Chapter 1 MARK 3000

Which element of the marketing mix is most relevant to the activity "capturing value"?

D. Price

The evolution of marketing progressed along the following continuum:

D. Production, sales, marketing, value-based marketing

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena most likely operates in the __________ era of marketing.

D. Value based marketing

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era.

D. Value based marketing

During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.

D. Value-based marketing

The goal of customer relationship management is to

D. identify and build loyalty among a firm's most valued customers.

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that

D. lifetime profitability of relationships matters more than profits from a particular transaction.

The fundamental goal of marketers when creating goods, services, or combinations of both is to

E. Create value

Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.

FALSE

When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketin

FALSE (B2B- business to business)

The four Ps of the marketing mix include product, promotion, planning, and place

FALSE (PRICE not planning)

Marketing is an activity that only large firms with specialized departments can execute

FALSE (all sizes and individuals)

Over the past decade or so, marketers have begun to realize that it is best to structure a firms customer orientation in terms of transactions rather than relationships

FALSE (marketers begun to develop a relationships -- view customers as relationship rather than transactions)

Approximately half of marketers say they now use social media tools for marketing purposes

FLASE (93%)

At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described?

A. market oriented

The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called

A. marketing

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and e-mail in order to participate, the radio station is

A. offering an exchange

Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on?

A. place

Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on?

A. price

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold.

A. sales oriented

___ is communication by a marketer that informs, persuades, or reminds potential customers about a product

B. Promotion

During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers.

B. Sales oriented

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.

B. Sales-oriented

Which of the following statements reflects the philosophy of the market-oriented era?

B. The customer is king

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes

B. The value of their time and energy

A relational orientation is based on the philosophy that buyers and sellers develop

B. a long term relationship

As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing.

C. B2B, B2C

Marney bought a dress from a retail store. Which type of transaction was Marney participating in?

C. B2C

Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on

C. How different customers perceive the value of her services

The "Milk Life" advertising campaign, designed to increase consumption of milk, was intended to help market a(n)

C. Industry

One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in

C. Long term relationships

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect?

C. Making product decisions

During the __________ era, manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products.

C. Market Oriented

Many U.S. companies first discovered marketing during the __________ era.

C. Market oriented

Marketers involved in value-oriented marketing are constantly balancing

C. Perceived customer benefits with the costs of their offerings

Effective promotion enhances a product or service's

C. Perceived value

Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including all of the following EXCEPT

C. Performance

If a firm adopts a CRM business philosophy, it most likely has a(n) _______ orientation with its customers.

C. Relational

To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. By doing so, Pokrah University is becoming more value driven through

D. Building relationships with customers

Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing.

D. C2C

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets.

D. Controllable

Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is

D. Expanding from offering just goods and also offering services

By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to

D. Increase the perceived value of its products

Which of the following is a core aspect of marketing?

D. Making product, place, promotion, and price decisions

The importance of supply chain management is often overlooked in the study of marketing because

D. Many of the activities take place behind the scenes

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing

A. All parties to an exchange should be satisfied

When retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts it is considered _______ marketing.

A. B2C

Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or

A. Improve products and services at the same cost

Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering

A. Information

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about

A. Its value

The primary purpose of the __________ plan is to specify the marketing activities for a specific period of time.

A. Marketing

In marketing terms, the trade of things of value between the buyer and the seller so that each is better off as a result is referred to as

A. Marketing exchange

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps.

A. Marketing mix

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?

A. Place

When a T-shirt manufacturer states, "We sell it only in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing?

A. Production Oriented

Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing.

A. Production oriented

Melanie works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing.

A. Production oriented

The idea that a good product will sell itself is associated with the __________ era of marketing.

A. Production oriented

Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing?

A. Satisfying customer needs and wants

Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called

A. Supply Chain management

Shipping companies such as UPS, FedEx and DHL support other firms ____ marketing goals

A. Supply chain management

What is the name of the process in which customers collaborate in product design, often providing additional value to the firm's customers?

A. Value cocreation

How a product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer are all elements of

A. a Marketing plan

The marketing goal of getting the right quantities to the right locations at the right time relates to

B. Managing the supply chain

Value-driven firms constantly measure the relationship between

B. Benefits and costs

By allowing consumers to sell their unwanted goods to other consumers, auction sites like eBay cater to __________ marketing.

B. C2C

The basic difference between a good and a service is that a good

B. Can be physically touched

A local art gallery keeps information on its customers regarding their preferences for certain artists as well as the style of art that interests them. The gallery uses this information to inform the customers when new products arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using _______ to build loyalty among its customers.

B. Customer relationship management

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be "in the buying mode." Franco's system is part of

B. Customer relationship management

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of

B. Customer relationship management

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of

B. managing the supply chain

Supply chain management is also referred to as

B. marketing channel management

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and

B. the ability to buy them

It was during the market-oriented era that firms first discovered "marketing." In what timeframe did this occur?

C. just after WWII

In delivering value, marketing firms attempt to find the most desirable balance between

C. the need to provide benefits to customers and keep down costs.

Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider

D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Which element of the marketing mix deals with supply chain management

E. Place

Marketing involves all of the following except

E. Production Scheduling

Marketing channel management is also known as

E. Supply chain management

According to your text, in the broadest terms, the "marketplace" refers to

E. The world of trade

Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned because the commission she is earning on her sales is lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on

E. Value cocreation

Value is

E. What you get for what you give

What is the focus of a firm that develops a relational orientation with its customers?

E. gaining lifetime profitability from customer relationships

Which element of the marketing mix is most relevant to the activity "delivering value"?

E. place

When referring to "exchange" marketers are focusing on

E. the trading of things of value

According to the American Marketing Association, marketing is the activity, set of institutions and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

TRUE

As it relates to marketing, the trade of things of value between the buyer and the seller so that each is better off as a result is known as an exchange

TRUE

Buffalo Wild Wings suggests that its diners check in to its locations using their phones. This demonstrates the use of social media to market a product.

TRUE

Firms become value-driven, in part by focusing on the competition.

TRUE

In value cocreation, the customer participates in the creation of a good or service, which provides additional value to the customer

TRUE

Margo likes her morning coffee, and she always stops at Starbucks because it is on her way to work. Margo is being influenced by the place element of the marketing mix.

TRUE

Marketers might wish to sell their products to everyone, but it is not practical to do so

TRUE

The power adapters Dell sells with its computers are built by small companies that specialize in power-related accessories. Dell and the power adapter manufacturers are engaging in B2B marketing.

TRUE

Understanding a customer's needs and wants is fundamental to marketing success

TRUE

Value is what you get for what you give

TRUE

When a good or service is promoted, the purpose of the promotion is to inform, persuade, or remind customers about the good or service

TRUE

Garage sales and online classified ads are examples of C2C marketing.

TRUE (customers marketing to each other)

HappyCow is an example of location-based social media application

TRUE (location based applications, customers can find places that cater to their specific dietary requirements)

Good marketing is not a random activity

TRUE (requires thoughtful planning)

Marketing channel management is related to which of the four Ps?

c. Place