Chapter 1: Creating Customer Relationships and Value through Marketing

Product

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

D. ideas.

A local organization that promotes enhanced reading skills and an increased global perspective resulting from reading library books is an example of marketing A. goods. B. utilities. C. services. D. ideas.

C. integrated

A marketing mix that is __________ to provide a good, service, or idea to prospective buyers is known as a marketing program. A. compressed B. segmented C. integrated D. deconstructed

Marketing Program

A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

product

A(n) __________ is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else in value.

target

A(n) __________ market is a specific group of potential customers toward which an organization directs its marketing program (one word).

market

Customers that desire to own a Lexus, that can afford to do so, that have the time and ability to visit a dealership would be considered to be in Lexus' __________. (one word)

need

If you develop a desire for a product that does not exist yet in the marketplace, this would be considered an unsatisfied __________, one of the conditions required for marketing to occur. (one word)

Both C. and D.

In order for marketing to occur, both parties involved must have which two of the following regarding their needs? A. An undiscovered need that could be satisfied B. The future ambition to discover an unsatisfied need C. The ability to satisfy a need D. The desire to satisfy a need

Relationship Marketing

Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

C. Best product

Match the following company with the strategy it uses to deliver value for its customers: Nike A. Best service B. Best price C. Best product

B. Best price

Match the following company with the strategy it uses to deliver value for its customers: Wal-Mart A. Best service B. Best price C. Best product

A. Relationships

Match the following external entity with the way in which it influences an organization and its marketing department: Customers A. Relationships B. Partnerships C. Alliances D. Ownership

C. Alliances

Match the following external entity with the way in which it influences an organization and its marketing department: Other organizations A. Relationships B. Partnerships C. Alliances D. Ownership

D. Ownership

Match the following external entity with the way in which it influences an organization and its marketing department: Shareholders A. Relationships B. Partnerships C. Alliances D. Ownership

B. Partnerships

Match the following external entity with the way in which it influences an organization and its marketing department: Suppliers A. Relationships B. Partnerships C. Alliances D. Ownership

B. satisfy

McDonald's provides many items on its menu, primarily to __________ the needs and wants of its many types of customers. A. measure B. satisfy C. predict D. identify

Both C. and D.

Of the following, which two are principles contained in the marketing concept? (Check all that apply.) A. An organization should focus its activities on outperforming its competition. B. An organization should limit its actions to those that maximize benefits for shareholders. C. An organization should strive to satisfy the needs of consumers. D. An organization should try to achieve its own goals.

B. The organization should seek a balance among differing interests.

Often there are differing interests among groups internal and external to an organization. How should these be handled? A. The organization must satisfy the customer first and foremost. B. The organization should seek a balance among differing interests. C. The organization should fulfill its obligations to employees first. D. The organization must put its own needs first.

D. marketing research

One of the challenges of __________ is that prospective customers may not always know or be able to describe what they need and want, yet this is the tool commonly used for this purpose. A. relationship marketing B. utility C. exchange D. marketing research

Target Market

One or more specific groups of potential consumers toward which an organization directs its marketing program.

Market

People with both the desire and the ability to buy a specific offering.

D. mix.

Product, price, promotion, and place are known as the marketing A. proposition. B. targets. C. strategy. D. mix.

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Utility

The benefits or customer value received by users of the product.

Customer Value Proposition

The cluster of benefits that an organization promises customers to satisfy their needs.

Marketing Mix

The controllable factors--product, price, promotion, and place--that can be used by the marketing manager to solve a marketing problem.

D. controllable

The four Ps, or marketing mix, are the __________ set of activities that a firm uses to respond to the needs of its target market. A. economic B. uncontrollable C. environmental D. controllable

Marketing Concept

The idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization's goals.

Customer Experience

The internal response that customers have to all aspects of an organization and its offering.

Ultimate Consumers

The people who use the products and services purchased for a household. Also called consumers, buyers, or customers.

Customer Relationship Management (CRM)

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase.

B. customer relationship management.

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization is called A. the societal marketing concept. B. customer relationship management. C. marketing utility. D. a marketing program.

Market Segments

The relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will result similarly to a marketing action.

B. production

The statement by Henry Ford that his automobile customers "can have any color they want so long as it's black" is an example of the __________ era in business. A. sales B. production C. customer relationship D. marketing concept

Exchange

The trade of things of value between buyer seller so that each is better off after the trade.

Environmental Forces

The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.

C. customer value.

The unique combination of benefits received by targeted buyers at a specific price is known as A. product satisfaction. B. the marketing relationship. C. customer value. D. the service agreement.

Customer Value

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

A. the societal marketing concept.

The view that an organization should discover and satisfy the needs of consumers in a way that also provides for society's well-being is called A. the societal marketing concept. B. social entrepreneurship. C. socialism. D. altruism.

Societal Marketing Concept

The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being.

Organizational Buyers

Those manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy products and services for their own use or for resale.

D. environmental forces

Though often treated as immovable constraints, __________ can sometimes be impacted by companies, particularly by achieving technology or competitive breakthroughs. A. supplier arrangements B. marketing mix elements C. partnership agreements D. environmental forces

exchange

To fulfill its objectives, marketing requires __________ (one word), which is the trade of things of value between a buyer and seller so that each is better off afterward.

Both A. and B.

You are purchasing a magazine. For marketing to occur, there will be an exchange which must include A. only the merchant receiving the money. B. both the magazine and the money. C. only information passing between you and the merchant. D. only you receiving the magazine.

Ultimate

__________ consumers, in contrast with organizational buyers, are the people who use products and services purchased for a household.

Customer experience

__________ is the internal response that customers have to all aspects of an organization and its offering.

C. Relationship

__________ marketing connects the organization to its individual customers beginning before and continuing after the sale. A. Orientation B. Shared C. Relationship D. Partnership

customer value proposition

A __________ is a cluster of benefits that an organization promises customers to satisfy their needs.

Market Orientation

A __________ requires firms to create customer value through collecting information about customer needs.

responsibility

A company adopting social __________ is purposely acknowledging its accountability to a larger society.

B., C., and D.

According to the AMA definition of marketing, who benefits from this activity? A. Anti-establishment politicians B. Partners C. Customers D. Elements of society not involved in the exchange

A. Marketing entails exchange between buyer and seller.

After John buys two boxes of macaroni and cheese at the grocery store with a five dollar bill, the store is better off because it has more money in the register and the consumer is better off because he has more food in his pantry. This is an example of which of the core aspects of marketing? A. Marketing entails exchange between buyer and seller. B. Marketing requires rational decision making. C. Marketing requires a place to communicate. D. Marketing is about price, product, place, and promotion decisions.

Market Orientation

An organization with a __________ focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value.

D. organizational buyers.

Firms or agencies that buy goods and services for their own use or for resale are known as A. ultimate consumers. B. profit centers. C. enterprise customers. D. organizational buyers.

A. unsatisfied needs.

For marketing to occur, there must be two or more parties with A. unsatisfied needs. B. unrecognized needs. C. an existing relationship. D. a desire to create a relationship.

C. organizational buyers.

Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy products and services for their own use or for resale are known as A. intermediate buyers. B. alternate consumers. C. organizational buyers. D. secondary users.

A. ethics.

Many business people believe that marketing should focus on factors other than financial goals, such as A. ethics. B. employee training. C. return on investment. D. efficient production.

C. segments

Market __________ are relatively homogeneous groups of prospective buyers that have common needs and respond similarly to marketing action. A. targets B. concepts C. segments D. mixes

C. wants

Marketing attempts to satisfy consumer needs but clearly also shapes a person's ____________, because it may impact knowledge or even culture. A. personality B. ambitions C. wants D. income

C. management goals

Marketing directly supports __________ by helping provide customer-satisfying products required for the organization's survival and prosperity. A. free trade B. government restrictions C. management goals D. alliances

C. two-way interactions

Marketing's relationships with alliances in the supply chain, customers, and society at large would best be characterized as A. one-way, with marketing activities influencing external parties. B. one-way, with those external parties influencing marketing activities. C. two-way interactions D. minimized by an organization's management.

A. Production era

Match the correct marketing era to the description of the following marketing focus: Buyers accept virtually and goods because of the relative scarcity of goods. A. Production era B. Sales era C. Marketing concept era D. Customer-relationship era

D. Customer-relationship era

Match the correct marketing era to the description of the following marketing focus: Firms seek continuously to satisfy the expectations of those they serve. A. Production era B. Sales era C. Marketing concept era D. Customer-relationship era

B. Sales era

Match the correct marketing era to the description of the following marketing focus: Manufacturers can produce a surplus of goods and must find new buyers. A. Production era B. Sales era C. Marketing concept era D. Customer-relationship era

C. Marketing concept era

Match the correct marketing era to the description of the following marketing focus: Organizations focus on identifying customer needs and using this to create value. A. Production era B. Sales era C. Marketing concept era D. Customer-relationship era

A. Best service

Match the following company with the strategy it uses to deliver value for its customers: Home Depot A. Best service B. Best price C. Best product

D. environmental

Social, economic, technological, competitive, and regulatory forces that are mostly beyond the control of the marketer are known as __________ forces.

B. 40

Studies show that up to __________ percent of the new products that are launched go on to fail in the marketplaces. A. 20 B. 40 C. 90 D. 70

Both A. and C.

To serve both buyers and sellers, marketing fundamentally seeks to do which two of the following? (Check all that apply.) A. Satisfy the needs and wants of customers B. Identify appropriate corporate strategy C. Discover the needs and wants of prospective customers D. Identify shareholder gaps

False

True or false: As a marketing manager plans new products to meet consumers needs, she should utilize technology to create the most advanced products regardless of what the consumer wants.

False

True or false: Marketing can only be performed by a retailer interacting with an individual consumer.

True

True or false: Seeing a magazine on display in a bookstore represents a way buyers and sellers communicate so that marketing can occur for the magazine.

True

True or false: Society affects marketing and sometimes marketing has an important impact on society.

True

True or false: To be in an organization's market, it is not enough for a customer just to want a product because it would satisfy unmet needs; a customer must also have the ability to buy, financially and otherwise.

C. benefits would be.

When Apple first introduced the personal computer to the market, creating a new industry, consumers did not know A. what the hard drive capacity would be. B. what the price would be. C. benefits would be. D. what the exterior design would look like.

exchange

When a consumer gives money or something else of value to a seller and in return the consumer receives something he or she values, both parties benefit. A marketer would describe this as a(n) ___________.

Both B. and D.

Which of the following are types of utility received by users of a product? (Check all that apply.) A. Image B. Form C. Performance D. Possession

C. Personnel strategy

Which of the following is NOT an element of the market mix that is part of a marketing program? A. Promotion strategy B. Place strategy C. Personnel strategy D. Product strategy

B. A contraction of the economy nationwide

Which of the following is an example of an environmental force? A. An initial public offering of a company's stock B. A contraction of the economy nationwide C. The development of a recycling program among employees D. The hiring of fifty new employees

D. Every organization markets in some capacity.

Which of the following statements best describe who is involved in marketing? A. Marketing can be effective for firms but not for individuals. B. Marketing occurs in the private sector but not in government. C. Only for-profit businesses do marketing. D. Every organization markets in some capacity.

B., C., and D.

Who benefits from effective marketing? (Select all that apply) A. Accounting departments that need new ideas B. Consumers who buy C. Society as a whole D. Organizations who sell