Quiz 1 Marketing

Because Charlene works the late shift, she really loves TiVo because it allows her to watch her favorite TV shows on her own schedule. TiVo provides what element of value to Charlene?

Co-creation

A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally harvested. In places like Indonesia as much as 80 percent of timber available for sale was illegally cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot?

Each party believes it is appropriate to deal with the other party.

Which marketing management philosophy focuses on the question, "What do customers want and need?"

Market orientation

_____ is a strategy that focuses on keeping and improving relationships with current customers.

Relationship marketing

One facet of marketing is that it is:

a philosophy that stresses customer satisfaction

Kellogg's gives consumers the chance to receive a free DVD. Consumers who buy five boxes of specially marked cereal can cut out the coupons and mail in their completed official form to get a free DVD. Kellogg's is engaging in:

relationship marketing

Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:

what the customer thinks he or she is buying is what is important

A company adhering to the marketing concept will likely take which of the following steps if it learned that its customers were dissatisfied with its product?

Conduct research to determine if its customers' needs have changed

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

Customer value

_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.

Empowerment

Which of the following occurs when people give up something in order to receive something that they would rather have?

Exchange

Only a firm's salespeople need to be customer-oriented.

False

A firm with a production orientation is more likely to survive if:

demand for the product it produces exceeds supply

All of the following are necessary for exchange to occur EXCEPT:

each party signs a contract before exchange occurs

Marketers interested in offering customer value can:

offer products that perform. give the buyer facts, offer organization-wide commitment in service and after-sales support, and avoid unrealistic pricing

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.

production

All of the following are marketing management philosophies EXCEPT:

profitability orientation

Martina spent $30 at the grocery store this afternoon. About how much of that sum paid for marketing costs?

$15.00

After hearing his company criticized for its failure to respond to consumer needs, the CEO of a bank realized that his company needs to adhere to the marketing concept and implement a market-oriented strategy. Which of the following actions would be the best approach to achieving this goal?

Creating cross-functional teams and instructing them to focus on creating greater customer value

Marketing is defined as producing, promoting, and selling products.

False

Niche competitive advantages are difficult to develop and consequently are quite rare.

False

Otis places an ad in the local newspaper stating that his used Chevrolet is for sale for $4000. Unfortunately, no one purchased Otis's used car. Therefore, he did not engage in marketing.

False

Sales-oriented firms tend to focus on long-term relationships, whereas market-oriented firms focus primarily on short-term relationships.

False

The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of the express-delivery market. Which of the following statements describes this situation?

FedEx is perceived as offering greater customer value.

Which of the following is a type of strategic alternative that tries to increase market share among existing customers?

Market penetration

StoryBlox creates and markets handmade wooden toys, which it sells to retailers in the Midwest. The company's management believes its retail customers will stock more toys if its salespeople use aggressive marketing techniques, so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its toys. In other words, the company has a _____ orientation.

Sales

Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used?

Sales

Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and pre-planned funeral services?

Sales Orientation

Which marketing management philosophy focuses on the question, "How can we sell more aggressively?"

Sales orientation

Which of the following is the customer's evaluation of a good or service in terms of whether that good or service has met his or her needs and expectations? Value Perception Attitude Dissonance Satisfaction

Satisfaction

3D Systems is a company that uses computers to generate new product prototypes. It has generated loyal business clients by providing the best customer support in the industry. The company also provides direct sales consultations that gives its salespeople intimate knowledge about what exactly its customers want. This partnership between 3D Systems and its customers entails relationship marketing.

True

The societal marketing concept considers society's long-term best interests along with the satisfaction of customers' wants and needs.

True

The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers.

True

When a florist shop begins to sell burial caskets to its customers, it is engaged in product development.

True

If a company uses a sales orientation, consumer complaints would most likely result in:

a modification of the sales presentation

96 percent of USAA home insurance policy holders report that USAA representatives meets their commitment in calling back customers quickly about claims. The most likely result of USAA's efforts is:

customer satisfaction

Nordstrom department store emphasizes _____ by accepting returns on items not purchased there.

customer satisfaction

Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:

empowerment

The sales and market orientations differ on all of the following characteristics EXCEPT:

firm's performance

The marketing concept involves:

focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products

Mimi Couturier is a design company that specializes in formalwear for women. The company is known for challenging fashion mores. The company's fashion designers use computer-assisted design software to create what it thinks women should wear. The company regularly hires industry experts to examine its factories to find waste and inefficiencies that can be eliminated. The company has expanded the number of products it offers for sale many times. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its work force. To avoid this occurrence in the future, Mimi Couturier should:

have someone study its target market to see what needs and wants should be met by Mimi Couturier

Redefining the business mission of a mattress manufacturer as "a good night's sleep" rather than stating the mission as "the manufacture of high-quality mattresses" will:

help ensure the firm retains its focus on customers

The Geek Squad is a tech support station located inside every Best Buy electronics retail store. Best Buy gives intensive training to the Geeks. The purpose of this training is to:

improve customer service

The American Marketing Association's definition of marketing:

includes creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large.

Strategic plans require:

long-term resource commitments

A homeowner called Handyman Direct to replace a noisy bathroom exhaust fan. When the repairman arrived at the home and examined the fan, he convinced the homeowner that the fan simply needed to be cleaned and oiled rather than replaced. This would fix the problem better than replacing the fan—with less trouble and less expense. This sort of discussion between employees and customers is commonplace at Handyman Direct and indicates the business has a(n) _____ orientation.

market

A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of:

marketing

Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out the heat. Little market research was done, but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color than the current models on the market. This scenario suggests PPG most likely has a(n) _____ orientation.

production

Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoyed being the top U.S. car producer, and focused more on how many cars and trucks it could manufacture and not on what customers wanted from a vehicle. GM had more of a _____ orientation.

production

TUFF SHED, Inc. is one of the leading suppliers of installed storage buildings and garages in the United States. TUFF SHED mandates that sales, management and construction teams work together to anticipate and eliminate potential problems. They make sure customers get the right buildings for their needs, and they all are built well and in a timely manner. By using teamwork, TUFF SHED:

provides its customer with a high level of satisfaction

The _____ orientation assumes people will buy more if aggressive selling techniques are used.

sales

A market-oriented organization targets its products at:

specific groups of people

A firm's mission statement should answer the question, "What products do we produce best?"

False

A market orientation assumes that sales depend on aggressive sales techniques.

False

A market penetration strategy entails the creation of new products for current customers.

False

A portfolio model is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation.

False

As marketers gain more experience in marketing a product, costs tend to decrease, which is an example of the maturity effect.

False

Career opportunities in marketing exist only in for-profit organizations.

False

Customer value is the relationship between company profits and company costs.

False

In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was black. Ford's management assumed anyone buying a car would accept the color black, so it made products affordable by offering only one variety in large quantities. Ford is an example of a market-oriented firm.

False

The company's marketing objective is to increase sales next year. This is an example of a well-stated objective.

False

The development of a target market strategy begins with a marketing audit.

False

The four Ps of the marketing mix are product, planning, promotion, and price.

False

The harvest strategy is appropriate for all SBUs except dogs.

False

The way to achieve customer satisfaction and value is to offer the lowest price.

False

To be useful, marketing objectives should be realistic, measurable, time specific, and based on sales.

False

Typically, the development of the marketing mix starts with determining the promotion for a product.

False

Unlike a production orientated firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.

False

When the Walt Disney Company opened Disneyland Paris for the French market, it was an example of market penetration.

False

Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product?

Market Orientation

All of the following are good reasons to study marketing EXCEPT:

Marketing creates consumer needs.

Bob collects baseball cards and decides to sell a few of them on eBay. Some of the cards he wants to sell are rare and very valuable. What condition is necessary for an exchange to occur between Barry and a buyer?

Potential buyers must be able to see the card and understand its qualities.

A newspaper ad for a hospital that states, "We have the most modern delivery rooms and state-of-the art medical equipment," is an indication of which marketing management philosophy?

Production Orientation

Which marketing management philosophy focuses on the question, "What can we make or do best?"

Production orientation

Fujifilm Computer Products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25 percent. It has instructed its sales force to aggressively distribute and promote its printers. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Fujifilm appears to have a _____ orientation.

Sales

Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices. Unfortunately, the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide. Human rights organization have asked jewelers to buy diamonds that are "conflict-free"—that is from South Africa, Australia, or Canada. LeeBrant is one retail jewelry store that sells only diamonds that are certified to be from these countries. LeeBrant is exhibiting which marketing management orientation?

Societal marketing orientation

Which marketing management philosophy focuses on the question, "What do customers want and need, and how can we benefit society?"

Societal marketing orientation

Which of the following would be considered a stakeholder of Southwest Airlines?

Southwest Airlines employees, Southwest Airlines stockholders, companies that supply parts to Southwest Airlines, and individuals who fly on Southwest Airlines

_____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

Strategic planning

_____ is the collaborative efforts of people to achieve common objectives.

Teamwork

Which of the following statements about the societal orientation is FALSE? Companies that protect the environment by using all-natural materials in their products are showing a societal marketing orientation. Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers. The societal marketing concept is an important refinement of the market concept. Organizations have both a social and economic justification for their existence. The majority of consumers support environmentally-friendly companies and willingly paying more for these products.

The majority of consumers support environmentally-friendly companies and willingly paying more for these products.

A competitive advantage is the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

True

A diversification strategy entails increasing sales by introducing new products into new markets.

True

A production costs analysis could be a part of a company's SWOT analysis.

True

According to the American Marketing Association, 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.

True

An exchange cannot take place unless each party in the exchange has something that the other party values.

True

Current trends indicate that more customers are becoming concerned about the environment each year and are trying to buy environmentally friendly products.

True

Developing a cost competitive advantage can enable a firm to deliver superior customer value.

True

Environmental scanning entails the collection and interpretation of information about factors in the external environment that may affect the future of the organization or the implementation of the marketing plan.

True

In the General Electric model, SBUs that have low overall attractiveness should be avoided if the organization is not already serving them.

True

In the portfolio mix, notebook computers would be an example of a star.

True

Marketing is important to business, so marketing should be part of the job of everyone in the organization, not just those in marketing.

True

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

True

Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.

True

Sales-oriented firms usually rely more heavily on promotion alone than do market-oriented firms.

True

Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products.

True

The Home Depot's purchase of Hughes Supply Company allows it to better meet the needs of its current business customers. This is an example of product development.

True

The fundamental objectives of most businesses are survival, profits, and growth.

True

The fundamental problem with a sales orientation is a lack of understanding of customers' needs and wants.

True

The implementation process can be described as simply "doing what you said you were going to do."

True

The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers. True or False?

True

The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while meeting organizational objectives.

True

The marketing plan is a written document that acts as a guidebook of marketing activities for a marketing manager.

True

As part of instituting an empowerment program, a marketing director should:

allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors

What percentage of the civilian workforce in the United States performs marketing activities?

between 25 and 33 percent

When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.

customer satisfaction

Most successful relationship marketing strategies depend on

customer-oriented personnel , effective training programs, employees with authority to make decisions and solve problems, and teamwork

One of the reasons given for the decline of Britannica is that the firm defined its business as publishing books instead of providing information. Britannica failed to:

define its mission in terms of the benefits its customers seek

Walker Farms has heard from many of its customers that they would like organic produce. As a result, Walker Farms became a certified organic farm. Walker realizes that, while not all consumers are willing to pay the higher prices for organic produce, his customers want the organic produce. Walker realized:

different customer groups have different needs and wants

A company that wants to implement a market orientation would need to:

do research on its customers, competitors, and markets, determine how to deliver superior customer value, establish and maintain mutually satisfying relationships with customers, and implement actions that provide value to customers

The Ritz Carlton has Service Values which guide employees in providing its Gold Standard service. One of the service values states "I own and immediately resolve guest problems." The Ritz Carlton management uses _____ to provide customer service.

empowerment

Every cup of Dannon Yogurt contains a letter under the lid seal. Customers who collect lids and spell certain words win a prize if they send the letters and the official order form back to Dannon. Within 90 days, these customers will receive the prize of their choice. A(n) _____ will occur when a customer mails in his or her lid seals for a prize.

exchange

A company that has a market orientation and adheres to the marketing concept does NOT:

fuel sales growth through the application of aggressive sales techniques

A sales-oriented firm defines its business (or mission) in terms of:

goods and services

At The Container Store every employee is trained to serve customers. Full time salespeople receive 240 hours of training. The Container Store works to hire people who are self-motivated and have a passion for customer service. The Container Store has a(n) _____ orientation.

market

At www.mystarbucksidea.com customers are encouraged to share their ideas and thoughts about how Starbucks can better serve their customers. Starbucks customers told management that they wanted to be recognized for choosing Starbucks coffee. So Starbucks instituted the Starbucks Reward program with money saving benefits to their Starbuck card-holders. Starbucks is an example of a company with a _____-oriented philosophy.

market

Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants. This philosophy is at the heart of a(n) _____ orientation.

market

Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them—such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." By focusing on customers' wants, the chocolate company exhibits a(n)_____ orientation.

market

Western Union failed to define its competitive arena as telecommunications, concentrating instead on telegraph services, and was eventually outflanked by fax technology. Had Western Union been a _____-oriented company, its management might have better understood the changes taking place and developed strategies to counter the threat.

market

The concept of exchange is important to marketing because:

marketing activities help to create exchange

When properly created, an SBU has all of the following characteristics EXCEPT:

no competitors

A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation.

production

A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.

production

Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

production

Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage. After flying a certain number of miles or flying a specified number of times, the frequent-flyer program participant earns a free flight or some other award such as free lodging. Airlines that use frequent-flyer programs are practicing:

relationship marketing

Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on cars. The device beams signals to dealers who can remotely diagnose or spot trouble. The device allows car dealerships to maintain a closer bond with their customers by offering maintenance before a problem leaves customers with an inoperable or possibly dangerous car. With the device, dealers can better engage in:

relationship marketing

The owner of Maine Kitchen Art bowls, spoons, and cutting boards knows marketing can make his company a success. He wants to rely solely on promotion as the technique for attracting customers. He advertises extensively in cooking magazines and provides retailers who carry his product with attractive displays. From this information, you know that Maine Kitchen Art has a _____ orientation.

sales

A sales-oriented organization seeks to achieve profitability through:

sales volume

One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve profitability through sales volume, it would probably be:

sales-oriented

Market-oriented firms primarily focus their efforts upon:

satisfying the wants and needs of their customers

FujiFilm Computer Products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25 percent and has instructed its sales force to aggressively distribute and promote the product. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Apparently FujiFilm:

seeks its goals primarily through the use of intensive promotion

The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:

simultaneously meeting organization objectives

Life is good® developed the "Good Karma" line of environmentally friendly 100 percent organic cotton apparel. The production of the Good Karma line is be consistent with a _____ orientation

societal marketing

Most companies become sensitized to community issues after they've done enough damage to draw the locals' anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding what projects to improve the local environment will be implemented. This annual community-wide meeting indicates Dofasco has a _____ orientation.

societal marketing

Procter & Gamble decided to address the fact that Hispanic women are more likely to die from breast cancer because they're reluctant to get mammograms or discuss screening. So P&G brought screening to the supermarket, parking mobile mammography vehicles in grocery store parking lots in Texas and inviting shoppers in for free x-rays. Tie-ins with local hospitals assured that women with suspicious films got follow-up care. P&G adopted a _____ orientation to achieve this goal.

societal marketing

Target shoppers can enroll in the Take Charge of Education® program so that Target will donate one percent of purchases made with a consumer's REDcard, a Target credit card. The more money customers spend, the larger the donation to the consumer's school of choice. By instituting the Take Charge of Education® program to help local schools, Target has shown a _____ orientation.

societal marketing

An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.

societal marketing orientation

General Electric has a financing business called GE Capital, which has its own mission, products, services, and strategic plans separate from the parent organization. GE Capital is an example of a(n):

strategic business unit

Until spun off in 2007, Kraft was part of Altria Group, Inc. Kraft had its own management team, mission statement, and target markets different from Altria Group, Inc. Kraft was a _____ of Altria Group, Inc.

strategic business unit

A subgroup of a single business or a collection of related businesses within the larger organization is called a(n):

strategic business unit (SBU)

Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup Company. Campbell's sold one of its:

strategic business units (SBUs)

Since gas prices have soared and consumers have cut back on their spending on new trucks and SUVs Ford Motor Corporation is transforming several of its plants to create small cars. Ford has engaged in:

strategic planning

With hospitals nationwide facing budget cuts and slimmer profit margins, Dekalb County's Medical Center decided to cash in on one of the most consistently profitable services—delivering babies. It initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and delivery suites. When the hospital decided to commit its resources to obstetrics, it was engaging in:

strategic planning

A market-oriented firm defines its business in terms of:

the benefits its customers seek

SAP, the world's largest business software company, has pledged to put the "customer at the center" of their universe. SAP has captured the idea of:

the marketing concept

For an exchange to take place:

there must be at least two parties involved