University of South Asia --- Faculty of Management Sciences

Test Bank

Study Program: BBA

Course Code/Title: Principles of Marketing
Resource Person: M. Adil Khushi

General Instructions:
1. The test bank comprises of 100 MCQs, 60 Short Questions, 40 Long Questions
2. This will help students in understanding the underlying concept and terminologies of this course
3. The students will be better able to assess themselves with the help of
4. This test bank is tailored to the contents of textbook Principles of Management by Kotler & Armstrong

Multiple Choice Questions

1. Which of the following marketing management orientations is most likely to lead to marketing
myopia?

A. Customer-driven marketing
B. Production concept
C. Social marketing
D. Selling concept
E. Customer-driven marketing

2. Which concept holds that achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do?

A. Product
B. Production
C. Selling
D. Marketing
E. Equity

3. Under the marketing concept, ________ are the paths to sales and profits.

A. Product and service

B. Quality and price
C. Customer focus and value
D. Sales and promotion
E. Advertisement and promotion

4. ________ is broadly defined as a social and managerial process by which individuals and
organizations obtain what they need and want through creating and exchanging value with
others.

A. The Internet
B. Marketing
C. Exchange theory
D. Promotion
E. A sales call

5. Which of the following reflects the marketing concept philosophy?

A. "We don't have a marketing department; we have a customer department."

B. "We're in the business of making and selling superior products."
C. "We build them so you can buy them."
D. "When it's profits versus customers' needs, profits will always win out."
E. "You won't find a better deal anywhere."

6. What is the first step of the five-step marketing process?

A. Design a customer-driven marketing strategy.

B. Set a profitable price.
C. Build profitable relationships.
D. Understand the marketplace and customer needs and wants.
E. Construct a marketing program that delivers superior value.

7. When sellers become obsessed with their own products and lose sight of the underlying
customer needs we say this is ______________.

A. Marketing myopia
B. Marketing management
C. Value proposition
D. Selling myopia
E. The product concept

8. Which of the following marketing management orientations focuses primarily on improving

production and distribution efficiency?

A. Production concept
B. Product concept
C. Selling concept
D. Marketing concept
E. Social marketing concept

9. The product concept says that a company should do which of the following?
A. Improve marketing of its best products
B. Market only those products with high customer appeal
C. Focus on the target market and make products that meet those customers' demands
D. Focus on making continuous product improvements
E. Make promoting products the top priority

10. Very low expectations set by marketers for a market offering can likely result in ________.

A. Disappointment in loyal customers

B. Decreased customer satisfaction
C. Misidentification of a target market
D. Failed understanding of their customers' needs
E. The attraction of too few customers

11. A company needs to understand the marketplace and customer needs and wants and then
________ according to the five-step model of the marketing process described in the text.

A. Determine how to deliver superior value

B. Build profitable relationships with customers
C. Use customer relationship management to create full partnerships with key customers
D. Design a customer-driven marketing strategy
E. Construct key components of a marketing program

12. __________ is defined as the art and science of choosing target markets and building
profitable relationships with them.

A. Customer relationship management

B. Value proposition
C. Segmentation
D. Marketing management
E. Customer satisfaction

13. Though often criticized, the selling concept is particularly appropriate and effective with
which of the following types of products?

A. Convenience
B. Shopping
C. Specialty
D. Unsought
E. Luxury

14. The following is an accurate description of modern marketing:

A. Marketing is maximizing profits.

B. Selling and advertising are synonymous with marketing.
C. Marketing is all about sales.
D. Marketing involves satisfying customers' needs in a socially responsible and ethical manner.
E. Marketing is used only by for-profit organizations.
15. Core ________ activities include consumer research, product development, communication,
distribution, pricing, and service.

A. Exchange
B. Production
C. Management
D. Marketing
E. Customer relationship management

16. Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization.
Having a customer department rather than a marketing department, as suggested by
Kelleher, is an example of a(n) ________ perspective.

A. Outside-in
B. External
C. Inside-out
D. Modern
E. Traditional

17. Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories
with a profitable focus on buyers who have relatively modest means. This is an example of
________.

A. Convenience
B. Social marketing
C. Market segmentation
D. Target marketing
E. Value packing

18. Greg Williams now has the buying power to purchase the computer system he has wanted for
the past six months. Greg's want now has become a(n) ________.

A. Need
B. Necessity
C. Demand
D. Exchange
E. Transaction

19. According to the production concept, consumers will favor products that are ________ and
________.

A. Satisfying; quality focused

B. Advertised; affordable
C. In high demand; hard to find
D. Segmented; convenient
E. Available; highly affordable

20. A firm that uses the selling concept takes a(n) ________ approach.
A. Outside-in
B. Myopic
C. Inside-out
D. Societal
E. Customer service

21. Which concept calls for aggressive selling and focuses on creating sales transactions rather
than on building long-term customer relationships?

A. Product
B. Production
C. Selling
D. Societal marketing
E. Marketing

22. According to management guru Peter Drucker, "The aim of marketing is to ________."

A. Sell products instead of services

B. Identify customer needs
C. Make selling unnecessary
D. Set high customer expectations
E. Make advertising unnecessary

23. Which of the following reflects the marketing concept?

A. "The supplier is king."

B. "Marketing should be viewed as hunting and not gardening."
C. "This is what I make; won't you please buy it?"
D. "We don't have a marketing department; we have a customer department."
E. "Customers need to be told where they want to go."

24. Our ________ are the products and services, backed by buying power, that we believe will
provide us with benefits that add up to the most value and satisfaction.

A. Social needs
B. Demands
C. Physical needs
D. Self-esteem needs
E. Exchanges

25. Railroads were once operated based on the thinking that users wanted trains rather than
transportation, overlooking the challenge of other modes of transportation. This reflects the
________ concept.

A. Product
B. Production
C. Selling
D. Marketing
E. Societal marketing

26. The societal marketing concept seeks to establish a balance between consumer short-run
wants and consumer ________.

A. Short-run costs and profits

B. Short-run ethics
C. Long-run welfare
D. Immediate health
E. Value propositions

27. At which step of the five-step marketing process do we examine five core customer and
marketplace concepts, including needs and wants, market offerings, value and satisfaction,
exchanges and relationships, and markets?

A. The first step

B. The second step
C. The third step
D. The fourth step
E. The fifth step

28. The ________ concept is aligned with the philosophy of continuous product improvement and
the belief that customers will choose products that offer the most in quality, performance,
and innovative features.

A. Product
B. Production
C. Customer
D. Marketing
E. Promotion

29. Customer-driven marketing usually works well when ________ and when customers
________.

A. A clear need exists; are difficult to identify

B. Customers know what they want; are loyal to the brand
C. A firm can deliver the goods desired; are thoroughly researched
D. A clear need exists; know what they want
E. A need exists; don't know what they want

30. A company needs to construct a marketing program that delivers superior value and then
________ according to the five-step model of the marketing process described in the text.

A. Design a customer-driven marketing strategy

B. Build profitable relationships and create customer delight
C. Build strong customer relationships
D. Understand the marketplace and customer needs and wants
E. Create customer value
31. Marketing consists of actions taken to build and maintain desirable exchange relationships
with ________ involving a product, service, idea, or other object.

A. Hosts
B. Target audiences
C. Suppliers
D. Target segments
E. Exchanges

32. The three areas of consideration that should be balanced in the societal marketing concept
are consumer wants, society's interests, and ________.

A. Human welfare
B. Want satisfaction
C. Company profits
D. Short-run wants
E. Long-term needs

33. "Build a better mousetrap, the world will beat a path to your door" reflects the ________
concept.

A. Production
B. Marketing
C. Selling
D. Product
E. Target marketing

34. The _________ is the set of benefits or values a company promises to deliver to customer to
satisfy their needs.

A. Value proposition
B. Lowest pricing
C. Service pledge
D. Money-back guarantee
E. Attribute

35. The art and science of choosing target markets and building profitable relationships with them
is called ________.

A. Differentiation
B. Positioning
C. Segmentation
D. Selling
E. Marketing management

36. During a(n) ________ a desired object is obtained from someone while giving something else
of value in return.
A. Value proposition
B. Donation
C. Bribery
D. Value creation
E. Exchange

37. Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further
for increased consumer affordability. This reflects the ________ concept.

A. Product
B. Production
C. Selling
D. Marketing
E. Societal marketing

38. Which concept holds that firms must strive to deliver value to customers in a way that
maintains or improves both consumers' and society's well-being?

A. Marketing
B. Selling
C. Product
D. Societal marketing
E. Equity

39. Beyond simply attracting new customers and creating transactions, companies want to
________ and grow their businesses.

A. Retain customers
B. Attract more new customers
C. Satisfy customers
D. Communicate with customers
E. Empower consumers

40. A company's value proposition should answer this question:

A. "What kind of experience will I have with products and services associated with this brand?"
B. "How does your brand benefit me and society?"
C. "What are the costs and benefits of your brand?"
D. "Why should I buy your brand rather than a competitor's?"
E. "What are the benefits of being a loyal consumer of your brand?"

41. Through ________, many companies today are strengthening their connections to all
partners, from providers of raw materials to components to final products that are delivered
to final buyers.

A. Supply chain management

B. Direct marketing
C. Partnership relationship marketing
D. Customized marketing
E. Equity marketing

42. Customer-perceived value is determined by a customer's ________ of the difference between

all benefits and all costs of a market offering relative to those of competing offers.

A. Calculation
B. Expectation
C. Assessment
D. Evaluation
E. Understanding

43. Nike wants to create ________ through its sales representatives' working closely with Sport
Chek, Source For Sports, Foot Locker, and other large retailers.

A. Business networks
B. Full partnerships
C. A good reputation
D. Customer satisfaction
E. Basic relationships

44. Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely
to losing a single customer sale. He feels that this amounts to losing the entire stream of
future purchases that a customer is likely to make if he or she remains in the area. Stew
Leonard's concern is an illustration of which of the following?

A. Share of customer
B. Market share
C. Profitability
D. Customer lifetime value
E. Market share maintenance

45. UPS seeks more than just sales and profits. Its three-pronged corporate sustainability mission
stresses economic prosperity, social responsibility, and environmental stewardship. UPS
applies the ________ philosophy.

A. Marketing concept
B. Product concept
C. Production concept
D. Societal marketing concept
E. Selling concept

46. Which of the following is currently the fastest-growing form of marketing?

A. Consumer-generated marketing
B. Online marketing
C. Mass media marketing
D. Social marketing
E. Word-of-mouth marketing

47. When an airline goes after a "share of travel" from its customers, it is attempting to increase
________.

A. Customer lifetime value

B. Share of customer
C. Total customer spending
D. Customer satisfaction
E. Customer ownership

48. ________ is defined as the customer's evaluation of the differences between all the benefits
and all the costs of a marketing offer relative to those of competing offers.

A. Customer equity
B. Customer satisfaction
C. Customer evangelism
D. Customer-perceived value
E. Marketing myopia

49. The ________ responsibility and environmental movements will place even stricter demands
on companies in the future.

A. Cultural
B. Economic
C. Political
D. Social
E. Financial

50. In today's more connected world, ___________ employees in an organization should do

marketing.

A. Marketing
B. All
C. Sales and technology
D. Management and marketing
E. Marketing, sales, and customer-support

51. Harley-Davidson sponsors the Harley Owners Group (H.O.G.) worldwide clubs, which gives
Harley owners "an organized way to share their passion and show their pride." This is an
example of which of the following?

A. A frequency marketing program

B. A basic customer relationship
C. A club marketing program
D. A partner relationship
E. A structural benefit provided for top customers
52. Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a
contest calling for customers to create commercials for the restaurant. Winning entries will be
posted on the organization's home page. Elisandra's plan is an example of ________.

A. Consumer-generated marketing
B. Partner relationship management
C. Customer lifetime value
D. Community development around a brand
E. Selective relationship management

53. Which of the following defines the total combined customer lifetime values of all of a
company's current and potential customers?

A. Share of customer
B. Customer lifetime value
C. Customer equity
D. Profitability
E. Share of market

54. The ultimate aim of customer relationship management is to produce ________.

A. High customer equity

B. High market share
C. High sales volume
D. A reliable database
E. Higher profit margins

55. A potentially highly profitable, short-term customer is a ________.

A. True friend
B. Butterfly
C. Stranger
D. Barnacle
E. True believer

56. The final step in the marketing process is ________.

A. Capturing value from customers

B. Creating customer loyalty
C. Creating customer lifetime value
D. Understanding the marketplace
E. Designing a customer-driven marketing strategy

57. UPS's three-pronged corporate sustainability mission stresses economic prosperity, social
responsibility, and ________.

A. Human welfare
B. Customer satisfaction
C. Community hominy
D. Environmental stewardship
E. Continuous product improvement

58. Governmental agencies have also shown an increased interest in marketing. When a local
government encourages energy conservation and concern for the environment or discourages
smoking, it is involved in ________.

A. Green marketing
B. Social marketing campaigns
C. Social responsibility
D. Environmental marketing
E. Partnership marketing

59. Of the following, which is the most important concept of modern marketing?

A. Customer relationship management

B. Societal marketing
C. Consumer-generated marketing
D. Properly trained salespeople
E. Low prices

60. To create customer value and build strong customer relationships, today's marketers know
they cannot go it alone; therefore, they practise ________.

A. Consumer-generated marketing
B. Database marketing
C. Attractive website design
D. Customer equity
E. Partner relationship management

61. A church targeting different demographic groups to increase attendance is an example of

________.

A. For-profit marketing
B. Not-for-profit marketing
C. Societal marketing
D. Customer evangelism
E. Caring capitalism

62. The set of marketing tools a firm uses to implement its marketing strategy is called the
________.

A. Promotion mix
B. Product mix
C. Marketing mix
D. TQM
E. Marketing effort
63. ________ is one of the best ways to increase share of customer.

A. Targeting new customers

B. Using bait and switch
C. Cross-selling
D. Relationship selling
E. Partnership marketing

64. Beyond simply retaining good customers, marketers want to constantly increase their "share
of customer." What does this mean in marketing terms?

A. Marketers want to increase their market share.

B. Marketers want to increase the portion they get of the customer's purchasing in their
product categories.
C. Marketers want to increase the profit margin with this target market.
D. Marketers want to continuously increase their customers' levels of satisfaction.
E. Marketers want to turn satisfied customers into delighted customers.

65. Toyota works closely with carefully selected suppliers to improve quality and operations
efficiency and with franchise dealers to provide top-grade sales and service support that will
bring more customers and keep them coming back. What type of management is Toyota
practising?

A. Outside partnering
B. Inside partnering
C. Marketing
D. Supply chain
E. Customer development

66. Which of the following is the term for customers who make repeat purchases and tell others
about their positive experiences with a product or service?

A. Satisfied customers
B. Customer evangelists
C. Butterflies
D. Full partners
E. Social customers

67. Which of the following has not contributed to the deeper, more interactive nature of today's
customer relationships?

A. Email
B. Websites
C. Online social networks
D. Traditional advertising
E. Video sharing
68. Afia, a team leader in charge of customer relationship management, is planning strategies for
improving the profitability of her firm's least profitable but loyal customers. She is also
examining methods for "firing" customers in this group who cannot be made profitable. To
which of the following customer relationship groups do these customers belong?

A. Butterflies
B. True friends
C. Strangers
D. Barnacles
E. Short-term customers

69. FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh
these benefits against the monetary cost of using FedEx along with any other costs of using
the service, they are acting upon ________.

A. Loyalty
B. Relationship marketing
C. Customer-perceived value
D. Social relationships
E. A societal marketing campaign

70. Customers can be classified into four relationship groups according to their profitability and
projected loyalty. Which type of customer has the highest profit potential and strong loyalty?

A. Barnacles
B. Strangers
C. Butterflies
D. True friends
E. Big fish

71. Which of the following is an example of consumer-generated marketing?

A. Honda's "Everybody Knows Somebody Who Loves a Honda" Facebook page

B. Dell's monitoring Twitter-based discussions
C. PepsiCo's Doritos brand's "Crash the Super Bowl" contest
D. P&G's assigning customer development teams to each of its major retailer accounts
E. American Express's offering to some of its members $300 in exchange for closing their
accounts

72. One of Seagull Terrace's regular guests has created a blog devoted to her summer stays at the
resort. This has the potential to attract new guests to Seagull Terrace and is an example of
____________.

A. Partner relationship management

B. Perceived customer-value
C. Supply chain management
D. Customer-generated marketing
E. Not-for-profit marketing
73. Members of the sales team at Dekko International visit only prospective customers who
purchase a minimum of $50 000 of insulated wire per year. Dekko is using ________.

A. Selective relationship management

B. A frequency marketing program
C. A club marketing program
D. Basic relationships
E. Full partnerships

74. Companies can build customer relationships at many levels, depending on the nature of the
________.

A. Shopping habits
B. Consumer expectation
C. Product and service
D. Customer perceived value
E. Target market

75. Amazon.com leverages relationships with its 88 million customers by offering them music,
videos, gifts, toys, consumer electronics, and office products, among other items. Based on
previous purchase history, the company recommends related CDs, books, videos, or other
products that might interest a customer. This most directly helps Amazon.com capture a
greater ________.

A. Customer lifetime value

B. Share of customer
C. Profit margin
D. Share of market
E. Customer equity

76. You are an assistant marketing director for a firm in a market with many low-margin
customers. What type of relationship would it be most profitable for you to develop with
these customers?

A. Full partnerships
B. Basic relationships
C. Basic partnerships
D. Club programs
E. Selective relationships

77. It is most accurate to say that customers buy from stores and firms that offer which of the
following?

A. The highest value for the dollar

B. The highest customer-perceived value
C. The highest level of customer satisfaction
D. The most attractive company image
E. The most concern for society's interests
78. Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin
feel and look to her expectations for Brand X lotion, Sally was measuring her level of
________.

A. Customer-perceived value
B. Customer satisfaction
C. Customer equity
D. Demand
E. Customer lifetime value

79. A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a
________.

A. Frequency marketing program

B. Basic customer relationship
C. Club marketing program
D. Partner relationship management technique
E. Structural benefit provided for top customers

80. ____________ refers to the brand exchanges create by consumers themselvesboth invited
and uninvitedthrough which consumers are playing an increasing role in shaping their own
brand experiences and those of other consumers.

A. Consumer-generated marketing
B. Customer-managed relationship
C. Partner relationship
D. Online social network
E. Consumer interaction

81. Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions
installation business. He is a smart operator who knows that the key to this goal is to match
________ with ________.

A. Company performance; competition

B. Company performance; competitive prices
C. Relationship building; performance tools
D. Company performance; unique products
E. Customer expectations; company performance

82. Building and maintaining profitable customer relationships by delivering superior customer
value and satisfaction is called ________.

A. Customer lifetime value

B. Customer perceived value
C. Customer relationship management
D. Database marketing
E. Societal marketing
83. Which of the following affects today almost every company, small and large, in some way?

A. The societal marketing concept

B. Not-for-profit marketing
C. Global competition
D. Customer-generated marketing
E. Caring capitalism

84. A marketing relationship in which customers, empowered by today's new digital technologies,
interact with companies and with each other to shape their relationships with brands is called
________.

A. Consumer-generated marketing
B. Customer-managed relationship
C. Partner relationship
D. Online social network
E. Consumer interaction

85. Greater consumer control means that companies must rely more on marketing by ________
than by ________.

A. Intrusion; attraction
B. Attraction; intrusion
C. Socialization; information
D. Producing; selling
E. Inspiration; competition

86. Which of the following is the set of benefits a company promises to deliver to customers to
satisfy their needs?
A. Money-back guarantee
B. Low pricing
C. Customer service
D. A value proposition
E. An attribute

87. The ________ concept is aligned with the philosophy of continuous product improvement and
the belief that customers will choose products that offer the most in quality, performance,
and innovative features.

A. Product
B. Production
C. Customer
D. Marketing
E. Promotion

88. ________ is the act of obtaining a desired object from someone by offering something in
return.
A. Valuation
B. Exchange
C. Bribery
D. Value creation
E. Donation

89. Selecting which segments of a population of customers to serve is called ________.

A. Market segmentation
B. Positioning
C. Customization
D. Target marketing
E. Managing the marketing effort

90. The art and science of choosing target markets and building profitable relationships with them
is called ________.

A. Marketing management
B. Positioning
C. Segmentation
D. Selling
E. Differentiation

91. Which steps of the five-step marketing process are about understanding customers, creating
customer value, and building strong customer relationships?

A. The first two only

B. The first three only
C. The first four only
D. The last three only
E. The last four only

92. When backed by buying power, wants become ________.

A. Social needs
B. Demands
C. Physical needs
D. Self-esteem needs
E. Exchanges

93. Which of the following refers to sellers being preoccupied with their own products and losing
sight of underlying consumer needs?

A. Selling myopia
B. Marketing management
C. Value proposition
D. Marketing myopia
E. The product concept
94. The product concept says that a company should do which of the following?

A. Improve marketing of its best products

B. Market only those products with high customer appeal
C. Focus on the target market and make products that meet those customers' demands
D. Focus on making continuous product improvements
E. Make promoting products the top priority

95. Which marketing orientation holds that achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions better than
competitors do?

A. Product concept
B. Production concept
C. Selling concept
D. Marketing concept
E. Societal marketing concept

96. Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization.
Having a customer department rather than a marketing department, as suggested by
Kelleher, is an example of a(n) ________ perspective.

A. Outside-in
B. External
C. Inside-out
D. Continuous improvement
E. Traditional

97. A(n) ________ is some combination of products, services, information, or experiences offered
to consumers to satisfy a need or want.

A. Market offering
B. Value proposition
C. Demand satisfaction
D. Need proposition
E. Evoked set

98. Which of the following marketing management orientations focuses primarily on improving
efficiencies along the supply chain?

A. Production concept
B. Product concept
C. Selling concept
D. Marketing concept
E. Societal marketing concept

99. According to the simple five-step model of the marketing process, a company needs to
________ before designing a customer-driven marketing strategy.
A. Determine how to deliver superior value
B. Build profitable relationships with customers
C. Use customer relationship management to create full partnerships with key customers
D. Understand the marketplace and customer needs and wants
E. Construct key components of a marketing program

100. Which marketing orientation calls for aggressive promotional efforts and focuses on
generating transactions to obtain profitable sales?

A. Marketing concept
B. Production concept
C. Product concept
D. Selling concept
E. Societal marketing concept

Short Questions
1. What should sellers consider if they wish to avoid marketing myopia?
2. Define customer equity and explain how a company can increase it.
3. Explain how the Internet has transformed the way in which we do business today.
4. How can a marketer increase "share of customer"?
5. Define customer relationship management and explain its associated tools, levels of
relationships.
6. Customer value and satisfaction is one unit of the five core marketplace concepts used
in understanding the marketplace and consumer needs. What are the other four core
marketplace concepts?
7. Of the five core marketing concepts, is there one concept that stands out as being more
important than any of the others? Support your answer.
8. Contrast the two marketing management orientations: The Selling Concept and The
Marketing Concept.
9. Can you name a market category where The Selling Concept is still the most popular
marketing management orientation?
10. Does it make sense that working with other departments in an organization may bring
greater value to customers?
11. Today, most marketers realize that they dont want to connect with just any customers.
Do you agree with this statement? Why?
12. The BCG growth-share matrix identifies four classifications of SBUs: Stars, Cash Cows,
Questions Marks, and Dogs. Briefly discuss why management may find it difficult to
dispose of a Question Marks?
13. Which of the following 2 terms do you think best describes the process of developing and
maintaining a fit between the organizations goals and capabilities and its changing
marketing opportunities: Strategic Planning or Corporate Planning. Why?
14. Discuss each of the three steps that a company must perform in choosing the best market
segments and designing strategies to maximize profitability in selected segments.
15. Using the value proposition, describe the value proposition of Coca Cola Pakistan. Is their
value proposition clear? Is it appropriate?
16. Is it a good idea for a small company to adopt a differentiated segmentation strategy?
Explain.
17. Which is a better source of new-product ideas, the companys sales force or external
sources?
18. Write a 100-word, three-part marketing strategy statement for a new restaurant opened
in your neighborhood.
19. What major commercialization plan elements must a marketer address before launching a
new product?
20. Under what conditions would you consider not test marketing a product? Describe a
product or service that meets these no-need-to-test criteria.
21. What market conditions would discourage a company from using a penetration-pricing
strategy to enter a market?
22. Psychological pricing is a price-adjustment strategy often used by retailers. Explain this
pricing strategy. How it is tied to the concept of reference prices?
23. What market conditions would discourage a company from using a penetration-pricing
strategy to enter a market?
24. Describe at least three different marketing channels a new textbook might take to get
from the publisher to the student-consumer?
25. Provide three reasons why supply chain management is an important part of the value
delivery network.
26. Why would a company consider outsourcing its own logistics functions?
27. What are the overall goals of integrated supply chain management? What can a company
do to achieve the close working relationships necessary for effective supply chain
management?
28. Explain why companies use marketing channels and discuss the functions these channels
perform.
29. Discuss how channel members interact and how they organize to perform the work of the
channel.
30. Explain how companies select, motivate, and evaluate channel members.
31. What are the four major characteristics used to classify retailers?
32. Describe the similarities and differences between chain stores and franchise
organizations.
33. The life cycle of new retail forms is getting shorter. What does this mean? Cite an
example.
34. What is the primary challenge facing a wholesaler who wishes to remain a viable part of
the marketing channel? Explain.
35. Explain why it is important for retailers to define their target markets and to decide how
they will position themselves in these markets. Give an example of a national specialty
retailer who has done this well.
36. Describe the major types of retailers and give examples of each.
37. Identify the major types of wholesalers and give examples of each.
38. Name and define the tools of the marketing communications mix.
39. Many companies are adopting the integrated marketing communication concept. Discuss
two major problems that this marketing communications philosophy is designed to
remedy.
 40. Why does the marketing communicator need to know the target markets readiness
stage? Give an example of an ad targeting each stage.
41. Compare and contrast personal non-personal communication channels.
42. What is the major advantage of the objective-and-task method for setting the
promotional budget? What is the major drawback?
43. Suppose you are an advertising coordinator and your boss asks you to recommend a
message appeal for the next series of print ads for a new scanner software product
directed at small clothing retailers. What would you recommend? Explain.
44. Define the roles of advertising, sales promotion, and public relations in the promotion mix.
45. Describe the major decisions involved in developing an advertising program.
46. What is advertising clutter and why is it a problem? How can an advertiser break through
it?
47. A number of factors make managements task of setting advertising budgets difficult.
What are they?
48. Discuss why it is important for an organization to set advertising objectives.
49. Compare the major tools used in consumer sales promotion with those used in trade
promotion and business promotion.
50. Define direct marketing and discuss its benefits to customers and companies.
51. Identify and discuss the major forms of direct marketing.
52. Discuss the role of a companys salespeople in creating value for customers and building
customer relationships.
53. Salespeople are to serve two masters What does this mean? Is it a good or bad thing?
54. How does direct marketing differ from personal selling?
55. What are the advantages and disadvantages of a market-niche competitive strategy?
56. Discuss the need to understand competitors as well as customers through competitor
analysis.
57. If competitive intelligence systems are so important, then why do so few smaller
companies use them?
58. Identify the major social criticisms of marketing.
59. Can a marketer have two sets of ethical values a personal set and a business set?
Explain.
60. Can an organization be focused on both consumerism and environmentism at the same
time? Explain.
Long Questions
1. Compare and contrast the concepts of needs, wants, and demands, giving an example of
each. Discuss how these concepts relate to marketing practices.
2. Explain the societal marketing concept. Give an example of an organization that has
effectively used the societal marketing concept.
3. Explain how and why marketers go beyond selling a product or service to create brand
experiences.
4. Explain why electronics and pharmaceuticals manufacturers may use customer-driven
marketing.
5. Compare the selling and marketing concepts, listing the key components of each philosophy.
6. Think about suppliers and other marketing partners. A modern marketing system relies on
profitable relationships all along the way. How might Wal-Mart rely on its marketing partners
in order to offer low prices?
7. The marketing team at Bead Beautiful, a line of jewelry targeted at pre-teenage girls, is
meeting to formulate the products' value proposition. What should team members consider
as they define a value proposition for Bead Beautiful?
8. Company X carries organizational and office supplies and follows the selling concept. Explain
how Company X may lose sight of customer relationships with its marketing orientation.
9. Explain why the aim of customer relationship management is to create not just customer
satisfaction, but also customer delight.
10. Explain what marketers can expect from individuals in the customer relationship group
classified as "butterflies."
11. How is marketing being applied in the not-for-profit sector?
12. In a short essay, describe and compare the four types of customers classified by their
potential profitability to an organization. Explain how an organization should manage each
type of customer.
13. In what ways might even a local retailer find it touched by global competition?
14. What determines whether sellers create basic relationships or full partnerships with
customers?
15. In a short essay, discuss the challenges and advantages that new communication technologies
have created for marketers.
16. Briefly explain the societal marketing concept. Give an example of an organization that has
effectively used the societal marketing concept.
17. You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might
you go about creating brand experiences for your customers?
18. In a short essay, explain how and why marketers go beyond selling a product or service to
create brand experiences.
19. Able works in the marketing department of an international company. In what ways might
Able use modern technologies to conduct market research in order to learn more about and
better serve his company's customers?
20. Customer loyalty and retention programs are important in building customer relationships
and customer equity. Discuss why a international chain such as Wal-Mart would choose a
club program over a frequency program.
21. Is it logical to assume that if you increase the perceived customer value for a product that
there is a corresponding increase in customer satisfaction? Under what conditions might this
not occur?
22. Do you think that the four Ps marketing mix framework does an adequate job of describing
marketer responsibilities in preparing and managing marketing program? Why? Do you see
any issues with this framework in relation to service products?
23. Ansoffs product/market expansion grid is a portfolio-planning tool used to identify potential
growth opportunities for companies. Cite one example for each of the four possible growth
opportunities that have occurred in the PC industry during the past few years.
24. Assume that you are the marketing director for the school of business at your college or
university, and that the dean has asked you to prepare a positioning statement for the
business school. Write a positioning statement using your knowledge.
25. Discuss the difficulties an international company would encounter if it a set a uniform
worldwide price for a commodity-type product?
26. Suppose that you are a manufacturers agent for three lines of complimentary womens
apparel. Discuss what types of marketing mix decisions you will be making.
27. Explain the marketing decisions facing retailers and wholesalers.
28. Explain the methods for setting the promotion budget and factors that affect the design of
the promotion mix.
29. Discuss the process and advantages of integrated marketing communications.
30. Outline the steps in developing effective marketing communications.
31. Prepare a chart comparing the five promotion mix tools on five different characteristics.
32. Explain how sales promotion campaigns are developed and implemented?
33. Choose 3 appropriate advertising media for an advertising campaign to introduce a new line
of mens personal care products from PONDS Men.
34. Suppose you are the marketing coordinator responsible for recommending the sales
promotion plan for the market launch of a new product of LIPTON Tea. What promotional
tasks would you consider for this task? Explain.
35. Identify and explain the six major sales force management steps.
36. The ability to build relationships with customers is the most important of the salespersons
key talents. Do you agree? Explain.
37. Explain the role of ethics in marketing.
38. Explain the principles of socially responsible marketing.
39. High distribution costs, high advertising and promotional costs, and excessive markups lead to
high prices harmful to consumers. Do you agree with the marketers responses?
40. Suppose you are a key person in the marketing department of your organization. You recently
learned that your company is marketing an unsafe product, which has already resulted in a
few consumer injuries. Publicly acknowledging the problem would damage your brands
image and would require an expensive product recall. However, you believe that you could
quietly introduce an improved version of the product, avoiding both the recall and the
harmful publicity. What would you do?