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Chapter 1: Defining Marketing for the 21st CenturyChapter 1: Defining Marketing for the 21st CenturyGENERAL CONCEPT QUESTIONSMultiple Choice 1. Good marketing is no accident, but a result of careful planning and _.a. executionb. sellingc. strategiesd. tacticse. researchAnswer: aPage: 4Level of difficulty: Medium2. Marketing is both an “art” and a “science”there is constant tension between the formulated side of marketing and the _ side.a. creativeb. sellingc. managementd. forecastinge. behaviorAnswer: aPage: 4Level of difficulty: Easy3. The most formal definition of marketing is _. a. meeting needs profitablyb. identifying and meeting human and social needsc. the 4Ps (Product, Price, Place, Promotion)d. an organizational function and a set of processes for creating, communicating, and delivering, value to customers, and for managing customer relationships in ways that benefit the organization and its stake holders.e. improving the quality of life for consumersAnswer: dPage: 6Level of difficulty: Medium4. Marketing management is _.a. managing the marketing processb. monitoring the profitability of the companies products and servicesc. selecting target marketsd. developing marketing strategies to move the company forwarde. the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer valueAnswer: ePage: 6Level of difficulty: Easy5. A transaction involves _. a. at least two partiesb. each party has something that might be of value to the other partyc. each party is capable of communication and deliveryd. each party is free to accept or reject the exchange offere. all of the aboveAnswer: ePages: 67 Level of difficulty: Medium6. _ goods constitute the bulk of most countries production and marketing efforts.a. Durableb. Impulsec. Physicald. Servicee. EventAnswer: cPage: 8Level of difficulty: Medium7. _ can be produced and marketed as a product.a. Informationb. Celebritiesc. Durable goodsd. Organizationse. PropertiesAnswer: aPage: 9Level of difficulty: Medium8. Charles Revson of Revlon observed: “In the factory, we make cosmetics; in the store, _.”a. we make profitsb. we challenge competitorsc. we implement adsd. we sell hopee. we sell qualityAnswer: dPage: 9 Level of difficulty: Easy9. A _ is someone seeking a response (attention, a purchase, a vote, a donation) from another party, called the _.a. salesperson, customerb. fund raiser, contributorc. politician, voterd. marketer, prospecte. celebrity, audienceAnswer: dPage: 10Level of difficulty: Hard10. In _consumers may share a strong need that cannot be satisfied by an existing product.a. negative demandb. latent demandc. declining demandd. irregular demande. non-existent demandAnswer: bPage: 10Level of difficulty: Medium11. In _more customers would like to buy the product than can be satisfied.a. latent demandb. irregular demandc. overfull demandd. excessivee. negative demandAnswer: cPage: 10Level of difficulty: Medium12. Marketers often use the term _ to cover various groupings of customers.a. people b. buying powerc. demographic segment d. social class position e. marketAnswer: ePage: 10Level of difficulty: Hard13. Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image in markets called _. a. business marketsb. global marketsc. consumer marketsd. nonprofit and governmental marketse. service marketsAnswer: cPage: 11Level of difficulty: Medium14. In business markets, advertising can play a role, but a stronger role may be played by the sales force, _, and the companys reputation for reliability and quality.a. brand imageb. distributionc. promotiond. pricee. performanceAnswer: dPage: 11Level of difficulty: Hard15. Global marketers must decide _.a. which countries to enterb. how to enter each country (as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer)c. how to adapt their product and service features to each countryd. how to price their products in different countriese. all of the aboveAnswer: ePages: 1112Level of difficulty: Medium16. Mohan Sawhney has proposed the concept of _ to describe a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.a. metamarketb. vertical integrationc. horizontal integrationd. betamarkete. synchronized marketing Answer: aPage: 12Level of difficulty: Hard17. The _ promises to lead to more accurate levels of production, more targeted communications, and more relevant pricing.a. Age of Globalizationb. Age of Deregulationc. Industrial Aged. Information Agee. Production AgeAnswer: dPage: 13Level of difficulty: Medium18. Many countries have _ industries to create greater competition and growth opportunities.a. open-marketb. deregulatedc. regulatedd. scientifically segmented e. created mass marketAnswer: bPage: 13Level of difficulty: Medium19. Customers are showing greater price sensitivity in their search for _.a. the right productb. the right servicec. the right stored. valuee. relationships Answer: dPage: 14Level of difficulty: Medium20. Rising promotion costs and shrinking profit margins are the result of _.a. changing technologyb. globalizationc. deregulationd. privatizatione. heightened competitionAnswer: ePage: 14Level of difficulty: Hard21. Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industriesthis is called _.a. globalizationb. customizationc. industry convergenced. heightened competitione. acquisitionAnswer: cPage: 14Level of difficulty: Medium22. In response to giant retailers and category killers, entrepreneurial retailers are building entertainment into stores with coffee bars, lectures, demonstrations, and performances. They are marketing a(n) _ rather than a product assortment.a. experienceb. customer valuec. customer delightd. total service solutione. intangible benefit(s)Answer: aPage: 15Level of difficulty: Medium23. In response to threats from such companies as AOL, Amazon, Yahoo, eBay, ETRADE, and dozens of others, established manufacturers and retailers became “brick-and-click” oriented by adding online services to their existing offerings. This process became known as _. a. reintermediationb. disintermediationc. e-commerced. e-collaboratione. new market synchronization Answer: aPage: 15Level of difficulty: Hard24. Many brick-and-click competitors became stronger contenders in the marketplace than the pure-click firms because they had a larger pool of resources to work with and _.a. better pricesb. greater valuec. well-established brand namesd. one-on-one communicationse. direct selling capabilityAnswer: cPage: 15Level of difficulty: Medium25. The _ is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots.a. marketing conceptb. selling conceptc. production conceptd. product concepte. holistic marketing conceptAnswer: bPage: 15Level of difficulty: Medium26. The _ concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.a. productb. marketingc. productiond. selling e. holistic marketing Answer: aPage: 15Level of difficulty: Easy27. The _ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations products.a. productionb. sellingc. marketingd. producte. holistic marketingAnswer: bPage: 15Level of difficulty: Medium28. Several scholars have found that companies who embrace the marketing concept achieve superior performance. This was first demonstrated for companies practicing a _understanding and meeting customers expressed needs.a. reactive market orientationb. proactive marketing orientationc. total market orientationd. impulsive market orientatione. holistic market orientationAnswer: aPage: 16Level of difficulty: Medium29. According to Theodore Levitt, who drew a perceptive contrast between the selling and marketing concepts, _ is preoccupied with the need to convert products into cash.a. marketingb. sellingc. direct marketingd. holistic marketing e. service marketing Answer: bPage: 16Level of difficulty: Medium30. In the course of converting to a marketing orientation, a company faces three hurdles_.a. organized resistance, slow learning, and fast forgettingb. management, customer reaction, competitive responsec. decreased profits, increased R&D, additional distributiond. forecasted demand, increased sales expense, increased inventory costse. customer focus, profitability, slow learningAnswer: aPage: 16Level of difficulty: Hard31. Companies that practice both a reactive and proactive marketing orientation are implementing a _ and are likely to be the most successful.a. total market orientationb. external focusc. customer focusd. competitive, customer focuse. confrontation processAnswer: aPage: 16Level of difficulty: Medium32. Marketers argue for a _ in which all functions work together to respond to, serve, and satisfy the customer.a. cross-functional team orientationb. collaboration modelc. customer orientationd. management-driven organizatione. total quality modelAnswer: cPage: 16Level of difficulty: Medium 33. _ can be seen as the development, design, and implementation of marketing programs, processes, and activities that recognizes the breadth and interdependencies of their effects. a. Niche marketingb. Holistic marketingc. Relationship marketingd. Supply-chain marketinge. Demand-centered marketingAnswer: bPage: 17Level of difficulty: Medium34. _ marketing has the aim of building mutually satisfying long-term relations with key parties such as customers, suppliers, distributors, and other marketing partners in order to earn and retain their business.a. Holistic b. Demand-based c. Direct d. Relationshipe. Synthetic Answer: dPages: 1718Level of difficulty: Easy35. Companies who form a _ collect information on each customers past transactions, demographics, psychographics, and media and distribution preferences.a. sales networkb. holistic unionc. marketing networkd. supply-chain networke. integrated networkAnswer: cPage: 18Level of difficulty: Hard36. The ability of a company to deal with customers one at a time has become practical as a result of advances in _, computers, the Internet, and database marketing software. a. improved communication flowb. information technologyc. just-in-time manufacturingd. factory customizatione. customer-centered strategiesAnswer: dPage: 18Level of difficulty: Hard37. One traditional depiction of marketing activities is in terms of the marketing mix or four Ps. The four Ps are characterized as being _.a. product, positioning, place, and priceb. product, production, price, and placec. promotion, place, positioning, and priced. place, promotion, production, and positioning e. product, price, promotion, and placeAnswer: ePage: 19Level of difficulty: Easy38. The four Ps represent the sellers view of the marketing tools available for influencing buyers. From a buyers point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers four Ps correspond to the customers four Cs. The four Cs are _.a. customer focus, cost, convenience, and communicationb. customer solution, customer cost, convenience, and communicationc. convenience, control, competition, and costd. competition, cost, convenience, and communicatione. category control, cost, concept development, and competitionAnswer: bPages: 1920Level of difficulty: Medium39. Holistic marketing incorporates _, ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management.a. profit objectivesb. share of customerc. internal marketingd. the marketing mixe. strategic planningAnswer: cPage: 20Level of difficulty: Hard40. Marketing is not a department so much as a _.a. company orientationb. philosophyc. functiond. branch of managemente. branch of economicsAnswer: aPage: 20Level of difficulty: Medium41. Holistic marketing incorporates _ and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs. a. safe product designb. cultural marketingc. social responsibility marketingd. cross-functional teamse. direct sales policies Answer: cPage: 20Level of difficulty: Medium42. The _ holds that the organizations task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well-being.a. customer-centered businessb. focused business modelc. societal marketing conceptd. ethically responsible marketing managere. production-centered businessAnswer: cPage: 22Level of difficulty: Medium43. Companies see _ as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase press coverage.a. cause-related marketingb. brand marketingc. equity marketingd. direct marketinge. recognition marketingAnswer: aPage: 23Level of difficulty: Medium44. When a customer has a(n) _ need he/she wants a car whose operating cost, not its initial price, is low. a. stated b. real c. unstated d. delight e. secret Answer: bPage: 24Level of difficulty: Hard45. When a customer has a(n) _ need the customer wants to be seen by friends as a savvy consumer.a. real b. unstated c. delightd. secrete. statedAnswer: dPage: 24Level of difficulty: Hard46. During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called _.a. target marketsb. primary marketsc. tertiary marketsd. demographic marketse. focused marketsAnswer: aPage: 24Level of difficulty: Medium47. For each target market, the firm develops a _. The offering is positioned in the minds of the target buyers as delivering some central benefit(s).a. value offeringb. niche offeringc. market offeringd. segment offeringe. social offering Answer: cPage: 24Level of difficulty: Medium48. _ reflects the perceived tangible and intangible benefits and costs to customers. a. Loyaltyb. Satisfactionc. Valued. Expectationse. Comparison shoppingAnswer: cPage: 25Level of difficulty: Medium49. If a marketer decides to use warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using what is called a _.a. service channelb. distribution channelc. brand channeld. relationship channele. intermediary channelAnswer: aPage: 26Level of difficulty: Medium50. _ includes all the actual and potential rival offerings and substitutes that a buyer might consider.a. Competitionb. The product offeringc. A value propositiond. The supply chaine. The marketing environmentAnswer: aPage: 26Level of difficulty: Easy51. The _ includes the immediate actors involved in producing, distributing, and promoting the offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.a. operations environmentb. management environmentc. strategic environmentd. task environmente. tactical environmentAnswer: dPage: 26Level of difficulty: Medium52. The _ process consists of analyzing marketing opportunities; selecting target markets; designing marketing strategies; developing marketing programs; and managing the marketing effort.a. marketing planningb. strategic planningc. market researchd. opportunity analysise. share of customerAnswer: aPage: 27Level of difficulty: Medium53. David Packard of Hewlett-Packard once said, “Marketing is far too important to leave to _.”a. the advertising boysb. uninformed managersc. novicesd. the CEOe. the marketing departmentAnswer: ePage: 27Level of difficulty: Medium54. Some companies are now switching from being solely product-centered (with product managers and product divisions to manage them) to being more _ centered. a. competencyb. strategyc. marketingd. customer-segmente. salesAnswer: dPage: 27Level of difficulty: Hard55. Companies are recognizing that much of their market value comes from _, particularly their brands, customer base, em
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