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MKTG 2, Second Canadian Edition Test Bank

MKTG 2, Second Canadian Edition Test Bank simplifies tough topics and provides all the necessary study resources for a stress-free exam.

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MKTG 2, Second Canadian Edition Test Bank - Page 1 preview imageNETAASSESSMENTTest Bankto accompanySecond Canadian Edition Test Bank prepared byBeth PettNiagara College
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MKTG 2, Second Canadian Edition Test Bank - Page 2 preview image
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MKTG 2, Second Canadian Edition Test Bank - Page 3 preview imageiiiTable of ContentsPART 1–Marketing—Let’s Get Started1. An Overview of Marketing .................................................................................................... 1-12. The Marketing Environment, Social Responsibility, and Ethics ........................................... 2-13. Strategic Planning for Competitive Advantage...................................................................... 3-1PART 2–Analyzing Marketing Opportunities4. Decision Support Systems and Market Research .................................................................. 4-15. Consumer Decision Making .................................................................................................. 5-16. Business Marketing ............................................................................................................... 6-17. Segmenting, Targeting, and Positioning ............................................................................... 7-18. Customer Relationship Management (CRM)......................................................................... 8-1PART 3–Product Decisions9. Product Concepts ................................................................................................................... 9-110. Developing and Managing Products .................................................................................. 10-111. Services and Nonprofit Organization Marketing ............................................................... 11-1PART 4–Distribution Decisions12. Marketing Channels and Supply Chain Management........................................................ 12-113. Retailing............................................................................................................................. 13-1PART 5–Promotion Decisions14. Integrated Marketing Communications ............................................................................. 14-115. Advertising, Public Relations, and Direct Response ......................................................... 15-116. Social Media and Marketing .............................................................................................. 16-117. Sales Promotion and Personal Selling ............................................................................... 17-1PART 6–Pricing Decisions18. Pricing Concepts ................................................................................................................ 18-119. Setting the Right Price ...................................................................................................... 19-1PART 7–Global Marketing20. Developing a Global Vision............................................................................................... 20-1
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MKTG 2, Second Canadian Edition Test Bank - Page 4 preview image1-1Chapter 1—An Overview of MarketingMULTIPLE CHOICE1.What does the term marketing refer to?a.new product concepts and improvementsb.sellingc.advertising and promotion activitiesd.a philosophy that stresses customer satisfactionANS:DPTS:1REF:3OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model StrategyBLM: Remember2.A business is concerned with many day-to-day activities. Some of the most important of theseactivities are the planning and development of a product, its pricing policy, and thedistribution strategy. What are all these activities part of?a.a control systemb.marketingc.accountingd.productionANS:BThis 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:1REF:3OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E ModelDistributionBLM: Higher Order3.Which of the following is a philosophy, an attitude, a perspective, or a managementorientation that stresses customer satisfaction?a.planning strategyb.customer managementc.marketingd.reciprocityANS:CPTS:1REF:3OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Remember4.Which of the following best characterizes marketing?a.promotional activities.b.personal selling.c.advertising.d.customer satisfaction.ANS:DPTS:1REF:3OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Remember
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MKTG 2, Second Canadian Edition Test Bank - Page 5 preview imageChapter 1–An Overview of Marketing1-25.Which of the following is a key ingredient in the philosophy of marketing that occurs whenpeople give up something in order to receive something that they would rather have?a.exchangeb.synergyc.leveraged.reciprocityANS:APTS:1REF:3-4OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Remember6.What must happen in order for exchange to occur?a.Organized marketing activities must also take place.b.A profit-oriented organization must be involved in the process.c.Money or other legal tender is required.d.Each party must have something the other party considers to be valuable.ANS:DExchange involves the trade of items of value, but does not necessarily involve formalorganizations, profit, or money/legal tender.PTS:1REF:4OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Higher Order7.A problem facing the timber industry is the absence of any effective way to prove thatrainforest timber was legally harvested. In places like Indonesia, as much as 80 percent oftimber available for sale was illegally cut. Companies such as The Home Depot do not want tosell timber from illegally logged forests even though the demand is great for timber fromrainforests. Which of the following conditions required for an exchange to occur is missingwhen a company tries to sell illegally acquired logs to The Home Depot?a.There are more than two parties involved.b.Each party has something of value to bring to the exchange.c.One party is free to accept the exchange offer.d.Each party believes it is appropriate to deal with the other party.ANS:DFor an exchange to occur, two or more parties must be involved. Both parties are free toaccept or reject the exchange. If The Home Depot believes the timber was illegally obtained,then it will not want to deal with the loggers.PTS:1REF:4OBJ:01-1TOP:AACSB Ethics| TB&E Model ProductBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 6 preview imageChapter 1–An Overview of Marketing1-38.Why is the concept of exchange important to marketing?a.Money is the only medium of exchange for business marketers.b.Exchange provides money to marketers.c.Marketing activities help to create exchange.d.Marketing activities are a requirement for exchange to take place.ANS:CMarketing activities help the exchange to take place, but marketing can occur without anexchange.PTS:1REF:4OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Higher Order9.Domino’s Pizza is offering racing fans a chance to earn points toward NASCAR-brandedmerchandise via the NASCAR RacePoints loyalty program. Consumers who buy $20 worth ofDomino’s Pizza will receive 100 NASCAR RacePoints. NASCAR RacePoints will becredited to members’ accounts. Racing fans can collect points to earn NASCAR merchandise,including apparel and hats or one-of-a-kind experiences, such as driving a real race car. Whatwill occur when a NASCAR fan trades in his or her points for a mug autographed by afavourite driver?a.synergyb.sublimationc.exchanged.reciprocityANS:CFor an exchange to occur, two or more parties must be involved. Both parties are free toaccept or reject the exchange. Furthermore, each party must have something that is of value tothe other party. In this case, the value for Domino’s is customer loyalty.PTS:1REF:4OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model CustomerBLM: Higher Order10.What must occur for an exchange to take place?a.There must be at least two parties involved.b.Money must be used in the transaction.c.Each party must feel obligated to accept the offer.d.At least one party must have something of value that the other party desires.ANS:APTS:1REF:4OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model CustomerBLM: Remember
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MKTG 2, Second Canadian Edition Test Bank - Page 7 preview imageChapter 1–An Overview of Marketing1-411.For many years, Procter & Gamble (P&G) viewed its Ivory soap as just plain old soap—andnot as a cleansing product that could provide other benefits as well. When it came to Ivorysoap, P&G focused on how well it made the soap and not on what customers wanted from abar of soap. What type of orientation did the company have?a.salesb.productionc.marketd.customerANS:BThe production orientation forces a company to build whatever it builds best; that is, whateverit has the experience and expertise in doing.PTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model DistributionBLM: Higher Order12.Andi Littleton has inherited a Featherlite brand horse trailer from her recently deceasedgrandfather. A preliminary investigation has shown many people would be interested inowning a Featherlite brand horse trailer. She is considering placing an advertisement in anewspaper targeted to horse owners. She has been told similar horse trailers are selling forabout $14,000. Which of the following conditions is necessary for an exchange to occurbetween Littleton and a buyer?a.Her trailer should carry a low price.b.The trailer should be on display somewhere that people will see it.c.She needs to practise negotiating.d.Littleton and her buyer must be able to walk away from the deal if desired.ANS:DFor an exchange to take place, each party must have something the other values; the partiesmust be able to communicate; each party must believe that it is appropriate to deal with theother; and each party must be free to accept or reject the exchange offer.PTS:1REF:4OBJ:01-1TOP:AACSB Analytic| TB&E Model Product| TB&E Model CustomerBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 8 preview imageChapter 1–An Overview of Marketing1-513.To increase interest in rodeos, the local chapter of the National Rodeo Cowboys Association(NRCA) is offering free roping lessons to students in grades 6 and 7. Which of the followingbest describes an exchange?a.Students and their parents can decide for themselves if the lessons have any value.b.The students want to take the lessons but are unaware that they are being offeredfor free.c.The parents of the students are unsure whether the NRCA is a legitimateorganization.d.Both the NRCA and the students taking the lessons will trade something of value.ANS:DIf the course has no value, then an exchange cannot occur. Without communication, theexchange of knowledge for time and energy cannot occur. In an exchange, each participanthas something of value to the other. For an exchange to occur, each party must believe it isdesirable.PTS:1REF:4OBJ:01-1TOP:AACSB Reflective Thinking| TB&E Model StrategyBLM: Higher Order14.Which of the following is a marketing management philosophy?a.sales promotion orientationb.societal change orientationc.market orientationd.profitability orientationANS:CPTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model StrategyBLM: Remember15.Indonesian logging companies harvest rainforests for timber and assume that a market existsfor their products. Which type of orientation does the typical Indonesian logging companyhave?a.exchangeb.environmentalc.productiond.salesANS:CThe logging companies do not focus on the needs and desires of the marketplace.PTS:1REF:4-5OBJ:01-2TOP:AACSB Ethics| TB&E Model ProductBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 9 preview imageChapter 1–An Overview of Marketing1-616.What type of orientation do firms have when they focus on the internal capabilities of thefirm, rather than on the desires and needs of the marketplace?a.salesb.productionc.marketd.customerANS:BPTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Remember17.What type of orientation does a company have when it sets its goals and strategies based onwhat its current equipment can produce, what products engineering can design, and what thecompany itself can do best?a.marketplaceb.salesc.productiond.exchangeANS:CPTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model ProductBLM: Remember18.Researchers at PPG Industries spent considerable time, effort, and money developing a bluishwindshield that would let in filtered sunlight but block out the heat. Little market research wasdone, but the scientists were convinced this new product would be significantly better thanexisting windshields, even though it was more expensive and of a different colour than thecurrent models on the market. This scenario suggests PPG most likely has which type oforientation?a.exchangeb.productionc.salesd.customerANS:BThe questions researchers apparently asked before developing their windshield were, “Whatcan we do best?” and “What can we make with the equipment we already own?” This is aproduction orientation.PTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model ResearchBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 10 preview imageChapter 1–An Overview of Marketing1-719.When is a firm with a production orientation most likely to survive?a.if there are many small competitors in the marketplaceb.if demand for the product it produces exceeds supplyc.if the needs of the marketplace are constantly shiftingd.if supply for the product it produces exceeds demandANS:BThe production orientation can survive in the short term under a variety of conditions;however, if market needs change, long-term survival is difficult.PTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model StrategyBLM: Higher Order20.What type of orientation to marketing does a firm have if it fails to consider whether what thefirm - manufactures most efficiently also meets the needs of the marketplace?a.customerb.productc.marketd.productionANS:DThe production orientation forces a company to build whatever it builds best; that is, whateverit has the experience and expertise in doing.PTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model CustomerBLM: Higher Order21.Mimi Couturier’s fashion designers use computer-assisted design software to create what itthinks women should wear. The company regularly hires industry experts to examine itsfactories to find waste and inefficiencies that can be eliminated. The company has expandedthe number of products it offers for sale many times. However, for the last two years MimiCouturier has lost money, and it has had to lay off some of its workforce. To avoid thisoccurrence in the future, what should the company do?a.hire more retail efficiency experts to trace down any production problemsb.increase its sales force to find more potential customers for the firmc.have someone study its target market to see what needs and wants should be metby Mimi Couturierd.cut prices so that its prices will be at least 10 percent below those of itscompetitorsANS:CMimi Couturier has been production oriented. It should develop a market orientation, whichmeans the firm will produce only those items needed by its target market.PTS:1REF:4-5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model Customer| TB&E Model ProductBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 11 preview imageChapter 1–An Overview of Marketing1-822.Organizations that sell products that are often unsought (such as life insurance and retirementplans) may find themselves adopting which type of orientation?a.salesb.productionc.marketingd.customerANS:AAggressive selling is sometimes used by companies that sell products their customers do notwant to buy, or do not think they need.PTS:1REF:5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model PromotionBLM: Higher Order23.For years, Richard Branson, founder of the Virgin Group has believed in customer service.He believes that good customer service stems from an environment that is founded on “achain, one that is consistent from beginning to end? ” Which idea has- Virgin Groupcaptured in this short phrase?a.the societal conceptb.Maslow’s hierarchy of needsc.the marketing conceptd.the sales orientation philosophyANS:CThe marketing concept justifies a company’s existence by its ability to satisfy customers.PTS:1REF:8OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model PromotionBLM: Higher Order24.Which orientation assumes people will buy more if aggressive selling techniques are used?a.marketb.salesc.customerd.productionANS:BThe sales orientation assumes aggressive selling is needed to increase demand.PTS:1REF:5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model PricingBLM: Remember
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MKTG 2, Second Canadian Edition Test Bank - Page 12 preview imageChapter 1–An Overview of Marketing1-925.Innovative Silversmiths creates and markets silver and turquoise jewellery, which it sells toretailers. The company’s management believes its retail customers will stock more jewelleryif its salespeople use aggressive marketing techniques. Which type of orientation does thecompany have?a.customerb.productionc.salesd.marketANS:COnly the sales orientation assumes aggressive sales techniques will sell more product,regardless of customer desires and needs.PTS:1REF:5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model CustomerBLM: Remember26.If a company uses a sales orientation, what would consumer complaints most likely result in?a.a modification of the sales presentationb.product reinventionc.continuous market researchd.attempts to cut production costsANS:AThe sales orientation relies on aggressive sales techniques to fuel business.PTS:1REF:5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model StrategyBLM: Higher Order27.Which of the following is done by a company that has a market orientation and adheres to themarketing concept?a.integrates all the activities of the firm to satisfy customer wantsb.focuses on company needs and wantsc.differentiates the firm’s products from its other productsd.fuels sales growth through the application of aggressive sales techniquesANS:AAggressive sales techniques are part of the sales orientation and are not needed if a companyis meeting needs and wants of its customers.PTS:1REF:5-6OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model ProductBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 13 preview imageChapter 1–An Overview of Marketing1-1028.Which of the following statements best describes a sales-oriented business?a.The company develops its products to meet the needs of specific groups of people.b.The company’s primary goal is profit through customer satisfaction.c.The company invests the majority of its resources in promoting its products andservices.d.The company is in business to satisfy customers’ wants and needs and deliversuperior value.ANS:CSee Review Learning Outcome 3.PTS:1REF:7OBJ:01-3TOP:AACSB Analytic| TB&E Model CustomerBLM: Higher Order29.One way to identify the orientation of a firm is to examine its primary goal. What type ofmarketing management philosophy does a firm practice that seeks to achieve profitabilitythrough sales volume?a.societal marketing orientationb.market orientationc.sales orientationd.production orientationANS:CPTS:1REF:4-6OBJ:01-3TOP:AACSB Reflective Thinking| TB&E Model StrategyBLM: Higher Order30.Canon Computer Products has improved the efficiency and productivity of its plant, whichmanufactures printing technology. For the new fiscal year, the company projects a productionincrease of 25 percent, and has instructed its sales force to aggressively distribute the product.What type of marketing management philosophy is Canon practicing?a.sales orientationb.production orientationc.market orientationd.societal marketing orientationANS:BCanon has a sales orientation.PTS:1REF:4-6OBJ:01-3TOP:AACSB Reflective Thinking| TB&E Model PromotionBLM: Higher OrderJacques Torres Chocolate is a factory and retail store. Its owner is willing to try to producenew products when his customers suggest them—such as chili-pepper-laced chocolate candy.His only condition is that when he adds new products, his customers have the final say onwhether the product is of any value. According to Torres, “If something doesn’t move, that’sthe last time you see it.”
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MKTG 2, Second Canadian Edition Test Bank - Page 14 preview imageChapter 1–An Overview of Marketing1-1131.How does Jacques Torres Chocolate keep its customers coming back?a.directs its chocolates to the “average customer”b.seeks its goals primarily through the use of intensive promotionc.has an inward focus on the organization’s needsd.profits through customer satisfactionANS:DJacques Torres Chocolate has a market orientation.PTS:1REF:8OBJ:01-3TOP:AACSB Reflective Thinking| TB&E Model CustomerBLM: Higher Order32.The manufacturer of Country Kitchen Art bowls, spoons, and cutting boards knows marketingcan make his company a success. He wants to rely solely on promotion as the technique forattracting customers. He advertises extensively in cooking magazines, offers coupons, andprovides retailers who carry his product with attractive displays. From this information, whatsort of orientation does Country Kitchen Art have?a.marketb.societalc.productiond.salesANS:DA sales-oriented organization views promotions as the primary tool used to achieve its goals.PTS:1REF:5OBJ:01-3TOP:AACSB Reflective Thinking| TB&E Model PromotionBLM: Higher Order33.Canon Computer Products has improved the efficiency and productivity of its plant, whichmanufactures printing technology. For the new fiscal year, the company projects a productionincrease of 25 percent. It has instructed its sales force to aggressively distribute and promoteits printers. The CEO is sure the market will absorb more product if the sales force isdetermined and assertive. What sort of orientation does Canon appear to have?a.marketb.productionc.salesd.customerANS:CA sales orientation is based on the belief that people will buy more goods and services ifaggressive sales techniques are used.PTS:1REF:5OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model ProductBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 15 preview imageChapter 1–An Overview of Marketing1-1234.When light bulbs were first introduced, manufacturers offered one size for all light fixtures.Today you can buy light bulbs in different shapes, wattages, and colours. Light bulbs alsodiffer as to how much electricity they use and how many hours of illumination they willprovide before failing. Which of the following demonstrates how light bulb manufacturerspractice the marketing concept?a.They target only the largest customers.b.They recognize different customer groups have different needs and wants.c.They are sales-oriented companies instead of production-oriented companies.d.They are companies that would state they are in the business of selling all lightbulbs.ANS:BOne way to implement the marketing concept is to concentrate on the needs of specific groupsof customers.PTS:1REF:5-6OBJ:01-3TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Higher Order35.Lululemonhas become one of the nation’s largest specialty retailers by focusing on thecustomer’s needs and wants. This philosophy is at the heart of which type of orientation?a.salesb.marketc.retaild.productionANS:BA market-oriented philosophy is based on the consumer’s wants and needs, and theorganization will focus its activities on satisfying these customers by listening to them andrevising strategies as necessary.PTS:1REF:5-6OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model StrategyBLM: Higher Order36.As it evolves from a credit-card company to one with greater emphasis on electronicpayments, Visa is launching its first major rebranding campaign in 20 years. The company’snew promotional slogan is “Life Takes Visa.” Through the use of this slogan, Visa shows howmuch it wants to become an integral part of its customers’ everyday lives. Which type oforientation is Visa using?a.marketb.salesc.productd.societalANS:AA market-oriented philosophy is based on consumers’wants and needs, and the organizationwill focus its activities on satisfying these customers by listening to them and revisingstrategies as necessary.PTS:1REF:5-6OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model PromotionBLM: Higher Order
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MKTG 2, Second Canadian Edition Test Bank - Page 16 preview imageChapter 1–An Overview of Marketing1-1337.What do companies that rely on the marketing concept and that have implemented a marketorientation strategy recognize?a.Price is the most important variable for customers.b.Sales depend predominantly on an aggressive sales force.c.What the customer thinks he or she is buying is what is important.d.Selling and marketing are essentially the same thing.ANS:CThe perceived product and perceived value are what the customer is buying, and themarketing concept and market orientation have endeavoured to understand those perceptions.PTS:1REF:5-6OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model CustomerBLM: Higher Order38.The statement “Marketing should be introduced at the beginning rather than the end of theproduction cycle and integrated into each phase of the business,” is consistent with which typeof orientation?a.productionb.marketc.retaild.salesANS:BUnderstanding the competitive arena and competitors’strengths and weaknesses is a criticalcomponent of market orientation.PTS:1REF:5-6OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model ProductBLM: Higher Order39.Minor League Baseball suffers from sluggish attendance. To attract more fans to their games,owners often resort to gimmicks—free hot dog nights, events designed to get into theGuinness Book of Records, and celebrity visits. Salesmen for the teams and sports storeowners try to push the sales of tickets onto local softball teams, what type of marketingmanagement philosophy are they practicing?a.sales orientationb.market orientationc.production orientationd.societal marketing orientationANS:AThe marketing concept and a market-oriented philosophy is based on the consumer’s wantsand needs, and the organization will focus its activities on satisfying these customers bylistening to them and revising strategies as necessary. They are not doing this rather they arepushing the tickets onto customers which is a sales orientation.PTS:1REF:4-6OBJ:01-2TOP:AACSB Reflective Thinking| TB&E Model Customer| TB&E Model ProductBLM: Higher Order
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MKTG 2 by Joel R. Evans, Barry R. B...

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