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Chapter 1
1. Marketing is _____.
A.another word for advertising and sales
B. only used by major corporations
C.about satisfying customer needs
D.about simply making a profit
2.The first step in the marketing process is to work to understand customers.
True False
3. Once we have created value for customers, the final step in the marketing process is to capture value from them.
True False
4.The most basic concept underlying marketing is that of _____.
profits
products
human needs
services
5.Marketers create social needs in consumers.
True
False (Marketers do not create customer needs, whether social, physical or individual. Needs are a basic part of the human makeup.)
6.The act of obtaining a desired object from someone by offering something in return is called a(n) _____.
exchange
switch
market
sale
7.The art and science of choosing target markets and building profitable relationships with them is called _____.
marketing profiles
marketing maneuvers
marketing selection
marketing management
8.Which marketing philosophy listed below is useful when supply exceeds demand and when production costs are too high and need to be reduced?
production concept
product concept
selling concept
marketing concept
9.Which marketing philosophy believes that an organization can achieve its goals if it knows the needs of its target market well and delivers satisfaction better than its competition?
production concept
product concept
selling concept
marketing concept
10.Customer relationship management (CRM) is solely about acquiring and keeping customers.
True
False (CRM is about acquiring, keeping and growing customers.)
11.To build lasting customer relationships, firms should focus on delivering _____ and _____.
high quality products; low prices
customer value; customer satisfaction
customer satisfaction; customer growth
customer value; high profits
12.It costs 5 to 10 times more to find a new customer than to keep a current one happy.
True (Due to changing demographics, more competition, and overcapacity in many industries, the cost of finding new customers is rising.)
False
13.The aim of customer relationship management is to _____.
create customer satisfaction
create customer profits
create customer delight
create customer longing
14.The portion of the customer’s purchasing power that a company gets in its product categories is called its _____.
customer equity
share of customer
customer quotient
customer lifetime value
15.Customers that are a good fit between a company’s offerings and that are expected to be loyal over the long term are called _____.
butterflies
barnacles
true friends
strangers
16.The most dramatic new technology is the Internet.
True False
17.The _____ is the nation’s 24th largest advertiser with an annual budget of over $1 billion.
Procter and Gamble Co.
Boeing Co.
Levi Strauss Co.
U.S. Government
18.Which of the first four steps of the marketing process asks, “What consumers will we serve?” and “How can we best serve targeted customers?”
Step 1: Understanding the marketplace
Step 2: Designing the marketing strategy
Step 3: Constructing the marketing program
Step 4: Building profitable relationships with customers
19.Which step of the marketing process is the most important?
Step 1: Understanding the marketplace
Step 2: Designing the marketing strategy
Step 3: Constructing the marketing program
Step 4: Building profitable relationships with customers
20.In addition to delighting customers, companies today must also harness technology, think globally and be ethically and socially responsible.
True False
Chapter 2
1.This type of business plan involves adapting the firm to take advantage of opportunities in its constantly changing environment.
– annual plan
– marketing plan
– strategic plan
– long-range plan
2.A good mission statement should be all of the following except _____.
– market oriented
– product oriented
– realistic
– motivating
3.The organization should base its mission statement on its _____.
– profitable goals
– customers’ welfare
– product’s value
– distinctive competencies
4.Business portfolio management involves two steps. Step 1 requires the business to analyze its current business portfolio. Step 2 requires it to shape its future portfolio.
– True
– False
5._____ are low-growth, high-share businesses or products.
– Question marks
– Cash cows
– Dogs
– Stars
6._____ are high-growth, high-share businesses or products.
– Question marks
– Cash cows
– Dogs
– Stars
7. Which of the following are limitations to the BCG method of strategic planning?
– difficult to implement
– costly
– provide little advice for the future
– all of the above
8._____ has the main responsibility for achieving profitable growth for a company.
– Management
– Human resources
– Marketing
– All of the above
9.Which of the following is an example of market penetration for Starbucks?
– adding drive-thru windows to their current coffee shops
– adding new stores in the Southeast (market development)
– adding hot breakfast items to the menu (product development)
– buying Hear Music (diversification)
10. Downsizing is reducing the business portfolio by eliminating products or business units that are not profitable or no longer fit the company’s overall image.
– True
– False
11.The _____ takes the customer’s point of view.
– Human Resource Dept.
– Management Dept.
– Information Technology Dept.
– Marketing Dept.
12._____ should be at the center of a company’s marketing strategy.
• Customers
• Profits
• Products
• Employees
13._____ involves dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behaviors and who might require separate products or marketing mixes.
• Market definition
• Target marketing
• Product positioning
• Market segmentation
14.Once the various market segments have been determined, the next step in the marketing strategy process is _____.
• market evaluation
• target marketing
• product positioning
• market penetration
15.A company should target segments in which it can profitably generate the greatest customer value and sustain it over time.
• True
• False
16.The purpose of a product’s image statement is to present the product in a clear, distinct and desirable way relative to competing products in the minds of target consumers.
• True
• False (positioning statement)
17.The set of controllable, tactical marketing tools that the firm blends together to produce its response to the wants of its target market are called its _____.
• marketing arsenal
• marketing mix
• marketing portfolio
• integrated marketing options (IMOs)
18.The four P’s in marketing refer to_____, _____, _____ and _____.
• product; place; price; promotion
• product; property; price; promotion
• production; property; people; promotion
• product; place; promotion; people
19.Which of the “P’s” listed below relates to a customer’s cost?
• product
• place
• price
• promotion
20.Managers are correct in thinking that, “doing things right” (implementation) is more important than, “doing the right things” (strategy).
• True
• False (both are critical to success)
Chapter 3
1.A company’s _____ consists of its suppliers, marketing intermediaries, customers, competitors and publics.
– macroenvironment
– microenvironment
– business environment
– marketing environment
2._____ include resellers, marketing service agencies and financial firms that help a company to promote and sell its offerings to its final customers.
– Advertising agencies
– Suppliers
– Intelligence firms
– Marketing intermediaries
3.Marketers today are only concerned with their consumer markets.
– True
– False (marketers today may have five types of customer markets. These are the consumer market, the business market, the reseller market, the government market and the international market.
4.A company’s _____ public includes its workers, managers, volunteers and board of directors.
– employee
– citizen-action
– internal
– human resource
5.The single most important demographic trend in the U.S. is the changing age structure of the population.
– True
– False
6.Of the seven generations present in the U.S. today, _____ is(are) the largest and most influential.
– the Baby Boomers
– Generation X
– Generation Y
– the Millenials
7.In the United States today, married couples with children make up _____ of the nation’s 105 million households.
– 50%
– 65%
– 25%
– 34%
8.The disabled market is relatively small in the United States and is not being actively pursued by marketers.
– True
– False (Marketers are actively pursuing this market, which is larger than the Hispanic and African-American markets)
9.The “shop until you drop” mentality of the 1990’s has been replaced with a more _____ approach.
– save all you can
– value is key
– don’t shop at all
– splurge regularly
10.There are three trends in the natural environment that marketers are monitoring. These are _____, _____ and _____.
– shortages of raw materials; increased legislation; increased consumerism
– the green movement; shortages of raw materials; increased pollution
– increased pollution; increased government intervention; shortages of raw materials
– increased consumerism; increased population; increased ethical expectations
11.The most dramatic force shaping business today is the _____ environment.
– natural
– technological
– economic
– political
12.Which country leads the world in research and development spending?
– United States
– Japan
– China
– Germany
13.Legislation affecting business has _____ over the years.
– increased steadily
– decreased slightly
– remained steady
– grown immensely
14.This legislation prohibits Web sites or online services from collecting personal information from children without parental consent.
– Wheeler-Lea Act
– Child Protection Act
– Children’s Internet Protection Act
– Children’s Online Privacy Protection Act
15.Which of the following is not one of the reasons business legislation is enacted?
– To protect companies from each other
– To protect companies from consumers
– To protect consumers from unfair business practices
– To protect the interests of society
16.A person’s core values and beliefs are often erratic.
– True
– False (People’s core beliefs and values have a high degree of persistence.)
17.Which of the following is not one of the ways a society’s values are expressed?
– people’s view of history
– people’s view of society
– people’s view of the universe
– people’s view of others
18.Recently, observers have noted a shift from a “me society” to a “we society.”
– True
– False
19.A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products, is acting out her view of _____.
– society
– organizations
– others
– nature
20.A company has several options with regard to its marketing environment. A strong company takes a(n) _____ approach.
– proactive
– reactive
– ingenuous
– peaceful
21.A company’s macroenvironment consists of all of the following except _____.
– demographic forces
– economic forces
– competitive forces
– none of the above
Chapter 4
1.Managers today often receive _____ information.
– too much
– too little
– irrelevant
– both 1 and 3
2.A _____ consists of the people, equipment and procedures to gather, sort, analyze and distribute accurate information to marketing decision makers.
– marketing intelligence system
– database mining system
– marketing information system
– marketing research system
3.A marketing information system begins and ends with information from _____.
– customers
– databases
– administrators
– users
4.The costs of obtaining, processing, storing and delivering information is relatively inexpensive.
– True
– False (the costs can increase quickly, forcing managers to decide if the information is worth the expense)
5.Which of the following is a problem with using internal databases?
– the information was collected for another reason
– the information is in the wrong format
– the information may be out of date
– all of the above
6.The goal of _____ is to improve strategic decision making, access and track competitors’ actions, and to provide early warning of opportunities and threats.
– competitive research analysis
– marketing intelligence
– information technology
– marketing segmentation
7. A new source for competitor-supplied information is the Internet.
– True
– False
8.What are the four steps (in order) of the marketing research process?
– Define the problem, develop the research plan, implement the research plan, survey the participants.
– Define the problem, develop the research plan, implement the research plan, report the findings.
– Define the problem, develop the research plan, survey the participants, report the findings.
– Develop the research plan, implement the research plan, survey the participants, report the findings.
9.What is the often the hardest step in the marketing research process?
– defining the problem
– developing the research plan
– implementing the research plan
– reporting the findings
10.The objective of _____ is to gather preliminary information that will help define the problem and suggest reasons.
– causal research
– competitive research
– descriptive research
– exploratory research
11._____ consists of information that already exists having been collected prior to the research plan.
– Primary data
– Secondary data
– Exploratory data
– Sales research
12. Researchers usually start with _____ when developing the research plan.
– primary data
– secondary data
– projection research
– sales research
13.The three types of research approaches a marketer may use are _____, _____ and _____.
– surveys; observations; historic reviews
– observations; surveys; databases
– observations; experiments; surveys
– experiments; databases; surveys
14. The most widely used form of primary research and the one best suited for descriptive information is _____
– survey research
– ethnographic research
– observational research
– experimental research
15. Which type of research is best suited for gathering causal information?
– survey research
– ethnographic research
– observational research
– experimental research
16.If a marketer wanted to collect large amounts of information at a low cost per respondent, she could use _____.
– telephone interviews
– mail questionnaires
– focus groups
– approach interviews
17.If a marketer wanted to collect information quickly and allow for flexible answers, he should use _____.
– telephone interviews
– mail questionnaires
– focus groups
– approach interviews
18. Interviewer bias is often greater with _____.
– telephone interviews
– mail questionnaires
– focus groups
–
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