Explain the evolution of marketing concepts and discuss the recent expected concepts.

The evolution of marketing concepts are production concept, product concept, selling concept, marketing concept and
societal concept.

Production concept is the idea that consumers will favor products that are available or highly affordable.

Product concept is the idea that consumers will favor products that offer the most quality, performance and features.
Organization should therefore devote its energy to making continuous product improvements.

Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale
selling and promotion effort.

Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target
markets and delivering the desired satisfactions better than competitors do.

Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’
wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests.

Evolution of Marketing Concept

Production Product Selling Marketing Societal

Concept Concept Concept Concept Concept

The Recent Customer Expected Concepts

Fix it, Improve it, Make changes

Ask customers if they like the Sell the improved product

new product

Assess progress (It is selling)

How do the buyer’s characteristics - cultural, social, personal and psychological – influence buying behavior?

Factors Influencing Consumer Behavior

Cultural Factors

Culture is the learned values, perceptions, wants and behavior from family and other important institutions.
Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations.
Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests and
behaviors. Measured by a combination of occupation, income, education, wealth and other variables.

Social Factors

Groups and Social Networks consists of the following:

Membership Groups – Groups with direct influence and to which a person belongs
Aspirational Groups – Groups an individual wishes to belong to
Reference Groups – Groups that form a comparison or reference in forming attitudes or behavior
Social Networks are online communities where people socialize or exchange information and opinions (include blogs, social
networking sites <facebook>)
Family is the most important consumer-buying organization in society
The groups, family, clubs and organizations that a person belongs to define his/her social role and status.

Personal Factors

Age and life-cycle stage

• Youth : younger than 18
• Getting started : 18 – 35
• Builders : 35 – 50
• Accumulators : 50 – 60
• Preservers : over 60
Occupation affects the goods and services bought by consumers
Economic situation includes trends in: personal income, savings and interest rates.
Lifestyle is a person’s pattern of living as expressed in his or her psychographics.
Personality and self-concept – Personality refers to the unique psychological characteristics that lead to consistent and lasting
responses to the consumer’s environment.

Psychological Factors

Motivation – A motive is a need that is sufficiently pressing to direct the person to seek satisfaction.
Perception is the process by which people select, organize and interpret information to form a meaningful picture of the world
from three perceptual process (Selective attention, Selective distortion and Selective retention)
Learning is the change in an individual’s behavior arising from experience and occurs through interplay of Drives, Stimuli, Cues,
Responses and Reinforcement.
Belief is a descriptive thought that a person has about something based on: Knowledge, Opinion and Faith.
Attitudes describe a person’s relatively consistent evaluations, feelings and tendencies toward an object or idea.
 Buyer Decision Making Process

Need recognition occurs when the buyer recognizes a problem or need triggered by: internal stimuli and external stimuli.
Information search will involve the following sources of information.
• Personal sources – family and friends
• Commercial sources – advertising, Internet
• Public sources – mass media, consumer organizations
• Experiential sources – handling, examining, using the product
Evaluation of Alternatives – How the consumer processes information to arrive at brand choices.
Purchase decision
• The act by the consumer to buy the most preferred brand
• The purchase decision can be affected by:
▪ Attitudes of others
▪ Unexpected situational factors
Post Purchase Decision
• The satisfaction or dissatisfaction that the consumer feels about the purchase
• Relationship between consumer’s expectations & product’s perceived performance
• The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction.
• Cognitive dissonance is the discomfort caused by a post-purchase conflict.
Customer satisfaction is a key to building profitable relationship with consumers to keeping and growing consumers and reaping
their customer lifetime value.
The buyer decision process for new products
Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use.
Stage in the process include
Awareness – The consumer becomes aware of the new product but lacks information about it.
Interest – The consumer seeks information about the new product.
Evaluation – The consumer considers whether trying the new product makes sense.
Trial – The consumer tries the new product on a small scale to improve his or her estimate of its value.
Adoption – The consumer decides to make full and regular use of the new product.

Awareness Interest Evaluation Trial Adoption

What is a Product?

A product is anything that can be offered in a market for attention, acquisition, use or consumption that might satisfy a need or
want.
Experiences represent what buying the product or service will do for the customer.

Levels of Product and Services

Product and service fall into two broad classes: consumer products and industrial products.
Consumer products are products and service for personal consumption
• Classified by how consumers buy them
▪ Convenience products
▪ Shopping products
▪ Specialty products
▪ Unsought products
Convenience products are consumer products and services that the customer usually buys frequently, immediately and with a
minimum comparison and buying effort.
• Newspapers
• Candy
• Fast food
Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price and
style.
• Furniture
• Cars
• Appliances
Specialty products are consumer products and services with unique characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort.
• Medical services
• Designer clothes
• High-end electronics
Unsought products are consumer products that the consumer does not know about or knows about but does not normally think
of buying.
• Life insurance
• Funeral services
• Blood donations
Industrial products are products purchased for further processing of for use in conducting a business.
Classified by the purpose of which the product is purchased
• Materials and parts
• Capital
• Raw materials
Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users.
Capital items are industrial products that aid in the buyer’s production or operations.
Supplies and services include operating supplies, repair and maintenance items, and business services.
New Product Development Process

Idea generation is the systematic search for new-product idea

Sources of new product ideas are
• Internal
• External
Internal sources refer to the company’s own formal research and development, management and staff and “intrapreneurial”
programs
External sources refer to sources outside the company such as customers, competitors, distributors, suppliers and outside design
firms.
Idea Screening
• identify good ideas and drop poor ideas
• R-W-W screening framework
▪ Is it real?
▪ Can we win?
▪ Is it worth doing?
Concept Development and Testing
Product idea is an idea for a possible product that the company can see itself offering to the market
Product concept is a detailed version of the idea stated in meaningful consumer terms
Product image is the way consumers perceive an actual or potential product
Concept testing refers to testing new product concepts with groups of target consumers
Marketing Strategy Development
▪ Marketing strategy development refers to the initial marketing strategy for introducing the product to the market
▪ Marketing strategy statement includes
▪ Description of the target market
▪ Value proposition
▪ Sales and profit goals
Business analysis involves a review of the sales, costs and profit projections to find out whether they satisfy the company’s
objectives.
Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments.
Test marketing is the stage at which the product and marketing program are introduced into more realistic marketing settings.
Commercialization is the introduction of the new product
▪ When to launch
▪ Where to launch
▪ Planned market rollout
Customer Driven Marketing Strategy

This process involves market segmentation, market targeting, differentiation and positioning.
Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics or behavior
and who might require separate products or marketing mixes.
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Differentiation actually differentiating the company’s market offering so that it gives consumers more value.
Market positioning is the arranging for a product to occupy a clear, distinctive and desirable place relative to competing products
in the minds of the target consumer.

Marketing Plan

The contents of a marketing plan are executive summary, marketing situation, threats and opportunities, objective and issues,
marketing strategy, action programs, budgets and controls.
Executive summary – presents a brief summary of the main goals and recommendations of the plan for management review.
Marketing situation – describes the target market and the company’s position in it, including information about the market,
product performance, competition and distribution.
Threats and opportunities – assesses major threads and opportunities that the product might face
Objective and issues – states the marketing objectives that the company would like to attain during the plan’s term and discusses
key issues that will affect their attainment.
Marketing strategy – outlines the broad marketing logic by which the business unit hopes to create customer value and
relationships and the specifics of target markets, positioning, and marketing expenditure levels.
Action programs – spells out how marketing strategies will be turned into specific action programs that answer the following
questions: What will be done? When will it be done? Who will do it? How much will it cost?
Budgets – Details a supporting marketing budget that is essentially a projected profit and loss statement.
Controls – outlines the controls that will be used to monitor progress, allow management to review implementation results and
spots products that are not meeting their goals.

Customer Value-Based Pricing & Cost-Based Pricing

Price is the only element in the marketing mix that produces revenue; all other elements represent costs.
Customer value based pricing understanding how much value consumers place one the benefits they receive from the product
and setting a price that captures that value.
Value-based pricing uses the buyer’s perceptions of value, not the seller’s cost, as the key to pricing. Price is considered before
the marketing program is set.
▪ Value-based pricing is customer driven.
▪ Cost-based pricing is product driven.
Cost-based pricing involves setting prices based on the costs of producing, distributing and selling the product plus a fair rate of
return for its effort and risk.
 Roll No. DIM __________ (New)

DIM __________ (Old)

Diploma in Marketing
Class Assignment
Principles of Marketing
Multiple Choice.

1. A company’s mission statement serves as a statement of __________ .

(A) fact (B) values (C) purpose (D) financial goals (E) employee commitment

2. Which of the following is NOT a market-oriented business definition?

(A) “to make the Internet buying experience fast, easy and enjoyable”
(B) “to sell tools and home repair and improvement items”
(C) “to deliver low prices every day” (D) “to be the guardian of our customer’s financial dreams”
(E) “to bring aspiration and innovation to every athlete in the world”

3. Which of the following is the principle objective of a market-oriented mission statement?

(A) to satisfy basic customer needs (B) to satisfy basic supplier needs
(C) to satisfy basic stockholder needs (D) to satisfy basic owner needs
(E) to satisfy basic partnership needs

4. In the BCG approach, __________ are high-share, high-growth businesses or products. They need heavy
investment to finance rapid growth. When their growth slows down, they turn into __________ .
(A) cash cows; stars (B) question marks; dogs
(C) stars; question marks (D) stars; cash cows (E) dogs; cash cows

5. Which department in a company carries the primary responsibility for achieving profitable growth?
(A) accounting (B) product development (C) operations
(D) human resources (E) marketing

6. A common practice among marketers is to identify and develop new markets for their existing products.
This practice is called __________ .
(A) market development (B) product development (C) market penetration
(D) the market mix (E) positioning

7. Which of the following involves evaluating each market segment’s attractiveness and selecting one or
more segments to enter?
(A) market segmentation (B) differentiation (C) market targeting
(D) the market mix (E) positioning

8. Which of the following is the place a product occupies in the consumer’s mind relative to competition?
(A) position (B) placement (C) market segmentation
(D) market targeting (E) product promotion

9. In the four Ps of the marketing mix, design, packaging, services and variety all fall under the category of
(A) product (B) price (C) promotion (D) place (E) position
10. In the marketing management functions, an SWOT analysis should __________ a marketing plan.
(A) precede (B) coincide with (C) follow (D) evaluate (E) take priority over

11. In SWOT analysis, which of the following would be considered a strength?

(A) internal limitations (B) trends in the market
(C) favorable factors in the environment (D) factors that challenge the company’s performance
(E) internal resources

12. The __________ organizational system’s main advantage is that the company is organized around the
needs of specific market segments.
(A) market management (B) geographic (C) product management
(D) vertical (E) functional

13. Evaluating the results of marketing strategies and plans and taking corrective action to ensure that
objectives are attained is called __________ .
(A) marketing control (B) strategic control (C) operating control
(D) developmental control (E) efficiency

14. In the BCG matrix, income from __________ can be used to help finance the company’s question marks
and stars.
(A) dogs (B) cash cows (C) SBU revenues
(D) overseas operations (E) low-share businesses

15. Making more sales to current customers without changing a firm’s products is __________ .
(A) market attractiveness (B) market penetration
(C) market development (D) product development (E) diversification

16. In the 4 P’s that comprise the marketing mix, promotion refers to:
(A) advertising and public relations (B) sale promotion
(C) price (D) A and B (E) A, B and C

17. __________ activities are used by public health advocates to influence people to abstain from illegal
drugs or stop underage smoking.
(A) Promotional (B) Marketing (C) Advertising (D) Demarketing (E) All
of the above

18. Many firms are trying to develop relationships with their customers because:
(A) people are naturally brand loyal. (B) new customers are very expensive to recruit
(C) doing so makes is easier to retain them (D) consumer behavior is very difficult to understand
(E) B and C are correct.

19. Consumer behavior can be defined as:

(A) a field of study focusing on marketing activities
(B) a field of study focusing on consumer activities (C) a study of pricing
(D) the study of decision rules (E) None of the above

20. Having what consumers are likely to buy is a characteristic of a __________ orientation.
(A) manufacturing (B) selling (C) marketing (D) All of the above
(E) None of the above
 Diploma in Marketing
Class Assignment
Principles of Marketing – Chapter 5 – Consumer Markets and Buyer Behavior
Multiple Choice.

1. Individuals and households that buy or acquire goods and services for personal consumption make up
the __________ .
(A) consumer market (B) market offering (C) market mix (D) subculture (E) social class

2. Marketing stimuli include which of the following?

(A) economic stimuli (B) price stimuli (C) technological stimuli
(D) social stimuli (E) cultural stimuli

3. Which of the following is one of the other stimuli present in a buyer’s environment apart from a
marketing stimuli?
(A) product stimuli (B) cultural stimuli (C) price stimuli (D) place stimuli
(E) promotion stimuli

4. According to the model of buyer behavior, which of the following is one of the two primary parts of a
“buyer’s black box”?
(A) technological stimuli (B) buyer’s decision process (C) buyer’s spending habits
(D) social stimuli (E) promotion stimuli

5. Marketing stimuli consist of the four Ps. Which of the following is NOT one of these?
(A) product (B) packaging (C) price (D) promotion (E) place

6. In the model of buyer behavior, which of the following is NOT a major type of force or event in the
buyer’s environment?
(A) economic (B) technological (C) social (D) political (E) cultural

7. __________ is the most basic determinant of a person’s wants and behavior.

(A) Culture (B) Brand personality (C) Cognitive dissonance
(D) Motive (E) Attitude

8. Each culture contains smaller __________ , or groups of people with shared value systems based on
common life experiences and situations.
(A) cultural universals (B) reference groups (C) subcultures
(D) monocultures (E) social networks

9. Which consumer group tends to show more brand loyalty and make shopping a family event, with
children having a big say in the purchase decision?
(A) Hispanic Americans (B) African Americans (C) Arab Americans
(D) working class (E) middle class consumers

10. __________ consumers are one of the fastest-growing U.S. population sub segments and are expected
to surge to nearly one third of the total U.S. population by 2060.
(A) African American (B) Hispanic American (C) Asian American
(D) Baby Boomer (E) Millennial
11. Hispanic Americans tend to be deeply family oriented and make shopping a family affair. Older
consumers are brand loyal, while younger Hispanics have shown increasing price sensitivity and
willingness to choose store brands. Hispanic Americans make up a __________ .
(A) subculture (B) social class (C) social network (D) life-cycle stage
(E) lifestyle

12. Many companies use ethnically specific themes in their mainstream marketing strategy because
marketers have realized that insights gleaned from ethnic consumers can influence their broader
markets. This type of marketing is known as __________ marketing.
(A) cross-cultural (B) buzz (C) social network (D) word-of-mouth (E) life-style

13. __________ are society’s relatively permanent and ordered divisions whose members share similar
values, interests, and behaviors.
(A) Social classes (B) Societal norms (C) Reference groups
(D) Universal cultures (E) Social networks

14. Which of the following statements is true of cultural factors that influence consumer behavior?
(A) Cultural influences on buying behavior are identical across countries.
(B) Social classes show distinct product and brand preferences in areas such as clothing and travel.
(C) Subcultures include nationalities and racial groups, but exclude religions.
(D) Subcultures are groups within which each individual has a unique and distinct value system.
(E) Hispanic Americans and African Americans are examples of racially-segregated groups and not
subcultures.

15. Which of the following statements is true of social classes?

(A) Social classes are society’s temporary divisions.
(B) Members of a social class have unique and distinct values, interests and behaviors.
(C) People within a social class tend to exhibit similar buying behavior.
(D) Income is the single factor that determines social class.
(E) Social classes universally exhibit identical product and brand preferences.

16. Family is one of the __________ factors that influence consumer behavior.
(A) regional (B) social (C) personal (D) psychological (E) business

17. A shoe manufacturing company uses ads featuring the members of a country music band with the hope
that the band’s fans will see them wearing the company’s shoes and hence purchase the same brand of
shoes. The shoe company believes that the band portrays the image of a __________ to the band’s fans.
(A) membership group (B) reference group (C) status symbol
(D) subculture (E) lifestyle

18. Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her
knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at
great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a
(n) __________.
(A) surrogate consumer (B) lagging adopter (C) opinion leader
(D) brand personality (E) social networker

19. __________ are people within a reference group who, because of special skills, knowledge, personality,
or other characteristics, exert influence on others.
(A) Opinion leaders (B) Innovators (C) Surrogate consumers
(D) Stealth marketers (E) Lagging adopters
 Mid-Term Test

1. Bread and milk are which kind of products?

(A) Specialty Products (B) Convenience Products (C) Shopping Products
(D) Unsought Products

2. If actual performance exceeds the expected performance of the product, Then customer is ________ .
(A) Satisfied (B) Dissatisfied (C) Delighted (D) Neutral

3. If a firm is practicing __________ the firm is training and effectively motivating its customer-contact
employees and all of the supporting service people to work as a team to provide customer satisfaction.
(A) Double-up marketing (B) interactive marketing (C) service marketing
(D) internal marketing

4. One of the key tasks of marketers is __________ and to create consumer perceptions that the product
is worth purchasing.
(A) To make products easily visible and available (B) To promote sales of products
(C) To differentiate their products from those of competitors (D) To do marketing surveys

5. Which of the following is considered a “key player” in the marketing industry?

(A) marketer (B) suppliers or vendors (C) distributors or retailers (D) all of above

6. Which of the following is NOT considered a type of reseller?

(A) wholesaler (B) retailer (C) manufacturer (D) distributor

7. Anything that can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or need is called a(n):
(A) idea (B) demand (C) product (D) service

8. The __________ holds that the organization’s task is to determine the needs, wants and interests of
target markets and to deliver the desired satisfactions more effectively and efficiently than competitors
in a way that preserves or enhances the consumer’s and the society’s well-being.
(A) Customer-centered business (B) focused business model (C) societal marketing concept
(D) ethically responsible marketing

9. The most basic level of a product is called the:

(A) Core product (B) central product (C) fundamental product
(D) augmented product

10. The extended Ps of service marketing mix are:

(A) People, Product, Place (B) Price Physical Evidence, Promotion
(C) Physical Environment, Process, People (D) Product, Process, Physical Environment

11. The task of any business is to deliver __________ at a profit.

(A) Customer needs (B) customer value (C) products and services (D) improved quality

12. Customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer
relative to those of competing offers refers to which of the following options?
(A) Customer perceived value (B) Marketing myopia (C) Customer relationship management
(D) Customer satisfaction
13. Buying goods services for further processing or for use in the production process refers to which of the
following markets?
(A) Consumer markets (B) Government markets (C) Business markets
(D) International markets

14. A person’s __________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence
on his/her attitudes or behavior.
(A) culture (B) subculture (C) psychographics (D) reference groups (E) demographics

15. Which one of the following factor relates to family that influences consumer behavior?
(A) Cultural (B) Social (C) Personal (D) Business

16. Unique psychological characteristics that lead to relatively consistent and lasting responses to one’s
own environment refers to which one of the following?
(A) Belief (B) Culture (C) Personality (D) Self-awareness

17. The __________ concept holds that consumers will favor those products that offer the most quality,
performance, or innovative features.
(A) product (B) marketing (C) production (D) selling (E) holistic marketing

18. One traditional depiction of marketing activities is in terms of the marketing mix or four Ps. The four Ps
are characterized as being __________.
(A) Product, positioning, place and price (B) product, production, price and place
(C) promotion, place, positioning and price (D) place, promotion, production and positioning
(E) product, price, promotion and place

19. The traditional view of marketing is that the firm makes something and then __________ it.
(A) markets (B) sells (C) distributes (D) prices (E) services

20. Price is the only element in the marketing mix that produces:
(A) Fixed cost (B) Expense (C) Variable cost (D) Revenue

21. Products that are relatively inexpensive and are purchased frequently with minimal effort can be
classified as __________ products.
(A) shopping (B) convenience (C) industrial (D) specialty (E) unsought

22. A company designs the product with little or no input from customers, the company is practicing which
of the following concept?
(A) Product concept (B) Marketing concept (C) Selling concept (D) Production concept

23. Which of the following are products and services bought by final consumers for personal consumption?
These include convenience products, shopping products, specialty products and unsought products.
(A) Material and parts (B) Consumer products (C) Industrial products
(D) Capital items

24. How many stages are involved in the consumer buying/adoption process?
(A) Six (B) Seven (C) Three (D) Five

25. The buying process starts when the buyer recognizes a __________.
(A) Product (B) an advertisement for the product (C) a salesperson from a previous visit
(D) problem or need
Multiple Choice.

1. Bread and milk are which kind of products?

(A) Specialty Products (B) Convenience Products (C) Shopping Products
(D) Unsought Products

2. If actual performance exceeds the expected performance of the product, Then customer is ________ .
(A) Satisfied (B) Dissatisfied (C) Delighted (D) Neutral

3. If a firm is practicing __________ the firm is training and effectively motivating its customer-contact
employees and all of the supporting service people to work as a team to provide customer satisfaction.
(A) Double-up marketing (B) interactive marketing (C) service marketing
(D) internal marketing

4. One of the key tasks of marketers is __________ and to create consumer perceptions that the product
is worth purchasing.
(A) To make products easily visible and available (B) To promote sales of products
(C) To differentiate their products from those of competitors (D) To do marketing surveys

5. Which of the following is considered a “key player” in the marketing industry?

(A) marketer (B) suppliers or vendors (C) distributors or retailers (D) all of above

6. Which of the following is NOT considered a type of reseller?

(A) wholesaler (B) retailer (C) manufacturer (D) distributor

7. Anything that can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or need is called a(n):
(A) idea (B) demand (C) product (D) service

8. The __________ holds that the organization’s task is to determine the needs, wants and interests of
target markets and to deliver the desired satisfactions more effectively and efficiently than competitors
in a way that preserves or enhances the consumer’s and the society’s well-being.
(A) Customer-centered business (B) focused business model (C) societal marketing concept
(D) ethically responsible marketing

9. The most basic level of a product is called the:

(A) Core product (B) central product (C) fundamental product
(D) augmented product

10. The extended Ps of service marketing mix are:

(A) People, Product, Place (B) Price Physical Evidence, Promotion
(C) Physical Environment, Process, People (D) Product, Process, Physical Environment

11. The task of any business is to deliver __________ at a profit.

(A) Customer needs (B) customer value (C) products and services (D) improved quality

12. Customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer
relative to those of competing offers refers to which of the following options?
(A) Customer perceived value (B) Marketing myopia (C) Customer relationship management
(D) Customer satisfaction
13. Buying goods services for further processing or for use in the production process refers to which of the
following markets?
(A) Consumer markets (B) Government markets (C) Business markets
(D) International markets

14. A person’s __________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence
on his/her attitudes or behavior.
(A) culture (B) subculture (C) psychographics (D) reference groups (E) demographics

15. Which one of the following factor relates to family that influences consumer behavior?
(A) Cultural (B) Social (C) Personal (D) Business

16. Unique psychological characteristics that lead to relatively consistent and lasting responses to one’s
own environment refers to which one of the following?
(A) Belief (B) Culture (C) Personality (D) Self-awareness

17. The __________ concept holds that consumers will favor those products that offer the most quality,
performance, or innovative features.
(A) product (B) marketing (C) production (D) selling (E) holistic marketing

18. One traditional depiction of marketing activities is in terms of the marketing mix or four Ps. The four Ps
are characterized as being __________.
(A) Product, positioning, place and price (B) product, production, price and place
(C) promotion, place, positioning and price (D) place, promotion, production and positioning
(E) product, price, promotion and place

19. The traditional view of marketing is that the firm makes something and then __________ it.
(A) markets (B) sells (C) distributes (D) prices (E) services

20. Price is the only element in the marketing mix that produces:
(A) Fixed cost (B) Expense (C) Variable cost (D) Revenue

21. Products that are relatively inexpensive and are purchased frequently with minimal effort can be
classified as __________ products.
(A) shopping (B) convenience (C) industrial (D) specialty (E) unsought

22. A company designs the product with little or no input from customers, the company is practicing which
of the following concept?
(A) Product concept (B) Marketing concept (C) Selling concept (D) Production concept

23. Which of the following are products and services bought by final consumers for personal consumption?
These include convenience products, shopping products, specialty products and unsought products.
(A) Material and parts (B) Consumer products (C) Industrial products
(D) Capital items

24. How many stages are involved in the consumer buying/adoption process?
(A) Six (B) Seven (C) Three (D) Five

25. The buying process starts when the buyer recognizes a __________.
(A) Product (B) an advertisement for the product (C) a salesperson from a previous visit
(D) problem or need