MKTG 409 Chapter 1 Mindtap

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

1,000

What percent of all civilian workers in the United States perform marketing activities?

25-33

Creating long-term relationships with customers is a key component to surviving and thriving in today's competitive business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where customers can accumulate points and receive discounts or free merchandise. For example, Best Western encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Best Western offers benefits such as upgrades and free room nights based on the number of stays or points a customer has accumulated. This example demonstrates how Best Western is utilizing

CRM

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

CRM

The marketing mix is built around the

Customer

Honda conducts extensive consumer research and discovered that Latinos are reportedly 15% more likely to buy a Japanese auto brand, like Nissan, Honda, or Toyota, than any other group ethnic group. Honda is interested in the Latino market since it represents 20% to 30% of the brands' overall consumers. Due to its extensive use of research and customer insight, Honda has been the top-selling brand for Latinos for over 10 years thanks to effective marketing, like its partnership with the "La Reina de la Cancion" singing competition and an advertising campaign on Spanish-language TV. Based on this information, which orientation best applies to Honda?

Market orientation

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

Marketing concept

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

Monetary price

During the Industrial Revolution, most firms operated using a(n) ____ orientation.

Production

The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. Refer to Scenario 1.1. A new website has helped Green Hills' pre-planned funeral business grow. This would come under which of the following marketing mix variables?

Promotion

Refer to Scenario 1.1. Green Hills' competitors, the traditional cemeteries, focus on advertising and personal selling of their services. This indicates a(n) ____ orientation.

Sales

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

Service

Refer to Scenario 1.3. Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10 days for a "build-to-order" computer and led HP to modify its business model to become a "make-to-stock" manufacturer?

Sociocultural

Which of the following is NOT a condition for an exchange to occur?

The exchange should provide a benefit or satisfaction to only the buyer.

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

a. focusing just on the marketing department.

​Marketing is the process of

b. ​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.

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

both customers and businesses

To fulfill customer expectations about a seller's future behavior, marketers must

deliver on promises made

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

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

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

promotion

​The marketing concept focuses on:

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

Special K cereal is aimed at people concerned about their weight. These people represent the Special K

target market

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

the best way to distribute his products

Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in

the sociocultural forces of the marketing environment.

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

​"Customer Value = Customer Benefits - Customer Costs"