Question

Need help answering marketing questions.

Which statement best defines a market?

-   organizations with products that satisfy people’s needs and wants.

-   people with a need and a want for a product.

-   people with the desire and ability to buy a product.

-   People with the desire and the need for a product.

2. The Detroit Institute of Art (DIA) creates a series of ads featuring upcoming exhibits. Frank, after seeing the ads, spent several days at the DIA checking out these exhibits. Was this a marketing exchange:

-   no, because the DIA did not provide Frank with a product.

-   no, because the DIA is a non-profit organization.

-   yes, because the DIA admission fee was exchanged for a feeling of satisfaction.

-   yes, because the DIA paid for advertisements.

3. When a new Walmart opens in a small town it often results in the decline of small, local businesses. Local groups often protest but, before long, find themselves shopping at Walmart because Walmart:

-   benefits consumers through low prices and large assortment.

-   benefits local communities through social welfare programs.

-   makes life easier for the remaining businesses.

-   offers better quality products.

4. Which of the following is NOT true about marketing?

-   marketing adds value to the products and services you use and buy.

-   marketing helps to establish a price that is affordable to the customers while covering the costs of the features and benefits and providing a reasonable profit for the company.

-   marketing provides customers with choices.

-   the growth of the internet means that marketing will diminish in importance and impact as customers interact directly with the firms.

5. All are accurate descriptions of modern marketing today EXCEPT:

-   marketing is managing profitable customer relationships.

-   marketing is the creation of value for customers.

-   marketing is used by for-profit and not-for-profit organizations.

-   marketing today is synonymous with selling and advertising.

6. Which customer question is answered by a company’s value proposition?

-   “how does your brand benefit me and society?”

-   “what are the costs and benefits of your brand?”

-   “what kind of experience will I have with products and services associated with this brand?”

-   “why should I buy your brand rather than a competitor’s?”

7. Which statement reflects the marketing concept philosophy?

-   “we build them so you can buy them.”

-   “we don’t have a marketing department, we have a customer department.”

-   “we’re in the business of making and selling superior products.”

-   “when it’s profits versus customers’ needs, customers will always win out.”

8. Which statement is an example of consumer-generated marketing?

-   BMW’s use of brand-related consumer videos posted on video-sharing Web sites

-   Neiman Marcus’s InCircle Rewards program for its best customers

-   Nike’s Nike Plus running Web site

-   Toyota’s presence in online communities

9. Customer equity is:

-   a company policy of treating each customer with courtesy and having fair prices.

-   the percentage of customer transactions that are profitable during a calendar year.

-   the percentage of each customer’s purchases that are accounted for by our products.

-   the total combined customer lifetime values of all the company’s current and potential customers.

10. Which is correct about a company’s customer relationship groupings:

-   barnacles basically like our products, but they are cheap so they rarely purchase from us.

-   butterflies like our products, but they tend to shop around for the best deals in the market.

-   strangers don’t enroll in frequency/loyalty programs, but they are regular purchasers our products.

-   true friends really like a firm’s products, but they are high risk in that they aren’t loyal to any particular company.

11. Which is correct about the economic crisis that began in 2008?

-   decreasing energy prices provided consumers with unexpected savings.

-   disposable incomes decreased and so spending decreased.

-   the average home value increased after the stock market plunge.

-   the economic crisis caused a short-term change in consumers’ spending habits.

12. Which of the following statements about the Internet is most accurate?

-   companies are hesitant to use the Internet to build closer relationships with customers and marketing partners alike.

-   consumer e-commerce looks promising, but business-to-business e-commerce is declining.

-   the Internet allows anytime, anywhere connections to information, entertainment, and communication.

-   the Internet is still in its infancy with few consumers buying products and/or services online.

13. As part of the rapid globalization of today’s economy, companies are selling more locally produced goods in international markets and ________.

-   downplaying concerns for social responsibility in overseas markets

-   purchasing more supplies abroad

-   reducing competition within their industry

-   taking a local view of their industry

14. UPS provides many services beyond package delivery including insurance, supply chain management, e-commerce, and financing. In the process UPS is building:

-   exchange efficiency.

-   strategic alliances.

-   transactional support.

-   value chain efficiency.

15. Dunkin’ Donuts and Starbucks have transformed and led the branded coffee market by:

-   employing different but focused marketing strategies.

-   locating exclusively near college campuses and high-density downtown offices.

-   relying on quick responses to each others’ moves instead of working through detailed plans and strategies.

-   using fresher ingredients than competitors do.

Answer 1

Answer 1 : People with the desire and ability to buy a product

Note : Market can be defined as potential customers who has need and desire along with the buying ability for the product.

Answer 2 : No, because the DIA did not provide Frank with a product.

Note : Marketing exchange refers to providing a money, product or service in exchange for the work done while in this case such relationship does not exist.

Answer 3 : Benefits consumers through low prices and large assortment.

Note : Walmart is well know for providing a products at low cost as they buy in bulk from manufacturers.

Answer 4 : The growth of the internet means that marketing will diminish in importance and impact as customers interact directly with the firms.

Note : Due to growth of internet customers does not have to directly contact firm as the required information regarding the product or service are available online.

Answer 5 : Marketing today is synonymous with selling and advertising.

Note : Marketing is not only concerned with selling and advertisement of product but also with building a long term relationship with customers.

Answer 6 : “How does your brand benefit me and society?”

Note : Value preposition of the firm answers the questions regarding uniqueness of the business while telling the benefit of using the brand to society and consumers.

Answer 7 : “We don’t have a marketing department, we have a customer department.”

Note : This statement creates a trust while trying to understand consumer needs and wants so that the desired product can be designed.

Answer 8 : BMW’s use of brand-related consumer videos posted on video-sharing Web sites

Note : Using the consumer presence while marketing is beneficial for company's marketing strategy.

Answer 9 : The total combined customer lifetime values of all the company’s current and potential customers.

Note : The value created by the current and potential customers to the company is referred to as customer equity.

Answer 10 : Butterflies like our products, but they tend to shop around for the best deals in the market.

Note : This group is not a loyal customers they try to find the best deals in the market as they are referred to as the short term customers.

Answer 11 : The economic crisis caused a short-term change in consumers’ spending habits.

Note : Due to the unemployment, decreased income, less financial opportunity etc the buying habit of consumers changed for short period of time.

Answer 12 : The Internet allows anytime, anywhere connections to information, entertainment, and communication.

Note : Due to increased number of consumers preferring internet over traditional habits of buying products it is mostly used for searching information, entertainment and communication from anywhere.

Answer 13 : Purchasing more supplies abroad

Note : Due to globalization firms are going global where the products are sold in international markets and the supplies are purchased from there.

Answer 14 : Strategic alliances.

Note : By providing various services which fulfills the consumer needs, UPS is trying to corporate affiliate relationship with its partners, consumers and other organizations.

Answer 15 : Employing different but focused marketing strategies.

Note : Due to the different and focused marketing strategies these firms are gaining competitive advantage over others.