,TESTBANK FOR Marketing Strategy , 1st Edition O.
C. Ferrell
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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. 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
ANSWER: d
2. Changes in how consumers access information through technology allow for easier comparison
shopping and broader choices. This increase in information has affected the buyer-seller power dynamic.
Who now holds most of the power in today’s economy?
a. retailers
b. wholesalers
c. customers
d. manufacturers
ANSWER: c
3. Smartphone and mobile technology have reduced or replaced entire sections 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. Marketers no longer sell consumable and household goods.
c. The varieties of products available have decreased.
d. Efforts are now focused on targeting a true mass audience.
ANSWER: a
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. 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 favourably 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.
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.
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
b. Demand has increased for the direct-to-consumer streaming model on a global scale.
c. Fewer consumers demand delivery of prescriptions.
d. More consumers are shopping in traditional brick-and-mortar stores.
ANSWER: b
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
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
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.
ANSWER: d
10. What term is used to describe the ability of a product to satisfy a customer’s desires?
a. utility
b. exchange
c. strategy
d. market scanning
ANSWER: a
11. A customer’s decision to purchase one product or group of products over another is primarily a
function of which of the following?
a. the perceived value of the product by other customers
b. how well that choice will fulfill that person’s needs and satisfy their wants
c. how well the product is marketed
d. the product’s price
ANSWER: b
12. Madeline’s Steakhouse offers high-quality cuts of beef. What types of utility does this restaurant offer
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
with its superior meat?
a. time utility
b. place utility
c. possession utility
d. form utility
ANSWER: d
13. What is a product that provides the utmost in convenience said to offer?
a. time and place utility
b. time and possession utility
c. form and time utility
d. form and place utility
ANSWER: a
14. 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
15. 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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
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.
16. The term marketspace describes electronic marketplaces unbound by time or space.
a.True
b.False
a. True
b. False
ANSWER: True
17. Environmental scanning refers to the overall process of collecting and interpreting internal,
competitive, and environmental information.
a.True
b.False
a. True
b. False
ANSWER: False
18. 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
a. True
b. False
ANSWER: True
19. When marketers want to reach a true mass audience, they divide the market into homogenous groups
or segments.
a.True
b.False
a. True
b. False
ANSWER: False
20. Marketing implementation is known as the “how” of marketing planning.
a.True
b.False
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
21. 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
behaviour. 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
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.
22. Which of the following outlines the organization’s game plan for success?
a. market scan
b. market analysis
c. strategy
d. competitive intelligence
ANSWER: c
23. 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. situation planning
b. customer analysis
c. environmental planning
d. tactical planning
ANSWER: d
24. An automaker is working on plans to address the electric vehicle market to fulfill the needs of
customers in this market. What type of planning is this?
a. market planning
b. local planning
c. lower-level planning
d. tactical planning
ANSWER: d
25. 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. internal scanning
d. internal analysis
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
ANSWER: d
26. 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
ANSWER: c
27. Which two elements make up a marketing program?
a. product and target market
b. target market and marketing mix
c. market segment and market plan
d. marketing mix and promotion
ANSWER: b
28. 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. What is this segment called?
a. target market
b. competitive advantage
c. marketing channel
d. noncustomer
ANSWER: a
29. 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 is never connected to customer demand.
d. Pricing is the most difficult element of the marketing program to change.
ANSWER: b
30. 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?
a. market segmentation
b. product
c. promotion
d. place (distribution)
ANSWER: d
31. Run Athlete, a shoe company, attempts to differentiate its product offering by featuring its memory
foam cushions, which competitors do not have, on the product packaging. The company wants consumers
to think of comfort when they think of Run Athlete’s shoes. What does this refer to?
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
a. product positioning
b. target marketing
c. perceptual marketing
d. image marketing
ANSWER: a
32. What is the ultimate goal of marketing in the relationship marketing approach?
a. to make a profit
b. to develop long-term customer arrangements
c. to reduce costs associated with promotion
d. to acquire new customers and complete a large number of exchanges
ANSWER: b
33. Which of the following statements about marketing strategy is true?
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.
ANSWER: b
34. The airline industry has become commoditized. What does this mean for firms in the airline industry
such as Air Canada?
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. Airlines customers are easy to please due to a lack of options.
ANSWER: c
35. Marketing strategy is about people understanding and serving people.
a.True
b.False
a. True
b. False
ANSWER: True
36. 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
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
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
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
a. True
b. False
ANSWER: False
39. Discuss the implications of audience and media fragmentation for marketers and provide an example.
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 had been a favourite for marketing messages on broadcast networks. However,
today visual content is delivered via online streaming, as well as these traditional means.
These changes make it increasingly difficult for marketers to reach a true mass audience.
40. 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.
Copyright Cengage Learning. Powered by Cognero. Page 8
C. Ferrell
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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. 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
ANSWER: d
2. Changes in how consumers access information through technology allow for easier comparison
shopping and broader choices. This increase in information has affected the buyer-seller power dynamic.
Who now holds most of the power in today’s economy?
a. retailers
b. wholesalers
c. customers
d. manufacturers
ANSWER: c
3. Smartphone and mobile technology have reduced or replaced entire sections 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. Marketers no longer sell consumable and household goods.
c. The varieties of products available have decreased.
d. Efforts are now focused on targeting a true mass audience.
ANSWER: a
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. 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 favourably 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.
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.
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
b. Demand has increased for the direct-to-consumer streaming model on a global scale.
c. Fewer consumers demand delivery of prescriptions.
d. More consumers are shopping in traditional brick-and-mortar stores.
ANSWER: b
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
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
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.
ANSWER: d
10. What term is used to describe the ability of a product to satisfy a customer’s desires?
a. utility
b. exchange
c. strategy
d. market scanning
ANSWER: a
11. A customer’s decision to purchase one product or group of products over another is primarily a
function of which of the following?
a. the perceived value of the product by other customers
b. how well that choice will fulfill that person’s needs and satisfy their wants
c. how well the product is marketed
d. the product’s price
ANSWER: b
12. Madeline’s Steakhouse offers high-quality cuts of beef. What types of utility does this restaurant offer
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
with its superior meat?
a. time utility
b. place utility
c. possession utility
d. form utility
ANSWER: d
13. What is a product that provides the utmost in convenience said to offer?
a. time and place utility
b. time and possession utility
c. form and time utility
d. form and place utility
ANSWER: a
14. 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
15. 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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
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.
16. The term marketspace describes electronic marketplaces unbound by time or space.
a.True
b.False
a. True
b. False
ANSWER: True
17. Environmental scanning refers to the overall process of collecting and interpreting internal,
competitive, and environmental information.
a.True
b.False
a. True
b. False
ANSWER: False
18. 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
a. True
b. False
ANSWER: True
19. When marketers want to reach a true mass audience, they divide the market into homogenous groups
or segments.
a.True
b.False
a. True
b. False
ANSWER: False
20. Marketing implementation is known as the “how” of marketing planning.
a.True
b.False
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
21. 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
behaviour. 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
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.
22. Which of the following outlines the organization’s game plan for success?
a. market scan
b. market analysis
c. strategy
d. competitive intelligence
ANSWER: c
23. 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. situation planning
b. customer analysis
c. environmental planning
d. tactical planning
ANSWER: d
24. An automaker is working on plans to address the electric vehicle market to fulfill the needs of
customers in this market. What type of planning is this?
a. market planning
b. local planning
c. lower-level planning
d. tactical planning
ANSWER: d
25. 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. internal scanning
d. internal analysis
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
ANSWER: d
26. 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
ANSWER: c
27. Which two elements make up a marketing program?
a. product and target market
b. target market and marketing mix
c. market segment and market plan
d. marketing mix and promotion
ANSWER: b
28. 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. What is this segment called?
a. target market
b. competitive advantage
c. marketing channel
d. noncustomer
ANSWER: a
29. 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 is never connected to customer demand.
d. Pricing is the most difficult element of the marketing program to change.
ANSWER: b
30. 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?
a. market segmentation
b. product
c. promotion
d. place (distribution)
ANSWER: d
31. Run Athlete, a shoe company, attempts to differentiate its product offering by featuring its memory
foam cushions, which competitors do not have, on the product packaging. The company wants consumers
to think of comfort when they think of Run Athlete’s shoes. What does this refer to?
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
a. product positioning
b. target marketing
c. perceptual marketing
d. image marketing
ANSWER: a
32. What is the ultimate goal of marketing in the relationship marketing approach?
a. to make a profit
b. to develop long-term customer arrangements
c. to reduce costs associated with promotion
d. to acquire new customers and complete a large number of exchanges
ANSWER: b
33. Which of the following statements about marketing strategy is true?
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.
ANSWER: b
34. The airline industry has become commoditized. What does this mean for firms in the airline industry
such as Air Canada?
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. Airlines customers are easy to please due to a lack of options.
ANSWER: c
35. Marketing strategy is about people understanding and serving people.
a.True
b.False
a. True
b. False
ANSWER: True
36. 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
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 1 - Marketing in Today’s Economy
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
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
a. True
b. False
ANSWER: False
39. Discuss the implications of audience and media fragmentation for marketers and provide an example.
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 had been a favourite for marketing messages on broadcast networks. However,
today visual content is delivered via online streaming, as well as these traditional means.
These changes make it increasingly difficult for marketers to reach a true mass audience.
40. 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.
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