Marketing Exam #1 - Chapter 1: What is Marketing

Customers Value Excellence of . . . 6 things

- Excellence of experience (helps retain loyal customers, like in a restaurant) - Locational excellence (Starbucks, McDonald's have competitive advantage) - Product excellence - Operational excellence - Customer excellence

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

a long-term relationship.

Which of the following is a core aspect of marketing?

making product, place, promotion, and price decisions

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

production-oriented era (the assumption was that if companies built good products, they would sell without any particular effort)

UPS, FedEx, and other shipping companies support other firms' ________ marketing goals.

supply chain management

Jessica was tired of her leather pocketbook, so she sold it to her friend, Shawna. This is an example of ________ marketing.

C2C

What are the Four P's?

Price, Product, Place, Promotion

What is the marketing mix?

Product, Price, Place, Promotion

True or False Apple makes its innovations compatible with existing products to encourage consumers to maintain a long-term relationship with the company across all their electronic needs.

True

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

True

True or False To build relationships, firms focus on the lifetime profitability of the relationship, not how much money is made during each transaction.

True

Value-Based Marketing Era

companies turned their focus from creating a good marketing plan to creating value to their goods through marketing.

Justine offers design and consulting services 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

how different customers perceive the value of her services.

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

it became a buyer's market where the customer is king.

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

lifetime profitability of relationships matters more than profits from a particular transaction. Explanation: By not raising prices when they could, the firms were resisting the temptation to make a quick profit and were instead demonstrating the value they placed on long-term relationships with their customers.

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?

market-oriented

Data about how, when, why, where, and what people buy refers to

marketing analytics

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 . . .

offering an exchange - Marketing is about an exchange, the trade of things of value between buyer and seller so that each is better off.

Sales-Oriented Era

overproduction due to people's conditioning from WWII and the Great Depression solution = becoming sales oriented: they depended on heavy doses of personal selling and advertising

In the past, manufacturer's representatives did not have real-time inventory data about the products they were selling. Today, manufacturer's representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value-driven by . . .

sharing information across the organization.

Francine, the delivery and sales representative for a wine distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected home and table event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Francine is providing the important marketing function of . . .

supply chain management.

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.

B2B; B2C

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. When they sell to consumers, it is considered ________ marketing.

B2C

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

False - purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

True or False Promotion deals specifically with retailing and marketing channel management, also known as supply chain management.

False - Place* deals specifically with retailing and marketing channel management, also known as supply chain management.