MKT 300 Chapter1

product orientation

1850s-1920s Industrial Revolution improved speed and efficiency Large increases in available products

marketing mix

Product, Price, Place, Promotion

Customers choose to go to Buffalo Wild Wings based upon the value they place on the total product—including the food, service, atmosphere of the restaurant, and more. The process consumers use to determine value is highly _______. a. subjective b. detailed c. scientific d. objective e. narrow

a. subjective

Which of the following is a major benefit of marketing? a. Marketing is the most important function of a business. b. Marketing activities do not take up much time. c. Marketing activities are relatively low in cost. d. Marketing knowledge enhances consumer awareness. e. Marketing prevents the sale of harmful products.

d. marketing knowledge enhances consumer awareness

The essence of marketing is to develop satisfying _______ from which both customers and marketers benefit. a. environmental factors b. marketing mixes c. values d. target markets e. exchanges

e. exchanges

price variable

relates to decisions and actions associated with establishing pricing objectives and policies, determines the value of the exchange

customers are

the focal point of all marketing activities

marketing

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers to develop and maintain favorable relationships with stakeholders in a dynamic environment

product variable

A product can be a good, service, or idea

marketing concept

an organization should try to provide products that satisfy customer's needs

promotion variable

inform individuals or groups about the organization and its products/services

sales orientation

1920s-1960s sales viewed as main means of increasing profits

marketing orientation

1960s-now researching and responding to customer needs

stakeholders

Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

During the holiday season, a Bluetooth speaker was in such high demand that it sold out quickly at a local Walmart. When Walmart tried to order more, it learned that the suppliers had so many orders to fill that it would not be able to fill Walmart's order for two weeks. What type of marketing mix variable does this problem involve? a. Promotion b. Product c. Pricing d. Distribution e. Exchange

D. distribution

distribution variable

Make products available in quantities desired to as many target market customers as possible

Value (Value Driven Marketing)

a customer's subjective assessment of benefits relative to costs in determining the worth of a product, value=customer benefits-customer costs

target market

a specific group of customers on whom an organization focuses its marketing efforts

Anthony works at a local electronics retailer. He has two customers in particular that he sees regularly. One customer, Mr. Johnson, comes in frequently asking about new deals. However, he rarely buys anything, and when he does buy something it is usually small. The other customer, Mr. Montoya, comes in a little less frequently. He does not purchase products all the time, but when he does the products are expensive. Anthony recognizes that Mr. Montoya is a more valuable customer over time than Mr. Johnson. He has therefore worked hard to develop a strong relationship with Mr. Montoya. What marketing method is Anthony most likely using to direct his actions? a. Customer lifetime value b. A sales orientation c. The marketing concept d. Customer feedback e. A customer loyalty program

a. customer lifetime value

The marketing concept is based upon the idea that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. During which orientation (time period) are marketers most likely to adopt the marketing concept? a. Market orientation b. Production orientation c. Sales orientation d. Exchange orientation e. Promotion orientation

a. market orientation

Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispanic consumers, other ethnic groups seem to like the product as well. For this product, Hispanic consumers comprise Kroger's _______. a. target market b. community c. marketing environment d. marketing mix e. exchange

a. target market

You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You recommend that the nonprofit engage in marketing activities. The executive director tells you that because it is a nonprofit that does not engage in selling activities and has a small budget, the nonprofit has no use for marketing. You disagree and explain that marketing is not just for for-profit organizations. You explain the different ways the nonprofit can engage in marketing without changing its practices or the mission. Which of the following marketing activities would be most feasible for this nonprofit? a. Send out coupons for the organization's products in the local bulletin b. Get volunteers to sell T-shirts and other items at the nonprofit's major events c. Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event d. Purchase an advertisement in a state newspaper that is popular in the local community about the nonprofit e. Engage in extensive marketing research to determine what its contributors want

c. Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor. a. uncontrollable; controllable b. predictable; unpredictable c. stable; unstable d. controllable; uncontrollable e. unpredictable; predictable

d. controllable; uncontrollable

What is the first step for marketers in implementing the marketing concept? a. Engage in personal selling or advertising to promote products that customers desire b. Develop a feedback system so customers can describe their thoughts about a product c. Modify existing products to meet customer needs more effectively d. Establish an information system to discover customers' real needs e. Modify a communication system that allows information to be disseminated throughout the organization

d. establish an information system to discover customer's real needs

Lumos Labs, the maker of brain-training app Lumosity, released advertisements that claimed its app was able to prevent Alzheimer's. The Federal Trade Commission fined Lumos Labs $2 million, saying that the company did not have the science to back up its ads. What type of marketing mix variable is involved in this situation? a. Pricing b. Product c. Exchange d. Promotion e. Distribution

d. promotion

Charlotte loves her mom's edible cookie dough recipe, and she assumes everyone else will too. She starts a cookie dough business. Charlotte views promotion, such as advertising and personal selling, as the most important activities needed to sell her product. She figures that consumers only have to learn about her product before becoming loyal and steadfast customers. What type of orientation does Charlotte seem to embrace? a. Promotion orientation b. Market orientation c. Production orientation d. Sales orientation e. Exchange orientation

d. sales orientation

Samuel spent $500 on a new television set. How much of this price is likely to go toward marketing expenses? a. About $450 b. Between $100 and $200 c. $500 d. About $100 e. About $250

e. about $250

Marketing environmental forces are often _______. a. easy to predict b. stable c. non-influential d. controllable e. interdependent

e. interdependent

Which of the following sentences is true about a marketing exchange? a. An exchange will always take place if four conditions are met. b. An exchange only needs to provide a benefit to one party. c. Seeing an advertisement is an example of an exchange. d. Products in an exchange must be traded for money. e. It requires four conditions to take place.

e. it requires four conditions to take place

Lime is using social media to ask consumers about the qualities they desire in an electric scooter. The firm hopes to develop a new type of electric scooter based on the feedback it receives. Which marketing mix variable is Lime addressing? a. Pricing b. Promotion c. Distribution d. Exchange e. Product

e. product

Sheryl works at Southwest Airlines as a digital marketer. A major part of her job is communicating with customers, answering questions and letting them know about how the airline offers them the best in customer value. Sheryl is working to create long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges with customers. This is an example of _______. a. customer lifetime value b. a sales orientation c. customer loyalty programs d. the marketing mix e. relationship marketing

e. relationship marketing

relationship marketing

long term mutually satisfying, buyer/seller relationships, customer needs and concerns

marketing environment

the six forces that surround the customer and affect the marketing mix: 1) competitive 2) economic 3) legal and regulatory 4) technological 5) socio-cultural 6) political

exchange

the transfer of goods, services, or ideas in return for something of value

Customer Relationship Management (CRM)

using information about customers to create marketing strategies that develop and sustain desirable customer relationships

customer lifetime value

worth of individual customers and estimates their lifetime value to company