Marketing 311 Quizzes (Ch. 1-3)

The marketing concept involves:

(focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products) satisfying management's needs and wants with the idea of maximizing profits in the short run selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are used selling as much as possible under the assumption consumers will buy more at lower prices focusing on production in order to increase product quality and lower prices

Apple Inc. is now offering the iPhone 3G for half its original price. This new strategy reflects a change in the _____ element of its marketing mix.

(price) production product distribution target market

Which marketing management philosophy focuses on the question, "What can we make or do best?"

(production) marketing sales societal internal A production orientation focuses on the internal capabilities of the firm rather than on the desires an needs of the marketplace.

Which of the following statements describes ethics?

All of the statements describe ethics.

List three ways an organization will benefit from the development and use of a code of ethics.

An organization will benefit from the development and use of a code of ethics by Day-to-Day operations, strategic decision-making, and company reputation. With a code of ethics, it is easier for all employees in a company, top to bottom, to fully understand the expectations the company has. For strategic decision-making, a code of ethics can help guide a smaller company as it eventually grows. And for company reputation, proudly publicizing your code of ethics can create a positive image among consumers and job-seekers, which helps create a loyal customer base and establishes a companies brand.

DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out. The socks were of special materials aimed at giving the cyclist the most comfortable fit. These socks were not the traditional white socks but bright, bold, and flashy colored socks with cool graphics. These high tech socks were priced around $10 a pair. Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand. The company branched into running, hiking and snow gear. Their products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the serious athlete. They also have a custom department where socks, armskins, and gloves can be customized with any motif including sponsor types of logos like Michelin, Pabst Blue Ribbon, or BP. Even kids can enjoy DeFeet's high quality socks. DeFeet's products can be found in retailers across the world, in more than twenty countries, like Israel, Australia, Belgium and the United States. More than two-dozen online retailers also carry their products. Refer to DeFeet. What is DeFeet's most likely target market strategy?

Appeal to multiple segments (DeFeet makes products for various target groups; cyclists, runners, hikers, athletic women men, and corporate sponsors so their appeal would be to multiple segments.)

Which of the following is an argument used to support corporate social responsibility (CSR)?

CSR can be a profitable undertaking. (Smart companies can prosper and build shareholder value by tackling global problems.)

_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.

Corporate social responsiblity (Corporate social responsibility is a business's concern for society's welfare.)

The First Starbucks opened in 1970 in Seattle Washington. The demand for its coffee grew and Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30 year history, Starbucks has never given out coupons for its coffee. Starbucks had only to make its coffee and customers came. Recently consumer quality perception of the Starbucks brand has started to fall. Starbucks started a consumer-response blog to learn more about what consumers expect from Starbucks. One of the most requests was for a customer rewards program. In response Starbucks has started the Starbucks card rewards which offers free refills on brewed coffee, free beverage with whole bean purchase, beverage customization and free Wi-Fi. Starbucks also put coupons in a national newspaper for those consumers who love coupons and created a new brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping with these improvements will restore customers' loyalty and confidence. Refer to Starbucks. Starbucks customers wanted more value from their coffee. Starbucks management responded to customers through the Starbucks card rewards program. Which element of value was Starbucks management working to increase?

Earning trust (In order for Starbucks to continue to grow and prosper it needed to keep its stable base of loyal customers happy.)

_____ refers to the moral principles or values that generally govern the conduct of an individual or a group.

Ethics

In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was black. Ford's management assumed anyone buying a car would accept the color black, so it made products affordable by offering only one variety in large quantities. Ford is an example of a market-oriented firm.

False

The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers.

False

While most marketing organizations rely on various forms of promotion to succeed, sales-oriented organizations make the most effective use of their entire marketing mix.

False

When writing codes of ethics, businesses must ensure their codes deal with every possible situation.

False (Codes that are too detailed encourage employees to substitute rules for judgment.)

The development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment is sustainability.

False (Green Marketing is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.)

Because social responsibility has proven to have a limited return on investment, the number of businesses opting to act socially responsible is declining.

False (Postconventional morality is that of the mature adult. At this level, the individual is more concerned about others than about himself or herself.)

Strategic planning is most effective when managers view it as an annual exercise.

False (Strategic planning requires creativity and an ongoing commitment, not just going through the motions once a year.)

Sustainability refers a business's concern for society's welfare.

False (Sustainability refers to the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time.)

The four Ps of the marketing mix are product, planning, promotion, and price.

False (The four Ps are product, place, promotion, and price)

Today's business ethics are difficult to learn because they are different from those used outside the business world.

False (Today's business ethics actually consist of a subset of major life values learned since birth.)

A market penetration strategy entails the creation of new products for current customers.

False, this is an example of product development strategy. A market penetration strategy in one that tries to increase market share among existing customers.

As marketers gain more experience in marketing a product, costs tend to decrease, which is an example of the maturity effect.

False, this is an example of the experience curve, which means costs decline at a predictable rate as experience with a product increases.

The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of the express-delivery market. Which of the following statements describes this situation?

FedEx is perceived as offering greater customer value. (Customer value is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.)

For every home built by Habitat for Humanity, Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family. At first Whirlpool gave the appliances with no promotion, then Whirlpool began talking about its philanthropy in its advertising campaigns. Is this unethical behavior according to the pyramid of social responsibility?

If Whirlpool's advertising of its donations increases profit, then it is not wrong. The company has not abandoned its efforts to improve the quality of life.

_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.

Management-employee synergy Organizational entropy Managerial reciprocity (Empowerment) Delegation Empowerment is the delegation of authority to solve customers' problems quickly, usually by the first person that the customer notifies regarding a problem.

_____ is a set of activities used to implement a management orientation that stresses customer satisfaction.

Marketing (This is the focus of marketing.)

Barry collects antique watches and decided to sell a few of them on eBay. Some of the watches he wants to sell are rare and very valuable. What condition is necessary for an exchange to occur between Barry and a buyer?

Potential buyers must be able to see the watch and understand its qualities. (For an exchange to take place, each party must have something the other values; the parties must be able to communicate; each party must believe that it is appropriate to deal with the other; and each party must be free to accept or reject the exchange offer.)

Tub King is a small company that refinishes antique claw foot bathtubs, antique sinks, and provides training for bathtub refinishing. The company's management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends. Tub King is conducting a(n):

SWOT analysis (A SWOT analysis attempts to ascertain the present situation.)

_____ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.

Sustainability (Sustainability looks at the long term and is based on the notion that companies cannot thrive for long in a world where billions of people are suffering and are desperately poor.)

The newest theory in social responsibility is called sustainability. Explain what this means.

Sustainability is the thought that if a company helps society through their business as a main goal, then they will reap success.

A recent study of marketing professionals found their ethical judgments were influenced by several factors. List four of these factors. How do these factors contribute to the ethical environment of a marketing organization?

The four factors are: potential magnitude of the consequences, social consensus, probability of a harmful outcome, and number of people affected. These factors contribute to the ethical environment of a marketing organization by helping identify acceptable business practices, helping control behavior internally, avoids confusion in decision making, and facilitates discussion about right and wrong.

List and describe the three levels of ethical development.

The three levels of ethical development are pre conventional morality, conventional morality, and post conventional morality. Pre conventional morality is when someone is self-centered and is only driven by rewards or punishment. Conventional morality is when a marketing would be concerned with breaking a law and how it could be viewed by outsiders. Post conventional morality is when there is internal pressure to behave correctly and follow are moral path is the central theme.

A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally harvested. In places like Indonesia as much as 80 percent of timber available for sale was illegally cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot?

There are more than two parties involved. Each party has something of value to bring to the exchange. One party is free to accept the exchange offer. (Each party believes it is appropriate to deal with the other party.) Nobody sees the exchange as producing value. For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange. If The Home Depot believes the timber was illegally gotten, then it will not want to deal with the loggers.

A code of ethics can be an effective internal control on behavior, which is more desirable than external controls like government regulations.

True

Developing a cost competitive advantage can enable a firm to deliver superior customer value.

True

Ethical questions apply to narrow, defined issues and broad philosophical, social questions.

True

Morals are rules people develop as a result of cultural values and norms.

True

Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.

True

Some "green' products have an easily recognizable benefit to consumers and the environment.

True

The greater the number of persons affected by a negative outcome, the more likely that marketers will recognize a problem as unethical.

True

The marketing plan is a written document that acts as a guidebook of marketing activities for a marketing manager.

True

The most critical element for successful strategic planning is top management's support and participation.

True

The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers.

True

Masco is the name of a well-recognized company in the construction industry. It produces cabinetry, furniture, lighting, and plumbing fixtures for the upper-end homeowner and builder. One of the divisions of Masco is the Delta Faucet Company, which is the leader in the faucet industry. Delta Faucet was founded in 1955. Over the decades, it has developed a legacy based on well-crafted, high-quality products. Since the 1970s, Delta has focused its energies on building loyalty with the builder marketplace. Research in 2002 showed that while builders respect the Delta faucet for its quality, durability, and dependability, household consumers were not enamored with Delta products. Due to the number of new magazines and television programs devoted to home style, homeowners wanted faucets that were chic and stylish. This was not the image of the Delta Faucet. To change its image, Delta Faucet began a marketing program in which it committed itself to developing new products to appeal to homeowners. It adopted a new slogan, "Beautifully Engineered." Refer to Delta Faucet Company. While new home construction is not growing as rapidly as it once did, the number of homeowners who are remodeling bathrooms and kitchens is growing. According to the portfolio matrix, Masco would consider Delta a(n):

cash cow (A cash cow is an SBU that usually generates more cash than it needs to maintain its market share.)

Land O'Lakes makes a light butter with Canola oil that has sixty percent less cholesterol and fifty percent less fat and calories than butter. This marketing gives the product a _____.

competitive advantage (A competitive advantage is set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.)

Corporate social responsibility is defined as the:

concern for social welfare by businesses (Corporate social responsibility is a business's concern for society's welfare.)

An international company that needs to develop a way to compare its actual marketing results with planned results must engage in:

control (Control involves that mechanism for evaluating results and correcting actions in the planning and implementation phases.)

In the _____ stage of ethical development, loyalty and obedience to the organization or to society become paramount.

conventional morality (The conventional stage moves from an egocentric viewpoint toward the expectations of society.)

The pyramid of corporate social responsibilities contains all of the following components EXCEPT:

cultural responsibilities (The four components of the pyramid of corporate social responsibility are economic, legal, ethical, and philanthropic responsibilities.)

Cesar Ritz, the founder of the original Ritz-Carlton, Boston, was known as the "king of hoteliers and the hotelier to kings." Today, there are more than 70 Ritz-Carlton hotels spanning 24 countries with 38,000 employees. These are not typical employees, though. They are described as "Ladies and Gentlemen serving Ladies and Gentlemen." Each employee participates in an intensive orientation program and recertification programs throughout their careers with the company, and many are allowed $2,000 to fix a guest's problem on the spot without managerial approval. So renowned is the Ritz way of doing business that the company offers a Leadership Center for executives and managers of other companies to learn and implement the Ritz way of customer service. It doesn't stop with employees, though. Ritz-Carlton hotels recently launched "Give Back Getaways" in 2008 that allow guests to volunteer in locales where they are vacationing. The hotel also offers "Vow to Help Others" which is a program that donates a portion of a wedding couple's reception costs to those in need. The chief operating officer's words sum up Ritz-Carlton's philosophy best when he stated, "If we really do our job, we really don't need sales anymore. Satisfied guests are your advertising." Refer to Ritz-Carlton Hotels. Ritz-Carlton embodies an organization-wide commitment in service and support so that customers attain benefits relative to the price they pay for this service. Which element of an organization's focus is this commitment satisfying?

customer value (Relationship marketing seeks to forge long-term partnerships with customers.)

In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's Strategic Opportunity Matrix, BRL would be implementing a _____ strategy.

diversification (market development) product development divestment product penetration Market development refers to the attracting of new markets (U.S. consumers) to existing products.

All of the following are necessary for exchange to occur EXCEPT:

each party signs a contract before exchange occurs (Exchange can occur without a legal contract.)

One of the favorite foods in Thailand is shark fin soup. A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison, yet the leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable. In terms of the pyramid of corporate social responsibility, this indicates that the soup manufacturer was operating at a(n) _____ responsibility level.

economic (The company believed its mission was to be profitable.)

At the most basic level, a firm must be profitable. What level of the pyramid of corporate social responsibility is this?

economic (The pyramid of corporate social responsibility portrays economic performance as the foundation for the other three responsibilities (legal, ethical, and philanthropic).)

At what level of the pyramid of corporate social responsibility will firms do what is right, just, and fair?

ethical (At the ethical responsibilities level, firms will be ethical and do what is right, just, and fair.)

Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers, and podiatrists say the trend is leading to many stylish young girls with grown-up foot problems. Shoe manufacturers who develop and market adult-styled shoes to this group are not operating at a(n) _____ responsibility level of the pyramid of corporate social responsibility.

ethical (The companies are not doing what is right, just and fair and so are not operating ethically.)

Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." By focusing on customers' wants, the chocolate company exhibits a(n)_____ orientation.

exchange product production sales (market) Torres understands that a sale occurs because a customer makes a decision to buy.

All of the following are functions served by objectives EXCEPT:

guarantee market performance (Objectives serve four functions: communicate, motivate, clarify, and aid in the control function.)

Walker Farms has heard from many of its customers that they would like organic produce. As a result Walker Farms became a certified organic farm. Walker realizes that, while not all consumers are willing to pay the higher prices for organic produce, his customers want the organic produce. Walker realized:

he missed sales by not concentrating on the average customer (different customer groups have different needs and wants) he is a sales-oriented farm his business is about selling the cheapest vegetables his aim is a goal of profit through maximum sales volume One way to implement the marketing concept is to concentrate on the needs of specific groups of customers.

A company adhering to the marketing concept will likely take which of the following steps if it learned that its customers were dissatisfied with its product?

hire more salespeople decrease its organizational overhead increase its advertising to underserved markets increase the number of outlets in which the product is sold (conduct research to determine if its customers' needs have changed) A marketing concept and market-oriented philosophy are based on the consumer's wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary.

Compass is a United Kingdom-based catering company that has developed a marketing plan designed to make it the largest caterer in China within the next two decades. As part of its marketing _____, it has already begun serving meals on trains that run between Shanghai and Beijing.

implementation (Implementation is the process that turns marketing plans into action assignments.)

The Geek Squad is a tech support station located inside every Best Buy electronics retail store. Best Buy gives intensive training to the Geeks. The purpose of this training is to:

improve customer service (Leading marketers recognize the role of employee training in customer service.)

At which level of the pyramid of corporate social responsibility must a business "play by the rules"?

legal (Firms operating at the legal level obey the law and play by the rules of the game.)

Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation. Every night Universal Studios Japan hosts a fireworks display. The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays. If the allegations are true, in terms of the pyramid of corporate social responsibility, then Universal Studios Japan is not operating at a(n) _____ responsibility level.

legal (Universal Studios Japan is not obeying the letter of the law.)

Xerox emphasizes _____ by replacing at its own expense any dissatisfied customer's equipment within a period of three years after purchase.

management empowerment management-customer synergy (customer satisfaction) transactional marketing direct selling When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, customer satisfaction is created.

Ninety-six percent of USAA home insurance policy holders report that USAA representatives meets their commitment in calling back customers quickly about claims. The most likely result of USAA's efforts is:

management empowerment retailer-customer synergy (customer satisfaction) transactional marketing disintermediation When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, customer satisfaction is created.

Cesar Ritz, the founder of the original Ritz-Carlton, Boston, was known as the "king of hoteliers and the hotelier to kings." Today, there are more than 70 Ritz-Carlton hotels spanning 24 countries with 38,000 employees. These are not typical employees, though. They are described as "Ladies and Gentlemen serving Ladies and Gentlemen." Each employee participates in an intensive orientation program and recertification programs throughout their careers with the company, and many are allowed $2,000 to fix a guest's problem on the spot without managerial approval. So renowned is the Ritz way of doing business that the company offers a Leadership Center for executives and managers of other companies to learn and implement the Ritz way of customer service. It doesn't stop with employees, though. Ritz-Carlton hotels recently launched "Give Back Getaways" in 2008 that allow guests to volunteer in locales where they are vacationing. The hotel also offers "Vow to Help Others" which is a program that donates a portion of a wedding couple's reception costs to those in need. The chief operating officer's words sum up Ritz-Carlton's philosophy best when he stated, "If we really do our job, we really don't need sales anymore. Satisfied guests are your advertising." Refer to Ritz-Carlton Hotels. The chief operating officer's statement regarding sales and advertising illustrates which marketing management philosophy embraced by this company?

market (A market orientation is a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product.)

When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials totaling almost $70. One his way to checkout, an employee asked him what was he trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble. This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n) _____ orientation.

market (The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.)

The _____ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

market audit (portfolio matrix) experience matrix market development analysis market opportunity analysis The portfolio matrix classifies each SBU by its present or forecast growth and market share and is a tool for allocating resources.

A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of:

marketing (This description contains three of the four main activities included in the marketing function. The fourth main activity is communicating value.)

As recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers. An advance man arrived about two weeks before the circus actually arrived, covered the community with posters, and gave out free tickets to schoolchildren. If the advance man had done a good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's Greatest Show on Earth began performing in 4,000-seat arenas. Refer to Circuses. The circus's goal of redesigning the circus experience is being completed through the coordination of many marketing activities, such as value pricing, a product that includes exciting performances, tent venue locations, and promotion. These activities make up the _____ for the circuses.

marketing mix (Marketing mix elements include product, place, promotion, and price.)

A _____ is defined as a statement of what is to be accomplished through marketing activities.

marketing objective (This is the definition of a marketing objective.)

PepsiCo's annual report has the following statement: "Our business is to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity." This statement is an example of PepsiCo's:

mission statement (A mission statement answers the question, What business are we in?)

Yuengling is the oldest brewery in the United States. It was founded in 1827 in a time when small breweries dotted the nation. The brewery only sells in a ten state area on the eastern seaboard. For over 170 years, this strategy has given the brewery a:

niche competitive advantage (A niche competitive advantage is achieved when a firm seeks to target and effectively serve a small segment of the market.)

Marketers interested in offering customer value can:

offer products that perform give the consumer facts offer organization-wide commitment to service and after-the-sale support avoid unrealistic pricing (do all of these)

Chaz loves to play a Disney online pirate game in which he gets to create a pirate by choosing hair-color, skin-color, clothing, and physical features. Then he gets to choose from a variety of quests and can sail a ship, dig for treasure, fight skeleton pirates, or fight the British Navy. This game provides what element of value?

offering products that perform earning his trust avoiding unrealistic pricing giving him facts (co-creation) Co-creation allows customers to help create their own experience.

Coca-Cola drink vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines is an example of a(n):

opportunity because it is part of Coke's external environment (Technological advances represent an external opportunity.)

Pacific Gas and Electric (PG&E) Company has donated almost $300,000 to 58 local governments and community-based organizations for local economic development projects. Recipients of these grants include the San Benito County Economic Development Corporation's Business Outreach Program, the San Jose Conservation Corps' Hennessy Place Affordable Single-Family Housing Project, and Mariposa County's Business Development Training Program. This sort of donation indicates PG&E was operating at a(n) _____ responsibility level of the pyramid of corporate social responsibility.

philanthropic (By supporting local economic development projects, PGE was being a good corporate citizen.)

DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out. The socks were of special materials aimed at giving the cyclist the most comfortable fit. These socks were not the traditional white socks but bright, bold, and flashy colored socks with cool graphics. These high tech socks were priced around $10 a pair. Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand. The company branched into running, hiking and snow gear. Their products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the serious athlete. They also have a custom department where socks, armskins, and gloves can be customized with any motif including sponsor types of logos like Michelin, Pabst Blue Ribbon, or BP. Even kids can enjoy DeFeet's high quality socks. DeFeet's products can be found in retailers across the world, in more than twenty countries, like Israel, Australia, Belgium and the United States. More than two-dozen online retailers also carry their products. Refer to DeFeet. DeFeet's _____ includes retailers and online retailers throughout the world.

place strategy (In this example place is the physical distribution of DeFeet's product.)

Ruthanne Ross is a sales manager for Pampered Chef, a company that sells kitchen tools and other aids for cooking through party plans. She is very concerned about making sure her salespeople understand the importance of treating each customer fairly and developing long-term relationships with them. She asks that before a sale is made, the salesperson should make sure customers can afford the items and are not buying due to social pressures. Ross is most likely at the _____ stage of ethical development.

postconventional morality (Postconventional morality is that of the mature adult. At this level, the individual is more concerned about others than about himself or herself.)

Which of the following factors will influence ethical decision making and judgments?

potential magnitude of the consequences (The potential magnitude of the consequences is one of several factors that tend to influence ethical decision making and judgment.)

Hallie is a calculating, self-centered salesperson. She never engages in relationship marketing. She looks on any sales situation as a "win-lose" situation, and she believes any legal method she can use is justified when she wins. Hallie is most likely at the _____ stage of ethical development.

pre conventional morality (Preconventional morality is the most basic level of morality.)

Ethical development can be thought as having three levels. The most basic, childlike level is the _____ stage.

pre conventional morality (The three levels morality are preconventional, which is the most basic, conventional, and postconventional.)

Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices. Unfortunately, the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide. Human rights organization have asked jewelers to buy diamonds that are "conflict-free," that is from South Africa, Australia, or Canada. LeeBrant is one retail jewelry store that sells only diamonds that are certified to be from these countries. LeeBrant is exhibiting which marketing management orientation?

production sales (societal marketing) direct omnipotent LeeBrant has a societal marketing orientation because it is not only trying to satisfy customers' wants but also trying to enhance society's long-term best interests. The other jewelers that continue to sell diamonds purchased from the rebels are more interested in satisfying their customers' desire for lower prices than in serving society.

Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

production (A production orientation is a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.)

Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out the heat. Little market research was done, but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color than the current models on the market. This scenario suggests PPG most likely has a(n) _____ orientation.

production (A production orientation is a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.)

All of the following are factors influencing ethical decision making and judgments EXCEPT:

rate of prosecution (Other factors include extent of ethical problems within the organization, potential magnitude of the consequences, and the length of time between the decision and the onset of consequences.)

A newspaper ad for a hospital that states, "We have the most modern delivery rooms and state-of-the art medical equipment," is an indication of which marketing management philosophy?

sales customer market societal (production) A production orientation focuses on the internal capabilities of the firm.

The First Starbucks opened in 1970 in Seattle Washington. The demand for its coffee grew and Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30 year history, Starbucks has never given out coupons for its coffee. Starbucks had only to make its coffee and customers came. Recently consumer quality perception of the Starbucks brand has started to fall. Starbucks started a consumer-response blog to learn more about what consumers expect from Starbucks. One of the most requests was for a customer rewards program. In response Starbucks has started the Starbucks card rewards which offers free refills on brewed coffee, free beverage with whole bean purchase, beverage customization and free Wi-Fi. Starbucks also put coupons in a national newspaper for those consumers who love coupons and created a new brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping with these improvements will restore customers' loyalty and confidence. Refer to Starbucks. For more than thirty years Starbucks held the orientation of "If we build it, they will come." This philosophy is most in line with a _____ orientation.

sales market (production) societal product A production orientation means that management asks "what do we do best?" Starbucks case made great coffee and created an atmosphere where people wanted to spend time and money.

As recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers. An advance man arrived about two weeks before the circus actually arrived, covered the community with posters, and gave out free tickets to schoolchildren. If the advance man had done a good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's Greatest Show on Earth began performing in 4,000-seat arenas. Refer to Circuses. The aggressive promotions used by advance men indicate that decades ago the circuses probably had a _____ orientation.

sales (Sales-oriented organizations achieve their sales goals primarily through intensive promotion.)

The _____ orientation assumes people will buy more if aggressive selling techniques are used.

sales (The sales orientation assumes aggressive selling is what is needed to increase demand.)

One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve profitability through sales volume, it would probably be:

sales-oriented (A sales-oriented organization seeks to achieve profitability through sales volume and tries to convince potential customers to buy.)

FujiFilm Computer Products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25 percent and has instructed its sales force to aggressively distribute and promote the product. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Apparently FujiFilm:

seeks its goals primarily through the use of intensive promotion (FujiFilm definitely has a sales orientation.)

An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.

societal orientation (The societal marketing concept extends the marketing concept by acknowledging that some products that customers want may not really be in their best interests or the best interests of society as a whole.)

Russell Athleticwear, which is part of Berkshire Hathaway, Inc., is a market leader in the sports apparel industry, an industry that is growing rapidly. Russell Athleticwear is an example of a(n) _____ according to the portfolio matrix.

star (A star has a large market share in a rapidly growing industry.)

Chrysler has a financial unit that is responsible for vehicle leases to consumers. It has a distinct mission, control over its resources, and plans independent of the other divisions of Chrysler. This financial unit is an example of a(n):

strategic business unit (An SBU is a subgroup of a single business or collection of related businesses within a larger organization.)

Novartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed to pay $125 million for the company that holds a 3% share of China's $1 billion vaccines market. The market for vaccines is growing 20% or more in developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been limited to basic shots against diseases such as polio, tuberculosis, and measles, but as the economies of these countries grow, government and private healthcare spending focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and others. Some critics are against the acquisition, claiming that prices will increase. Novartis claims it is not interested in raising prices but rather to expand Tianyuan's product offerings. Refer to Novartis. Novartis is creating and maintaining a fit between its objectives and resources and evolving market opportunities in developing countries. Novartis is engaging in:

strategic planning (Strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.)

One approach to developing a personal set of ethics is to:

stress the importance of rules (One approach to developing a personal set of ethics stresses the importance of rules. Another is to examine the consequences of a particular act.)

Kellogg's is offering free DVDs to consumers who collect 5 official Collection certificates from the back panels of specially marked packages of Kellogg's cereals and mail them with the official order form. Within 90 days, these consumers will receive the movie of their choice. A(n) _____ will occur when a movie fan mails in his or her certificates for a movie.

synergy sublimation (exchange) entropy reciprocity For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange. Furthermore, each party must have something that is of value to the other party. Each party is capable of communication and delivery and believes it is desirable to do so. In this case, the value for Kellogg's is customer loyalty. The value for the customer is the cereal and free movie.

Kellogg's gives consumers the chance to receive a free DVD. Consumers who buy five boxes of specially marked cereal can cut out the coupons and mail in their completed official form to get a free DVD. Kellogg's is engaging in:

transactional marketing sports distribution (relationship marketing) one-to-one marketing customer transformation Relationship marketing is a strategy that entails forging long-term partnerships with customers.