chapter 1 concept checks

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

It requires four conditions to take place

Which of the following is a major benefit of marketing?

Marketing knowledge enhances consumer awareness.

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

about $250

the _________ variable of the marketing mix relates to activities used to inform individuals or groups about the organization and its products

promotion

Which of the following equations describes customer value?

customer value= customer benefits - customer costs

___________ are the focal point of all marketing activities

customers

During the Christmas season, a stuffed animal modeled after the popular cartoon character Garfield was in high demand. In fact, demand was so high at a local Walmart that it quickly sold out. 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

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

Customers choose to go to Olive Garden 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

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

Establish an information system to discover customers' real needs.

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.

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

product

selling an idea not a goods or service?

the green party holds a press conference to let the public know its views on capital punishments

Toyota is developing a new luxury vehicle. After performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Toyota 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 Toyota's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _____________ force for Toyota, while the economic downturn is a(n) _____________ factor.

controllable; uncontrollable

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

Which stakeholder is the focal point of all marketing activities?

customer

Joseph works at a small 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. Joseph 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 Joseph most likely using to direct his actions?

customer lifetime value

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

exchanges

Fill in the blank. Marketing environmental forces are often ______________.

interdependent

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

marketing mix

POM Wonderful released advertisements saying that its pomegranate products have certain health benefits. The Federal Trade Commission filed a lawsuit against POM Wonderful, saying that it has not been proven that pomegranates have these positive impacts on a person's health. What type of marketing mix variable is involved in this situation?

promotion

Sherrell 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. Sherrell 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

Vera loves her mom's recipes for gourmet chocolate candies, and she assumes everyone else will too. She starts a gourmet chocolate business. Vera 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 Vera seem to embrace?

sales orientation

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