MKT Book quiz 1 (tbd)
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
Minor League Baseball (MiLB) suffers from sluggish attendance. To attract more fans to MiLB games, owners often resort to gimmicks--free hot dog nights, events designed to get into the Guinness World Records, and celebrity visits. Since baseball fans are seldom asked what would make them want to attend more games, this suggests most MiLB teams do not have a(n) orientation.
MARKET
If a company uses a sales orientation, consumer complaints would most likely result in:
a modification of the sales presentation
One facet of marketing is that it is:
a philosophy that stresses customer satisfaction
As part of instituting an empowerment program, a marketing director should:
allow non-management employees to resolve problems on their own without prior approval from immediate supervisors
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?
co-creating
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?
conduct research to determine if its' customers' needs have changed
After hearing his company criticized for its failure to respond to consumer needs, the CEO of a bank realized that his company needs to adhere to the marketing concept and implement a market-oriented strategy. Which of the following actions would be the best approach to achieving this goal?
creating cross-functional teams and constructing them to focus on creating greater customer value
A firm that wants to develop a deeper understanding of its customers may optimize profitiablity, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is:
customer relationship management
Ninety-six percent of USAA home insurance policy holders report that USAA representatives meet their commitment in calling back customers quickly about claims. The most likely result of USAA's efforts is:
customer satisfaction
When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.
customer satisfaction
Xerox emphasizes by replacing at its own expense any dissatisfied customer's equipment within a period of three years after purchase.
customer satisfaction
Refer to Ritz-Carlton Hotels. Ritz-Carlton embodies an organization-wide commitment to 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
is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
customer value
One of the reasons given for the decline of the passenger rail industry in the United States is that the industry defined its mission as trains and not as transportation sources. The railroad industry failed to:
define its mission in terms of the benefits its customers seek
A firm with a production orientation is most likely to survive if:
demand for the product it produces exceeds supply
Walker Farms heard from many of its customers that they would like organic produce. As a result, Walker Farms became a certified organic farm. Walker realized that while not all consumers were willing to pay the higher prices for organic produce, his customers wanted the organic produce. Walker realized:
different customer groups have diff needs and wants
A company that wants to implement a market orientation would need to:
do all of the activities listed
Refer to Circuses. To exhibit a societal marketing orientation, circuses could:
donate a % of their profits to local education institutions
All of the following are necessary for exchange to occur EXCEPT:
each part signs a contract before exchange occurs
A problem facing the timber industry is the absence of any effective way to prove that rain forest timber has been legally harvested. In places like Indonesia, as much as 80 percent of timber available for sale is 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?
each party believes it is appropriate to deal with the other party
Refer to Starbucks. Which of the four conditions did NOT exist in the minds of the Starbucks consumer, resulting in declining sales?
each party having something of value to give to the other party
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
Refer to RitzCarlton Hotels. A guest's suitcase was lost while in the care of hotel employees, and that guest needed his suit for an important business meeting. The desk clerk took the guest to a local mall to purchase clothing and shoes totaling $850. The fact that RitzCarlton employees have the authority to solve customers' problems quickly illustrates that these employees are given:
empowerment
Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:
empowerment
The Ritz-Carlton has Service Values that guide employees in providing its Gold Standard service. One of the service values states, "I own and immediately resolve guest problems." The RitzCarlton management uses
empowerment
gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.
empowerment
Kellogg's is offering free DVDs to consumers who collect five official Collection certificates from the back panels of specially marked packages of Kellogg's cereals and then 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.
exchange
Which of the following occurs when people give up something in order to receive something they would rather have?
exchange
TRUE OR FALSE marketing is defined as producing, promoting, and selling products
false
true or false Customer value is the relationship between company profits and company costs.
false
true or false 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
true or false Only a firm's salespeople need to be customer oriented.
false
true or false Personnel in salesoriented firms tend to be "outward looking," focusing on selling what the market wants.
false
true or false The way to achieve customer satisfaction and value is to offer the lowest price.
false
true or false Unlike a production-orientated firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.
false
true or 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
The marketing concept involves:
focusing on customers' wants and needs so that the organization can distinguish its product from competitors' products
A company that has a market orientation and adheres to the marketing concept does NOT:
fuel sales growth through the application of aggressive sales techniques
A sales-oriented firm defines its business (or mission) in terms of:
goods and services
Mimi Couturier is a design company that specializes in formalwear for women. The company is known for challenging fashion mores. The company's fashion designers use computerassisted design software to create what it thinks women should wear. The company regularly hires industry experts to examine its factories to find waste and inefficiencies that can be eliminated. The company has expanded the number of products it offers for sale many times. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its workforce. To avoid this occurrence in the future, Mimi Couturier should:
have some1 study its target market to see what needs and wants should be met by MiMi Couturier
Redefining the business mission of a mattress manufacturer as "a good night's sleep" rather than stating the mission as "the manufacture of highquality mattresses" will:
help ensure the firm retains its focus on consumers
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
The American Marketing Association's definition of marketing:
includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
At The Container Store, every employee is trained to serve customers. Full-time salespeople receive 240 hours of training. The Container Store works to hire people who are self-motivated and have a passion for customer service. The Container Store has a orientation.
market
At the Lands' End Web site, a customer can chat online with customer service representatives while shopping. This live help allows the customer to have questions answered before placing an order. This focus on meeting customer needs illustrates a(n) orientation.
market
At www.mystarbucksidea.com, customers are encouraged to share their ideas and thoughts about how Starbucks can better serve its customers. Starbucks customers told management that they wanted to be recognized for choosing Starbucks coffee. So Starbucks instituted the My Starbucks Reward program with money-saving benefits to their Starbuck cardholders. Starbucks is an example of a company with a -oriented philosophy.
market
Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants. This philosophy is at the heart of a(n) orientation.
market
Refer to Circuses. Now circuses are trying to satisfy customers' needs and wants and to profit through customer satisfaction. They have adopted a orientation.
market
Refer to RitzCarlton Hotels. The chief operating officer's statement regarding sales and advertising illustrates which marketing management philosophy embraced by this company?
market
Refer to Starbucks. The fact that management realized that coffee drinkers had different needs, whether it be using coupons, wanting a milder brew of coffee, or using free Wi-Fi, shows that Starbucks is now using a -oriented approach.
market
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 check out, 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
Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product?
market
Which marketing management philosophy focuses on the question, "What do customers want and need?"
market
acques 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 chilipepperlaced 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 customer' wants, the chocolate company exhibits a(n) orientation.
market
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 ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of:
marketing
is a set of activities used to implement a management orientation that stresses customer satisfaction.
marketing
The concept of exchange is important to marketing because:
marketing activities help to create exchange
All of the following are good reasons to study marketing EXCEPT:
marketing creates consumer needs
efer 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
Marketers interested in offering customer value can:
offer organization-wide commitment to service and after-the-sale support
Barry collects antique watches and has 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
. A newspaper ad for a hospital that states, "We have the most modern delivery rooms and stateofthe art medical equipment," is an indication of which marketing management philosophy?
production
A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) orientation.
production
A firm that adopts a(n) orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.
production
Firms with a orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
production
Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) orientation.
production
Refer to Starbucks. For more than 30 years, Starbucks held the orientation of "If we build it, they will come." This philosophy is most in line with a orientation.
production
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
Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoyed being the top U.S. car producer and focused more on how many cars and trucks it could manufacture, not on what customers wanted from a vehicle. GM had more of a orientation.
production
Which marketing management philosophy focuses on the question, "What can we make or do best?"
production
All of the following are marketing management philosophies EXCEPT:
profitability orientation
is the primary tool used by a sales-oriented organization to achieve its corporate goals.
promotion
TUFF SHED, Inc. is one of the leading suppliers of installed storage buildings and garages in the United States. TUFF SHED mandates that sales, management, and construction teams work together to anticipate and eliminate potential problems. They make sure customers get the right buildings for their needs, and they all are built well and in a timely manner. By using teamwork, TUFF SHED:
provides its customer with a high level of satisfaction
Refer to Ritz-Carlton Hotels. Customer-oriented personnel, effective training programs, employees with authority to make decisions and solve problems, and teamwork all work together at Ritz-Carlton to implement which type of strategy?
relationship marketing
is a strategy that focuses on keeping and improving relationships with current customers.
relationship marketing
Greenberg Smoked Turkey, Inc. is a nationwide mail-order business that operates without any advertising. It does not accept credit cards, has no toll-free number for customers to call, and does not have a Web site. This hopelessly oldfashioned company is also very profitable with thousands of devoutly loyal customers--some of whom have ordered Greenberg smoked turkeys every year for the last 50 years. Greenberg more than likely uses to maintain these long-term ties to its customers.
relationship mating
Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage. After flying a certain number of miles or flying a specified number of times, the frequent-flyer program participant earns a free flight or some other award such as free lodging. Airlines that use frequent-flyer programs are practicing:
relationship mkting
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:
relationship mkting
Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on cars. The device beams signals to dealers who can remotely diagnose or spot trouble, allowing car dealerships to maintain a closer bond with their customers by offering maintenance before a problem leaves customers with an inoperable or possibly dangerous car. With the device, dealers can better engage in:
relationship mkting
Refer to Circuses. One of the tent venues is called Barnum's Kaleidoscope, and it is in a permanent location with the hopes that people who see the show will want to return and see it again as well as bring their friends and relatives to the production. Which of the following techniques would most likely advance this strategy of referrals and repeat business?
relationship mkting
Refer to Starbucks. The creation of a consumer response blog is an example of .
relationship mkting
All of the following are basic marketing mix decisions EXCEPT:
sales
Colorado Silversmith creates and markets silver and turquoise jewelry, which it sells to retailers in the western United States. The company's management believes its retail customers will stock more jewelry if its salespeople use aggressive marketing techniques, so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its jewelry. In other words, the company has a orientation.
sales
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. It has instructed its sales force to aggressively distribute and promote its printers. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Fujifilm appears to have a orientation.
sales
Life is good® no longer encloses its apparel in individual poly bags when shipping to customers because the management feels it harms the environment. This is an example of a orientation.
sales
Refer to Circuses. The aggressive promotions used by advance men indicate that decades ago the circuses probably had a orientation.
sales
The orientation assumes people will buy more if aggressive selling techniques are used.
sales
The owner of Maine Kitchen Art bowls, spoons, and cutting boards knows marketing can make his company a success. He wants to rely solely on promotion as the technique for attracting customers. He advertises extensively in cooking magazines and provides retailers who carry his product with attractive displays. From this information, you know that Maine Kitchen Art has a orientation.
sales
Which marketing management philosophy focuses on the question, "How can we sell more aggressively?"
sales
Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used?
sales
Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and preplanned funeral services?
sales orientation
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
Which of the following is the customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations?
satisfaction
Market-oriented firms primarily focus their efforts upon:
satisfying the wants and needs of their customers
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
The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:
simultaneously meeting organziation objectives
Refer to RitzCarlton Hotels. The "Give Back Getaways" and "Vow to Help Others" programs offered by Ritz Carlton hotels are applications of which marketing management philosophy?
societal
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?
societal marketing
Life is good® developed the "Good Karma" line of environmentally friendly 100% organic cotton apparel. The production of the Good Karma line is consistent with a orientation.
societal marketing
Most companies become sensitized to community issues after they've done enough damage to draw the locals' anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding which projects to improve the local environment will be implemented. This annual community-wide meeting indicates Dofasco has a orientation.
societal marketing
Procter & Gamble (P&G) decided to address the fact that Hispanic women are more likely to die from breast cancer because they're reluctant to get mammograms or discuss screening. So P&G brought screening to the supermarket, parking mobile mammography vehicles in grocery store parking lots in Texas and inviting shoppers in for free x-rays. Tie-ins with local hospitals assured that women with suspicious films got follow-up care. P&G adopted a orientation to achieve this goal.
societal marketing
Target shoppers can enroll in the Take Charge of Education® program so that Target will donate 1 percent of purchases made with a consumer's REDcard, a Target credit card. The more money customers spend, the larger the donation to the consumer's school of choice. By instituting the Take Charge of Education® program to help local schools, Target has shown a orientation.
societal marketing
Which marketing management philosophy focuses on the question, "What do customers want and need, and how can we benefit society?"
societal marketing
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 longterm best interests.
societal marketing orientation
What is the fundamental objective of most businesses?
survival, profits, and growth
is the collaborative efforts of people to achieve common objectives.
temwork
A market-oriented firm defines its business in terms of:
the benefits its customers seek
Which of the following statements about a typical sales-oriented business is TRUE?
the company invests the majority of its resources in promoting its products and services
The sales and market orientations differ on all of the following characteristics EXCEPT:
the firm's performance
Which of the following statements about the societal orientation is FALSE?
the majority of consumers support environmentally friendly companies and willingly paying more for these products
SAP, the world's largest business software company, has pledged to put the "customer at the center" of their universe. SAP has captured the idea of:
the marketing concept
For an exchange to take place:
there must be at least two parties involved
T OR F According to the American Marketing Association, marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
true
T Or F Sara Lee Industries spent considerable money and time developing a crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production-oriented company.
true
t or f an exchange cannot take place unless each party in the exchange has something that the other party values
true
t or f the focus of a product-oriented firm is on what it can make or do best
true
true OR false Marketing is important to business, so marketing should be part of the job of everyone in the organization, not just those in marketing.
true
true OR false Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products.
true
true or false 3D Systems is a company that uses computers to generate new product prototypes. It has generated loyal business clients by providing the best customer support in the industry. The company also provides direct sales consultations that give its salespeople intimate knowledge about what exactly its customers want. This partnership between 3D Systems and its customers is relationship marketing.
true
true or false A local grocer recently began grouping its customers into specific groups based on what they bought and when they shopped. The grocer then began to schedule shipments of specific items based on these customer segments and to offer different promotions to different shopper groups. This is an example of CRM.
true
true or false Increasingly well informed customers have shifted the power from manufacturers and retailers to consumers.
true
true or false Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.
true
true or false The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while meeting organizational objectives.
true
true or false The societal marketing concept considers society's longterm best interests along with the satisfaction of customers' wants and needs.
true
true or false The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers.
true
Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:
what the customer thinks he or she is buying is what is important
