TEST BANK
MKTG: PRINCIPLES OF MARKETING
,Chapter 1—An Overview Of Marketing
Multiple Choice
1. What Is The Definition Of Marketing?
a. Planning Sales Campaigns
b. Selling
c. Advertising And Promotion Activities
d. A Philosophy That Stresses Customer Satisfaction
Answer: D Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
2. A Business Is Concerned With Many Day-To-Day Activities. Some Of The Most Important Are
The Planning And Conception Of The Product Or Service, Its Pricing Policy, And The
Distribution Strategy. What Are These Activities Part Of?
a. Human Resources
b. Production
c. Marketing
d. Accounting
Answer: C
This Description Contains Three Of The Four Main Activities Included In The Marketing
Function. Many Students May Mistakenly Believe That Marketing Is Concerned Only With
Promotion.
Pts: 1 Dif: Comprehension Ref: P. 4
Obj: 1 Blm: Remember
3. Which Of The Following Is A Set Of Activities Used To Implement A Management
Orientation That Stresses Customer Satisfaction?
a. A Control System
b. Customer Management
c. Planning Strategy
d. Marketing
Answer: D Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
4. Marketing Is An Organizational Function And A Set Of Processes For Creating,
Communicating, And Delivering Which One Of The Following To Customers?
a. Sales
b. Benefits
c. Satisfaction
d. Value
Answer: D Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
1-2 Copyright © 2012 Nelson Education Limited
,5. The Idea That People Give Up Something In Order To Receive Something That They Would
Rather Have Is A Key Ingredient In Marketing. What Is This Called?
a. Exchange
b. Synergy
c. Reciprocity
d. Promotion
Answer: A Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
6. What Must Happen In Order For Exchange To Occur?
a. Each Party Must Have Something Of Value To The Other Party.
b. A Profit-Oriented Organization Must Be Involved.
c. Organized Marketing Activities Must Also Occur.
d. Money Or Other Legal Tender Is Required.
Answer: A
Exchange Involves The Trade Of Items Of Value, But Does Not Necessarily Involve Formal
Organizations, Profit, Or Money/Legal Tender.
Pts: 1 Dif: Comprehension Ref: P. 4
Obj: 1 Blm: Remember
7. For An Exchange To Take Place, What Must Happen?
a. At Least One Person Must Have Something Of Value.
b. Each Party Must Feel Obligated To Accept The Offer.
c. Money Must Be Present.
d. There Must Be At Least Two Parties.
Answer: D Pts: 1 Dif: Comprehension
Ref: P. 4 Obj: 1 Blm: Remember
8. Why Is The Concept Of Exchange Important To Marketing?
a. Marketing Activities Help To Create Exchange.
b. Money Is The Only Medium Of Exchange For Business Marketers.
c. Exchange Provides Money To Marketers.
d. Marketing Activities Are A Requirement For Exchange To Take Place.
Answer: A
Marketing Activities Help The Exchange To Take Place, But Marketing Can Occur Without An
Exchange.
Pts: 1 Dif: Comprehension Ref: P. 4
Obj: 1 Blm: Remember
, 9. Kurt Meyer Wants To Sell A Model T Ford That He Inherited From His Grandfather. A
Preliminary Investigation Has Shown Many People Would Be Interested In This Type Of
Automobile. He Has Taken Out An Advertisement In His Local Auto Trade Paper And Provided
Customers With A Toll-Free Number To Make An Appointment To Drive The Car. He Has Also
Read In The Auto Trade Papers That Similar Cars To The One That He Owns Are Selling For
About $4,000. Before Selling His Model T, What Else Should Meyer Find Out?
a. Whether The Car Can Meet The Demands Of Potential Customers
b. How To Promote The Car To Generate Significant Visibility For The Ad
c. Where The Car Should Be Located To Secure Optimum Drive-Up Business
d. How To Price The Car So That Customers Will Seek Out His Vehicle
Answer: A
For An Exchange To Take Place, Each Party Must Have Something The Other Values, The
Parties Must Be Able To Communicate, And Each Party Must Believe That It Is Appropriate To
Deal With The Other.
Pts: 1 Dif: Application Ref: P. 4 Obj: 1
Blm: Higher Order
10. If The Local Chapter Of The Canadian Diabetes Association (Cda) Sponsors A Free Lifesaving
Course, City Residents Will Not Have To Pay To Take The Class. Why Will An Exchange Take
Place?
a. The Cda Does Not Have To Communicate With Class Participants.
b. People Who Take The Course Have To Give Nothing Of Value In Return.
c. Both The Cda And The People Taking The Course Will Trade Something Of Value.
d. People Can Decide The Course Has No Value.
Answer: C
If The Course Has No Value, Then An Exchange Cannot Occur. Without Communication, The
Exchange Of Knowledge For Time And Energy Cannot Occur. In An Exchange, Each Participant
Has Something Of Value To The Other. For An Exchange To Occur, Each Party Must Believe It
Is Desirable.
Pts: 1 Dif: Application Ref: P. 4 Obj: 1
Blm: Higher Order
11. Four Competing Philosophies Strongly Influence The Role Of Marketing And Marketing
Activities Within An Organization. Which If The Following Is A Marketing Management
Philosophy?
a. Accounting Orientation
b. Sales Orientation
c. Profitability Orientation
d. Social Networking Orientation
Answer: B Pts: 1 Dif: Comprehension
Ref: P. 5 Obj: 2 Blm: Remember
1-4 Copyright © 2012 Nelson Education Limited
,12. Firms With Which Of The Following Orientations Focus On The Internal Capabilities Of The
Firm Rather Than On The Desires And Needs Of The Marketplace?
a. Production
b. Customer
c. Marketing
d. Sales
Answer: A Pts: 1 Dif: Definition Ref: P. 5
Obj: 2 Blm: Remember
13. A Company That Sets Its Goals And Strategies Based On What The Current Plant
Equipment Can Produce, What Products Engineering Can Design, And What The Company
Itself Can Do Best, Has Which Of The Following Types Of Orientation?
a. Exchange
b. Sales
c. Market
d. Production
Answer: D Pts: 1 Dif: Definition Ref: P. 5
Obj: 2 Blm: Remember
14. Researchers At Ppg Industries Spent Considerable Time, Effort, And Money Developing A
Bluish Windshield That Would Let In Filtered Sunlight But Block Out Heat. Little Market
Research Was Done, But The Scientists Were Convinced That This New Product Would Be
Significantly Better Than Existing Windshields Even Though They Were More Expensive And
Of A Different Colour Than The Current Models On The Market. What Type Of Orientation
Does Ppg Most Likely Have?
a. Sales
b. Customer
c. Production
d. Promotion
Answer: C
The Questions Asked Before Starting Their New Product Were ―What Can We Do Best?‖ And
―What Can We Make With The Equipment We Already Own?‖ This Is A Production
Orientation.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Higher Order
15. The Owner Of A Company That Produces Copy Paper Once Said, ―People Buy Whatever Copy
Paper Is The Cheapest, So I Spend My Time Trying To Find Ways I Can Cut My Price.‖ What
Kind Of Orientation Toward Marketing Does This Owner Have?
a. Production
b. Sales
c. Discount
d. Customer
Answer: A
A Focus On Lowering Costs And Prices Is Typical Of A Production Orientation.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Higher Order
,16. In Which Of The Following Situations Is A Firm With A Production Orientation Most Likely To
Survive?
a. When Supply For The Product It Produces Exceeds Demand
b. When Demand For The Product It Produces Exceeds Supply
c. When There Are Many Small Competitors In The Marketplace
d. When Needs Of The Marketplace Are Shifting
Answer: B
The Production Orientation Can Survive In The Short Term Under A Variety Of Conditions;
However, If Market Needs Change, Long-Term Survival Is Difficult.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Higher Order
17. Which Of The Following Orientations To Marketing Fails To Consider Whether What The Firm
Produces Most Efficiently Also Meets The Needs Of The Marketplace?
a. Customer
b. Production
c. Market
d. Product
Answer: B
The Production Orientation Forces A Company To Build Whatever It Builds Best, That Is,
Whatever It Has The Experience And Expertise In Doing.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Remember
18. Mimi Couturier Is A Design Company That Specializes In Formalwear For Women. The
Company’s Fashion Innovators Use Computer-Assisted Design Software To Create What They
Think Women Should Wear. The Company Regularly Hires Industry Experts To Examine
Construction Work Areas To Find Waste And Inefficiencies That Can Be Eliminated. However,
For The Last Two Years Mimi Couturier Has Lost Money, And It Has Had To Lay Off Some Of
Its Work Force. What Should The Company Do To Avoid This Occurrence In Future?
a. Increase Its Sales Force To Find More Potential Customers For The Firm
b. Hire More Retail Efficiency Experts To Trace Down Any Production Problems
c. Have Someone To Study Its Target Market To See What Needs And Wants Should Be
Met By Mimi Couturier
d. Cut Prices So That Its Prices Are At Least 10 Percent Below Those Of Its Competitors
Answer: C
Mimi Couturier Has Been Production Oriented. It Should Develop A Marketing Orientation,
Which Means The Firm Will Produce Only Those Items Needed By Its Target Market.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Higher Order
1-6 Copyright © 2012 Nelson Education Limited
,19. Which Orientation Assumes That People Are Resistant To Buying Products That Are Not
Absolutely Necessary?
a. Sales
b. Marketing
c. Customer
d. Production
Answer: A
The Sales Orientation Assumes That Aggressive Selling Is What Is Needed To Increase Demand.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Remember
20. Which Orientation Of People Will Buy More Goods And Services If Aggressive Marketing
Techniques Are Used?
a. Sales
b. Production
c. Customer
d. Marketing
Answer: A Pts: 1 Dif: Definition Ref: P. 5
Obj: 2 Blm: Remember
21. Lawler Landscaping Company Sells All Kinds Of Ornamental Plants. Lawler’s Management
Believes That Its Customers Will Buy More Plants If Its Salespeople Use Aggressive Marketing
Techniques Because Ornamental Plants Are Nonessential Items For Most Homeowners. What
Type Of Orientation Does Lawler Have?
a. Production
b. Marketing
c. Sales
d. Customer
Answer: C
Only The Sales Orientation Assumes That Aggressive Sales Techniques Will Sell More Product,
Regardless Of Customer Desires And Needs.
Pts: 1 Dif: Definition Ref: P. 5 Obj: 2
Blm: Higher Order
22. If A Company Uses A Sales Orientation, What Will Consumer Complaints Most Likely Result In?
a. Attempts To Cut Production Costs
b. Product Reinvention
c. Continuous Market Research
d. A Modification Of The Sales Presentation
Answer: D
The Sales Orientation Relies On Aggressive Sales Techniques To Fuel Business.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Remember
,23. Which Of The Following Statements About A Typical Sales-Oriented Business Is True?
a. The Company Directs Its Products To Specific Groups Of People.
b. The Company Is In Business To Satisfy Customers’ Wants And Needs And Deliver
Superior Value.
c. The Company Invests The Majority Of Its Resources In Promoting Its Products And Services.
d. The Primary Goal Of The Company Is Profit Through Customer Satisfaction.
Answer: C Pts: 1 Dif: Comprehension
Ref: P. 5 Obj: 3 Blm: Remember
24. For Many Years, Procter & Gamble (P&G) Viewed Its Ivory Soap As Just Plain Old Soap—And
Not As A Cleansing Product That Could Provide Other Benefits As Well. When It Came To Ivory
Soap, P&G Focused On How Well It Made The Soap And Not On What Customers Wanted From
A Bar Of Soap. What Sort Of Orientation Did P&G Have?
a. Customer
b. Product
c. Sales
d. Market
Answer: C Pts: 1 Dif: Application Ref: P. 5
Obj: 2 Blm: Higher Order
25. Because Organizations That Sell Unsought Products, Such As Cemetery Plots, Are Marketing
Products That Most People Do Not Want, Which Sort Of Orientation Might The Companies
Adopt?
a. Product
b. Customer
c. Marketing
d. Sales
Answer: D
Aggressive Selling Is Sometimes Used By Companies That Sell Products Their Customers Do
Not Want To Buy.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Remember
26. For Years, The Slogan Used In All The Advertising Done By British Airways Was ―Putting
People First.‖ In This Short Phase, What Did British Airways Capture The Idea Of?
a. The Marketing Concept
b. The Societal Concept
c. Maslow’s Hierarchy Of Needs
d. The Sales Orientation Philosophy
Answer: A
The Marketing Concept Justifies A Company’s Existence By Its Ability To Satisfy Customers.
Pts: 1 Dif: Application Ref: P. 6 Obj: 2
Blm: Higher Order
1-8 Copyright © 2012 Nelson Education Limited
,27. When A Homeowner Visited The Home Depot To Buy What He Thought He Needed To Fix A
Leaking Toilet, He Gathered Up Materials Totalling Almost $70. One His Way To Checkout, An
Employee Asked Him What Was He Trying To Fix. After Some Discussion, The Employee
Convinced The Homeowner That A $5.99 Replacement Part Would Fix The Problem Better Than
The Materials He Thought He Needed And With Less Trouble. This Sort Of Discussion Between
Employees And Customers Is Commonplace At The Home Depot. What Sort Of Orientation Does
The Retail Store Have?
a. Market
b. Sales
c. Production
d. Product
Answer: A Pts: 1 Dif: Application Ref: P. 6
Obj: 2 Blm: Higher Order
28. World Wrestling Entertainment (Formerly The World Wrestling Federation) Is Very Focused
On What Its Fans Want In Terms Of Product Licensing And, More Importantly, In Terms Of
Plot Lines And Character Development. All Of The Company’s Activities Are Integrated So
That No Employee Ever Loses Sight Of The Company’s Desire To Satisfy Its Fans. What Sort
Of Orientation Does World Wrestling Entertainment Have?
a. Sales
b. Production
c. Product
d. Market
Answer: D Pts: 1 Dif: Application Ref: P. 6
Obj: 2 Blm: Higher Order
29. What Does Achieving A Market Orientation Involve?
a. Implementing Actions To Provide Satisfaction For Employees
b. Determining How To Deliver Superior Customer Value
c. Doing Research On Suppliers And Competitors
d. Establishing And Maintaining Mutually Satisfying Relationships With Suppliers
Answer: B Pts: 1 Dif: Comprehension
Ref: P. 6 Obj: 2 Blm: Remember
30. Walmart Has Become The Leading Discount Retailer In Canada And The World By Focusing
On The Customer’s Needs And Wants. This Philosophy Is At The Heart Of Which
Orientation?
a. Production
b. Market
c. Sales
d. Retail
Answer: B Pts: 1 Dif: Application Ref: P. 6
Obj: 2 Blm: Remember
, 31. What Do The Marketing Concept And Market Orientation Recognize?
a. Sales Depend Predominantly On An Aggressive Sales Force.
b. What The Customer Thinks He Is Buying Is What Is Important.
c. Price Is The Most Important Variable For Customers.
d. Selling And Marketing Are Essentially The Same Thing.
Answer: B
The Perceived Product And Perceived Value Are What The Customer Is Buying, And The
Marketing Concept And Market Orientation Have Attempted To Understand Those Perceptions.
Pts: 1 Dif: Comprehension Ref: P. 6
Obj: 2 Blm: Remember
32. What Does A Company Do If It Has A Market Orientation And Adheres To The Marketing Concept?
a. Integrate All The Activities Of The Firm To Satisfy Customer Wants
b. Differentiate A Firm’s Current Products From Its Past Products
c. Focus On Consumer Complaints
d. Fuel Sales Growth Through The Application Of Aggressive Sales Techniques
Answer: A
Integrating All The Firm’s Activities Around The Marketing Concept Is Essential To Its Success.
Pts: 1 Dif: Comprehension Ref: P. 6
Obj: 2 Blm: Remember
33. The Statement ―Marketing Should Be Introduced At The Beginning Rather Than The End
Of The Production Cycle And Integrated Into Each Phase Of The Business‖ Is Consistent
With Which Orientation?
a. Market
b. Sales
c. Enterprise
d. Production
Answer: A
Understanding The Competitive Arena And Competitors’ Strengths And Weaknesses Is A Critical
Component Of Market Orientation.
Pts: 1 Dif: Comprehension Ref: P. 6
Obj: 2 Blm: Higher Order
1-10 Copyright © 2012 Nelson Education Limited
MKTG: PRINCIPLES OF MARKETING
,Chapter 1—An Overview Of Marketing
Multiple Choice
1. What Is The Definition Of Marketing?
a. Planning Sales Campaigns
b. Selling
c. Advertising And Promotion Activities
d. A Philosophy That Stresses Customer Satisfaction
Answer: D Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
2. A Business Is Concerned With Many Day-To-Day Activities. Some Of The Most Important Are
The Planning And Conception Of The Product Or Service, Its Pricing Policy, And The
Distribution Strategy. What Are These Activities Part Of?
a. Human Resources
b. Production
c. Marketing
d. Accounting
Answer: C
This Description Contains Three Of The Four Main Activities Included In The Marketing
Function. Many Students May Mistakenly Believe That Marketing Is Concerned Only With
Promotion.
Pts: 1 Dif: Comprehension Ref: P. 4
Obj: 1 Blm: Remember
3. Which Of The Following Is A Set Of Activities Used To Implement A Management
Orientation That Stresses Customer Satisfaction?
a. A Control System
b. Customer Management
c. Planning Strategy
d. Marketing
Answer: D Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
4. Marketing Is An Organizational Function And A Set Of Processes For Creating,
Communicating, And Delivering Which One Of The Following To Customers?
a. Sales
b. Benefits
c. Satisfaction
d. Value
Answer: D Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
1-2 Copyright © 2012 Nelson Education Limited
,5. The Idea That People Give Up Something In Order To Receive Something That They Would
Rather Have Is A Key Ingredient In Marketing. What Is This Called?
a. Exchange
b. Synergy
c. Reciprocity
d. Promotion
Answer: A Pts: 1 Dif: Definition Ref: P. 4
Obj: 1 Blm: Remember
6. What Must Happen In Order For Exchange To Occur?
a. Each Party Must Have Something Of Value To The Other Party.
b. A Profit-Oriented Organization Must Be Involved.
c. Organized Marketing Activities Must Also Occur.
d. Money Or Other Legal Tender Is Required.
Answer: A
Exchange Involves The Trade Of Items Of Value, But Does Not Necessarily Involve Formal
Organizations, Profit, Or Money/Legal Tender.
Pts: 1 Dif: Comprehension Ref: P. 4
Obj: 1 Blm: Remember
7. For An Exchange To Take Place, What Must Happen?
a. At Least One Person Must Have Something Of Value.
b. Each Party Must Feel Obligated To Accept The Offer.
c. Money Must Be Present.
d. There Must Be At Least Two Parties.
Answer: D Pts: 1 Dif: Comprehension
Ref: P. 4 Obj: 1 Blm: Remember
8. Why Is The Concept Of Exchange Important To Marketing?
a. Marketing Activities Help To Create Exchange.
b. Money Is The Only Medium Of Exchange For Business Marketers.
c. Exchange Provides Money To Marketers.
d. Marketing Activities Are A Requirement For Exchange To Take Place.
Answer: A
Marketing Activities Help The Exchange To Take Place, But Marketing Can Occur Without An
Exchange.
Pts: 1 Dif: Comprehension Ref: P. 4
Obj: 1 Blm: Remember
, 9. Kurt Meyer Wants To Sell A Model T Ford That He Inherited From His Grandfather. A
Preliminary Investigation Has Shown Many People Would Be Interested In This Type Of
Automobile. He Has Taken Out An Advertisement In His Local Auto Trade Paper And Provided
Customers With A Toll-Free Number To Make An Appointment To Drive The Car. He Has Also
Read In The Auto Trade Papers That Similar Cars To The One That He Owns Are Selling For
About $4,000. Before Selling His Model T, What Else Should Meyer Find Out?
a. Whether The Car Can Meet The Demands Of Potential Customers
b. How To Promote The Car To Generate Significant Visibility For The Ad
c. Where The Car Should Be Located To Secure Optimum Drive-Up Business
d. How To Price The Car So That Customers Will Seek Out His Vehicle
Answer: A
For An Exchange To Take Place, Each Party Must Have Something The Other Values, The
Parties Must Be Able To Communicate, And Each Party Must Believe That It Is Appropriate To
Deal With The Other.
Pts: 1 Dif: Application Ref: P. 4 Obj: 1
Blm: Higher Order
10. If The Local Chapter Of The Canadian Diabetes Association (Cda) Sponsors A Free Lifesaving
Course, City Residents Will Not Have To Pay To Take The Class. Why Will An Exchange Take
Place?
a. The Cda Does Not Have To Communicate With Class Participants.
b. People Who Take The Course Have To Give Nothing Of Value In Return.
c. Both The Cda And The People Taking The Course Will Trade Something Of Value.
d. People Can Decide The Course Has No Value.
Answer: C
If The Course Has No Value, Then An Exchange Cannot Occur. Without Communication, The
Exchange Of Knowledge For Time And Energy Cannot Occur. In An Exchange, Each Participant
Has Something Of Value To The Other. For An Exchange To Occur, Each Party Must Believe It
Is Desirable.
Pts: 1 Dif: Application Ref: P. 4 Obj: 1
Blm: Higher Order
11. Four Competing Philosophies Strongly Influence The Role Of Marketing And Marketing
Activities Within An Organization. Which If The Following Is A Marketing Management
Philosophy?
a. Accounting Orientation
b. Sales Orientation
c. Profitability Orientation
d. Social Networking Orientation
Answer: B Pts: 1 Dif: Comprehension
Ref: P. 5 Obj: 2 Blm: Remember
1-4 Copyright © 2012 Nelson Education Limited
,12. Firms With Which Of The Following Orientations Focus On The Internal Capabilities Of The
Firm Rather Than On The Desires And Needs Of The Marketplace?
a. Production
b. Customer
c. Marketing
d. Sales
Answer: A Pts: 1 Dif: Definition Ref: P. 5
Obj: 2 Blm: Remember
13. A Company That Sets Its Goals And Strategies Based On What The Current Plant
Equipment Can Produce, What Products Engineering Can Design, And What The Company
Itself Can Do Best, Has Which Of The Following Types Of Orientation?
a. Exchange
b. Sales
c. Market
d. Production
Answer: D Pts: 1 Dif: Definition Ref: P. 5
Obj: 2 Blm: Remember
14. Researchers At Ppg Industries Spent Considerable Time, Effort, And Money Developing A
Bluish Windshield That Would Let In Filtered Sunlight But Block Out Heat. Little Market
Research Was Done, But The Scientists Were Convinced That This New Product Would Be
Significantly Better Than Existing Windshields Even Though They Were More Expensive And
Of A Different Colour Than The Current Models On The Market. What Type Of Orientation
Does Ppg Most Likely Have?
a. Sales
b. Customer
c. Production
d. Promotion
Answer: C
The Questions Asked Before Starting Their New Product Were ―What Can We Do Best?‖ And
―What Can We Make With The Equipment We Already Own?‖ This Is A Production
Orientation.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Higher Order
15. The Owner Of A Company That Produces Copy Paper Once Said, ―People Buy Whatever Copy
Paper Is The Cheapest, So I Spend My Time Trying To Find Ways I Can Cut My Price.‖ What
Kind Of Orientation Toward Marketing Does This Owner Have?
a. Production
b. Sales
c. Discount
d. Customer
Answer: A
A Focus On Lowering Costs And Prices Is Typical Of A Production Orientation.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Higher Order
,16. In Which Of The Following Situations Is A Firm With A Production Orientation Most Likely To
Survive?
a. When Supply For The Product It Produces Exceeds Demand
b. When Demand For The Product It Produces Exceeds Supply
c. When There Are Many Small Competitors In The Marketplace
d. When Needs Of The Marketplace Are Shifting
Answer: B
The Production Orientation Can Survive In The Short Term Under A Variety Of Conditions;
However, If Market Needs Change, Long-Term Survival Is Difficult.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Higher Order
17. Which Of The Following Orientations To Marketing Fails To Consider Whether What The Firm
Produces Most Efficiently Also Meets The Needs Of The Marketplace?
a. Customer
b. Production
c. Market
d. Product
Answer: B
The Production Orientation Forces A Company To Build Whatever It Builds Best, That Is,
Whatever It Has The Experience And Expertise In Doing.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Remember
18. Mimi Couturier Is A Design Company That Specializes In Formalwear For Women. The
Company’s Fashion Innovators Use Computer-Assisted Design Software To Create What They
Think Women Should Wear. The Company Regularly Hires Industry Experts To Examine
Construction Work Areas To Find Waste And Inefficiencies That Can Be Eliminated. However,
For The Last Two Years Mimi Couturier Has Lost Money, And It Has Had To Lay Off Some Of
Its Work Force. What Should The Company Do To Avoid This Occurrence In Future?
a. Increase Its Sales Force To Find More Potential Customers For The Firm
b. Hire More Retail Efficiency Experts To Trace Down Any Production Problems
c. Have Someone To Study Its Target Market To See What Needs And Wants Should Be
Met By Mimi Couturier
d. Cut Prices So That Its Prices Are At Least 10 Percent Below Those Of Its Competitors
Answer: C
Mimi Couturier Has Been Production Oriented. It Should Develop A Marketing Orientation,
Which Means The Firm Will Produce Only Those Items Needed By Its Target Market.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Higher Order
1-6 Copyright © 2012 Nelson Education Limited
,19. Which Orientation Assumes That People Are Resistant To Buying Products That Are Not
Absolutely Necessary?
a. Sales
b. Marketing
c. Customer
d. Production
Answer: A
The Sales Orientation Assumes That Aggressive Selling Is What Is Needed To Increase Demand.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Remember
20. Which Orientation Of People Will Buy More Goods And Services If Aggressive Marketing
Techniques Are Used?
a. Sales
b. Production
c. Customer
d. Marketing
Answer: A Pts: 1 Dif: Definition Ref: P. 5
Obj: 2 Blm: Remember
21. Lawler Landscaping Company Sells All Kinds Of Ornamental Plants. Lawler’s Management
Believes That Its Customers Will Buy More Plants If Its Salespeople Use Aggressive Marketing
Techniques Because Ornamental Plants Are Nonessential Items For Most Homeowners. What
Type Of Orientation Does Lawler Have?
a. Production
b. Marketing
c. Sales
d. Customer
Answer: C
Only The Sales Orientation Assumes That Aggressive Sales Techniques Will Sell More Product,
Regardless Of Customer Desires And Needs.
Pts: 1 Dif: Definition Ref: P. 5 Obj: 2
Blm: Higher Order
22. If A Company Uses A Sales Orientation, What Will Consumer Complaints Most Likely Result In?
a. Attempts To Cut Production Costs
b. Product Reinvention
c. Continuous Market Research
d. A Modification Of The Sales Presentation
Answer: D
The Sales Orientation Relies On Aggressive Sales Techniques To Fuel Business.
Pts: 1 Dif: Comprehension Ref: P. 5
Obj: 2 Blm: Remember
,23. Which Of The Following Statements About A Typical Sales-Oriented Business Is True?
a. The Company Directs Its Products To Specific Groups Of People.
b. The Company Is In Business To Satisfy Customers’ Wants And Needs And Deliver
Superior Value.
c. The Company Invests The Majority Of Its Resources In Promoting Its Products And Services.
d. The Primary Goal Of The Company Is Profit Through Customer Satisfaction.
Answer: C Pts: 1 Dif: Comprehension
Ref: P. 5 Obj: 3 Blm: Remember
24. For Many Years, Procter & Gamble (P&G) Viewed Its Ivory Soap As Just Plain Old Soap—And
Not As A Cleansing Product That Could Provide Other Benefits As Well. When It Came To Ivory
Soap, P&G Focused On How Well It Made The Soap And Not On What Customers Wanted From
A Bar Of Soap. What Sort Of Orientation Did P&G Have?
a. Customer
b. Product
c. Sales
d. Market
Answer: C Pts: 1 Dif: Application Ref: P. 5
Obj: 2 Blm: Higher Order
25. Because Organizations That Sell Unsought Products, Such As Cemetery Plots, Are Marketing
Products That Most People Do Not Want, Which Sort Of Orientation Might The Companies
Adopt?
a. Product
b. Customer
c. Marketing
d. Sales
Answer: D
Aggressive Selling Is Sometimes Used By Companies That Sell Products Their Customers Do
Not Want To Buy.
Pts: 1 Dif: Application Ref: P. 5 Obj: 2
Blm: Remember
26. For Years, The Slogan Used In All The Advertising Done By British Airways Was ―Putting
People First.‖ In This Short Phase, What Did British Airways Capture The Idea Of?
a. The Marketing Concept
b. The Societal Concept
c. Maslow’s Hierarchy Of Needs
d. The Sales Orientation Philosophy
Answer: A
The Marketing Concept Justifies A Company’s Existence By Its Ability To Satisfy Customers.
Pts: 1 Dif: Application Ref: P. 6 Obj: 2
Blm: Higher Order
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,27. When A Homeowner Visited The Home Depot To Buy What He Thought He Needed To Fix A
Leaking Toilet, He Gathered Up Materials Totalling Almost $70. One His Way To Checkout, An
Employee Asked Him What Was He Trying To Fix. After Some Discussion, The Employee
Convinced The Homeowner That A $5.99 Replacement Part Would Fix The Problem Better Than
The Materials He Thought He Needed And With Less Trouble. This Sort Of Discussion Between
Employees And Customers Is Commonplace At The Home Depot. What Sort Of Orientation Does
The Retail Store Have?
a. Market
b. Sales
c. Production
d. Product
Answer: A Pts: 1 Dif: Application Ref: P. 6
Obj: 2 Blm: Higher Order
28. World Wrestling Entertainment (Formerly The World Wrestling Federation) Is Very Focused
On What Its Fans Want In Terms Of Product Licensing And, More Importantly, In Terms Of
Plot Lines And Character Development. All Of The Company’s Activities Are Integrated So
That No Employee Ever Loses Sight Of The Company’s Desire To Satisfy Its Fans. What Sort
Of Orientation Does World Wrestling Entertainment Have?
a. Sales
b. Production
c. Product
d. Market
Answer: D Pts: 1 Dif: Application Ref: P. 6
Obj: 2 Blm: Higher Order
29. What Does Achieving A Market Orientation Involve?
a. Implementing Actions To Provide Satisfaction For Employees
b. Determining How To Deliver Superior Customer Value
c. Doing Research On Suppliers And Competitors
d. Establishing And Maintaining Mutually Satisfying Relationships With Suppliers
Answer: B Pts: 1 Dif: Comprehension
Ref: P. 6 Obj: 2 Blm: Remember
30. Walmart Has Become The Leading Discount Retailer In Canada And The World By Focusing
On The Customer’s Needs And Wants. This Philosophy Is At The Heart Of Which
Orientation?
a. Production
b. Market
c. Sales
d. Retail
Answer: B Pts: 1 Dif: Application Ref: P. 6
Obj: 2 Blm: Remember
, 31. What Do The Marketing Concept And Market Orientation Recognize?
a. Sales Depend Predominantly On An Aggressive Sales Force.
b. What The Customer Thinks He Is Buying Is What Is Important.
c. Price Is The Most Important Variable For Customers.
d. Selling And Marketing Are Essentially The Same Thing.
Answer: B
The Perceived Product And Perceived Value Are What The Customer Is Buying, And The
Marketing Concept And Market Orientation Have Attempted To Understand Those Perceptions.
Pts: 1 Dif: Comprehension Ref: P. 6
Obj: 2 Blm: Remember
32. What Does A Company Do If It Has A Market Orientation And Adheres To The Marketing Concept?
a. Integrate All The Activities Of The Firm To Satisfy Customer Wants
b. Differentiate A Firm’s Current Products From Its Past Products
c. Focus On Consumer Complaints
d. Fuel Sales Growth Through The Application Of Aggressive Sales Techniques
Answer: A
Integrating All The Firm’s Activities Around The Marketing Concept Is Essential To Its Success.
Pts: 1 Dif: Comprehension Ref: P. 6
Obj: 2 Blm: Remember
33. The Statement ―Marketing Should Be Introduced At The Beginning Rather Than The End
Of The Production Cycle And Integrated Into Each Phase Of The Business‖ Is Consistent
With Which Orientation?
a. Market
b. Sales
c. Enterprise
d. Production
Answer: A
Understanding The Competitive Arena And Competitors’ Strengths And Weaknesses Is A Critical
Component Of Market Orientation.
Pts: 1 Dif: Comprehension Ref: P. 6
Obj: 2 Blm: Higher Order
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