,TESTBANK for Marketing Strategy , 8th Edition O.
C. Ferrell
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
1. Changes in how consumers access information via technology allow easy comparison shopping and broader choices.
This increase in information has affected the buyer-selling power dynamic. Who now holds most of the power in today’s
economy?
a. retailers
b. wholesalers
c. customers
d. manufacturers
e. market research firms
ANSWER: c
2. Smartphone and mobile technology have reduced or replaced entire section of retail stores. How have marketers reacted
as a result?
a. Marketers now focus efforts on goods not easily replaced by digital and technology-enabled products.
b. Companies avoid a digital-first strategy.
c. Marketers no longer sell consumable and household goods.
d. The varieties of products available have decreased.
e. Efforts are now focused on targeting a true mass audience.
ANSWER: a
3. Which of the following changes occurring in today’s economy has NOT been caused by the growth of the Internet?
a. increase in product selection
b. shifting demand patterns
c. privacy, security, and ethical concerns
d. rising prices for most products
e. audience and media fragmentation
ANSWER: d
4. Although it is increasingly difficult for marketers to reach a true mass audience due to audience and media
fragmentation, media fragmentation does have a major advantage. What is this advantage?
a. Consumers now spend most of their time with a single medium.
b. It is much easier to measure feedback from mass media audiences.
c. It is now easier to reach small, highly targeted audiences.
d. Consumers are now much more receptive to radio advertising.
e. There are now greater radio audience concentrations based on geographic location.
ANSWER: c
5. Changing value propositions in today’s economy have caused marketers to learn a tough lesson about customers. What
is that lesson?
a. Customers will always seek the best value regardless of quality.
b. Customers will always turn to the most recognized brand.
c. Customers will always respond favorably to advertising for premium products.
d. Customers will turn to the most convenient, least expensive alternative in situations where they see goods and
services as commodities.
e. Customers will always seek the best quality regardless of price.
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,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
ANSWER: d
6. In what way have demand patterns shifted as a result of changes in technology?
a. Traditional newspapers are growing as consumers avoid online and mobile news.
b. Demand has increased for the direct-to-consumer streaming model on a global scale.
c. Digital distribution of music and video is decreasing.
d. Fewer consumers demand delivery of prescriptions.
e. More consumers are shopping in traditional brick-and-mortar stores.
ANSWER: d
7. A marketing strategy can be composed of one or more marketing programs; each program consists of two elements: a
target market or markets and a marketing mix. What elements make up the marketing mix?
a. product, price, place (distribution), and promotion
b. supply and demand
c. market segmentation and target marketing
d. branding and positioning
e. quality and value
ANSWER: a
8. What is a market?
a. a collection of buyers and sellers
b. an electronic marketplace unbound by time or space
c. something that can be acquired via exchange to satisfy a need or a want
d. something that the firm does better than its competitors
e. one or more segments of individuals, businesses, or institutions toward which the firm’s marketing efforts will
be directed
ANSWER: a
9. Which of the following IS NOT one of the five conditions of exchange in marketing?
a. There must be at least two parties to the exchange.
b. Each party has something of value to offer the other party.
c. Each party must be free to accept or reject the exchange.
d. Each party must be capable of immediate delivery.
e. Each party believes that it is desirable to exchange with the other party.
ANSWER: d
10. A customer’s decision to purchase one product or group of products over another is primarily a function of:
a. the convenience of acquiring the product or group of products.
b. how well that choice will fulfill that person’s needs and satisfy their wants.
c. the product’s features relative to competing products.
d. the product’s price.
e. the availability of the product or group of products.
ANSWER: b
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,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
11. A product that provides the utmost in convenience is said to offer exceptional:
a. time and place utility.
b. place and possession utility.
c. time and possession utility.
d. form and time utility.
e. form and place utility.
ANSWER: a
12. Madeline’s Steakhouse offers high-quality cuts of beef. What types of utility does this restaurant offer with its
superior meat?
a. time utility
b. place utility
c. possession utility
d. form utility
e. psychological utility
ANSWER: d
13. An automaker is working on plans to address the electric vehicle market and is developing a marketing program to
fulfill the needs of customers in this market. What type of planning is this?
a. market planning
b. strategic planning
c. local planning
d. lower-level planning
e. tactical planning
ANSWER: e
14. Which of the following involves the objective review of internal information pertaining to the firm’s current strategy
and performance, as well as the current and future availability of resources?
a. competitive intelligence
b. environmental scanning
c. tactical planning
d. external analysis
e. internal analysis
ANSWER: e
15. A ride-sharing company reviews its customer data. Based on past sales, the company notices men in their 30s tend to
spend more in the app and tip higher than other riders. The company decides to direct its marketing efforts toward this one
segment. This segment is referred to as a
a. target market.
b. competitive advantage.
c. shareholder.
d. marketing channel.
e. noncustomer.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
16. Run Athlete, a shoe company, attempts to differentiate its product offering by featuring its memory foam cushions on
the product packaging, a feature Run Athlete’s competitors do not have. The company wants consumers to think of
comfort when they think of Run Athlete’s shoes. This refers to
a. product positioning.
b. target marketing.
c. perceptual marketing.
d. image marketing.
e. social responsibility.
ANSWER: a
17. Which of the following statements about pricing decisions in the marketing program is TRUE?
a. Price is one of two elements of the marketing mix that leads to revenue.
b. Pricing is the most overmanipulated element of the marketing mix.
c. Pricing has the goal of distribution.
d. Pricing is the most difficult element of the marketing mix to change.
e. Customers will always equate higher prices with higher quality products.
ANSWER: b
18. In the relationship marketing approach, the ultimate goal of marketing is to:
a. make a profit.
b. develop long-term customer relationships.
c. reduce costs associated with promotion.
d. acquire new customers and complete a large number of exchanges.
e. prohibit the customer from purchasing from competitors.
ANSWER: b
19. Which of the following is TRUE of marketing strategy?
a. Marketing strategy is less important than in the past.
b. Marketing strategy is inherently people-driven.
c. Marketing strategy is immune to change.
d. Marketing strategy is easy to develop and implement.
e. Marketing strategy draws from personal experience rather than data.
ANSWER: b
20. The airline industry has become commoditized. What does this mean for firms in the airline industry such as United
and Delta?
a. Airlines will be forced to file for bankruptcy.
b. Airline customers have little power.
c. There is very little differentiation among product offerings in the industry.
d. The industry experiences very little change over time.
e. Airlines customers are easy to please due to a lack of options.
ANSWER: c
21. Discuss the implications of audience and media fragmentation for marketers and provide an example.
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
ANSWER: Changes in media usage and the availability of new media outlets have forced marketers to rethink the way
they communicate with potential customers. For example, television audiences have been a favorite for
marketing messages on broadcast networks such as ABC, CBS, and NBC and cable networks such as ESPN,
HGTV, Nickelodeon, and the Discovery Channel. However, today most visual content is delivered via these
traditional means and also through online streaming. These changes make it increasingly difficult for
marketers to reach a true mass audience.
22. The American Marketing Association (AMA) has changed the definition of marketing over time. Discuss the different
views or interpretations of marketing as a function of business, and share why you think the AMA changed the definition.
ANSWER: Many people, especially those not employed in marketing, see marketing as a function of business. As a
business function, the goal of marketing is to connect the organization to its customers. Other individuals,
particularly those working in marketing jobs, tend to see marketing as a process of managing the flow of
products from the point of conception to the point of consumption. A final way to think about marketing
relates to meeting human and social needs. This broad view links marketing with our standard of living, not
only in terms of enhanced consumption and prosperity but also in terms of society’s well-being.
The AMA changed the definition of marketing to better reflect the realities of competing in today’s
marketplace. The new definition stresses two critical success factors in marketing today: value and customer
relationships. Whereas the former definition of marketing had a decidedly transactional focus, the new
definition emphasizes long-term relationships that provide value for both customers and the firm.
23. Briefly explain and discuss the five types of utility. Which type(s) of utility is(are) the most important and why?
ANSWER: The five types of utility are:
1. Form Utility—Products high in form utility have attributes or features that set them apart from the
competition.
2. Time Utility—Products high in time utility are available when customers want them.
3. Place Utility—Products high in place utility are available where customers want them, which is typically
wherever the customer happens to be at that moment or where the product needs to be at that moment.
4. Possession Utility—Possession utility deals with the transfer of ownership or title from marketer to
customer. Products higher in possession utility are more satisfying because marketers make them easier to
acquire.
5. Psychological Utility—Products high in psychological utility deliver positive experiential or psychological
attributes that customers find satisfying. Conversely, a product might offer exceptional psychological utility
because it lacks negative experiential or psychological attributes.
One type of utility is not necessarily more important than the others. In reality, all five types are
complementary and overlap to a great degree. One could argue that form utility is the most important,
however, because customers tend to choose products that offer certain features. For routinely purchased
products (gasoline, bread), time and place utility are likely to be more important. For unique types of products
(vacations, luxury goods), psychological utility might be relatively more important.
24. With respect to the strategic planning process, why has social responsibility and marketing ethics become important
today? Is it really necessary to consider these issues in strategic planning? How can a firm plan to be socially responsible?
ANSWER: Our society still reverberates from the effects of corporate scandals at Enron, Volkswagen, and Wells Fargo,
among others. Although these scandals make for interesting reading, many innocent individuals have suffered
the consequences from these companies’ unethical behavior. Social responsibility refers to an organization’s
obligation to maximize its positive impact on society while minimizing its negative impact. In terms of
marketing strategy, social responsibility addresses the total effect of an organization’s marketing activities on
society. A major part of this responsibility is marketing ethics, or the principles and standards that define
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
acceptable conduct in marketing activities. Ethical marketing can build trust and commitment and is a crucial
ingredient in building long-term relationships with all stakeholders. Another major component of any firm’s
impact on society is the degree to which it engages in philanthropic activities. Many firms now make
philanthropy a key strategic activity.
Because efforts to be socially responsible involve the allocation of human and financial resources, these
activities must be planned just like traditional marketing activities.
25. Discuss the challenges and opportunities associated with planning and developing marketing strategy in today’s
economy. Why is marketing strategy both exciting and challenging?
ANSWER: One of the greatest frustrations and opportunities in marketing is change—customers change, competitors
change, technology changes, and even the marketing organization changes. Strategies that are highly
successful today will not work tomorrow. Customers will buy products today that they will have no interest in
tomorrow. These are truisms in marketing. Although frustrating, challenges like these also make marketing
extremely interesting and rewarding.
Another fact about marketing strategy is that it is inherently people-driven. Marketing strategy is about people
(inside an organization) trying to find ways to deliver exceptional value by fulfilling the needs and wants of
other people (customers, shareholders, business partners, society at large), as well as the needs of the
organization itself.
The combination of continual change and the people-driven nature of marketing makes developing and
implementing marketing strategy a challenging task. A perfect strategy that is executed perfectly can still fail.
This happens because there are very few rules for how to do marketing in specific situations. In other words, it
is impossible to say that given “this customer need” and these “competitors” and this “level of government
regulation” that Product A, Price B, Promotion C, and Distribution D should be used. Even with excellent
data, and resources to analyze and interpret the data, the “formula” approach doesn’t always work. The lack of
rules and the ever-changing and disruptive economic, sociocultural, competitive, technological, and
political/legal landscapes make marketing strategy a terribly fascinating subject that is new every day.
26. Companies that have followed a digital-first strategy are often able to undercut prices of established retail brands and
introduce new products more quickly.
a. True
b. False
ANSWER: True
27. Which of the following outlines the organization’s game plan for success?
a. market scanning
b. planning
c. strategy
d. utility
e. competitive intelligence
ANSWER: c
28. What term is used to describe the ability of a product to satisfy a customer’s desires?
a. utility
b. exchange
c. strategy
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,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
d. market scanning
e. competitive intelligence
ANSWER: a
29. Which of the following type of planning focuses on specific markets or market segments and the development of
marketing programs that will fulfill the needs of customers in those markets?
a. strategic planning
b. customer analysis
c. environmental planning
d. tactical planning
e. marketing plan
ANSWER: d
30. Environmental scanning refers to the overall process of collecting and interpreting internal, competitive, and
environmental information.
a. True
b. False
ANSWER: False
31. Adam owns a restaurant that serves salad. After discovering a salad fast food chain, Easy Green, is opening a
restaurant near his location, he thoroughly researches Easy Green to discover their strengths, weaknesses, and intentions.
What type of marketing activity does Adam apply in this scenario?
a. tactical planning
b. internal analysis
c. competitive intelligence
d. environmental scanning
e. situation analysis
ANSWER: c
32. To be successful, a firm must possess one or more competitive advantages that it can leverage in the market in order to
meet its objectives.
a. True
b. False
ANSWER: True
33. List the elements that make up a marketing program.
a. product and target market
b. target market and marketing mix
c. market segment and market plan
d. product, price, place, promotion
e. marketing mix and promotion
ANSWER: b
34. Amazon capitalizes on faster and more innovative ways to deliver products directly to the customer. These decisions
relate to which element of the marketing mix?
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, Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
a. market segmentation
b. product
c. price
d. promotion
e. place (distribution)
ANSWER: e
35. The "how" of marketing planning is known as branding and positioning.
a. True
b. False
ANSWER: False
36. Marketing strategy is about people understanding and serving people.
a. True
b. False
ANSWER: True
37. The customer, having more power than marketers in the buyer-seller power dynamic, drives pricing, promotional, and
experience strategies of marketers.
a. True
b. False
ANSWER: True
38. The four Ps of the marketing mix consist of product, positioning, pricing, and promotion.
a. True
b. False
ANSWER: False
39. The term marketspace describes electronic marketplaces unbound by time or space.
a. True
b. False
ANSWER: True
40. When marketers want to reach a true mass audience, they divide the market into homogenous groups or segments.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 8
C. Ferrell
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
1. Changes in how consumers access information via technology allow easy comparison shopping and broader choices.
This increase in information has affected the buyer-selling power dynamic. Who now holds most of the power in today’s
economy?
a. retailers
b. wholesalers
c. customers
d. manufacturers
e. market research firms
ANSWER: c
2. Smartphone and mobile technology have reduced or replaced entire section of retail stores. How have marketers reacted
as a result?
a. Marketers now focus efforts on goods not easily replaced by digital and technology-enabled products.
b. Companies avoid a digital-first strategy.
c. Marketers no longer sell consumable and household goods.
d. The varieties of products available have decreased.
e. Efforts are now focused on targeting a true mass audience.
ANSWER: a
3. Which of the following changes occurring in today’s economy has NOT been caused by the growth of the Internet?
a. increase in product selection
b. shifting demand patterns
c. privacy, security, and ethical concerns
d. rising prices for most products
e. audience and media fragmentation
ANSWER: d
4. Although it is increasingly difficult for marketers to reach a true mass audience due to audience and media
fragmentation, media fragmentation does have a major advantage. What is this advantage?
a. Consumers now spend most of their time with a single medium.
b. It is much easier to measure feedback from mass media audiences.
c. It is now easier to reach small, highly targeted audiences.
d. Consumers are now much more receptive to radio advertising.
e. There are now greater radio audience concentrations based on geographic location.
ANSWER: c
5. Changing value propositions in today’s economy have caused marketers to learn a tough lesson about customers. What
is that lesson?
a. Customers will always seek the best value regardless of quality.
b. Customers will always turn to the most recognized brand.
c. Customers will always respond favorably to advertising for premium products.
d. Customers will turn to the most convenient, least expensive alternative in situations where they see goods and
services as commodities.
e. Customers will always seek the best quality regardless of price.
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
ANSWER: d
6. In what way have demand patterns shifted as a result of changes in technology?
a. Traditional newspapers are growing as consumers avoid online and mobile news.
b. Demand has increased for the direct-to-consumer streaming model on a global scale.
c. Digital distribution of music and video is decreasing.
d. Fewer consumers demand delivery of prescriptions.
e. More consumers are shopping in traditional brick-and-mortar stores.
ANSWER: d
7. A marketing strategy can be composed of one or more marketing programs; each program consists of two elements: a
target market or markets and a marketing mix. What elements make up the marketing mix?
a. product, price, place (distribution), and promotion
b. supply and demand
c. market segmentation and target marketing
d. branding and positioning
e. quality and value
ANSWER: a
8. What is a market?
a. a collection of buyers and sellers
b. an electronic marketplace unbound by time or space
c. something that can be acquired via exchange to satisfy a need or a want
d. something that the firm does better than its competitors
e. one or more segments of individuals, businesses, or institutions toward which the firm’s marketing efforts will
be directed
ANSWER: a
9. Which of the following IS NOT one of the five conditions of exchange in marketing?
a. There must be at least two parties to the exchange.
b. Each party has something of value to offer the other party.
c. Each party must be free to accept or reject the exchange.
d. Each party must be capable of immediate delivery.
e. Each party believes that it is desirable to exchange with the other party.
ANSWER: d
10. A customer’s decision to purchase one product or group of products over another is primarily a function of:
a. the convenience of acquiring the product or group of products.
b. how well that choice will fulfill that person’s needs and satisfy their wants.
c. the product’s features relative to competing products.
d. the product’s price.
e. the availability of the product or group of products.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
11. A product that provides the utmost in convenience is said to offer exceptional:
a. time and place utility.
b. place and possession utility.
c. time and possession utility.
d. form and time utility.
e. form and place utility.
ANSWER: a
12. Madeline’s Steakhouse offers high-quality cuts of beef. What types of utility does this restaurant offer with its
superior meat?
a. time utility
b. place utility
c. possession utility
d. form utility
e. psychological utility
ANSWER: d
13. An automaker is working on plans to address the electric vehicle market and is developing a marketing program to
fulfill the needs of customers in this market. What type of planning is this?
a. market planning
b. strategic planning
c. local planning
d. lower-level planning
e. tactical planning
ANSWER: e
14. Which of the following involves the objective review of internal information pertaining to the firm’s current strategy
and performance, as well as the current and future availability of resources?
a. competitive intelligence
b. environmental scanning
c. tactical planning
d. external analysis
e. internal analysis
ANSWER: e
15. A ride-sharing company reviews its customer data. Based on past sales, the company notices men in their 30s tend to
spend more in the app and tip higher than other riders. The company decides to direct its marketing efforts toward this one
segment. This segment is referred to as a
a. target market.
b. competitive advantage.
c. shareholder.
d. marketing channel.
e. noncustomer.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
16. Run Athlete, a shoe company, attempts to differentiate its product offering by featuring its memory foam cushions on
the product packaging, a feature Run Athlete’s competitors do not have. The company wants consumers to think of
comfort when they think of Run Athlete’s shoes. This refers to
a. product positioning.
b. target marketing.
c. perceptual marketing.
d. image marketing.
e. social responsibility.
ANSWER: a
17. Which of the following statements about pricing decisions in the marketing program is TRUE?
a. Price is one of two elements of the marketing mix that leads to revenue.
b. Pricing is the most overmanipulated element of the marketing mix.
c. Pricing has the goal of distribution.
d. Pricing is the most difficult element of the marketing mix to change.
e. Customers will always equate higher prices with higher quality products.
ANSWER: b
18. In the relationship marketing approach, the ultimate goal of marketing is to:
a. make a profit.
b. develop long-term customer relationships.
c. reduce costs associated with promotion.
d. acquire new customers and complete a large number of exchanges.
e. prohibit the customer from purchasing from competitors.
ANSWER: b
19. Which of the following is TRUE of marketing strategy?
a. Marketing strategy is less important than in the past.
b. Marketing strategy is inherently people-driven.
c. Marketing strategy is immune to change.
d. Marketing strategy is easy to develop and implement.
e. Marketing strategy draws from personal experience rather than data.
ANSWER: b
20. The airline industry has become commoditized. What does this mean for firms in the airline industry such as United
and Delta?
a. Airlines will be forced to file for bankruptcy.
b. Airline customers have little power.
c. There is very little differentiation among product offerings in the industry.
d. The industry experiences very little change over time.
e. Airlines customers are easy to please due to a lack of options.
ANSWER: c
21. Discuss the implications of audience and media fragmentation for marketers and provide an example.
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
ANSWER: Changes in media usage and the availability of new media outlets have forced marketers to rethink the way
they communicate with potential customers. For example, television audiences have been a favorite for
marketing messages on broadcast networks such as ABC, CBS, and NBC and cable networks such as ESPN,
HGTV, Nickelodeon, and the Discovery Channel. However, today most visual content is delivered via these
traditional means and also through online streaming. These changes make it increasingly difficult for
marketers to reach a true mass audience.
22. The American Marketing Association (AMA) has changed the definition of marketing over time. Discuss the different
views or interpretations of marketing as a function of business, and share why you think the AMA changed the definition.
ANSWER: Many people, especially those not employed in marketing, see marketing as a function of business. As a
business function, the goal of marketing is to connect the organization to its customers. Other individuals,
particularly those working in marketing jobs, tend to see marketing as a process of managing the flow of
products from the point of conception to the point of consumption. A final way to think about marketing
relates to meeting human and social needs. This broad view links marketing with our standard of living, not
only in terms of enhanced consumption and prosperity but also in terms of society’s well-being.
The AMA changed the definition of marketing to better reflect the realities of competing in today’s
marketplace. The new definition stresses two critical success factors in marketing today: value and customer
relationships. Whereas the former definition of marketing had a decidedly transactional focus, the new
definition emphasizes long-term relationships that provide value for both customers and the firm.
23. Briefly explain and discuss the five types of utility. Which type(s) of utility is(are) the most important and why?
ANSWER: The five types of utility are:
1. Form Utility—Products high in form utility have attributes or features that set them apart from the
competition.
2. Time Utility—Products high in time utility are available when customers want them.
3. Place Utility—Products high in place utility are available where customers want them, which is typically
wherever the customer happens to be at that moment or where the product needs to be at that moment.
4. Possession Utility—Possession utility deals with the transfer of ownership or title from marketer to
customer. Products higher in possession utility are more satisfying because marketers make them easier to
acquire.
5. Psychological Utility—Products high in psychological utility deliver positive experiential or psychological
attributes that customers find satisfying. Conversely, a product might offer exceptional psychological utility
because it lacks negative experiential or psychological attributes.
One type of utility is not necessarily more important than the others. In reality, all five types are
complementary and overlap to a great degree. One could argue that form utility is the most important,
however, because customers tend to choose products that offer certain features. For routinely purchased
products (gasoline, bread), time and place utility are likely to be more important. For unique types of products
(vacations, luxury goods), psychological utility might be relatively more important.
24. With respect to the strategic planning process, why has social responsibility and marketing ethics become important
today? Is it really necessary to consider these issues in strategic planning? How can a firm plan to be socially responsible?
ANSWER: Our society still reverberates from the effects of corporate scandals at Enron, Volkswagen, and Wells Fargo,
among others. Although these scandals make for interesting reading, many innocent individuals have suffered
the consequences from these companies’ unethical behavior. Social responsibility refers to an organization’s
obligation to maximize its positive impact on society while minimizing its negative impact. In terms of
marketing strategy, social responsibility addresses the total effect of an organization’s marketing activities on
society. A major part of this responsibility is marketing ethics, or the principles and standards that define
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
acceptable conduct in marketing activities. Ethical marketing can build trust and commitment and is a crucial
ingredient in building long-term relationships with all stakeholders. Another major component of any firm’s
impact on society is the degree to which it engages in philanthropic activities. Many firms now make
philanthropy a key strategic activity.
Because efforts to be socially responsible involve the allocation of human and financial resources, these
activities must be planned just like traditional marketing activities.
25. Discuss the challenges and opportunities associated with planning and developing marketing strategy in today’s
economy. Why is marketing strategy both exciting and challenging?
ANSWER: One of the greatest frustrations and opportunities in marketing is change—customers change, competitors
change, technology changes, and even the marketing organization changes. Strategies that are highly
successful today will not work tomorrow. Customers will buy products today that they will have no interest in
tomorrow. These are truisms in marketing. Although frustrating, challenges like these also make marketing
extremely interesting and rewarding.
Another fact about marketing strategy is that it is inherently people-driven. Marketing strategy is about people
(inside an organization) trying to find ways to deliver exceptional value by fulfilling the needs and wants of
other people (customers, shareholders, business partners, society at large), as well as the needs of the
organization itself.
The combination of continual change and the people-driven nature of marketing makes developing and
implementing marketing strategy a challenging task. A perfect strategy that is executed perfectly can still fail.
This happens because there are very few rules for how to do marketing in specific situations. In other words, it
is impossible to say that given “this customer need” and these “competitors” and this “level of government
regulation” that Product A, Price B, Promotion C, and Distribution D should be used. Even with excellent
data, and resources to analyze and interpret the data, the “formula” approach doesn’t always work. The lack of
rules and the ever-changing and disruptive economic, sociocultural, competitive, technological, and
political/legal landscapes make marketing strategy a terribly fascinating subject that is new every day.
26. Companies that have followed a digital-first strategy are often able to undercut prices of established retail brands and
introduce new products more quickly.
a. True
b. False
ANSWER: True
27. Which of the following outlines the organization’s game plan for success?
a. market scanning
b. planning
c. strategy
d. utility
e. competitive intelligence
ANSWER: c
28. What term is used to describe the ability of a product to satisfy a customer’s desires?
a. utility
b. exchange
c. strategy
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d. market scanning
e. competitive intelligence
ANSWER: a
29. Which of the following type of planning focuses on specific markets or market segments and the development of
marketing programs that will fulfill the needs of customers in those markets?
a. strategic planning
b. customer analysis
c. environmental planning
d. tactical planning
e. marketing plan
ANSWER: d
30. Environmental scanning refers to the overall process of collecting and interpreting internal, competitive, and
environmental information.
a. True
b. False
ANSWER: False
31. Adam owns a restaurant that serves salad. After discovering a salad fast food chain, Easy Green, is opening a
restaurant near his location, he thoroughly researches Easy Green to discover their strengths, weaknesses, and intentions.
What type of marketing activity does Adam apply in this scenario?
a. tactical planning
b. internal analysis
c. competitive intelligence
d. environmental scanning
e. situation analysis
ANSWER: c
32. To be successful, a firm must possess one or more competitive advantages that it can leverage in the market in order to
meet its objectives.
a. True
b. False
ANSWER: True
33. List the elements that make up a marketing program.
a. product and target market
b. target market and marketing mix
c. market segment and market plan
d. product, price, place, promotion
e. marketing mix and promotion
ANSWER: b
34. Amazon capitalizes on faster and more innovative ways to deliver products directly to the customer. These decisions
relate to which element of the marketing mix?
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a. market segmentation
b. product
c. price
d. promotion
e. place (distribution)
ANSWER: e
35. The "how" of marketing planning is known as branding and positioning.
a. True
b. False
ANSWER: False
36. Marketing strategy is about people understanding and serving people.
a. True
b. False
ANSWER: True
37. The customer, having more power than marketers in the buyer-seller power dynamic, drives pricing, promotional, and
experience strategies of marketers.
a. True
b. False
ANSWER: True
38. The four Ps of the marketing mix consist of product, positioning, pricing, and promotion.
a. True
b. False
ANSWER: False
39. The term marketspace describes electronic marketplaces unbound by time or space.
a. True
b. False
ANSWER: True
40. When marketers want to reach a true mass audience, they divide the market into homogenous groups or segments.
a. True
b. False
ANSWER: False
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