Chapterg1—AngOverviewgofgMarketing
MULTIPLEgCHOICE
1. Whatgisgthegdefinitiongofgmarketing?
a. planninggsalesgcampaigns
b. selling
c. advertisinggandgpromotiongactivities
d. agphilosophygthatgstressesgcustomergsatisfaction
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
2. Agbusinessgisgconcernedgwithgmanygday-to-
daygactivities.gSomegofgthegmostgimportantgaregthegplanninggandgconceptiongofgthegproductgorgse
rvice,gitsgpricinggpolicy,gandgthegdistributiongstrategy.gWhatgaregthesegactivitiesgpartgof?
a. humangresources
b. production
c. marketing
d. accounting
ANS:g C
Thisgdescriptiongcontainsgthreegofgthegfourgmaingactivitiesgincludedgingthegmarketinggfunctio
n.gManygstudentsgmaygmistakenlygbelievegthatgmarketinggisgconcernedgonlygwithgpromotion.
PTS:g 1 gDIF: Comprehension
REF:g p.g4gOBJ:g 1
BLM:g Remember
3. Whichgofgthegfollowinggisgagsetgofgactivitiesgusedgtogimplementgagmanagementgorientationgt
hatgstressesgcustomergsatisfaction?
a. agcontrolgsystem
b. customergmanagement
c. planninggstrategy
d. marketing
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
4. Marketinggisgangorganizationalgfunctiongandgagsetgofgprocessesgforgcreating,gcommunicating,ga
ndgdeliveringgwhichgonegofgthegfollowinggtogcustomers?
a. sales
b. benefits
c. satisfaction
d. value
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
Copyrightg©g2012gNelsongEducationgLimite 1-1
d
,5. Thegideagthatgpeopleggivegupgsomethinggingordergtogreceivegsomethinggthatgtheygwouldgrathergha
vegisgagkeygingredientgingmarketing.gWhatgisgthisgcalled?
a. exchange
b. synergy
c. reciprocity
d. promotion
ANS:g A PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
6. Whatgmustghappengingordergforgexchangegtogoccur?
a. Eachgpartygmustghavegsomethinggofgvaluegtogthegothergparty.
b. Agprofit-orientedgorganizationgmustgbeginvolved.
c. Organizedgmarketinggactivitiesgmustgalsogoccur.
d. Moneygorgotherglegalgtendergisgrequired.
ANS:g A
Exchangeginvolvesgthegtradegofgitemsgofgvalue,gbutgdoesgnotgnecessarilyginvolvegformalgorganiza
tions,gprofit,gorgmoney/legalgtender.
PTS:g 1 gDIF: Comprehension
REF:g p.g4gOBJ:g 1
BLM:g Remember
7. Forgangexchangegtogtakegplace,gwhatgmustghappen?
a. Atgleastgonegpersongmustghavegsomethinggofgvalue.
b. Eachgpartygmustgfeelgobligatedgtogacceptgthegoffer.
c. Moneygmustgbegpresent.
d. Theregmustgbegatgleastgtwogparties.
ANS:g D PTS:g g 1 DIF: Comprehension
REF:g g p.g4 OBJ:g g 1 BLM:g Remember
8. Whygisgthegconceptgofgexchangegimportantgtogmarketing?
a. Marketinggactivitiesghelpgtogcreategexchange.
b. Moneygisgthegonlygmediumgofgexchangegforgbusinessgmarketers.
c. Exchangegprovidesgmoneygtogmarketers.
d. Marketinggactivitiesgaregagrequirementgforgexchangegtogtakegplace.
ANS:g A
Marketinggactivitiesghelpgthegexchangegtogtakegplace,gbutgmarketinggcangoccurgwithoutgangexcha
nge.
PTS:g 1 gDIF: Comprehension
REF:g p.g4gOBJ:g 1
BLM:g Remember
1-2 Copyrightg©g2012gNelsongEducationgLimite
d
, 9. KurtgMeyergwantsgtogsellgagModelgTgFordgthatgheginheritedgfromghisggrandfather.gAgpreliminaryg
investigationghasgshowngmanygpeoplegwouldgbeginterestedgingthisgtypegofgautomobile.gHeghasgtak
engoutgangadvertisementginghisglocalgautogtradegpapergandgprovidedgcustomersgwithgagtoll-
freegnumbergtogmakegangappointmentgtogdrivegthegcar.gHeghasgalsogreadgingthegautogtradegpapersg
thatgsimilargcarsgtogthegonegthatghegownsgaregsellinggforgaboutg$4,000.gBeforegsellingghisgModelg
T,gwhatgelsegshouldgMeyergfindgout?
a. whethergthegcargcangmeetgthegdemandsgofgpotentialgcustomers
b. howgtogpromotegthegcargtoggenerategsignificantgvisibilitygforgthegad
c. wheregthegcargshouldgbeglocatedgtogsecuregoptimumgdrive-upgbusiness
d. howgtogpricegthegcargsogthatgcustomersgwillgseekgoutghisgvehicle
ANS:g A
Forgangexchangegtogtakegplace,geachgpartygmustghavegsomethinggthegothergvalues,gthegpartiesgmus
tgbegablegtogcommunicate,gandgeachgpartygmustgbelievegthatgitgisgappropriategtogdealgwithgthegoth
er.
PTS:g 1 DIF: Application REF:g p.g4
OBJ:g 1gBLM:g Highergorder
10. IfgtheglocalgchaptergofgthegCanadiangDiabetesgAssociationg(CDA)gsponsorsgagfreeglifesavinggcour
se,gcitygresidentsgwillgnotghavegtogpaygtogtakegthegclass.gWhygwillgangexchangegtakegplace?
a. ThegCDAgdoesgnotghavegtogcommunicategwithgclassgparticipants.
b. Peoplegwhogtakegthegcourseghavegtoggivegnothinggofgvaluegingreturn.
c. BothgthegCDAgandgthegpeoplegtakinggthegcoursegwillgtradegsomethinggofgvalue.
d. Peoplegcangdecidegthegcourseghasgnogvalue.
ANS:g C
Ifgthegcourseghasgnogvalue,gthengangexchangegcannotgoccur.gWithoutgcommunication,gthegexchang
egofgknowledgegforgtimegandgenergygcannotgoccur.gIngangexchange,geachgparticipantghasgsomethin
ggofgvaluegtogthegother.gForgangexchangegtogoccur,geachgpartygmustgbelievegitgisgdesirable.
PTS:g 1 DIF: Application REF:g p.g4
OBJ:g 1gBLM:g Highergorder
11. Fourgcompetinggphilosophiesgstronglyginfluencegthegrolegofgmarketinggandgmarketinggactiviti
esgwithingangorganization.gWhichgifgthegfollowinggisgagmarketinggmanagementgphilosophy?
a. accountinggorientation
b. salesgorientation
c. profitabilitygorientation
d. socialgnetworkinggorientation
ANS:g B PTS:g g 1 DIF: Comprehension
REF:g g p.g5 OBJ:g g 2 BLM:g Remember
Copyrightg©g2012gNelsongEducationgLimite 1-3
d
, 12. Firmsgwithgwhichgofgthegfollowinggorientationsgfocusgongtheginternalgcapabilitiesgofgthegfirmgrat
hergthangongthegdesiresgandgneedsgofgthegmarketplace?
a. production
b. customer
c. marketing
d. sales
ANS:g A PTS:g g 1 DIF: Definition REF:g g p.g5
OBJ:g g 2 BLM:g Remember
13. Agcompanygthatgsetsgitsggoalsgandgstrategiesgbasedgongwhatgthegcurrentgplantgequipmentgca
ngproduce,gwhatgproductsgengineeringgcangdesign,gandgwhatgthegcompanygitselfgcangdogbest,
ghasgwhichgofgthegfollowinggtypesgofgorientation?
a. exchange
b. sales
c. market
d. production
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g5
OBJ:g g 2 BLM:g Remember
14. ResearchersgatgPPGgIndustriesgspentgconsiderablegtime,geffort,gandgmoneygdevelopinggagbluishg
windshieldgthatgwouldgletgingfilteredgsunlightgbutgblockgoutgheat.gLittlegmarketgresearchgwasgdo
ne,gbutgthegscientistsgweregconvincedgthatgthisgnewgproductgwouldgbegsignificantlygbettergthange
xistinggwindshieldsgevengthoughgtheygweregmoregexpensivegandgofgagdifferentgcolourgthangthegc
urrentgmodelsgongthegmarket.gWhatgtypegofgorientationgdoesgPPGgmostglikelyghave?
a. sales
b. customer
c. production
d. promotion
ANS:g C
Thegquestionsgaskedgbeforegstartinggtheirgnewgproductgwereg“Whatgcangwegdogbest?”gandg“What
gcangwegmakegwithgthegequipmentgwegalreadygown?”gThisgisgagproductiongorientation.
PTS:g 1 DIF: Application REF:g p.g5
OBJ:g 2gBLM:g Highergorder
15. Thegownergofgagcompanygthatgproducesgcopygpapergoncegsaid,g“Peoplegbuygwhatevergcopygpaper
gisgthegcheapest,gsogIgspendgmygtimegtryinggtogfindgwaysgIgcangcutgmygprice.”gWhatgkindgofgorie
ntationgtowardgmarketinggdoesgthisgownerghave?
a. production
b. sales
c. discount
d. customer
ANS:g A
Agfocusgongloweringgcostsgandgpricesgisgtypicalgofgagproductiongorientation.
PTS:g 1 DIF: Application REF:g p.g5
OBJ:g 2gBLM:g Highergorder
1-4 Copyrightg©g2012gNelsongEducationgLimite
d
MULTIPLEgCHOICE
1. Whatgisgthegdefinitiongofgmarketing?
a. planninggsalesgcampaigns
b. selling
c. advertisinggandgpromotiongactivities
d. agphilosophygthatgstressesgcustomergsatisfaction
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
2. Agbusinessgisgconcernedgwithgmanygday-to-
daygactivities.gSomegofgthegmostgimportantgaregthegplanninggandgconceptiongofgthegproductgorgse
rvice,gitsgpricinggpolicy,gandgthegdistributiongstrategy.gWhatgaregthesegactivitiesgpartgof?
a. humangresources
b. production
c. marketing
d. accounting
ANS:g C
Thisgdescriptiongcontainsgthreegofgthegfourgmaingactivitiesgincludedgingthegmarketinggfunctio
n.gManygstudentsgmaygmistakenlygbelievegthatgmarketinggisgconcernedgonlygwithgpromotion.
PTS:g 1 gDIF: Comprehension
REF:g p.g4gOBJ:g 1
BLM:g Remember
3. Whichgofgthegfollowinggisgagsetgofgactivitiesgusedgtogimplementgagmanagementgorientationgt
hatgstressesgcustomergsatisfaction?
a. agcontrolgsystem
b. customergmanagement
c. planninggstrategy
d. marketing
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
4. Marketinggisgangorganizationalgfunctiongandgagsetgofgprocessesgforgcreating,gcommunicating,ga
ndgdeliveringgwhichgonegofgthegfollowinggtogcustomers?
a. sales
b. benefits
c. satisfaction
d. value
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
Copyrightg©g2012gNelsongEducationgLimite 1-1
d
,5. Thegideagthatgpeopleggivegupgsomethinggingordergtogreceivegsomethinggthatgtheygwouldgrathergha
vegisgagkeygingredientgingmarketing.gWhatgisgthisgcalled?
a. exchange
b. synergy
c. reciprocity
d. promotion
ANS:g A PTS:g g 1 DIF: Definition REF:g g p.g4
OBJ:g g 1 BLM:g Remember
6. Whatgmustghappengingordergforgexchangegtogoccur?
a. Eachgpartygmustghavegsomethinggofgvaluegtogthegothergparty.
b. Agprofit-orientedgorganizationgmustgbeginvolved.
c. Organizedgmarketinggactivitiesgmustgalsogoccur.
d. Moneygorgotherglegalgtendergisgrequired.
ANS:g A
Exchangeginvolvesgthegtradegofgitemsgofgvalue,gbutgdoesgnotgnecessarilyginvolvegformalgorganiza
tions,gprofit,gorgmoney/legalgtender.
PTS:g 1 gDIF: Comprehension
REF:g p.g4gOBJ:g 1
BLM:g Remember
7. Forgangexchangegtogtakegplace,gwhatgmustghappen?
a. Atgleastgonegpersongmustghavegsomethinggofgvalue.
b. Eachgpartygmustgfeelgobligatedgtogacceptgthegoffer.
c. Moneygmustgbegpresent.
d. Theregmustgbegatgleastgtwogparties.
ANS:g D PTS:g g 1 DIF: Comprehension
REF:g g p.g4 OBJ:g g 1 BLM:g Remember
8. Whygisgthegconceptgofgexchangegimportantgtogmarketing?
a. Marketinggactivitiesghelpgtogcreategexchange.
b. Moneygisgthegonlygmediumgofgexchangegforgbusinessgmarketers.
c. Exchangegprovidesgmoneygtogmarketers.
d. Marketinggactivitiesgaregagrequirementgforgexchangegtogtakegplace.
ANS:g A
Marketinggactivitiesghelpgthegexchangegtogtakegplace,gbutgmarketinggcangoccurgwithoutgangexcha
nge.
PTS:g 1 gDIF: Comprehension
REF:g p.g4gOBJ:g 1
BLM:g Remember
1-2 Copyrightg©g2012gNelsongEducationgLimite
d
, 9. KurtgMeyergwantsgtogsellgagModelgTgFordgthatgheginheritedgfromghisggrandfather.gAgpreliminaryg
investigationghasgshowngmanygpeoplegwouldgbeginterestedgingthisgtypegofgautomobile.gHeghasgtak
engoutgangadvertisementginghisglocalgautogtradegpapergandgprovidedgcustomersgwithgagtoll-
freegnumbergtogmakegangappointmentgtogdrivegthegcar.gHeghasgalsogreadgingthegautogtradegpapersg
thatgsimilargcarsgtogthegonegthatghegownsgaregsellinggforgaboutg$4,000.gBeforegsellingghisgModelg
T,gwhatgelsegshouldgMeyergfindgout?
a. whethergthegcargcangmeetgthegdemandsgofgpotentialgcustomers
b. howgtogpromotegthegcargtoggenerategsignificantgvisibilitygforgthegad
c. wheregthegcargshouldgbeglocatedgtogsecuregoptimumgdrive-upgbusiness
d. howgtogpricegthegcargsogthatgcustomersgwillgseekgoutghisgvehicle
ANS:g A
Forgangexchangegtogtakegplace,geachgpartygmustghavegsomethinggthegothergvalues,gthegpartiesgmus
tgbegablegtogcommunicate,gandgeachgpartygmustgbelievegthatgitgisgappropriategtogdealgwithgthegoth
er.
PTS:g 1 DIF: Application REF:g p.g4
OBJ:g 1gBLM:g Highergorder
10. IfgtheglocalgchaptergofgthegCanadiangDiabetesgAssociationg(CDA)gsponsorsgagfreeglifesavinggcour
se,gcitygresidentsgwillgnotghavegtogpaygtogtakegthegclass.gWhygwillgangexchangegtakegplace?
a. ThegCDAgdoesgnotghavegtogcommunicategwithgclassgparticipants.
b. Peoplegwhogtakegthegcourseghavegtoggivegnothinggofgvaluegingreturn.
c. BothgthegCDAgandgthegpeoplegtakinggthegcoursegwillgtradegsomethinggofgvalue.
d. Peoplegcangdecidegthegcourseghasgnogvalue.
ANS:g C
Ifgthegcourseghasgnogvalue,gthengangexchangegcannotgoccur.gWithoutgcommunication,gthegexchang
egofgknowledgegforgtimegandgenergygcannotgoccur.gIngangexchange,geachgparticipantghasgsomethin
ggofgvaluegtogthegother.gForgangexchangegtogoccur,geachgpartygmustgbelievegitgisgdesirable.
PTS:g 1 DIF: Application REF:g p.g4
OBJ:g 1gBLM:g Highergorder
11. Fourgcompetinggphilosophiesgstronglyginfluencegthegrolegofgmarketinggandgmarketinggactiviti
esgwithingangorganization.gWhichgifgthegfollowinggisgagmarketinggmanagementgphilosophy?
a. accountinggorientation
b. salesgorientation
c. profitabilitygorientation
d. socialgnetworkinggorientation
ANS:g B PTS:g g 1 DIF: Comprehension
REF:g g p.g5 OBJ:g g 2 BLM:g Remember
Copyrightg©g2012gNelsongEducationgLimite 1-3
d
, 12. Firmsgwithgwhichgofgthegfollowinggorientationsgfocusgongtheginternalgcapabilitiesgofgthegfirmgrat
hergthangongthegdesiresgandgneedsgofgthegmarketplace?
a. production
b. customer
c. marketing
d. sales
ANS:g A PTS:g g 1 DIF: Definition REF:g g p.g5
OBJ:g g 2 BLM:g Remember
13. Agcompanygthatgsetsgitsggoalsgandgstrategiesgbasedgongwhatgthegcurrentgplantgequipmentgca
ngproduce,gwhatgproductsgengineeringgcangdesign,gandgwhatgthegcompanygitselfgcangdogbest,
ghasgwhichgofgthegfollowinggtypesgofgorientation?
a. exchange
b. sales
c. market
d. production
ANS:g D PTS:g g 1 DIF: Definition REF:g g p.g5
OBJ:g g 2 BLM:g Remember
14. ResearchersgatgPPGgIndustriesgspentgconsiderablegtime,geffort,gandgmoneygdevelopinggagbluishg
windshieldgthatgwouldgletgingfilteredgsunlightgbutgblockgoutgheat.gLittlegmarketgresearchgwasgdo
ne,gbutgthegscientistsgweregconvincedgthatgthisgnewgproductgwouldgbegsignificantlygbettergthange
xistinggwindshieldsgevengthoughgtheygweregmoregexpensivegandgofgagdifferentgcolourgthangthegc
urrentgmodelsgongthegmarket.gWhatgtypegofgorientationgdoesgPPGgmostglikelyghave?
a. sales
b. customer
c. production
d. promotion
ANS:g C
Thegquestionsgaskedgbeforegstartinggtheirgnewgproductgwereg“Whatgcangwegdogbest?”gandg“What
gcangwegmakegwithgthegequipmentgwegalreadygown?”gThisgisgagproductiongorientation.
PTS:g 1 DIF: Application REF:g p.g5
OBJ:g 2gBLM:g Highergorder
15. Thegownergofgagcompanygthatgproducesgcopygpapergoncegsaid,g“Peoplegbuygwhatevergcopygpaper
gisgthegcheapest,gsogIgspendgmygtimegtryinggtogfindgwaysgIgcangcutgmygprice.”gWhatgkindgofgorie
ntationgtowardgmarketinggdoesgthisgownerghave?
a. production
b. sales
c. discount
d. customer
ANS:g A
Agfocusgongloweringgcostsgandgpricesgisgtypicalgofgagproductiongorientation.
PTS:g 1 DIF: Application REF:g p.g5
OBJ:g 2gBLM:g Highergorder
1-4 Copyrightg©g2012gNelsongEducationgLimite
d
