MKTG 351 CH 1

You believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus should be creating customer value. ​ Which of the following phrases best tells the story of what customer value is?

"Customer Value = Customer Benefits - Customer Costs"

Your competition is beating you on price in your most important product market. In response, you decide to launch a new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that conveys the attractiveness of your product's pricing. ​ Which of the following slogans should you use to convey this message most effectively?

"Expect More. Pay Less"

Which of the following is most likely to be an idea marketer?

Abuse counselor

Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?

An information system to determine customer needs

Which of the following would not be a customer cost considered in determination of product value?

Benefits received in the exchange for the products

Which of the following is NOT an example of the implementation of the marketing concept?

Burger King reduces the labor costs to produce its sausage-egg biscuits.

Which of the following scenarios involves the distribution element of the marketing mix?

Deciding whether or not to have retail outlets in addition to a website

You are starting a new job next week at a consumer products company in Redmond, Washington. You will be responsible for managing the company's inventory levels, as well as the related transportation and storage costs. You will rely heavily on some previously-established relationships as you refine the firm's interactions with its various intermediaries. ​ Your job responsibilities primarily relate to which of the following marketing mix variables?

Distribution

Scenario 1.2 Use the following to answer the questions. ​ Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. ​ The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws' competitors don't offer the day care service, and require an two-day minimum for overnight stays. ​ Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws and Claws was more interested in competing based on its prices. ​ ​Refer to Scenario 1.2. The fact that Paws and Claws is open 24 hours each day is part of the _______ marketing mix variable while the swimming pool is part of the _______ variable.

Distribution; Product

For an exchange to occur, at least one of the parties must be willing to give up his or her "something of value."

False

In general, when marketers focus on customers chosen for their lifetime value, they earn lower profits in future periods than when they focus on customers selected for other reasons.

False

Profit, even at the expense of customers' satisfaction, is the major thrust of the marketing concept.

False

Which of the following companies is the best example of a service marketer?

FedEx

When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?

Marketing concept

Which one of the following statements is true regarding the global impact of marketing?

Marketing improves the quality of life of customers.

Your company provides oil exploration services to major oil companies in Russia. The United States government just announced it is imposing economic sanctions on Russia because of the military actions it has taken in Ukraine. ​ This situation is an example of which of the following types of forces that constantly impact a company's dynamic marketing environment?

Political force

Scenario 1.2 Use the following to answer the questions. ​ Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. ​ The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws' competitors don't offer the day care service, and require an two-day minimum for overnight stays. ​ Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws and Claws was more interested in competing based on its prices. Refer to Scenario 1.2. Previously, Paws and Claws was most likely using a ____ orientation, while now it is now in the process of employing the _______.

Sales; Marketing concept.

Promotion can help sustain interest in established products that have long been available.

True

The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible.

True

Scenario 1.2 Use the following to answer the questions. ​ Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. ​ The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws' competitors don't offer the day care service, and require an two-day minimum for overnight stays.​ ​ Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws and Claws was more interested in competing based on its prices. ​ Refer to Scenario 1.2. Paws and Claws' target market is most likely to be which of the following?

Urban professionals who travel often

​To fully appreciate what an effective marketing concept means to the firm, the marketer must first understand that _______________ is the major focus of the marketing concept. This in turn should enable the firm to _______________. Ultimately, this all leads to _________________.

customer satisfaction; earn long-term profits; increased shareholder value

​The majority of the heads of marketing for most multinational corporations would likely describe marketing as a very complex discipline. They will give a long list of variables and factors that impact a company's marketing success. Most of these variables and factors are part of what is called the marketing environment. ​ The U.S. unemployment rate would fall under which set of forces in the marketing environment?

economic forces

Approximately 20 percent of civilian employees in the United States perform marketing activities.

false

Changes in the marketing environment always hurt marketing efforts.

false

Customer benefits include time and effort.

false

During the market orientation, businesspeople realized that if they could produce products efficiently, customers would buy them.

false

During the market orientation, businesspeople realized that products, which by this time could be made relatively efficiently, would have to be promoted through much personal selling and advertising.

false

For an exchange situation to arise, only one condition must exist: two or more individuals, groups, or organizations must each possess something that they value and are willing to give up to receive the "something of value" held by the other individual, group, or organization.

false

Marketing costs consume about one-quarter of a buyer's dollar.

false

Price is seldom used as a competitive tool.

false

Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller focus on the creation of satisfying exchanges.

false

The market concept developed out of a sequence of three eras: the production orientation, the marketing orientation, and the industrial orientation.

false

The marketing concept deals only with marketing activities.

false

The marketing concept directly affects marketing activities but should have negligible impact on other organizational activities.

false

The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business organization.

false

The marketing environment is a set of static, unchanging surroundings.

false

Value = customer costs − customer benefits.

false

Marketing professionals understand the challenges and implications of marketing in an inter-connected, global economy. While the discipline is primarily focused on building mutually-beneficial customer relationships for the firm, it has many other positive influences on the global economy that many in the general public are not aware of. For example, marketing creates a successful economy and leads to a _______________ for people all over the world. Additionally, ______________ can promote the welfare of customers and the firm's stakeholders.​

higher standard of living; socially responsible marketing

The marketing environment is the arena in which the marketer executes marketing strategies and techniques designed to build relationships with customers. It includes a host of forces that surround the customer and affects the marketing mix. ​ The marketing environment:

includes legal and regulatory forces that affect the marketing mix.

​The marketing concept is a ______________ that guides the overall activities of an organization. It has evolved over time from a ______________ in the second half of the 19th century to a _____________ today.

management philosophy; product orientation; market orientation

Scenario 1.2 Use the following to answer the questions. ​ Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. ​ The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws' competitors don't offer the day care service, and require an two-day minimum for overnight stays. ​ Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws and Claws was more interested in competing based on its prices.​ ​ Refer to Scenario 1.2. If Paws and Claws employs the philosophy of building a relationship with its dog and cat customers, and their owners, it will be implementing the

marketing concept

Scenario 1.1 Use the following to answer the questions. ​ Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Greensprings' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. ​ Refer to Scenario 1.1. Greensprings' competitors, the traditional cemeteries, focus on advertising and personal selling of their services. This indicates a(n) ____ orientation.

sales

The central focus of the marketer's activities is to develop mutually-beneficial relationships with customers and potential customers. If the marketer is able to convince the customer to buy the firm's products, then the customer's lifetime value to the firm is enhanced. Marketers also seek to encourage the customer's _________________ the firm's products because that will ____________ the customers' lifetime value to the firm.

strong word-of-mouth communication about; increase.

In order to be successful in creating mutually-beneficial exchanges with customers, the marketer must focus on creating value in fact and in the mind of the customer. For the most part, value is a customer's ________________ assessment of benefits relative to costs. The marketer should recognize that the process people use to determine value _______________.

subjective; is not scientific

​The successful marketer understands that the key to her success is the relationships her firm is able to develop with current customers and potential customers. Moreover, her goal is to achieve the full potential of each of these relationships for the benefit of the firm.

that customer loyalty leads to increasing long-term profitability for the firm.

​You will give the keynote address at the annual meeting of the American Manufacturing Association. You realize most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what marketing is in order to set the proper context for your speech. ​ You define marketing as:

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

A market orientation requires the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it.

true

Achievement of the firm's overall goals is part of the marketing concept.

true

At the most basic level, profits can be obtained through relationships by acquiring new customers, enhancing the profitability of existing customers, and extending the duration of customer relationships.

true

Basic and extended warranties can reduce risk, a major customer cost.

true

Customer relationship management is the use of information about customers to create marketing strategies that develop and sustain desirable customer relationships.

true

Customers are interested in a product's price because they are concerned about the value obtained in an exchange.

true

For a business organization to remain healthy and to survive, it must sell products and make profits.

true

Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable marketing practices.

true

Marketing activities do not always result in exchanges.

true

Marketing costs consume about one-half of a buyer's dollar.

true

The market concept stresses that an organization can best achieve its objectives by being customer-oriented.

true

The marketing concept is a management philosophy, not a second definition of marketing.

true

The marketing concept is a philosophy that a business organization should employ to satisfy customers' needs while achieving the overall goals of the organization.

true

The marketing concept stresses that a business organization can best achieve its goal by providing customer satisfaction through coordinated activities.

true

The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment.

true

The process people use to determine the value of a product is not highly scientific.

true

To implement the marketing concept, an organization must first establish an information system to discover customers' real needs and then use the information to create products to satisfy those needs.

true

To satisfy customers' objectives as well as its own, a company must coordinate all its activities.

true

Initiatives intended to improve an organization's positive impact on society and the natural environment are called

green marketing

Marketing activities

help sell an organization's products and generate financial resources for the firm.

Organizations should define themselves not according to the products they produce but according to

how they satisfy customers.

Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets

ideas.

The Church of the Latter Day Saints has used advertising for many years, airing a commercial TV spot that shows parents actively playing games with their children. The Church is using marketing to promote its

ideas.

Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to

increase customer costs.

A target market

is a specific group of customers on whom an organization focuses its marketing efforts.

Wonder introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Wonder was most likely following the ________.

marketing concept

. A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ____ that influence(s) the firm's strategy.

marketing environment

A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing.

marketing environment

Marketing managers strive to develop a marketing mix that

matches the needs of the target market.

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is

monetary price.

If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

$1,000

In today's market environment, you might pay $16 for a physical CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?

$8.00

Which of the following statements about marketing environment forces is correct?

They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.

The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to

create a responsible approach to developing long-term relationships with customers and society.

A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on

creating and maintaining satisfying exchange relationships.

Marketing is the process of

creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

Long-term relationships with profitable customers is the key objective of

customer relationship management.

The marketing mix is built around the

customer.

The focal point of all marketing activities is

customers.

The broadest and simplest definition of marketing states that it is the development and efficient distribution of products for consumer segments.

false

The marketing mix consists of three major variables: product, price, and distribution.

false

A market orientation is an organization-wide effort that includes all of the following activities except​

focusing on the marketing department only

A physical product you can touch is a(n)

good.

Approximately what percentage of civilian workers in the United States performs marketing activities?

25 to 33 percent

Scenario 1.1 Use the following to answer the questions. ​ Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Greensprings' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. Refer to Scenario 1.1. The customers of Greensprings Cemeteries are most likely choosing the Greensprings business because of its _______, which is evidence of a ______ _____.​

Environmental consciousness; Market orientation

Which of the following is essentially an uncontrollable factor in developing a marketing mix?

Government regulations

T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?​

Market

Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would NOT be a customer benefit considered in his determination of this product's value?

Monetary price

For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?

One-half

When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle. Which of the following aspects of the marketing mix is Ikea likely altering?

Price

Scenario 1.1 Use the following to answer the questions. ​ Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Greensprings' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. ​ ​Refer to Scenario 1.1. Greensprings' main competitive advantage over traditional cemeteries comes from its attention to which element in the marketing mix?

Product

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines?

Product, price, distribution, and promotion variables

Scenario 1.1 Use the following to answer the questions. ​ Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Greensprings' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves.​ ​ Refer to Scenario 1.1. A new website has helped Greensprings' pre-planned funeral business grow. These would come under which of the following marketing mix variables?

Promotion

When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?

Promotion

U.S. Electric, the maker of a highly innovative xenon light bulb used in large, manufacturing facilities, finds that it has excess inventory. The firm increases its direct marketing budget by 20 percent and adds three new sales representatives. This company is operating as if it were in which of the following orientations?

Sales

Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship?

Satisfaction for both the buyer and seller

The H&R Block company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, which of the following philosophies is most appropriate?

The customer is always right.

Which of the following best characterizes the forces of the marketing environment?

The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.

Which of the following best describes the acceptance of the marketing concept by American organizations?

The marketing concept has yet to be fully accepted by all organizations.

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Value

Scenario 1.2 Use the following to answer the questions. ​ Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. ​ The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws' competitors don't offer the day care service, and require an two-day minimum for overnight stays. ​ Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws and Claws was more interested in competing based on its prices. Refer to Scenario 1.2. Paws and Claws' addition of unexpected services, pick-up and delivery, and 24-hour access while charging a higher price than its competition is best described as which type of value?

Value = customer benefits - customer costs.

Which one of the following statements by a company president best reflects the marketing concept?

We have organized our business to make certain that customers get what they want.

The marketing concept is

a management philosophy.

The marketing concept is best defined as

a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals.

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also

achieve the organization's goals.

The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they

affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix.

The marketing concept is a management philosophy that affects

all efforts of the organization.

The marketing concept affects

all organizational activities.

Marketing knowledge and skills

are valuable personal and professional assets.

The definition of marketing implies that ____ should receive benefits from exchange relationships.

both customers and businesses

82. Managing customer relationships requires identifying patterns of ____ and then using that information to focus on the most promising and profitable customers.

buying behavior

The product variable of the marketing mix can include all of the following except

consumer perception of the product price.

Changing the hours of operation for a service business involves the ____ component of the marketing mix.

distribution

Consumers buying products online have dramatically affected the ____ variable of the marketing mix.

distribution

Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix.

distribution

The marketing environment is best described as being

dynamic and changing.

In managing customer relationships, the three primary ways profits can be obtained are by

enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.

A target market is always defined by demographics.

false

In marketing, a product can be a good or a service but not an idea.

false

Marketing consists primarily of selling and advertising.

false

Marketing efforts do not involve the design and development of products.

false

The actual physical production of goods is a marketing activity.

false

The forces of the marketing environment include

political, legal and regulatory, sociocultural, technological, economic, and competitive.

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

Making modifications to packaging or brand names involves the ____ component of the marketing mix.

product

When DataComp Corp., a producer of software, delayed the introduction of its new spreadsheet app to modify the package, its scheduled TV advertisements announcing the new product needed to be revised. In this case, a change in the ____ variable caused changes in the ____ variable of the marketing mix.

product; promotion

As the Industrial Revolution came to the United States, most firms operated in a(n) ____ orientation.

production

The element of the marketing mix used to increase awareness of a product or company is

promotion.

Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.

promotional

According to the marketing concept, an organization should try to

provide products that satisfy customers' needs and allow the organization to achieve its goals.

Ben is responsible for managing the customer satisfaction of Hampton Inn motel guests. Ben is currently analyzing the customer relationship management (CRM) program at Hampton Inn and is contemplating where he should begin making changes. Which of the following would be the beginning of a CRM program, and therefore the area Ben should consider first?

providing information to customers through the web, Facebook, or in person.

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

relationship marketing.

From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ____ orientation.

sales

The marketing concept focuses on

satisfying customers' needs in a way that helps to achieve organizational

The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)

service.

The three basic forms that a product can take are

services, ideas, and goods.

During the Industrial Revolution demand for manufactured goods was

strong.

A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD's

target market

Kashi Heart to Heart cereal is aimed at people concerned about their heart health. These people represent the Kashi

target market

Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about

the best way to distribute his products.

StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about

the marketing environment.

Distribution, price, promotion, and product are all elements of

the marketing mix.

The primary value that a marketer expects to receive from a customer in an exchange relationship is

the price charged for the product.

A family that organizes and advertises a garage sale is performing marketing activities.

true

A target market is a specific group of customers on whom an organization focuses its marketing efforts.

true

Customers are the focal point of all marketing activities.

true

Products can be goods, services, or ideas.

true

Services are provided by applying human and mechanical efforts to people or objects to provide intangible benefits to customer.

true

Target markets can be people who buy the product but do not necessarily use the product.

true

Marketing activities are

used by all sizes of organizations including for-profit, nonprofit, and government agencies.

The equation a buyer applies to assess a product's value is

value = customer benefits − customer costs.