Take the quiz test your understanding of the key concepts covered in the chapter. Try testing yourself before you read the chapter to see where your strengths and weaknesses are, then test yourself again once you’ve read the chapter to see how well you’ve understood.
1. Advertising and marketing are the same thing. True or false?
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2. The American Marketing Association’s definition of marketing is; ‘Marketing is the set of activities which lead to profitable exchanges which add value to the seller’s business’. True or false?
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3. A company which invests most of its budget into sales training and support of their sales teams, is likely to have a market orientation. True or false?
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4. Transactional marketing is more concerned with making the immediate sale than with building relationships. True or false?
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5. Regular customers are all brand loyal. True or false?
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6. Define the term ‘market’.
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c. a place where buyers and sellers meet
7. How might you categorise the market for office photocopiers?
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8. What is the difference between the term ‘customer’ and the term ‘consumer’?
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c. Customers buy products but it is consumers who use them.
9. In what way does an organisation’s ‘strategic orientation’ affect the way it operates?
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a. It guides the organisation’s marketing activities and strategy.
10. Which form of strategic orientation focuses on customers and competition?
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e. market orientation
11. Why is marketing important in a demand-driven economy?
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d. All of the above.
12. It is often said that marketing is about managing the exchange process. In an exchange one person or organisation gives up something of value (e.g. a product) in return for something else of value (e.g. money). If an exchange is based on good marketing principles, who benefits most and how?
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d. It is a fair exchange that makes both seller and buyer happy.
13. It is generally recognised that one of the best ways to get an advertising message across is through word of mouth, that is, getting people to pass on the message to friends and family. Why is this such a successful way to get messages heard?
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b. The message reaches lots of people fast and is more likely to be believed.
14. Many consumers now ask other consumers for advice on products rather than consulting manufacturers or retailers. What makes it easier for them to do this?
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e. Social networking sites, blogs and online reviews have made it easier and cheaper for consumers to self-publish and communicate.
15. How is a ‘supply-led’ market characterised?
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b. There is a shortage of goods for sale.
16. What is ‘marketing communications’ an alternative term for?
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17. What is the point where the supply curve and the demand curve cross called?
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b. equilibrium point
18. What is the term for a market in which products are sold to organisations who will use them to make other products? For example, flour may be sold to a bakery which uses it to bake cakes.
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d. industrial market
19. What are brand ambassadors?
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c. individuals who feel strongly about a brand and recommend it highly to other people
20. In a competitive market it is important to retain customers, keep them happy and increase the value of their orders. One of the techniques that has evolved to assist with this is called:
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d. customer relationship management
21. A retailer who has both an online and high street presence (e.g. John Lewis, Top Shop) is sometimes referred to as bricks and ______.
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22. In the twentieth century, many organisations moved from a product focus to a ______ focus.
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23. Peter Drucker, a world renowned marketer, once famously said, ‘The aim of marketing is to make ______ superfluous’
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24. Market ______ is vital in understanding customer needs and how to design products and services to meet those needs.
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25. It is often said that 20 per cent of a firm’s customers generate ______ of its profits (the Pareto principle).
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