MKTG 409 Ch. 1 Questions

Which of the following are the three forms of a product?

Ideas, services, and goods

Which of the following statements describes a benefit that marketing offers?

It enhances consumer awareness.

Which of the following sentences is true about a marketing exchange?

It requires four conditions to take place.

Ballast Point, a brewery based in San Diego, recently introduced a new cocktail-inspired product to its growing portfolio: Moscow Mule Ale. Moscow Mule Ale is available nationwide is the first cocktail-inspired beer for the brewery. The Moscow Mule Ale was developed to appeal to customers who are choosing mixed drinks instead of beer products. In this case, Ballast Point is most likely utilizing which approach to marketing?

Market orientation

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

When McDonald's decided to eliminate artificial flavorings and preservatives from its vanilla ice cream, it was most likely responding to which of the following?

Marketing environment forces

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

Marketing improves the quality of life of customers.

Which of the following is a major benefit of marketing?

Marketing knowledge enhances consumer awareness.

Karl is the owner of a landscaping company and is considering the purchase of a new skid steer. He's evaluating different brands and models to determine the relative value of each model as well as the benefits they offer. Which of the following would NOT be considered a customer benefit as part of his determination of the product's value?

Monetary price

Lime is using social media to ask consumers about the qualities they desire in an electric scooter. The firm hopes to develop a new type of electric scooter based on the feedback it receives. Which marketing mix variable is Lime addressing?

Product

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Refer to Scenario 1.4. What type of orientation has Jim adopted?

Production

Which of the following would NOT be a value required by organizations striving to become more market oriented?

Recognition

Which of the following statements best reflects the level of acceptance of the marketing concept by firms in the United States?

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

Which statement best describes the marketing concept from the viewpoint of a company president or CEO?

We have created a business culture where our focus is on the customer to ensure his or her needs and wants are met.

From _______ % of all civilian workers in the United States performs marketing activities.

25 to 33

Which of the following statements best exemplifies the requirements for maintaining exchange relationships?

Both the buyer and seller must be satisfied

Which stakeholders are the focal point of all marketing activities?

Customers

The activities related to making products available in the quantities desired to as many target market customers as possible is part of which element of the marketing mix?

Distribution

Marketing managers strive to develop a marketing mix that _______.

matches the needs of the target market

In April 2015 the restaurant chain Chipotle announced it would stop using genetically modified food products. "This is another step toward the visions we have of changing the way people think about and eat fast food," said Steve Ells, founder and former co-CEO of Chipotle. This decision indicates a response to concerns about _______.

the marketing environment

A customer's subjective assessment of benefits relative to costs in determining the worth of a product is known as _______.

value

Charlotte loves her mom's edible cookie dough recipe, and she assumes everyone else will too. She starts a cookie dough business. Charlotte views promotion, such as advertising and personal selling, as the most important activities needed to sell her product. She figures that consumers only have to learn about her product before becoming loyal and steadfast customers. What type of orientation does Charlotte seem to embrace?

Sales orientation

What is the major focus of the marketing concept?

customer satisfaction

One notable belief of the market orientation era is _______.

determine what customers want and develop those products

Demand for manufactured goods during the Industrial Revolution was _______.

strong

Samuel spent $500 on a new television set. How much of this price is likely to go toward marketing expenses?

About $250

A firm builds its marketing mix around which of the following elements?

Customer

It is possible for a customer to have a negative lifetime value.

True

The essence of marketing is to develop satisfying _______ from which both customers and marketers benefit.

exchanges

Marketing environmental forces are often _______.

interdependent

Which of the following statements is true about marketing?

All types of organizations need marketing.

Which of the following equations describes customer value?

Customer value= customer benefits - customer costs

What is the first step for marketers in implementing the marketing concept?

Establish an information system to discover customers' real needs

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 receiving "something of value" held by the other individuals, groups, or organizations.

False

Marketers have complete control over marketing mix variables.

False

Valerie works at a pharmaceutical firm that develops medicines for rare diseases. The company develops a new medication for a disease that very few people have. In fact, less than 100 people are said to have this disease in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Her friend Rick, who is taking business classes, tells her that this is too small to be a target market. Is Rick's statement true?

False

_______ is a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment.

Green marketing

Caterpillar, Inc. a manufacturer of heavy construction and mining equipment works with its dealer network to conduct extensive consumer research such as customer satisfaction studies, focus group interviews regarding new products, and listening to customer opinions through social media outlets. Which orientation is Caterpillar most likely utilizing?

Market

Recent research conducted by Aeropostale was focused on understanding the shopping habits and desires of its target market—the Millennial generation. The results indicate that Millennials are more interested in spending time shopping as a source of entertainment rather than purchasing products or services. The research identified that approximately 50% of surveyed customers enjoy browsing for items but have no intention of purchasing. In addition, those surveyed state that they only purchase products they believe are necessary and many young consumers are willing to pay full retail price. Based upon the results of this research, the Aeropostale organization must consider how to redesign the stores and shopping experiences to create an enhanced entertainment experience for its customers. Based upon this information, which orientation best applies to Aeropostale?

Market orientation

Focusing on the share of customer requires that marketers recognize that not all customers in a target market have the same needs and wants—they need to be considered individually. Which of the following is the best application of this idea?

The 80/20 rule

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.

Marketing activities do not always result in exchanges.

True

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

True

The central focus of all marketing activities are _______.

customers

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 acquiring new customers

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Refer to Scenario 1.2. Apple's emphasis on marketing research is used to enhance the _________ variable of the marketing mix, while its skills at creating buzz for its newest product offering months before its release is an example of ________ variable.

product; promotion

According to the marketing concept, firms should achieve their goals and simultaneously _______.

satisfy consumer needs

Customers choose to go to Buffalo Wild Wings based upon the value they place on the total product—including the food, service, atmosphere of the restaurant, and more. The process consumers use to determine value is highly _______.

subjective

Janelle has just graduated with a degree in marketing. She accepted a job with Westfield Corp. and will be responsible for maintaining the flow of products through physical distribution activities. She will be responsible for acquiring resources and inventory and making products available to customers through purchasing, logistics, and operations. Janelle's job will be in _______.

supply chain management

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 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; production orientation; market orientation

Trader Joe's customizes store inventory by listening to feedback from customers. Feedback comes from store captains and crew members having conversations with customers. Trader Joe's has adopted a _______ orientation.

market

Refer to Scenario 1.1. Denise's sponsor tells her that it is important for her to determine her customer's needs and then find the product that best meets those needs, regardless of price. She recommends that Denise adopt the _______. In other words, Denise should move from a _______, where she is focused on using her aggressive direct selling talents to maximize profits, toward embracing the more customer-centric _______.

marketing concept; sales orientation; market orientation

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% and adds three new sales representatives. This company is operating as if it were in which of the following orientations?

Sales

Anthony works at a local electronics retailer. He has two customers in particular that he sees regularly. One customer, Mr. Johnson, comes in frequently asking about new deals. However, he rarely buys anything, and when he does buy something it is usually small. The other customer, Mr. Montoya, comes in a little less frequently. He does not purchase products all the time, but when he does the products are expensive. Anthony recognizes that Mr. Montoya is a more valuable customer over time than Mr. Johnson. He has therefore worked hard to develop a strong relationship with Mr. Montoya. What marketing method is Anthony most likely using to direct his actions?

Customer lifetime value

During the holiday season, a Bluetooth speaker was in such high demand that it sold out quickly at a local Walmart. When Walmart tried to order more, it learned that the suppliers had so many orders to fill that it would not be able to fill Walmart's order for two weeks. What type of marketing mix variable does this problem involve?

Distribution

A firm that adopts the marketing concept will be successful as long as it satisfies customer needs and wants.

False

Customers consciously calculate the value of a product in benefits and costs for most purchases.

False

The Coalition to Stop Gun Violence (CSGV) is a nonprofit organization that was founded in 1974. Its mission is to secure freedom from gun violence through research, strategic engagement and effective policy advocacy to change laws regarding firearm ownership. Which type of product best describes the CSGV?

Idea

Which of the following are the three primary ways firms can achieve profits through managing customer relationships?

Keeping customers for a longer period of time, enhancing profitability of existing customers, and acquiring new customers

The Culture Marketing Council: The Voice of Hispanic Marketing (CMC) named Ford Marketer of the Year in 2017. The CMC cites the automaker's commitment to leading with ethnic insights, consistent focus on Latino research and business practices, and budgeting of multicultural business strategies. Ford has invested in and been committed to the Hispanic market for more than 20 years, consistently leading the category in Hispanic investment. In fact, over the last three years, Ford has topped the automotive category in Hispanic market spend with 17% in 2016 alone, according to Ad Insights. Based upon this information, which orientation best applies to Ford?

Market orientation

The marketing concept is based upon the idea that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. During which orientation (time period) are marketers most likely to adopt the marketing concept?

Market orientation

Which business orientation would best characterize McDonald's decision to show the number of calories of each menu item on the menu boards both inside the restaurant as well as at the drive-thru windows in response to consumer requests for more transparency and interest in healthier menu options?

Market orientation

Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally produced goods over similar goods that are imported, and they raise revenues for governments. In August 2018 Turkey notified the World Trade Organization Secretariat of a request for dispute consultations with the United States regarding measures it recently adopted to modify its tariff concessions on steel and aluminum imports. This situation of one country (Turkey) seeking an audience with the United States is an example of which of the following types of forces that constantly impact a company's dynamic marketing environment?

Political force

Which of the following is the most accurate listing of marketing environmental forces?

Political, legal and regulatory, technological, sociocultural, competitive, and economic

A locally owned sporting goods retailer carries the best-selling Nike Elite basketball socks. Due to the popularity of the socks, the store markets the products in single and multiple formats—one pair for $18 or three pairs for $50, which provides a discount to those who purchase three pairs at one time. Which element of the marketing mix is the sporting goods retailer modifying with this special offer?

Price

Which element of the marketing mix is Clean Ethics focusing on through its offer of the three different product packages and reflected in the significant monetary savings associated with the 12-pack 12-count pouch purchase?

Price

Which business orientation best characterizes the period of time when businesses began utilizing technology and production techniques such as assembly lines to manufacture products in a more efficient manner?

Production orientation

Denise works as a direct seller for Rodan + Fields. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Refer to Scenario 1.1. Which variable of the marketing mix does this issue involve?

Promotion

Lumos Labs, the maker of brain-training app Lumosity, released advertisements that claimed its app was able to prevent Alzheimer's. The Federal Trade Commission fined Lumos Labs $2 million, saying that the company did not have the science to back up its ads. What type of marketing mix variable is involved in this situation?

Promotion

_______ refers to establishing long-term, mutually satisfying buyer-seller relationships.

Relationship marketing

________ deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

Relationship marketing

CertainTeed Corporation, a manufacturer of building materials had an excess inventory of roofing materials such as shingles. In response to the excess inventory, CertainTeed increased its advertising budget by 20% and hired two additional sales representatives to further penetrate the roofing and building materials marketplace. Based upon CertainTeed's response to its excess inventory, which business orientation are they most likely implementing?

Sales orientation

Which of the following best exemplifies the focus of the marketing concept?

Satisfying customers' needs in a way that helps to achieve organizational objectives

_______ can be customers, employees, investors, suppliers, and communities—anyone that has an interest in some aspect of a company's products.

Stakeholders

You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You recommend that the nonprofit engage in marketing activities. The executive director tells you that because it is a nonprofit that does not engage in selling activities and has a small budget, the nonprofit has no use for marketing. You disagree and explain that marketing is not just for for-profit organizations. You explain the different ways the nonprofit can engage in marketing without changing its practices or the mission. Which of the following marketing activities would be most feasible for this nonprofit?

Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event

Fitbit, manufacturer and marketer of wearable activity tracker devices faced an obstacle when its Force product had to be recalled due to skin irritations. The company responded to a class action lawsuit and was required to provide full refunds to all consumers who had purchased the Force. However, Fitbit quickly redeemed itself, launching several new and improved products, like the Charge HR and the Surge, which were designed and tested to make sure the chances of skin irritation were significantly reduced. In addition, Fitbit conducted extensive consumer research to determine the product design and functional modifications desired most by consumers. Despite the stumble with the Force product, Fitbit remains competitive in the activity tracker market. This example represents a success in which aspect of implementing the marketing concept?

Use of an information system to discover customers' real needs and the use of the information to create satisfying products

The marketing environment includes _______, economic, political, legal and regulatory, technological, and _______ forces.

competitive; sociocultural

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor.

controllable; uncontrollable

Jameson manages a well-known cell phone company. This company has been voted as having the best cell phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." Refer to Scenario 1.3. Jameson has asked you, a marketing consultant, to give him advice. He cannot understand how a cell phone company with the best product offering in the cell phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Jameson has a narrowly defined view of the company's product offering. You tell Jameson that successful marketers should define their products as what they _______.

do to satisfy customers

Refer to Scenario 1.3. On your advice, Jameson decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Jameson thinks it should be. He conducts a marketing research study and found that while most consumers like the product, many would like to see additional services available. However, what type of service customers want tends to vary by customer. Jameson has come to believe that customers just do not know how to assess value correctly. Jameson appears to believe that determining value is a(n) _______ process, while in reality the process of assessing value is highly _______.

objective; subjective

The most flexible variable of the marketing mix is _______.

price

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

Starbucks has introduced some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Starbucks has chosen to expand its distribution is to _______.

provide greater value to customers

Organizations who strive to create long-term, mutually beneficial arrangements where both buyers and sellers are focused on the creation of value through satisfying exchanges are employing a(n) _______ marketing approach to business.

relationship

Sheryl works at Southwest Airlines as a digital marketer. A major part of her job is communicating with customers, answering questions and letting them know about how the airline offers them the best in customer value. Sheryl is working to create long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges with customers. This is an example of _______.

relationship marketing

Clean Ethics' competitors, the traditional cleaning companies such as Procter & Gamble and SC Johnson, focus on advertising and promotion of its products. This indicates a(n) _______ orientation.

sales

Following the time period associated with the production orientation, competition increased, and demand for products declined. During this time frame between the 1920s and the 1950s, organizations followed a _______ orientation.

sales

Refer to Scenario 1.4. Recently, Darlene has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company's reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, Darlene feels that the best option is to increase the company's _______.

share of customer

Relationship marketing and customer lifetime value can help marketers focus on individual customers rather than a group of people who share similar interests; that is, marketers focus more on the share of customer rather than the _______.

share of market

Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispanic consumers, other ethnic groups seem to like the product as well. For this product, Hispanic consumers comprise Kroger's _______.

target market

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

Marketing is_______.

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment