Marketing Chapter 1

b. It involves establishing and tracking customer interactions with the company.

16. Which of the following statements is true of customer relationship management? a. It involves targeting the average customer or everybody. b. It involves establishing and tracking customer interactions with the company. c. It considers all the customers of the firm as one large group that should be targeted with a single promotional strategy. d. It is used by sales-oriented firms to convince customers to buy their products.

b. It overlooks the importance of market research.

17. Which of the following is a drawback of the production-orientation philosophy? a. It ignores the importance of assessing a firm's internal capabilities. b. It overlooks the importance of market research. c. It places little emphasis on the assessment of manufacturing plants and facilities. d. It gives importance to the sales function over other functions.

a. defines its mission in terms of the benefits its customers seek.

18. A market-oriented firm: a. defines its mission in terms of the benefits its customers seek. b. targets the average customer. c. is highly centralized. d. defines its business in terms of the goods and services it produces.

c. Using clean energy sources

19. Which of the following strategies is most closely associated with a societal marketing orientation? a. Using greenwashing techniques b. Fostering opportunism c. Using clean energy sources d. Increasing overhead production costs

a. true

2. The fundamental problem with a sales orientation is a lack of understanding of the needs and wants of the marketplace. a. True b. False

d. Creating customer value

20. Which of the following strategies illustrates a market orientation? a. Targeting the average consumer b. Implementing centralization c. Increasing overhead production costs d. Creating customer value

c. extensively uses personal selling and advertising.

23. A sales-oriented firm: a. carefully identifies market segments. b. extensively uses relationship-marketing strategies. c. extensively uses personal selling and advertising. d. increases sales by creating customer value and satisfaction.

sales

24. Filmin Inc. has decided to increase the production of its printers. Filmin does not conduct market research before making its marketing decisions. To ensure profits for the company, Filmin has instructed its marketing force to aggressively advertise and promote its printers. The CEO of Filmin believes that the market will absorb more products if powerful promotion strategies are used. After increasing production of printers, the company plans to reduce the prices of the printers to encourage customers to buy them. Filmin appears to have a__________orientation. a. task b. production c. sales d. customer

market

25. Libra Electronic Inc. has launched a new range of light-weight vacuum cleaners with enhanced features. Before developing the product, Libra Electronic conducted a thorough study about customer requirements. The company also studied the quality of its competitors' vacuum cleaners. Based on insights about customer wants and competitor strengths and weaknesses, Libra Electronic has designed vacuum cleaners that can be clearly distinguished from other brands. Libra Electronic most likely has a__________orientation.

on demand marketing

26. Consumer's expectations of doing new things with varied kinds of information in ways that create value have resulted in the emergence of__________.

production

27. Researchers at PPG Industries Inc. spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out heat. PPG had not conducted market research before deciding to design the windshield. Moreover, the windshield is priced higher compared to the other brands. The company has now introduced the windshield in the market and is hoping that the customers will like it. PPG most likely has a(n)__________orientation.

production

28. A company that sets its goals and strategies based on what its current equipment can manufacture, what its engineering can design, and what the company itself can do best has a(n)__________orientation.

a. true

3. A local grocer groups his customers into specific groups based on what they buy and when they shop. The grocer then schedules shipments of specific items based on these customer segments and offers different promotions to different customer groups. This is an example of customer relationship management. a. True b. False

d. production

32. A company that sets its goals and strategies based on what its current equipment can manufacture, what its engineering can design, and what the company itself can do best has a(n)_____orientation. a. marketplace b. sales c. exchange d. production

b. production

33. Researchers at PPG Industries Inc. spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out heat. PPG had not conducted market research before deciding to design the windshield. Moreover, the windshield is priced higher compared to the other brands. The company has now introduced the windshield in the market and is hoping that the customers will like it. PPG most likely has a(n)_____orientation. a. exchange b. production c. sales d. promotion

c. sales

34. Filmin Inc. has decided to increase the production of its printers. Filmin does not conduct market research before making its marketing decisions. To ensure profits for the company, Filmin has instructed its marketing force to aggressively advertise and promote its printers. The CEO of Filmin believes that the market will absorb more products if powerful promotion strategies are used. After increasing production of printers, the company plans to reduce the prices of the printers to encourage customers to buy them. Filmin appears to have a _____ orientation. a. task b. production c. sales d. customer

b. market

35. Libra Electronic Inc. has launched a new range of light-weight vacuum cleaners with enhanced features. Before developing the product, Libra Electronic conducted a thorough study about customer requirements. The company also studied the quality of its competitors' vacuum cleaners. Based on insights about customer wants and competitor strengths and weaknesses, Libra Electronic has designed vacuum cleaners that can be clearly distinguished from other brands. Libra Electronic most likely has a _____ orientation. a. promotion b. market c. sales d. production

d. on-demand marketing

36. Consumer's expectations of doing new things with varied kinds of information in ways that create value have resulted in the emergence of _____. a. the sales-orientation philosophy b. the production-oriented philosophy c. communicator valence d. on-demand marketing

d. Business firms need to have a good understanding of the needs of the marketplace.

37. Which of the following opinions is a critic of the sales-orientation philosophy most likely to hold? a. Reducing prices is the most effective technique that helps increase product sales. b. Customers do not buy products unless the products are adequately promoted. c. Business firms should give maximum emphasis to advertising strategies. d. Business firms need to have a good understanding of the needs of the marketplace.

d. encourage teamwork among employees.

38. A firm that extensively uses relationship-marketing strategies is most likely to: a. focus on the internal rather than the external business environment. b. rely on aggressive sales strategies. c. be highly centralized. d. encourage teamwork among employees.

c. It is aimed at enhancing customer relationships.

39. Which of the following statements is true about on-demand marketing? a. It requires firms to focus on the internal rather than the external business environment. b. It gives maximum emphasis to aggressive personal selling strategies. c. It is aimed at enhancing customer relationships. d. It is used by sales-oriented firms.

b. false

4. A market-oriented organization targets its products at "everybody" or "the average customer." a. True b. False

d. Unlike a market-oriented firm, a sales-oriented firm targets its products at the average customer.

40. Which of the following is a difference between a market-oriented firm and a sales-oriented firm? a. Unlike a market-oriented firm, a sales-oriented firm puts customers at the center of its business. b. Unlike a market-oriented firm, a sales-oriented firm uses relationship-marketing strategies. c. Unlike a market-oriented firm, a sales-oriented firm gives little emphasis to promotion activities. d. Unlike a market-oriented firm, a sales-oriented firm targets its products at the average customer.

a. true

Relationship marketing assumes that many consumers and business customers prefer to have an ongoing relationship with one organization rather than switch continually among providers in their search for value. a. True b. False