Chapter 01: Customer-Driven Strategic Marketing

Chapter 01: Customer-Driven Strategic Marketing

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Indicate whether the statement is true or false.

• Marketing consists primarily of selling and advertising.
• True
• False

• The broadest and simplest definition of marketing states that it is the development and efficient distribution of products

for consumer segments.

• True
• False

• Customers are the focal point of all marketing activities.
• True
• False

• A target market is a specific group of customers on whom an organization focuses its marketing efforts.
• True
• False

• Organizations have to define their products as what they make or produce.
• True
• False

• The marketing mix consists of three major variables: product, price, and distribution.
• True
• False

• In marketing, a product can be a good or a service but not an idea.
• True
• False

• Marketing efforts do not involve the design and development of products.
• True
• False

• Products can be goods, services, or ideas.
• True
• False

• Services are provided by applying human and mechanical efforts to people or objects to provide intangible benefits to

customer.

• True
• False

• A primary goal of marketing managers is to create and maintain the right mix of these variables to satisfy the

company’s needs for a general product type.(Foundations of Marketing, 9e William Pride, Ferrell) (Test Bank, Answer at the end of each Chapter) 1 / 4

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Chapter 01: Customer-Driven Strategic Marketing

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• True
• False

• Promotion can help sustain interest in established products that have long been available.
• True
• False

• The distribution variable in a marketing mix is directed toward making products available in the quantities desired to

as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible.

• True
• False

• Customers are interested in a product's price because they are concerned about the value obtained in an exchange.
• True
• False

• Price is seldom used as a competitive tool.
• True
• False

• For an exchange to occur, at least one of the parties must be willing to give up his or her "something of value."
• True
• False

• The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment.
• True
• False

• Changes in the marketing environment always hurt marketing efforts.
• True
• False

• The marketing environment is a set of static, unchanging surroundings.
• True
• False

• The marketing concept stresses that a business organization can best achieve its goals by providing customer

satisfaction through coordinated activities.

• True
• False

• Achievement of the firm's overall goals is part of the marketing concept.
• True
• False

• / 4

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• The marketing concept is a philosophy that a business organization should employ to satisfy customers' needs while

achieving the overall goals of the organization.

• True
• False

• The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business

organization.

• True
• False

• The marketing concept is a management philosophy, not a second definition of marketing.
• True
• False

• Profit, even at the expense of customers' satisfaction, is the major thrust of the marketing concept.
• True
• False

• The marketing concept directly affects marketing activities but should have negligible impact on other organizational

activities.

• True
• False

• The marketing concept stresses that an organization can best achieve its objectives by being customer-oriented.
• True
• False

• The marketing concept developed out of a sequence of three eras: the production orientation, the market orientation,

and the industrial orientation.

• True
• False

• During the market orientation, businesspeople realized that if they could produce products efficiently, customers

would buy them.

• True
• False

• During the market orientation, businesspeople realized that products, which by this time could be made relatively

efficiently, would have to be promoted through much personal selling and advertising.

• True
• False

• A market orientation requires the organizationwide generation of market intelligence pertaining to current and future

customer needs, dissemination of the intelligence across departments, and organizationwide responsiveness to it.

• True
• False

• / 4

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• To implement the marketing concept, an organization must first establish an information system to discover

customers' real needs and then use the information to create products to satisfy those needs.

• True
• False

• To satisfy customers' objectives as well as its own, a company must coordinate all its activities.
• True
• False

• At the most basic level, profits can be obtained through relationships by acquiring new customers, enhancing the

profitability of existing customers, and extending the duration of customer relationships.

• True
• False

• Customer relationship management is the use of information about customers to create marketing strategies that

develop and sustain desirable customer relationships.

• True
• False

• Value = customer costs − customer benefits.
• True
• False

• Basic and extended warranties can reduce risk, a major customer cost.
• True
• False

• Customer benefits include time and effort.
• True
• False

• The process people use to determine the value of a product is not highly scientific.
• True
• False

• Marketing costs consume about one-quarter of a buyer's dollar.
• True
• False

• Marketing costs consume about one-half of a buyer's dollar.
• True
• False

• For a business organization to remain healthy and to survive, it must sell products and make profits.
• True
• False
• / 4