Principles of Marketing : True/ False

• The major criticisms of marketing include harming consumers through high prices, deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence, and poor service to disadvantaged countries. true

• When responding to consumer complaints about high prices, marketers often explain that consumers do not understand the costs involved that justify the prices. true

• A common accusation aimed at consumer advertising is that it makes people buy things they don't need. true

• Many marketers have been accused of overselling private goods at the expense of public goods. Many of these private goods require more public services that are usually not forthcoming. true

• Non-tariff trade barriers include restrictive product standards that work against American product features. true

• GATT is a 62-year-old treaty designed to promote world trade by reducing tariffs and other international trade barriers. false

• Free trade zones are also known as economic communities. true

• The European Union represents one of the world's single largest markets. true

• Barter is a form of cash transaction. false

• Coca-Cola, McDonald's, Nike, and KFC have been singled out by anti-globalization protestors all over the world. true

• The simplest way to enter a foreign market is through exporting. true

• To plan effective marketing strategies, the company needs to find out all it can about its employees. false

• A competitive analysis involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. true

• Continuous innovation is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. false

• Most companies prefer to compete against strong competitors. false

• A company learns needs and benefits from competitors. true

• The existence of competitors in a market may help a company increase total demand. true

• Advertising is a modern marketing tool; it was not used in the ancient world. false

• P&G is the world's largest advertiser. true

• The decision about which type of media to use for an ad campaign can be more critical than the decision about which creative elements to use. true

• Technical expertise, scientific evidence, and testimonial evidence are all examples of execution styles that creative teams use in advertising products. true

• In addition to execution style, an advertiser must also choose a tone for an advertisement. true

• Reach is a measure of how many times the average person in the target market is exposed to the message. false

• Although television advertising is expensive for corporations, the cost per exposure is relatively low. true

• Direct mail is one of the least expensive media on a per exposure basis. false

• Sales promotion makes use of press releases and special events. false

• New communications technologies such as cell phones and the Internet give companies new media for interacting with targeted consumers, but these new technologies also give consumers more control over the advertising messages they receive. true

• The integrated marketing concept ties together all of the company's messages and images. true

• A marketing communications director has overall responsibility for the company's communications efforts. true

• The four major communication functions are encoding, decoding, response, and noise. false

• Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, non-business use. false

• Marketers who use shopper marketing use the retail store itself as an important marketing medium. true

• Department stores carry narrow product lines with deep assortments within those lines. false

• Category killers carry a deep assortment of a particular product line and have a knowledgeable staff. true

• A discount store buys at less-than-regular wholesale prices and charges consumers less than retail. false

• Independent off-price retailers may in fact be divisions of larger retail corporations. true

• Warehouse clubs appeal almost exclusively to low-income consumers seeking bargains. false

• To create the right atmosphere, some retailers control every aspect of the consumer's store experience, including what customers hear and smell. true

• Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company's supply chain. true

• The term supply chain may be too limited because it takes a make-and-sell view of the business. true

• Due to the success of the Internet, few producers sell through intermediaries today. false

• Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation. true