MKTG 3310 CH1

Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which of the following statements would you MOST LIKELY expect management to make if sales of this new candy bar were much lower than expected?

"Let's put more aggressive salespeople in the field."

New-product experts generally estimate that up to __________ percent of the more than 40,000 new consumable products introduced in the United States annually "don't succeed in the long run."

94

A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an iPhone 4S, which statement is most accurate?

Both the adjuster and the student are potential customers because in their own way, they both benefit from the product.

Initially, Facebook targeted which market segment of consumers?

COLLEGE STUDENTS

Which of the following products mentioned in Chapter 1 of the textbook failed in the marketplace?

Dr. Care toothpaste

A business student is preparing for the Graduate Management Admission Test (GMAT) so he can get into a good graduate business school. He knows that any money he spends on a tutor will be well worth it if he can improve his scores. He's heard that there is a great tutor in his local community but has no idea who she is. What is the next logical step in order for marketing to occur?

He should check for ads for tutors in the college and local papers, ask his friends, look for flyers by her on a bulletin board in the business college student lounge, etc.

Which of the following statements about marketing is most accurate?

Marketing requires an innate sense of creativity; you either have it or you don't.

Which of the following statements best defines consumer needs and wants?

Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person's knowledge, culture, or personality.

Mizuno designs and sells high quality baseball gloves. Who benefits the LEAST from the firm's marketing activities for its gloves?

No one should benefit the "least." All should be benefit from Mizuno's marketing efforts, even society at large.

You change the oil in your car yourself and dump the used oil down the sewer drain that ultimately flows into the local river. Based on this information, is this a transaction between you and the oil manufacturer?

No, this is an issue of personal social responsibility because the polluted water affects others in the society at large

The Arizona Biltmore in Phoenix is next to the Biltmore Fashion Park, a large shopping mall located less than a mile away. The hotel wants to promote its proximity to the shopping center as well as its many other amenities to convention-goers from other states. Which of the following would MOST LIKELY help The Arizona Biltmore communicate with potential convention attendees?

Place an ad in the in-flight magazines of all the major airlines targeting business/first class flyers.

Which of the following statements about relationship marketing is most accurate?

Relationship marketing is more effective when there is a personal, ongoing relationship between an organization's employees and its customers in the selling and buying organizations.

Which of the following statements describes an environmental force?

Several states have legislation that requires people transporting children to use age- and height-appropriate car seats.

If you followed the suggestions of Robert M. McMath, which of the following provides the best advice for a marketer, such as Colgate, when launching a new consumer product, such as toothpaste?

Study past toothpaste product failures and learn from them.

An economics student would like to buy a mini-scooter but she cannot afford one. Which of the following reasons explain why marketing fails to occur here?

The ability to satisfy a need is missing

Which of the following statements about marketing departments is most accurate?

The marketing department must work closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.

Which of the following statements about marketing activities is most accurate?

The marketing department works closely with other departments and employees to implement marketing activities.

Which of the following statements about stakeholders is most accurate?

The organization, suppliers, shareholders, employees, and consumers are all stakeholders of an organization and all should benefit from the organization's marketing activities.

A college student is taking a full course load, working 20 hours per week, and still has to take out a student loan to cover tuition. One day, the student sees a classmate driving a Lexus sports coupe and feels he just has to have one of his own. What factor is MOST LIKELY to prevent a successful marketing exchange between the student and a Lexus dealer?

The student does not have the resources to qualify for a $50,000 auto loan.

Which of the following statements about customer value is most accurate?

To create value for targeted buyers, firms must build long-term relationships with them.

A local college of business offers an outstanding graduate business school education program. Cali pays the tuition to attend and earns her MBA with a concentration in marketing management. Upon graduating, she is offered a high paying, fulfilling position. Was this a marketing exchange?

Yes, because paying tuition was exchanged for knowledge that directly led to Cali's high paying, fulfilling new job.

A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief, positive story about how fellow members have helped them during times of need. Jack volunteered and shared his story during a service. Afterwards, he felt joyous. Was this an exchange in a marketing sense?

Yes, because sharing his story at a service was exchanged for a feeling of joy.

The American Red Cross created a series of advertisements to encourage people to donate blood. After viewing an ad, Amanda went to the local Red Cross office and donated a pint of her blood. Amanda returned home feeling happy that she had performed a good deed. Was this an exchange in a marketing sense?

Yes, because the donated blood was exchanged for a feeling of satisfaction.

The United Way of Greater Toronto (UWGT), like many charities, was sitting on a gold mine of donor data. Unfortunately, UWGT was not certain how to use that information to its greatest advantage. UWGT could blanket past donors with generic mailings, but it could not offer donors information that would convince them to donate to UWGT over other charities. Which of the following tools would be most useful for the nonprofit organization to use?

a customer relationship management plan

To avoid new-product failure, new-product expert Robert M. McMath suggests

a focus on customer benefits and to learn from the past.

A growing trend to "Buy American" has caused U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota's decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect

a positive result from regulatory and economic environmental forces.

The element of the marketing mix that describes a good, service, or idea to satisfy consumers' needs is known as

a product

Newspaper readership has significantly declined in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is MOST LIKELY an example of

a social environmental force as a result of changing consumer preferences for information delivered online.

A local university offers business courses for a specific target market composed of people who currently work and want to take refresher courses to obtain a higher degree. Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical?

advertise in the local newspaper

The common factor among an organization's chairman of the board, stockholders, suppliers, laborers, customers, and society at large is that

all are stakeholders and should benefit from the marketing of a product.

The most likely market for cosmetic dentistry, which can cost $15,000 for straightening and whitening, is

anyone who has the time, the money, and the desire to undergo the procedures.

Marketing discovers consumer needs by

conducting extensive marketing research.

Which of the following terms best describes the marketing concept era?

consumer oriented

The marketing mix elements are called __________ because they are under the jurisdiction of the marketing department in an organization.

controllable factors

The Terrafugia Transition is a flying car with an anticipated price of $250,000. The MOST LIKELY prospective customers for this aircraft/vehicle would be

corporate executives of Fortune 1000 companies whose time is valuable.

The internal response that customers have to all aspects of an organization and its offerings is referred to as __________.

customer experience

With respect to the history of American business, the __________ era started in the 1980s in which firms seek continuously to satisfy the high expectations of customers.

customer relationship

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price is called

customer value

Michelin's __________ can be summed up as "providing safety-conscious parents greater security in tires at a premium price."

customer value proposition

The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a(n)

customer value proposition

All of the following are environmental forces EXCEPT

customers

To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and wants of prospective customers.

discover

The two central concerns of marketing are __________.

discovering and satisfying consumer needs

Which of the following is NOT an environmental force?

ecological

Effective marketing benefits society because it

enhances competition, which improves the quality of products and services and lowers their prices.

The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as

environmental forces

The trade of things of value between buyer and seller so that each is better off after the trade is referred to as __________.

exchange

The Terrafugia Transition is a 19-foot, two-seater road-drivable, light-sport aircraft with an anticipated price of $250,000. The most likely prospective customers for this flying car would include

executives for whom time is extremely important

Showstoppers refer to

factors that might doom a product in the marketplace.

Marketing persuades people to buy the "wrong" things (T or F)

false

The process of taking wool off sheep and using it to make soft sweaters shows how manufacturing can create __________ utility.

form

The value to consumers that comes from the production or alteration of a product or service constitutes __________ utility

form

The four utilities marketing creates are

form, place, time, and possession

Which of the following statements best describes a good?

goods are physical objects

People with both the desire and ability to buy a specific offering are referred to as [a(n)]

market

Firms such as General Electric, Marriott, and Facebook have achieved great success by putting a huge effort into implementing the marketing concept, giving their firms a

market orientation

The __________ department of an organization is responsible for facilitating relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations

marketing

In 1952, General Electric's annual report stated, "The concept introduces...marketing...at the beginning rather than the end of the production cycle and integrates marketing into each phase of the business." This is a brief statement of what has come to be known as the

marketing concept

The American business period that strives to satisfy consumer needs while achieving an organization's goals is called the __________ era.

marketing concept

Which era of U.S. business history does the following statement best describe? "We are in the business of satisfying the needs and wants of consumers while achieving our own goals."

marketing concept

With respect to the history of American business, the __________ era began in the late 1950s when marketing became the motivating force among many firms.

marketing concept

The marketing manager's controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem are referred to as the __________.

marketing mix

Jakubowski Farms Gourmet Bread Base is the brand name for a mix designed for use in bread machines. The mixes are sold in 2-pound canisters for $14.99 plus postage. The products are only available through the mail. People learn about the product through word-of-mouth and bread machine demonstrations the company's founder gives to groups in Wisconsin where she lives. This is a description of the company's

marketing mix.

An organization that focuses its efforts on: (1) continuously collecting information about customers' needs; (2) sharing this information across departments; and (3) using it to create customer value is said to have a

marketing orientation

A __________ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

marketing program

After an assessment of needs, a marketing manager must translate ideas from consumers into concepts for products that a firm may develop. The concepts must then be converted into a tangible

marketing program

Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Some items in the product line contain Capri Sun drinks, water, or a small portion of Dole fruit. The box is bright yellow and the quantity of food contained within it is small. The target market for Kraft Lunchables is MOST LIKELY:

moms with school-age children who pack a simple healthy lunch for them.

A __________ occurs when a person feels deprived of basic necessities such as food, clothing, and shelter.

need

The first objective in marketing is to discover consumer __________.

needs to identify reasons for buying

A television advertisement shows several teenagers searching through the refrigerator for something to quench their thirst. The refrigerator offers the youngsters many alternatives—soft drinks, fruit drinks, sport drinks, and bottles of Sunny Delight drink. The ad, which shows the teens happily selecting Sunny Delight over all the other beverages, appeals to the consumers' __________ for liquid refreshment to quench their thirst and attempts to shape their __________ for the advertised product.

needs; wants

A student would like to buy a sports car from the local dealer, but she cannot afford one. Marketing does not occur in this situation because

one of the involved parties does not have the ability to satisfy its needs.

A target market refers to

one or more specific groups of potential consumers toward which an organization directs its marketing program.

of all new businesses fail within five years of their launch

over 50%

All markets ultimately are composed of __________.

people

For marketing to occur, there must be two or more parties with unsatisfied needs. Cadbury Beverages, Inc. has begun distributing Country Time lemonade through supermarkets at a price comparable to that of soft drinks. The most likely "second" party needed for marketing to occur would be

people with a desire for a beverage other than soda or water

The __________ element of the marketing mix is demonstrated when a newspaper carrier throws a paper on the front porch.

place

The element of the marketing mix that describes a means of getting the product to the consumer is known as

place or distribution

The value to consumers that comes from making an item easy to purchase through the provision of credit cards and financial arrangements constitutes _________ utility.

possesion

To attend a winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall door. This statement is most closely related to the __________ element of the marketing mix

price

As organizations have changed their orientation, society's expectations of marketers have also changed. Today, the emphasis of marketing practice has shifted from the interests of __________ to the interests of consumers.

producers

The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used in the old-fashioned cookies the company produces and markets. This statement deals with which part of the marketing mix?

product

If you wanted a new pair of shoes during the Civil War, you traced the outline of your foot on a piece of paper and gave it to a shoemaker. There was no distinction between the right and left foot because you wanted your shoes as quickly as possible, and the shoemaker knew that you would buy them even if they just "sort of" fit. This is an example of a transaction that would have occurred during the __________ era in U.S. business history.

production

With respect to the history of American business, the __________ era covered the early years of the United States up until the 1920s.

production

All of the following constitute the "4 Ps" of the marketing mix EXCEPT

profits

The __________ element of the marketing mix is demonstrated when a company places an ad in the Yellow Pages.

promotion

The element of the marketing mix that describes a means of communication between the seller and buyer is known as

promotion

The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the old-fashioned products they market. Concern about the __________ element of the marketing mix would make them eager to be featured in an upcoming edition of Taste of Home magazine.

promotion

Whether an individual is buying for personal or household use, or an organization is buying for its own use or for resale, the individual or organization would be considered

prospective customer

In the nonprofit world of the performing arts, box office technology has essentially remained the same since the 1980s. A company called Tessitura is trying to change that. Tessitura is able to track every transaction with its patrons in one database. This information collected includes ticket purchases, fund-raising, volunteering, and gift shop purchases that will help symphonies, operas, and theaters develop customer profiles in order to tailor their sales messages to specific individuals. In other words, Tessitura is going to allow arts groups to engage in

relationship marketing

The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as

relationship marketing

The marketing department of an organization is responsible for facilitating __________.

relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations

In the 19th century, the belief was that production creates its own demand. By the early 20th century, American companies began to produce more goods than buyers could consume. At the same time, competition became more significant. The usual solution was to hire more salespeople to find new buyers. This describes the __________ era.

sales

In the movie Tin Men, two rival salesmen engaged in a variety of dishonest and unethical practices in order to sell aluminum siding to homeowners in 1963. Their job was difficult, in part, because the supply of aluminum siding surpassed the demand for the product and competition was intense. This situation is indicative of the __________ era of U.S. business history

sales

Shortly after World War II, Sam Jackson developed an idea for a biodegradable lubricant that was superior to anything currently on the market. He was excited about his new idea and persuaded a number of his friends to help produce samples. While demand kept up with production at first, he soon found that he had to hire a sales force to sell excess product to manufacturing companies in the area. He decided this was primarily because his company had several strong competitors that had recently come into the industry. This is an example of marketing behavior that would occur during the __________ era of U.S. business history.

sales

The period of American business history when firms could produce more goods than they could sell and the focus was on hiring more salespeople to seek out new markets and customers is referred to as the __________ era.

sales

With respect to the history of American business, the __________ era covered the years from the 1920s to the 1960s.

sales

To serve both buyers and sellers, marketing seeks to discover and __________ the needs and wants of prospective customers.

satisfy

Which of the following statements best describes a service?

services are intangible items

A factor that might doom a product in the marketplace is referred to as a(n) __________.

showstopper

The idea that individuals and organizations are accountable to a larger society is known as

social responsibility

A local candidate running for office would very much like to have your vote. She promises that she will "make the country better." Because all candidates for public office say this, you decide not to vote for her. Marketing will not occur in this situation because __________. `

something to exchange is missing

All of the following are examples of products or services that satisfy a consumer need EXCEPT:

sports car

All of the following are departments in a typical organization EXCEPT

suppliers

Marketing refers to

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

Utility refers to

the benefits or customer value received by users of the product

Which of the following would a marketer use as a synonym for controllable marketing mix factors?

the four Ps of marketing

The marketing concept era occurred from __________.

the late 1950s to the late 1990s

Environmental forces refer to

the marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

The four Ps are commonly known as

the marketing mix or controllable factors

The view that holds an organization should satisfy

the needs of consumers in a way that also provides for society's well-being is known as the societal marketing concept

A market orientation refers to

the orientation of an organization that focuses its efforts on: (1) continuously collecting information about customers' needs; (2) sharing this information across departments; and (3) using it to create customer value

Time Inc. has published a new magazine, All You, which is distributed only in Walmart stores. Who is the ultimate consumer for this magazine?

the person who buys the magazine to read at home

Customer relationship management refers to

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

Marketing seeks to discover the needs and wants of prospective customers and satisfy them. Essential to this process is the idea of exchange, which refers to

the trade of things of value between buyer and seller so that each is better off after the trade

In marketing, the idea of exchange refers to

the trade of things of value between buyer and seller so that each is better off after the trade.

Four factors are required for marketing to occur: (1) __________; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange.

two or more parties (individuals or organizations) with unsatisfied needs

Which of the following conditions is necessary for marketing to occur?

two or more parties with unsatisfied needs, a desire and an ability to satisfy them, a way to communicate, and something to exchange

The people who use the products and services purchased for a household are called

ultimate consumers

A __________ is a need that is shaped by a person's knowledge, culture, and personality.

want