MKT 5133 - Quiz 2
How do you define the term marketing? How does the AMA definition compare with Drucker's definition?
The American Marketing Association defines marketing as "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." Peter Drucker defines it as "Marketing is so basic that it cannot be considered a separate function (i.e., a separate skill or work) within the business . . . it is, first, a central dimension of the entire business. It is the whole business . . . seen from the customer's point of view. Concern and responsibility for marketing must, therefore, permeate all areas of the enterprise."
Name three of the marketing misconceptions discussed in the text, and explain why these do not accurately describe the field of marketing.
The common misperceptions about marketing include: Catchy and entertaining advertisements—or perhaps the opposite, incessant and boring advertisements. Pushy salespeople trying to persuade someone to buy it right now. Incessant spam in your e-mail inbox and unwelcome solicitations on your smartphone. Obtrusive tracking and recording of your every click and browsing activity online. Famous brands and their celebrity spokespeople, such as Nike's athlete endorsers. Product claims that turn out to be overstated or just plain false, causing doubt about the trustworthiness of a company. Marketing departments "own" an organization's marketing initiative. Students should be able to explain each of these in terms of why some people may believe them, but also why they do not accurately represent the field.
Which characteristic about millennials is the least accurate?
They favor content over authenticity.
A commonly held misconception about marketing is that it is all about advertising and selling.
True
Customer orientation, a component of market orientation, places the customer at the core of all aspects of the enterprise.
True
Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients on websites has consumers ready to self-diagnose and self-prescribe.
True
Don Peppers and Martha Rogers popularized the term one-to-one marketing. Some firms come close to one-to-one marketing by combining flexible manufacturing with flexible marketing to enhance customer choices.
True
Firms that are stuck in a production orientation mentality likely will have great difficulty competing successfully for customers.
True
For successful Marketing (Big M), firms need to align all internal organizational processes and systems around the customer.
True
In contrast to Marketing (Big M), marketing (little m) serves the firm and its stakeholders at a functional or operational level.
True
In the current business environment, firms have learned to be open about products and services with consumers who have endless sources of information, including blogs, chat rooms, and independent websites.
True
Marketing (Big M) refers to the strategic, long-term, firm-level commitment to investing in marketing.
True
Peter Drucker stated that since it is the customer who defines value, the business enterprise has only two business functions: marketing and innovation.
True
The American Marketing Association defines marketing as "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."
True
From a customer's perspective, what is defined as a ratio of the bundle of benefits a customer receives from an offering, compared to the costs incurred by the customer in acquiring that bundle of benefits?
VALUE
Strategic marketing refers, in part, to
a long-term, firm-level commitment to investing in marketing.
Which of these is a macro-level environmental trend in business that affects marketing?
a shift to digital and social media approaches to marketing communication
Of all the business fields, ________Blank is generally the most visible to people outside the organization
Marketing
Which area of business is highly public and readily visible outside the confines of the internal business operation?
Marketing
is 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.
Marketing
Which statement about marketing is true?
Marketing is no more inherently unethical than other business areas.
When the text states that marketers need to create tools for ongoing, meaningful measurement of marketing productivity, it is referring to the need for
accountability
A misconception about marketing is that it is
all about selling.
Making a change in any one of the marketing mix elements will
also change the other elements.
Bridgit loved her old car, but she decided it was time for a new one. She went to the dealership and picked one out, and paid for it with her trade-in and cash. This is an example of
an exchange
Marketing often doesn't get the "respect" it deserves as a professional field of study, primarily because
compared to other business functions, it has had few useful metrics to measure its performance impact.
Peter Drucker, the father of modern management, stated that the only purpose of an organization is to
create a customer.
The AMA's definition of marketing reflects the view toward marketing activities as focused on
creating and delivering offerings that have value.
Independent Manufacturers keeps an in-house database of its customers, their buying history, and their preferences so it can better meet customers' needs and gain their loyalty. This demonstrates the use of
customer relationship management
Ming Yue's tailoring business works around the needs of the customer by providing hours of operation that vary throughout the week, including some evening and weekend hours. It could be said that Ming Yue's business is
customer-centric
A consumer products company makes a cleanser for the hospital and nursing home market that is guaranteed to kill 99 percent of staphylococcus germs, a major concern for medical facilities. Unlike the competition, this company is not interested in pursuing the consumer market. In this case, the company has adopted a ________Blank orientation.
differentiation
What clearly distinguishes your product from those of the competition is
differntiation
Purpose-driven marketing, or pro-social marketing, as practiced by the well-known Tom's shoe company,
engages consumers in a meaningful way.
Which action element is required for successful Marketing (Big M)?
ensuring that everyone in an organization understands the concept of customer orientation
For successful Marketing (Big M), customer orientation must be understood by
everyone in the organization
Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's website. Bryan is practicing the central tenet of marketing called
exchange
Customer relationship management (CRM) is designed primarily to
facilitate higher levels of customer satisfaction.
A major problem for most managers today is having too little information.
false
A market information system (MIS) is a software package that companies purchase to help decision makers cope with critical information.
false
All managers need the same basic information.
false
After World War II, business began to change in many long-lasting ways. What is least likely to have caused this shift?
focus on sales orientation with the objective of achieving short-term profits
Clarissa and her mother are both in marketing positions. Clarissa's job is satisfying to her primarily because it gives her a flexible schedule and pays well so she can take vacations with her friends. Her mother chose a job that provides health benefits and structured work with regular hours. This demonstrates how shifts in ________Blank can influence work life versus family life.
generational values and preferences
Companies that promote sustainability practices like Starbucks, which has a recycling program, or General Electric, which makes environmentally-sensitive products, are practicing ________Blank marketing.
green
The Girl Scouts introduced a cookie finder app in 2013. In the context of change drivers impacting the future of marketing, this reflects the shift
in generational values and preferences.
Today customers have limitless access to facts about companies, products, competitors, other customers, and even detailed elements of marketing plans and strategies. In the context of change drivers impacting the future of marketing, this reflects the shift
in information power from marketer to customer.
When was the marketing concept introduced?
in the 1950s
In Wiersema's book, The New Market Leaders, he identifies six new market realities. Which of these is included in the list?
innovation is universal
Peter Drucker, the father of modern management, believed that marketing
is the whole business as seen from the customer's point of view.
Relationship-oriented firms tend to
keep and cultivate their profitable current customers who are highly satisfied with the firm's offering.
Companies that conduct a great deal of research to learn how they can successfully put the marketing concept into practice most likely have a ________Blank orientation.
market
In 2000, Samsung manufactured the first cell phone with a built-in camera. Before that, people just used their cell phones to make and receive calls. Samsung fulfilled a need that consumers didn't know they had through
market creation
Microsoft's revolution of the information field and Disney's creation of the modern theme park industry are classic examples of
market creation
________Blank refers to approaches that drive the market toward fulfilling a whole new set of needs that customers did not realize was possible or feasible before.
market creation
In order for Marketing (Big M) to succeed, firms should create ________Blank strategies.
market-driving
A small business spent a large amount of time determining its brand image and how it would deliver its message to its customers. These are elements of
marketing (little m)
Everything from brand image to the message sales people and advertisements deliver to customer service to packaging and product features to the chosen distribution channel exemplify
marketing (little m)
Manjit's job is to measure, manage, and analyze marketing performance to maximize marketing effectiveness and optimize return on marketing investment. Manjit is practicing
marketing analytics
Sharon's manager asked her to identify, track, evaluate, and provide key benchmarks for improvement in her marketing department. To do this, Sharon used
marketing metrics
To significantly enhance customer choices, Levi combines flexible manufacturing with flexible marketing. Customers may visit the Levi's clothing website or some company-owned stores and order a pair of jeans that will be made especially for them. Levi's has adopted a ________Blank orientation approach.
mass customization
As of 2019, which generational segment is the largest in the United States?
millenials
The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service as customized as possible is known as
one-to-one marketing
Supply chain management is considered to be part of the ________Blank of the marketing mix.
place
A medieval knight could not go to the armor maker and pick out a size 44 long suit of armor to protect him in battle. Nor could a person living in the Middle Ages go to the cobbler and get a pair of shoes in a few minutes. This period before the advent of marketing is known as the
pre-industrial revolution
In the context of the marketing mix, ________Blank today is largely regarded in relationship to the concept of value.
price
An offering today is considered to be the ________Blank in the marketing mix.
product
The 4Ps of marketing refer to
product, price, place, and promotion.
Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T. This is an example of the ________Blank orientation.
production
In the context of the 4Ps of the marketing mix, high-tech media options like cell phones and the Internet have had a huge impact on
promotion
A local landscaping company works hard to keep and cultivate profitable current customers instead of constantly investing in gaining new customers that come with unknown return on investment. This company has a ________Blank orientation.
relationship
Soria Brothers provides accounting services to small businesses. Before and after tax season, the partners meet with each client company. They send a monthly newsletter to update clients with tax changes. The firm's business practices mainly focus on keeping profitable current customers rather than gaining new customers. Soria Brothers has adopted a ________Blank orientation approach.
relationship
The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of the ________Blank orientation.
sales
In the context of change drivers impacting the future of marketing, marketing (little m)
serves the firm and its stakeholders at a functional level.
The Bazooka brand of candy revamped its package inserts by changing from comic strips to quizzes and brainteasers that direct kids to digital content. In the context of change drivers impacting the future of marketing, this reflects the
shift in generational values and preferences.
Many marketers today are more focused on ________Blank, or the bundles of benefits from an offering that solve a problem or fill a need of a customer, than they are on products.
solutions
After a recent 140-day strike, the union members in California went back to work at area grocery stores. The union negotiated raises, better health care benefits, and a one-tier pay scale. The union may best be described as a(n)
stakeholder
Marketing (Big M) is also known as ________Blank marketing.
strategic
The core marketing concept characteristics of an organization-wide customer orientation and long-run profits are ________Blank in nature.
strategic
In the context of change drivers impacting the future of marketing, marketing (little m) is also known as ________Blank marketing.
tactical
For successful Marketing (Big M), all internal organizational practices should be aligned around
the customer
In the context of change drivers impacting the future of marketing, marketing tactics such as designing the elements of the marketing mix are reflected in the shift
to distinguishing Marketing (Big M) from marketing (little m).
In the context of change drivers impacting the future of marketing, the way a firm looks at strategy and tactics is reflected in the shift
to distinguishing Marketing (Big M) from marketing (little m).
Appropriate and effective marketing metrics must be designed to identify, track, evaluate, and provide key benchmarks for improvement. In the context of change drivers affecting the future of marketing, this reflects the shift
to justifying the relevance and payback of the marketing investment.
In order for Marketing (Big M) to succeed, it must be championed by
top management
In evaluating internal and external information sources, companies need to consider not only what information is important but also the source of the data.
true
In marketing planning, situation analysis involves identification of competitive strengths, weaknesses, and trends.
true
Market information systems serve as an information bank where important data are stored until it is needed.
true
Which of these are core marketing concepts?
value and exchange
is a central tenet of marketing in which a person gives up something of value to them for something else they desire to have.
Exchange
Fred Wiersema's book The New Market Leaders states that marketers will continue to have more power than customers in both B2B and B2C markets.
False
Gen Y consumers tend to value in-person relationships with marketers like State Farm Insurance in exactly the same way as the prior generations.
False
If aspects of marketing can't be measured, they can still be managed.
False
Marketing is relevant only to people in the organization who work directly in the marketing department.
False
Practicing marketers tend to pitch marketing internally as an expense, not an investment in the future success of the organization.
False
Strategic marketing refers to the idea that firms should direct energy and resources into establishing a learning relationship with each customer and connect the learned knowledge with the firm's production and service capabilities.
False
Sustainability refers to business practices that prolong the life cycle of a product.
False
When Henry Ford said, "People can have the Model T in any color—so long that it's black," he was reflecting a sales orientation.
False
Why did production capacity utilization began to decline around the end of World War I?
Financial markets placed more pressure on firms to continually increase sales volume and profits.
Describe three ways in which information power has shifted from the marketer to the customer.
For decades, marketers held a degree of information power over their customers because firms had access to detailed and sophisticated information about their products and services that customers couldn't get without the help of someone in the firm (usually a salesperson). Now, customers are empowered to access boundless information about all kinds of products and services on the Internet. For competitive reasons, firms have no choice but to be more open about their businesses and products. Even if they wanted to, firms can't stop chat rooms, independent websites, web logs or blogs, and other customer-generated modes of communication from filling web page after web page with information, disinformation, and opinions about a company's products, services.
Compare and contrast the production orientation, the sales orientation, the differentiation orientation, the market orientation, and the relationship orientation.
For the early part of the 20th century, the focus was on the production orientation of improving products and production efficiency without much regard for what was going on in the marketplace. In fact, consumers snapped up this new pipeline of reasonably priced goods, even if the products didn't give much choice in style or function. Around the end of World War I, production capacity utilization began to decline for several reasons. These factors resulted in the rise of many of the great sales organizations of today. A sales orientation suggests that, to increase sales and consequently production capacity utilization, professional salespeople need to "push" product into the hands of customers, both businesses and end users. More sophisticated research and analytical approaches have made it possible to do increasingly precise refinement of market segmentation, target marketing, and positioning of products to serve very specific customer groups. The idea is to create and communicate differentiation, or what clearly distinguishes your products from those of competitors in the minds of customers. The ability for marketers to tailor and deliver different product messages to different groups also has been greatly enhanced by the proliferation of multiple types of media that can be used with great precision to communicate to very specifically defined customer groups. A great deal of research has been devoted to learning how a firm can successfully put the marketing concept into practice. Think of market orientation as the implementation of the marketing concept. The notion of market orientation, one component of which is customer orientation—placing the customer at the core of all aspects of the enterprise—takes the guiding business philosophy of the marketing concept and works to more usefully define just how to implement i
The marketing concept was first articulated in the Annual Report of
GE - general electric
