Marketing Test #1 (Student Review)
Chapters 1, 2, 17, 18
1. (p. 5) More than half of new businesses fail within __________ years of their launch.
A. two
B. three
C. four
D. five
E. ten
2. (p. 5) Marketing refers to
A. the production or provision of goods or services that will generate the highest return on investment.
B. the strategies used in the advertising and promotion of goods and services.
C. the process of identifying the greatest number of target markets for a good or service.
D. the activity for creating, communicating, delivering, and exchanging offerings that benefit the
organization, its stakeholders, and society at large.
E. the activity involved in actually getting a product or service to the ultimate user.
3. (p. 5) The common factor among the chairman of the board, the stockholders, the suppliers, the
laborers in the factory, and finally the customer who purchases the product is
A. everyone has a say in the ultimate design of the product.
B. everyone is legally culpable if something goes wrong with the product.
C. all of the people listed in the question are stakeholders and should benefit by marketing of the
product.
D. all of the people and/or organizations had to make some type of direct financial investment in the
product.
E. all of the people listed in the question use the product or service themselves.
4. (p. 6) To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and
wants of prospective customers.
A. change
B. create
C. discover
D. manipulate
E. weigh
5. (p. 6) Exchange refers to
A. the trade of things of value between buyer and seller so that each is better off after the trade.
B. the replacement of one product for another product of equal or greater value, as compensation for a
product that failed to meet expectations.
C. the proffering of money, whether in the form of cash, check, or credit card, for a product or service at
the time of purchase.
D. a legally binding agreement to purchase a product or service allowing for a grace period of three days
during which the contract can be dissolved without penalty.
E. an international agency with the responsibility of determining relative values for currency throughout
the world, on a daily basis; also referred to as the foreign exchange rate.
6. (p. 8) A factor that might doom a product is referred to as a(n) __________.
A. albatross
B. monkey wrench
C. showstopper
D. loose cannon
E. wild card
7. (p. 9) People with both the desire and ability to buy a specific offering are referred to as a
__________.
A. customer pool
B. customer base
C. market
D. sales set
E. target segment
8. (p. 9-10) One or more specific groups of potential consumers toward which an organization directs its
marketing program is referred to as a
A. mass market.
B. tangential market.
C. market aggregation.
D. target market.
E. promotional market.
9. (p. 10) The element of the marketing mix demonstrated when a company places an ad in the Yellow
Pages is __________.
A. product
B. price
C. promotion
D. place
E. process
10. (p. 10) The marketing manager's controllable factors-product, price, promotion, and place-that can
be used to solve a marketing problem are referred to as the __________.
A. marketing concept
B. marketing mix
C. marketing program
D. environmental factors
E. management tools
11. (p. 10) The four Ps of the marketing mix are
A. priorities, personnel, placement, and profits.
B. prediction, production, pricing, and promotion.
C. product, price, production, and place.
D. product, price, promotion, and place.
E. profitability, productivity, packaging, and placement.
12. (p. 10) The uncontrollable forces in a marketing decision involving social, economic, technological,
competitive, and regulatory forces are referred to as __________.
A. the five forces of marketing
B. environmental forces
C. potential powers
D. marketing wild cards
E. deal breakers
13. (p. 10) The five major environmental forces considered in marketing are
A. climate change, natural resources, pollution, natural disasters, and global conflict (war).
B. corporate ownership, internal management, supplier relations, manufacturing capabilities, and
consumer demand.
C. product, price, promotion, place, and process.
D. social, technological, economic, competitive, and regulatory.
E. natural resources, weather, social awareness, economic factors, and regulation.
14. (p. 10-11) Customer value refers to
A. the need of a customer to receive the highest quality product at the lowest possible price.
B. the degree to which a customer is willing to sacrifice quality for price.
C. the range of price (from lowest to highest) a customer will ultimately be willing to pay for a specific
level of quality.
D. the potential long-term profits that can be generated by a single customer over time if a firm is able
to keep him or her as a loyal customer.
E. the unique combination of benefits received by targeted buyers that includes quality, convenience,
on-time delivery, and both before-sale and after-sale service at a specific price.
15. (p. 11) The linking of the organization to its individual customers, employees, suppliers, and other
partners for their mutual long-term benefits is referred to as
A. exclusive dealing.
B. loyalty programs.
C. relationship marketing.
D. marketing liaisons.
E. symbiotic marketing.
16. (p. 14) Which of the following terms best describes the marketing concept era?
A. Production oriented
B. Sales oriented
C. Society oriented
D. Consumer oriented
E. Competition oriented
17. (p. 16) Utility refers to
A. the benefits or customer value received by users of the product.
B. the adaptability of a marketing program to adjust to changes from environmental forces.
C. the number of alternative uses or benefits that can be provided by a single product or service.
D. the fixed costs associated with the production of a single unit of a product within a product line.
E. the variable costs associated with the production of a single unit of a product within a product line.
18. (p. 22) In marketing, an organization refers to
A. a legal entity of people who share a common mission.
B. a group of people or firms united through contractual or corporate ownership.
C. a legal entity of people engaged in business activities solely with the intent of making a profit.
D. a legal entity of people engaged in business activities solely with the intent of serving a population
but without the intent of making a profit.
E. a highly stylized protocol of productivity with a clear division of roles and responsibilities.
19. (p. 25) An organization's __________ are the fundamental, passionate, and enduring principles that
guide its conduct over time.
A. goals
B. core values
C. corporate ideals
D. proprietary values
E. written mission statements
20. (p. 25) Mission refers to
A. the target goal set by a company regarding future profits.
B. the target goal set by a company regarding future market share.
C. the functional philosophy of a corporation that dictates the behavior of all its employees.
D. specific strategies and tactics that will be used to counteract any advantages of its competitors.
E. a statement of the organization's functions in society, often identifying its customers, markets,
products, and technologies.
21. (p. 26) A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the
members of an organization is referred to as its
A. competitive edge.
B. corporate profile.
C. corporate philosophy.
D. benefits statement.
E. organizational culture.
22. (p. 28) A road map for the marketing activities of an organization for a specified future time period,
such as one year or five years is referred to as a _________.
A. marketing tactic
B. marketing objective
C. marketing plan
D. marketing strategy
E. marketing program
23. (p. 382) The two-way flow of communication between a buyer and a seller, often in a face-to-face
encounter, designed to influence a person's or group's purchase decision is referred to as
A. direct selling
B. indirect selling
C. unsolicited selling
D. personal selling
E. pre-determined selling
24. (p. 404) Consumers and companies populate two market environments today. One is the traditional
__________ and the other is the __________.
A. fixed hardscape; mobile marketplace
B. free-standing storefront; hypermarket
C. stationary store; mobile salesforce
D. marketplace; marketspace
E. shopping mall; mail order