PrinciplesofMarketing Ch1 TB
PrinciplesofMarketing Ch1 TB
PrinciplesofMarketing Ch1 TB
Principles of Marketing
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Principles of Marketing
Chapter 1
Test Bank Questions
Marketing and Customer Value
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Principles of Marketing
7. There are five steps in the marketing process. The first step is to understand the
marketplace and customers. Ultimately, the goal and final step is to capture value (sales)
from customers. What are the three steps in between?
A. Develop a marketing strategy, deliver value, and grow profitable customer relations*
B. Develop profitable customer relations, deliver value, and develop a marketing strategy
C. Deliver customer value, develop a marketing strategy, and develop profitable customer
relations
D. Deliver a marketing strategy, deliver profitable customer relations, and deliver customer
value
Solution: A. The steps in the marketing process are: 1. Understand the marketplace and
customers, 2. Develop a customer-driver marketing strategy, 3. Deliver high customer value, 4.
Grow profitable customer relations, and 5. Capture value from customers.
Section 1.1 LO3 Difficult 4-5 minutes
8. Heather is a brand manager. She is working with the marketing department on a promotion
strategy because she is concerned about the message her brand is communicating. In
addition to advertising, sales promotion, and public relations, what other promotion tool
could Heather use convey her brand’s message?
A. Packaging
B. Product labels
C. Social media*
D. Partnerships
Solution: C. Brand messages are conveyed across the online spectrum, including accounts on
Instagram, YouTube, Facebook, and Twitter.
Section 1.2 LO1 Easy 1-2 minutes
9. One of the primary avenues of advertising is digital/online. Which of the following is NOT an
internet advertising option?
A. Search engine marketing
B. Email marketing
C. Social media ads
D. Trade show marketing*
Solution: D. Trade shows are held in person at a site such an exhibition hall.
Section 1.2 LO2 Easy 1-2 minutes
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10. Elaine decides to lower her prices during the holiday season to entice shoppers to buy up
remaining inventory. What other P should likely be adjusted to ensure consumers are aware
of the price adjustment?
A. Place
B. Product
C. Position
D. Promotion*
Solution: D. It doesn’t do Elaine any good to drop the price if her customers aren’t aware of it.
She must also promote the price drop in messages, especially advertising.
Section 1.2 LO2 Moderate 3-4 minutes
11. One of the most difficult components in marketing activities is the lack of control over
certain factors or forces in the environment. Which of the following is one of these factors?
A. Fiscal policy*
B. Organizational culture
C. Corporate decisions
D. Staffing choices
Solution: A. Some factors—internal factors—are within the control of the organization. Other
factors—external factors—are outside the control of the organization and can include
political, economic, social, technological, legal, and environmental factors.
Section 1.3 LO1 Easy 1-2 minutes
12. The marketing environment is complicated. Internally, there is an atmosphere that
marketers must take into consideration. One of these internal factors is culture. Another,
which refers to a company’s assets, is a model that helps define the elements of marketing
strategy. This model is called _______.
A. the marketing mix
B. the 5M framework*
C. the 3M framework
D. Maslow’s hierarchy of needs
Solution: B. The 5M framework refers to internal considerations of minds, minutes, machinery,
materials, and money.
Section 1.3 LO2 Moderate 3-4 minutes
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Principles of Marketing
13. There are tangible ways that company culture can positively impact marketing efforts.
Which of the following positively impacts marketing efforts?
A. Straying from core values
B. Empowering employees*
C. Discounting merchandise
D. Offering free parking to customers
Solution: B. Empowering employees to do “whatever it takes” to provide a good customer
service experience is a tangible way for a company’s organizational culture to positively
impact marketing efforts.
Section 1.3 LO3 Moderate 3-4 minutes
14. Sebastian is having difficulties coordinating the timing of his marketing messages and
getting products on retail shelves. Of the microenvironmental forces closest to his company,
which one is Sebastian focusing on right now?
A. Customers
B. Competitors
C. Intermediaries*
D. General public
Solution: C. Intermediaries include retailers and wholesalers who make the right product
available at the right time at the right price to the right market.
Section 1.3 LO4 Easy 1-2 minutes
15. Trade policies are part of a business’s macroenvironment. When China interferes with the
United States’ intention to trade with Taiwan, it is part of which macroenvironmental
factor?
A. Legal
B. Natural
C. Social
D. Political*
Solution: D. Trade restrictions, political stability, fiscal policies, and business policies are part of
the political climate in this case.
Section 1.3 LO4 Easy 1-2 minutes
16. Marketing practices have evolved over time. Which one of the following concepts began the
notion of relationship marketing?
A. The product concept
B. The production concept
C. The marketing concept*
D. The societal concept
Solution: C. The marketing concept was also the start of relationship marketing— fostering
long-term relationships with customers in order to ensure repeat sales and achieve stable
relationships and reduced costs.
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20. Toby has just purchased a subscription to SalesForce because he wants to manage customer
relationships (CRM) more scientifically and profitably. What is the essential component that
Toby is seeking from SalesForce?
A. Toby needs a system to collect information about customers.
B. Toby needs a system to facilitate payments between his company and his customers.
C. Toby needs a system for collecting and analyzing customer data to gain insights.*
D. Toby needs a system for tracking the psychological motivations of customers.
Solution: C. CRM software systems track and work with data about customers. Toby can work
with this data to analyze data and gain insights about customers and their behavior.
Section 1.6 LO1 Moderate 3-4 minutes
21. Customer loyalty and retention refer to a company’s ability to engage new and existing
customers in an ongoing, positive relationship. Which of the following is one of the ways
customer relationship management (CRM) software facilitates loyalty and retention?
A. It points out competitors’ loyalty programs.
B. It utilizes one-way communication.
C. It reduces automation.
D. It results in greater customer equity.*
Solution: D. CRM paves the way for open, honest dialogue that can ultimately lead to benefits
to customers, thus resulting in higher customer equity.
Section 1.6 LO2 Moderate 3-4 minutes
22. Ethical marketing not only requires marketers to consider how the introduction of new
products will benefit society but also promotes _______.
A. transparency with competitors
B. fairness, honesty, and sense of responsibility*
C. automated communications with customers
D. attempting to adhere to norms, standards, rules, and regulations
Solution: B. Ethical marketing is a philosophy that promotes fairness, honesty, and a sense of
responsibility in all the marketing done by the company.
Section 1.7 LO1 Moderate 3-4 minutes
23. According to Lapaas Digital of New Delhi, India, the most important principle of ethical
marketing is _______.
A. the privacy of the end consumer*
B. the profitability of the campaign
C. using the same language as the consumer
D. utilizing digital channels to communicate with channel members
Solution: A. Maintaining the privacy of the end user is most important in following the
principles of ethical marketing.
Section 1.7 LO2 Moderate 3-4 minutes
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