occurred because Kendall has identified prospective buyers.

c. Until Kendall sells the car, an exchange has not taken place.

d. Until Kendall and a buyer decide on the price, an exchange has not occurred.

ANSWER: c

11. Marketing can occur even if an exchange does not occur. When Sally Rodriguez sold her car, she put an ad

in the local newspaper and allowed potential customers to test drive the vehicle. Sally engaged in marketing by

_______, even if no one bought her used automobile.

a. advertising

b. hiring a used car dealer

c. preparing the car for sale

Chapter 01: An Overview of Marketing

16. A firm could benefit from a production orientation when _______.

a. it produces exactly what the market wants

b. the market demand is less than the products supplied by the firm

c. competition is strong

d. it focuses on what products company management thinks should be produced and hopes customers want

ANSWER: a

17. The Brooks Machine Shop is known for adopting a strategy that focuses on designing new products based

on its assessment of the capabilities of its engineers and on the easy availability of resources. The firm’s

approach, which emphasizes the ease of production and the talents of its resources rather than the needs and

wants of the marketplace, can be attributed to its _______ orientation.

a. production

b. sales

c. market

d. societal marketing

ANSWER: a

18. A sales orientation is common for businesses selling products or services in _______.

a. markets with a low level of competition

b. highly competitive markets

c. situations when intermediaries do not push manufacturers’ products

d. situations that convince people to buy products they do not want

ANSWER: b

19. Apple has a history of _______, creating computers, operating systems, and other gadgetry that it hopes the

public will want and buy because of Apple’s reputation for innovation.

a. market orientation

b. production orientation

c. sales orientation

d. societal marketing orientation

ANSWER: b

20. The management at DND Computers believes that an increased level of transactions will result in high

profits. Together with the company team members, management devises a strategy to promote its new line of

convertible laptops based on the assumption that consumers will purchase a product if the company promotes it

aggressively. This hypothesis can be attributed to the company’s _______ orientation.

a. production

b. sales

c. market

d. societal marketing

ANSWER: b

21. According to the _______, an organization exists not only to satisfy customer wants and needs but also to

preserve or enhance individuals’ and the community’s long-term best interests.

Chapter 01: An Overview of Marketing

a. societal marketing orientation

b. market orientation

c. production orientation

d. sales orientation

ANSWER: a

22. Walgreens has addressed the health problems of local communities. To help solve the nation’s opioid crisis,

Walgreens instituted opioid utilization management protocols, installed drug disposal collection units, and is

updating its pharmacists on the dangers of prescription drugs. Walgreens is an example of a company with a

_______.

a. market orientation

b. societal marketing orientation

c. production orientation

d. sales orientation

ANSWER: b

23. The Biking Company bikers told the manufacturer that they wanted lighter, more powerful bikes and a better

way to handle corners. The Biking Company follows a market orientation. What did the company do?

a. It added more aggressive sales force employees.

b. It developed heavier bikes with wide angles for better cornering.

c. It created bikes with bigger engines and lighter, stronger frames.

d. It increased its internal capabilities by hiring more engineers.

ANSWER: c

24. The ABC Lawn Company aims for a high number of clients that result in high profits. To meet its goal ABC

markets its landscaping service vigorously because there are many lawn services and nurseries in the local

community. As a sales-oriented company, ABC focuses on _______.

a. the needs and wants of the customers

b. aggressive trading techniques

c. enhancing individuals’ and society’s long-term best interests

d. the internal capabilities of the firm

ANSWER: b

25. Which of the following is a similarity between a production orientation and a sales orientation?

a. Both ignore the importance of assessing a firm’s internal capabilities.

b. Both lack an understanding of the needs and wants of the marketplace.

c. Both place little emphasis on the assessment of manufacturing plants and facilities.

d. Both fail in a market where demand exceeds supply.

ANSWER: b

26. The management of Intel believes that success can be achieved with a thorough understanding of its

competitive arena and by developing products that satisfy the needs, wants, and expectations of customers.

Therefore, Intel can be said to have a _______ orientation.

a. production

Chapter 01: An Overview of Marketing

today’s marketplace because it/they finds/find out what customers want and what they need.

a. The Brown Company

b. The Columbia Company

c. both

d. neither

ANSWER: a

32. The relationship between benefits and the sacrifice necessary to obtain those benefits is known as _______.

a. teamwork

b. customer value

c. customer satisfaction

d. empowerment

ANSWER: b

33. Great Burger is a burger restaurant that targets those who care about how food tastes and where the food

comes from. Prices are higher than average, but Great Burger uses hormone-free meat from humanely raised

animals. The meat is shipped fresh, not frozen. This restaurant prides itself on its superior service. This example

shows that _______.

a. customer value is the relationship between benefits and the sacrifice necessary to obtain them

b. customer satisfaction is the relationship between benefits and the sacrifice necessary to obtain them

c. empowerment is the relationship between benefits and the sacrifice necessary to obtain them

d. teamwork is the relationship between benefits and the sacrifice necessary to obtain them

ANSWER: a

34. Jamal, a customer of Associated Bank, feels that the bank has met his expectations for high-quality service.

He gives the bank high ratings on its feedback form and also recommends the bank to his friends and family.

Jamal’s evaluation of Associated Bank is a reflection of _______.

a. customer value

b. customer satisfaction

c. customer relations

d. consumer management

ANSWER: b

and follows up on those conversations. This long-term focus on customer needs is the hallmark of _______.

a. customer value

b. relationship marketing

c. teamwork

d. empowerment

ANSWER: b

36. The strategy of improving affiliations with existing customers, which is based on the assumption that most

customers prefer to maintain an ongoing rapport with one organization rather than switch continually among

providers in their search for value, is defined as _______.

Chapter 01: An Overview of Marketing

a. customer value

b. relationship marketing

c. teamwork

d. empowerment

ANSWER: b

37. Employees at the Lucerne luxury hotels developed service guidelines. The guidelines include brief

statements such as "I own and immediately resolve guest problems." These employees sustain the company’s

success in addition to taking responsibility for their actions because they are _______.

a. empowered to put values into actions

b. offered extensive training

c. given less work

d. not pressurized with deadlines

ANSWER: a

38. All of the following are advantages of defining a firm’s mission in terms of benefits that customers seek

except for which one?

a. Keeping the firm focused on its customer, instead of becoming preoccupied with its internal needs

b. Encouraging innovation, creativity, and developing new ways to satisfy customer expectations

c. Stimulating an awareness of changes in customer desires and preferences so that product offerings remain

relevant

d. Allowing management to focus on creating an aggressive sales force

ANSWER: d

39. Bob Mills furniture aims to improve the lives of many people. The mission statement could have focused on

affordable furniture (product oriented), but instead it focuses on making life better for its customers. This

example shows that _______.

a. market-oriented firms shape their mission statement in terms of customer benefits

b. sales-oriented firms create a connection with their customers and employees

c. market-oriented firms shape their mission statement in terms of goods and services

d. a sales-oriented firm defines its mission statement in terms of goods and services

ANSWER: a

40. The Lee Corporation is a sales-oriented firm that focuses on high sales. It does not take into account the

customer’s wants and needs, and instead concentrates on manufacturing products that will reap high profits.

This attitude might lead to the firm’s missing business opportunities because _______.

a. its focus on manufacturing specific products may not meet customer needs and wants

b. it focuses on providing value and benefits to its customers instead of meeting company objectives

c. it emphasizes enhancing individuals’ and society’s long-term best interests

d. it concentrates on relationship building, empowerment, and teamwork

ANSWER: a

41. BCD Sportswear has introduced initiatives to attract millennial shoppers, who typically avoid department

stores. These include themed pop-up shops, shop-in shops featuring new fashion designers, and concept shops.

Chapter 01: An Overview of Marketing

ANSWER: b

47. Which of the following vital business activities is NOT included in marketing?

a. Assessing the needs and wants of consumers

b. Designing and managing product offerings

c. Determining pricing and pricing policies

d. Recruiting and selecting qualified employees

ANSWER: d

48. Which of the following is NOT a career opportunity in marketing?

a. Product management

b. Retail buying

c. Distribution management

d. Human resources management

ANSWER: d

49. All of the following nonbusiness organizations offer careers in marketing EXCEPT _______.

a. the armed forces

b. religious institutions

d. universities

ANSWER: b

50. Lucia is an accounting major at a university in Texas. What is the best reason for her to be familiar with the

fundamentals of marketing and marketing terminology?

a. She needs to be able to communicate with specialists in other areas.

b. She plans to work in a not-for-profit organization.

c. She wants to spend a semester abroad.

d. She wants to broaden her scope of learning.

ANSWER: a

51. Marketing contributes directly to achieving all of the following business objectives EXCEPT _______.

a. survival

b. profits

c. stagnation

d. growth

ANSWER: c

52. Tshawna is opening up an online jewelry store that sells handmade necklaces, bracelets, and earrings. What

is the best reason for her to study marketing?

a. She will better understand the buying process.

b. She will be able to negotiate less effectively with sellers.

c. She will achieve customer satisfaction.

d. She will be a better-informed consumer.

Chapter 01: An Overview of Marketing

ANSWER: a

53. The total population of the United States exceeds 328 million people. Many transactions each day are

needed to feed, clothe, and shelter a population of this size. The number is huge. It all works because the US

economic system distributes the output of farms and factories. This example shows that _______.

a. marketing is important to business

b. marketing dominates supply chain activities

c. distribution is not part of marketing activities

d. distribution is the focus of marketing

ANSWER: a

54. You are discussing your career plans with a friend. Your friend is majoring in finance. You explain to your

friend why she should study marketing. What do you say?

a. Marketing plays an important role in society.

b. Marketing will help you increase your salary potential.

c. Jobs in marketing are easy to find.

d. Job openings are plentiful.

ANSWER: a

55. Carolina conducts marketing research for a pharmaceutical company in California. Carolina oversees

telephone surveys to determine the satisfaction of those who use her company’s products. This example shows

that _______.

a. marketing can assess the needs and wants of present and potential customers

b. marketing can advertise the characteristics of a product

c. marketing can increase company revenues

d. marketing can effectively distribute goods and services

ANSWER: a

True / False

56. The all-inclusive definition of marketing is that it involves making products available in stores, arranging

displays, and maintaining inventories of products.

a. True

b. False

ANSWER: False

satisfaction. Second, marketing is an organizational function and a set of processes used to implement this

philosophy.

a. True

b. False

ANSWER: True

58. Two (or more) people may barter or trade such items as baseball cards or oil paintings. This is not

considered an exchange because this transaction does not require money.

Chapter 01: An Overview of Marketing

ANSWER: False

66. A high price for a product or service assures the customer that the product or service is of a good value.

a. True

b. False

ANSWER: False

67. Companies create strategy from the outside in by offering distinct and compelling customer value. This can

be accomplished only by carefully studying customers and using deep market insights to inform and guide

companies’ outside-in view.

a. True

b. False

ANSWER: True

68. Training plays an important role in customer service and relationship building.

a. True

b. False

ANSWER: True

69. The organizations that are frequently noted for delivering superior customer value and providing high levels

of customer satisfaction assign employees to teams and teach them team-building skills.

a. True

b. False

ANSWER: True

70. A sales-oriented firm targets its products at the average customer, while a market-oriented organization aims

at selling its products to a specific customer group.

a. True

b. False

ANSWER: True

71. Having a market orientation and a focus on customer wants does not mean offering customers everything

they want.

a. True

b. False

ANSWER: True

72. Salespeople who work for market-oriented organizations are generally perceived by their customers to be

problem solvers and important links to supply sources and new products.

a. True

b. False

ANSWER: True

73. Market-oriented organizations recognize that promotion decisions are the most important of four basic

marketing mix decisions that must be made.

Chapter 01: An Overview of Marketing

a. True

b. False

ANSWER: False

74. Marketing determines prices and pricing policies that typically contribute to achieving the fundamental

objectives of most businesses.

a. True

b. False

ANSWER: True

75. Marketing career opportunities almost exclusively exist in nonbusiness organizations.

a. True

b. False

ANSWER: False

76. By developing a better understanding of marketing, you will become a better-informed consumer.

a. True

b. False

ANSWER: True

77. Since marketing is carried out exclusively by the marketing professions in an organization, it is not

necessary for all businesspeople in an organization to have a basic understanding of marketing.

a. True

b. False

ANSWER: False

78. Marketing makes food available when we want it, in desired quantities, at accessible locations, and in

sanitary and convenient packages and forms (such as instant and frozen foods).

a. True

b. False

ANSWER: True

79. Between one-fourth and one-third of the entire civilian workforce in the United States performs marketing

activities.

a. True

b. False

ANSWER: True

80. According to the text, all businesspeople, regardless of specialization or area of responsibility, need to be

familiar with the terminology and fundamentals of accounting, finance, management, and marketing.

a. True

b. False

ANSWER: True

Essay

Which of the following statements is true of the marketing concept?

Which of the following statements is true of the marketing concept? It states that an organization should satisfy customer wants and needs while meeting organizational objectives.

What is the philosophy of the marketing concept?

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

Which of the following statements best describes marketing concept philosophy?

Which of the following statements best explains the "marketing concept"? All of a firm's activities and resources should be focused on fulfilling the needs of its customers while making a profit.

What are the 4 concepts of marketing?

The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.

Which of the following statements is not true of the marketing concept philosophy?

Chapter 01: An Overview of Marketing

Multiple Choice

1. Which of the following statements is NOT true of marketing?

a. Marketing focuses on practices that deliver value and benefits to customers.

b. Marketing focuses primarily on selling goods, services, and/or ideas to customers.

c. Marketing employs the combined use of communication, distribution, and pricing strategies.

d. Marketing involves building long-term, mutually rewarding relationships with customers.

ANSWER: b

2. Which statement expresses the American Marketing Association (AMA)’s core definition of marketing?

a. Marketing is a philosophy, an attitude, a perspective, or a management orientation that stresses employee

satisfaction.

b. Marketing is an organization function and a set of processes that have value for customers, clients, partners,

and society at large.

c. Marketing refers to personal selling that focuses solely on selling goods, services, and/or ideas to customers.

d. Marketing involves building long-term, mutually rewarding relationships that are beneficial exclusively to the

sellers.

ANSWER: b

3. We "give up" money to "get" the goods and services we want. Giving up something in order to receive something else

is an example of the basic marketing principle of _______.

a. exchange

b. distribution

c. production

d. selling

ANSWER: a

4. The Standard, a cloud computing company in Dallas, captured the number-one position in Fortune ’s "100 Best

Companies to Work For" because the company _______.

a. had a large increase in profits

b. provided jobs to unemployed workers

c. fostered trust, growth, innovation, and

equality

d. produced innovative goods and services

ANSWER: c

5. Which of the following is a facet of marketing?

a. Marketing is a philosophy.

b. Marketing focuses solely on selling services.

c. Marketing focuses only on advertising.

d. Marketing focuses solely on selling goods.

ANSWER: a

6. The co-founder of Hewlett Packard said, "Marketing is too important to be left only to the marketing

department." This comment means all of the following EXCEPT _______.

Chapter 01: An Overview of Marketing

a. marketing involves more than just activities performed by a department

b. marketing entails processes that focus on delivering value and benefits to customers

c. marketing means selling and promoting products and services

d. marketing involves building long-term, mutually rewarding relationships

ANSWER: c

7. Which of the following is NOT required for an exchange to take place?

a. There must be at least three parties.

b. Each party has something that might be of value to the other party.

c. Each party is capable of communication and delivery.

d. Each party is free to accept or reject the exchange offer.

ANSWER: a

8. Marketing is based on the understanding that organizations have employees, suppliers, stockholders, and

distributors as _______.

a. stakeholder "partners"

b. competitors

c. clients

d. consultants

ANSWER: a

9. Gentech, a cloud-computing company, is rated as a top company to work for. It offers rich monetary and

psychological rewards. It has developed software that identifies strong performers who have not been promoted

for 18 months and helps them seek new challenges. Gentech has shown that _______.

a. employee commitment does not add to productivity

b. companies rated by employees as the top places to work outperform their competitors

c. marketing includes benefits for customers but not employees

d. employees are not considered connected "stakeholder partners"

ANSWER: b

10. Kendall Wong has a car to sell and advertises it online. Several potential buyers test drive the car. All five

conditions that are necessary for an exchange to occur exist in this scenario. Has an exchange occurred?

a. An exchange has occurred because all the conditions have been met.

b. An exchange has occurred because Kendall has identified prospective buyers.

c. Until Kendall sells the car, an exchange has not taken place.

d. Until Kendall and a buyer decide on the price, an exchange has not occurred.

ANSWER: c

11. Marketing can occur even if an exchange does not occur. When Sally Rodriguez sold her car, she put an ad

in the local newspaper and allowed potential customers to test drive the vehicle. Sally engaged in marketing by

_______, even if no one bought her used automobile.

a. advertising

b. hiring a used car dealer