Chapter 1

Which of the following statements is true regarding marketing knowledge and skills?

Marketing knowledge and skills are valuable personal and professional assets.

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 _____.

Marketing mix decisions

Which areas or functions of an organization are impacted when a company chooses to adopt the marketing concept?

Marketing, finance, accounting, and marketing functions

Marketing managers strive to develop a marketing mix that _____.

Matches the needs of the target market

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

A marketing manager for a regional distributor of beer and alcoholic beverages is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ____ that influence(s) the firm's strategy.

Marketing environment

WalMart has traditionally utilized an everyday low price strategy in their continued efforts to be the number one global retailer. They recently launched an application called the WalMart Savings Catcher to ensure consumers receive the lowest possible prices compared to the competition. Which of the following slogans would be most appropriate for WalMart to use to communicate the message of everyday low prices most effectively?

"Expect More. Pay Less"

If a family spends $3,000 each month on goods and services, how much of that $3,000 can be associated with the cost of marketing activities?

$1,000

Considering the costs associated with implementing marketing activities, if a consumer pays $52 for a pair of jeans, approximately how much of that price is associated with activities related to marketing (promotion, distribution, and profit margins)?

$26

Marketing is important to businesses and the economy. Which of the following statements best summarizes the importance of marketing activities?

Marketing helps create a successful economy and contributes to the well-being of society.

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

25-33%

Marketing activities are a large component impacting the price of products and services. Approximately what percentage of a good's monetary price is associated with marketing activities?

50%

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

All organizations and businesses around the world have adopted the marketing concept as a business philosophy.

Which of the following is the best example of a service organization?

American Airlines

Value can be defined as a customer's subjective assessment of benefits relative to costs in determining the worth of a product. Which of the following would not be considered a cost associated with purchasing a product and determining its value?

Benefits received in exchange for the product

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

Both the buyer and seller must be satisfied

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 obtaining new customers

Product, price, distribution, and promotion are all components of a firm's

Business strategy

Firms utilizing customer relationship management (CRM) must first identify patterns of ____ and then use that information to focus on the most promising and profitable customers.

Buyer behavior

Managing customer relationships requires identifying patterns of ____ and then using that information to focus on the most promising and profitable customers.

Buying behavior

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.

Competitive

Aldi's, the grocery store chain partners with a large number of consumer products companies to manufacture private label products that are similar to name-brand products found in other grocery store aisles. One cookie manufacturer suggests that Aldi's modify the volume of product they include in the package but keep the package size the same. Thus, consumers would receive fewer cookies but not recognize the difference because the packaging looks the same as the name-brand variety. Aldi's marketing buyer warns the cereal manufacturer that this might be a bad idea because Aldi's long-term survival, like most companies, depends on

Creating and maintaining satisfying exchange relationships

The key objective of customer relationship management (CRM) is

Creating long-term relationships with profitable customers

Which of the following expressions best characterizes the concept of value to consumers?

Customer benefits - customer costs = value

When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?

Customer concept

The Ford F-150 brand of trucks has one of the highest customer loyalty ratings in the automobile industry with approximately 66% of new truck purchases coming from customers who already own a Ford F-150. Ford F-150 trucks are typically priced between $25,000 and $30,000 depending upon options and add-ons. One local Ford dealer actually made some calculations based upon a very loyal customer who over a 10-year period had purchased three different F-150s. The dealer realized that this one customer had spent over $75,000 with his dealership. Which of the following marketing terms best captures the importance of customer loyalty and its impact on the local Ford dealership?

Customer lifetime value

Companies today are seeking ways to create stronger and more frequent interactions with customers to establish beneficial long-term relationships. For example, Southwest Airlines encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Southwest Airlines offers benefits such as upgrades and free travel based on the number of flights or points a customer has accumulated. This example demonstrates how Southwest Airlines is utilizing

Customer relationship management

Scenario 1.1. Use the following information to answer the questions. A new company, Cleanethics is marketing a cleaning product called Bottle Bright. Bottle Bright is available on Amazon.com in two sizes: a 10 count pouch for $7.99 or a twin-pack 10 count pouch (20 tablets) for $11.99. The Cleanethics founders were featured on the popular TV show, Shark Tank and shared their idea and product history. Their journey began appropriately at a trailhead—fresh off a mountain bike ride that was endured with noticeably less than fresh tasting water. They were fed up with the grime that plagued their hydration packs and water bottles, and the lack of suitable methods to clean them. After years of choosing between stains and odors or toxic chemicals, they set out to create the safest and most effective product for maintaining hard-to-clean drinking containers. In addition, the founders conducted considerable market research to determine consumers' needs for cleaning products and likelihood to purchase an environmentally friendly cleaning product. Their background in renewable fuel production provided the relevant experience in chemistry and product development. After countless hours spent researching and testing, their unique all natural formula was born. Bottle Bright cleans water bottles, travel mugs, and other hard-to-clean drinking vessels, is biodegradable, chlorine free, all natural, removes stubborn stains and odors, and is certified by The Natural Products Association. In addition, the founders recognized that the problem of dirty water containers carries more serious risks to people in developing countries and they committed to leveraging sales to give Bottle Bright to the people that need it most. The company uses the slogan, Buy clean, give clean—Clean in Kind to educate and remind consumers about this mission and how a purchase of Bottle Bright tablets will provide clean water to those who need it most. Refer to Scenario 1.1. The target market for Bottle Bright would most likely be:

Customers who are concerned about the environment and utilize refillable water bottles to reduce their carbon footprint

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 their excess inventory, which business orientation are they most likely implementing?

Demand orientation

Lebron has recently begun working for Kimberly-Clark, a consumer products company headquartered in Dallas, Texas, known for such well-known brands as Kleenex and Huggies diapers. Lebron completed a degree in marketing and will primarily be responsible for managing inventory levels, transportation, storage costs as well as fulfilling retail orders and ensuring timely delivery to customer accounts. Lebron will work with vendors who have established relationships with the company and refine Kimberly-Clark's interactions with both its suppliers and other market intermediaries. Lebron's job responsibilities primarily relate to which of the following marketing mix variables?

Distribution

Scenario 1.2. A recent Council of Supply Chain Management Professionals meeting featured an executive from Caterpillar, largely considered the world's leading manufacturer of construction and mining equipment. The executive discussed the capabilities of the firm regarding tracking the carriers or transportation vendors who facilitate the movement of parts needed for manufacturing as well as finished goods. The company utilizes a solution from GT Nexus which provides end-to-end visibility of its carriers across different shipping modes including air transportation, ocean, inland waterways, and over-the-road trucking. The GT Nexus technology solution tracks on-time performance of the carriers within each shipping mode and assists Caterpillar in determining the cost-effectiveness of specific carrier vendors as well as shipping modes. Caterpillar utilizes the information to assist them in their decision-making as to when to utilize different modes of transportation (e.g., air freight versus ocean) as well as decisions within a mode (e.g., one-day air versus two- or three-day air). In addition, Caterpillar engages in customer analysis research to determine consumers' sensitivity to price as well as the importance of timely delivery. Additional insight regarding customer needs aids Caterpillar in their judgments about pricing and delivery schedules for parts and equipment. Caterpillar's investment in the technology solution as well as customer insights has helped the company achieve its revenue and profitability goals. Refer to Scenario 1.2. Which variable of the marketing mix is most impacted by Caterpillar's use of the GT Nexus solution?

Distribution Variable

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

Economic, competitive, political, legal, technological, and subconscious

Scenario 1.1. Use the following information to answer the questions. A new company, Cleanethics is marketing a cleaning product called Bottle Bright. Bottle Bright is available on Amazon.com in two sizes: a 10 count pouch for $7.99 or a twin-pack 10 count pouch (20 tablets) for $11.99. The Cleanethics founders were featured on the popular TV show, Shark Tank and shared their idea and product history. Their journey began appropriately at a trailhead—fresh off a mountain bike ride that was endured with noticeably less than fresh tasting water. They were fed up with the grime that plagued their hydration packs and water bottles, and the lack of suitable methods to clean them. After years of choosing between stains and odors or toxic chemicals, they set out to create the safest and most effective product for maintaining hard-to-clean drinking containers. In addition, the founders conducted considerable market research to determine consumers' needs for cleaning products and likelihood to purchase an environmentally friendly cleaning product. Their background in renewable fuel production provided the relevant experience in chemistry and product development. After countless hours spent researching and testing, their unique all natural formula was born. Bottle Bright cleans water bottles, travel mugs, and other hard-to-clean drinking vessels, is biodegradable, chlorine free, all natural, removes stubborn stains and odors, and is certified by The Natural Products Association. In addition, the founders recognized that the problem of dirty water containers carries more serious risks to people in developing countries and they committed to leveraging sales to give Bottle Bright to the people that need it most. The company uses the slogan, Buy clean, give clean—Clean in Kind to educate and remind consumers about this mission and how a purchase of Bottle Bright tablets will provide clean water to those who need it most. Refer to Scenario 1.1. The customers of Cleanethics are most likely choosing the Bottle Bright product because of its _______, which is evidence of a ________.

Environmental consciousness, market orientation

Apple's ability to deliver products that customers want to buy and generate high levels of customer satisfaction as well as profits and shareholder wealth demonstrates Apple's ability to facilitate ______.

Exchanges

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 to receive the "something of value" held by the other individual, group, or organization.

False

Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller focus on the creation of satisfying exchanges.

False

The marketing concept deals only with marketing activities.

False

You are starting a new job next week at a consumer products company in Redmond, Washington. You will be responsible for managing the company's inventory levels, as well as the related transportation and storage costs. You will rely heavily on some previously-established relationships as you refine the firm's interactions with its various intermediaries. Your job responsibilities primarily relate to which of the following marketing mix variables?

Financial

Which of the following activities would not be part of a market orientation?

Focusing on building short-term relationships with customers to drive revenue and profitability

Which of the following is the best example of a firm implementing the marketing concept?

Frito Lay's sponsorship of the contest, "Do Us A Flavor" to gain involvement of customers in new chip flavors through online voting and purchase volume

A tangible or physical product that can be touched, seen or felt is referred to as a(n)

Good

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

Goods, ideas, and intangibles

Which of the following statements best describes the application of marketing activities to organizations?

Marketing activities can be utilized by a variety of organizations, such as governmental agencies, nonprofit, and for-profit businesses.

According to WalMart.com, WalMart has embraced sustainability practices to enhance their relationships with customers as well as supporting or enhancing the natural environment. For example, in 2005, WalMart switched to the use of LED lights in refrigerator and freezer cases. These lights offer many benefits such as using 70% less energy than fluorescent tube lights and generating significantly less heat. The switch also led to improved energy efficiency and reduced maintenance costs. Based upon this information, it seems that WalMart is engaging in

Green marketing

When organizations pursue initiatives to improve their ability to make a positive impact on society and the natural environment, they are engaging in _______.

Green marketing

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 Coalition to Stop Gun Violence (CSGV) is a nonprofit organization that was founded in 1974. Their 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?

Implementing cost cutting measures, reacquiring "lost" customers, and gaining new customers

A junior marketing major is interviewing for a marketing internship position for the summer and has been asked to make a presentation about marketing to the interview team. Which of the following statements should the student make when defining marketing or marketing activities?

Marketing can be defined as the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing.

Marketing environment

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

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

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

Market

Bud Light, the brand behind the wildly successful Bud Light Lime Ritas, introduced a new cocktail-inspired product to the growing Bud Light portfolio: Bud Light MIXXTAIL. Bud Light MIXXTAIL is available in three flavors—Long Island, Firewalker, and Hurricane. The MIXXTAIL products were developed to appeal to customers who are choosing mixed drinks instead of beer products. In this case, Budweiser is most likely utilizing which approach to marketing?

Market orientation

The Association of Hispanic Advertising Agencies (AHAA) named McDonald's Marketer of the Year in 2014. The AHAA cites the fast-food chain's commitment to leading with ethnic insights, consistent focus on Latino research and business practices, and budgeting of multicultural business strategies. McDonald's excels highly in part to its decision to have three separate marketing directors to focus on different ethnic segments (Asian American, African American, and Hispanic). The company develops committees of 25 members, led by multicultural directors and employees, to create strategies and marketing content specifically for their target audiences. Based upon this information, which orientation best applies to McDonald's?

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

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

Marketing improves the quality of life of customers.

Customer costs can be defined as anything the buyer must give up in order to obtain the benefits the product provides. Which of the following is the most obvious customer cost?

Monetary price of the product

In order to be successful in creating mutually-beneficial exchanges with customers, the marketer must focus on creating value in fact and in the mind of the customer. For the most part, value is a customer's ________________ assessment of benefits relative to costs. The marketer should recognize that the process people use to determine value _______________.

Objective; is completely rational

Scenario 1.1. Use the following information to answer the questions. A new company, Cleanethics is marketing a cleaning product called Bottle Bright. Bottle Bright is available on Amazon.com in two sizes: a 10 count pouch for $7.99 or a twin-pack 10 count pouch (20 tablets) for $11.99. The Cleanethics founders were featured on the popular TV show, Shark Tank and shared their idea and product history. Their journey began appropriately at a trailhead—fresh off a mountain bike ride that was endured with noticeably less than fresh tasting water. They were fed up with the grime that plagued their hydration packs and water bottles, and the lack of suitable methods to clean them. After years of choosing between stains and odors or toxic chemicals, they set out to create the safest and most effective product for maintaining hard-to-clean drinking containers. In addition, the founders conducted considerable market research to determine consumers' needs for cleaning products and likelihood to purchase an environmentally friendly cleaning product. Their background in renewable fuel production provided the relevant experience in chemistry and product development. After countless hours spent researching and testing, their unique all natural formula was born. Bottle Bright cleans water bottles, travel mugs, and other hard-to-clean drinking vessels, is biodegradable, chlorine free, all natural, removes stubborn stains and odors, and is certified by The Natural Products Association. In addition, the founders recognized that the problem of dirty water containers carries more serious risks to people in developing countries and they committed to leveraging sales to give Bottle Bright to the people that need it most. The company uses the slogan, Buy clean, give clean—Clean in Kind to educate and remind consumers about this mission and how a purchase of Bottle Bright tablets will provide clean water to those who need it most. Refer to Scenario 1.1. Which element of the marketing mix is Amazon focusing on through its offer of the two different product packages—the single 10-tablet pouch versus the twin, 20-tablet pouch and reflected in the significant monetary savings associated with the twin pack purchase?

Packaging

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 April 2015, China notified the World Trade Organization Secretariat of a request for consultations with the European Union regarding measures it recently adopted to modify its tariff concessions on certain poultry meat products. This situation of one country (China) seeking an audience with the European Union is an example of which of the following types of forces that constantly impact a company's dynamic marketing environment?

Political force

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

Scenario 1.1. Use the following information to answer the questions. A new company, Cleanethics is marketing a cleaning product called Bottle Bright. Bottle Bright is available on Amazon.com in two sizes: a 10 count pouch for $7.99 or a twin-pack 10 count pouch (20 tablets) for $11.99. The Cleanethics founders were featured on the popular TV show, Shark Tank and shared their idea and product history. Their journey began appropriately at a trailhead—fresh off a mountain bike ride that was endured with noticeably less than fresh tasting water. They were fed up with the grime that plagued their hydration packs and water bottles, and the lack of suitable methods to clean them. After years of choosing between stains and odors or toxic chemicals, they set out to create the safest and most effective product for maintaining hard-to-clean drinking containers. Their background in renewable fuel production provided the relevant experience in chemistry and product development. After countless hours spent researching and testing, their unique all natural formula was born. Bottle Bright cleans water bottles, travel mugs, and other hard-to-clean drinking vessels, is biodegradable, chlorine free, all natural, removes stubborn stains and odors, and is certified by The Natural Products Association. In addition, the founders recognized that the problem of dirty water containers carries more serious risks to people in developing countries and they committed to leveraging sales to give Bottle Bright to the people that need it most. The company uses the slogan, Buy clean, give clean—Clean in Kind to educate and remind consumers about this mission and how a purchase of Bottle Bright tablets will provide clean water to those who need it most. Refer to Scenario 1.1. Cleanethics' main competitive advantage over traditional cleaning products comes from its attention to which element in the marketing mix?

Product

Scenario 1.1. Use the following information to answer the questions. A new company, Cleanethics is marketing a cleaning product called Bottle Bright. Bottle Bright is available on Amazon.com in two sizes: a 10 count pouch for $7.99 or a twin-pack 10 count pouch (20 tablets) for $11.99. The Cleanethics founders were featured on the popular TV show, Shark Tank and shared their idea and product history. Their journey began appropriately at a trailhead—fresh off a mountain bike ride that was endured with noticeably less than fresh tasting water. They were fed up with the grime that plagued their hydration packs and water bottles, and the lack of suitable methods to clean them. After years of choosing between stains and odors or toxic chemicals, they set out to create the safest and most effective product for maintaining hard-to-clean drinking containers. Their background in renewable fuel production provided the relevant experience in chemistry and product development. After countless hours spent researching and testing, their unique all natural formula was born. Bottle Bright cleans water bottles, travel mugs, and other hard-to-clean drinking vessels, is biodegradable, chlorine free, all natural, removes stubborn stains and odors, and is certified by The Natural Products Association. In addition, the founders recognized that the problem of dirty water containers carries more serious risks to people in developing countries and they committed to leveraging sales to give Bottle Bright to the people that need it most. The company uses the slogan, Buy clean, give clean—Clean in Kind to educate and remind consumers about this mission and how a purchase of Bottle Bright tablets will provide clean water to those who need it most. Refer to Scenario 1.1. Cleanethics' main competitive advantage over traditional cleaning products comes from its attention to which element in the marketing mix?

Product

A change in the national standards and requirements for school lunches and dietary guidelines is an example of a change in the ____________ for companies like Aramark that serve more than 3.8 million meals in 300 school districts around the United States.

Product concept

Scenario 1.2. A recent Council of Supply Chain Management Professionals meeting featured an executive from Caterpillar, largely considered the world's leading manufacturer of construction and mining equipment. The executive discussed the capabilities of the firm regarding tracking the carriers or transportation vendors who facilitate the movement of parts needed for manufacturing as well as finished goods. The company utilizes a solution from GT Nexus which provides end-to-end visibility of its carriers across different shipping modes including air transportation, ocean, inland waterways, and over-the-road trucking. The GT Nexus technology solution tracks on-time performance of the carriers within each shipping mode and assists Caterpillar in determining the cost-effectiveness of specific carrier vendors as well as shipping modes. Caterpillar utilizes the information to assist them in their decision-making as to when to utilize different modes of transportation (e.g., air freight versus ocean) as well as decisions within a mode (e.g., one-day air versus two- or three-day air). In addition, Caterpillar engages in customer analysis research to determine consumers' sensitivity to price as well as the importance of timely delivery. Additional insight regarding customer needs aids Caterpillar in their judgments about pricing and delivery schedules for parts and equipment. Caterpillar's investment in the technology solution as well as customer insights has helped the company achieve its revenue and profitability goals. Refer to Scenario 1.2. Which variable of the marketing mix is most impacted by Caterpillar's use of the GT Nexus solution?

Product variable

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

When McDonald's adds new items to their menu, they must educate their target audience about the new items in order to stimulate purchase and motivate consumers to visit their local McDonald's restaurant. This calls for activity in which of the following marketing mix variables?

Promotion

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

Frito Lay's website features information about products, recipes, nutritional values, and contests, but customers cannot actually purchase products from the website. The Frito Lay 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

Ford Motor Company continues to demonstrate a high level of value to customers and recent industry research reported that 1.05 million customers made repeat purchases of Ford automobile products in 2014. In addition, Ford maintains a high level of customer loyalty with an overall loyalty rating of 63.7% indicating that 63.7% of customers buying Ford products in 2014 were previous owners of Ford automobiles or trucks. In fact, truck buyers are even more loyal, which is fueled by the popularity of the Ford F-150 pickup truck. A whopping 66% of customers purchasing a 2014 model year Ford F-150 were owners of an earlier model F-150 truck. Ford's ability to generate high levels of customer loyalty demonstrates the firm is engaging in ________ marketing.

Relationship marketing

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?

Reputation for quality

Scenario 1.1. Use the following information to answer the questions. A new company, Cleanethics is marketing a cleaning product called Bottle Bright. Bottle Bright is available on Amazon.com in two sizes: a 10 count pouch for $7.99 or a twin-pack 10 count pouch (20 tablets) for $11.99. The Cleanethics founders were featured on the popular TV show, Shark Tank and shared their idea and product history. Their journey began appropriately at a trailhead—fresh off a mountain bike ride that was endured with noticeably less than fresh tasting water. They were fed up with the grime that plagued their hydration packs and water bottles, and the lack of suitable methods to clean them. After years of choosing between stains and odors or toxic chemicals, they set out to create the safest and most effective product for maintaining hard-to-clean drinking containers. In addition, the founders conducted considerable market research to determine consumers' needs for cleaning products and likelihood to purchase an environmentally friendly cleaning product. Their background in renewable fuel production provided the relevant experience in chemistry and product development. After countless hours spent researching and testing, their unique all natural formula was born. Bottle Bright cleans water bottles, travel mugs and other hard-to-clean drinking vessels, is biodegradable, chlorine free, all natural, removes stubborn stains and odors, and is certified by The Natural Products Association. In addition, the founders recognized that the problem of dirty water containers carries more serious risks to people in developing countries and they committed to leveraging sales to give Bottle Bright to the people that need it most. The company uses the slogan, Buy clean, give clean—Clean in Kind to educate and remind consumers about this mission and how a purchase of Bottle Bright tablets will provide clean water to those who need it most. Refer to Scenario 1.1. Cleanethics' competitors, the traditional cleaning companies such as Procter & Gamble, focus on advertising and promotion of their products. This indicates a____ orientation.

Sales

Recent research conducted by Aeropostale was focused on understanding the shopping habits and desires of their 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 their customers. Based upon this information, which orientation best applies to Aeropostale?

Sales orientation

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

Satisfy consumer needs

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

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

The minister for a local church affiliated with the United Methodist Church is most likely considered to be marketing:

Service

The chief marketing officers of most multinational corporations consider the marketing function as very complex. The practice of marketing is difficult due to the long list of variables and factors that impact a company's marketing success, which are part of the marketing environment. One important factor impacting organizations is the unemployment rate. Which environmental factor is most associated with unemployment rates or the percentage of people employed?

Sociocultural

Demand for manufactured goods during the Industrial Revolution was __________.

Strong

A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD's _____

Target market

A specific group of customers on whom an organization focuses its marketing efforts is known as:

Target market

Capri Sun uses the tagline, "Good for Moms, Awesome for Kids." This advertising tagline emphasizes that Capri Sun is promoting the product for moms even though kids are likely to be consuming the product. Thus, the moms represent Capri Sun's:

Target market

The Nike Fuel Band is aimed at active individuals aged 20 to 40 who want to track their fitness goals, connect their smart devices, and share their activities with others. This description of people describes Nike Fuel Band's:

Target market

Pursuit of product innovation and product development has been a key component to ensure Apple's success over the years. The company has licensed a variety of patents including ones that allow multiple finger and palm contacts with devices. In addition, they have patents that allow for integration of typing, resting, pointing, scrolling, 3D manipulation, and handwriting. The patents and innovation demonstrate how Apple has been able to leverage _______ changes in the marketing environment by providing customers with a variety of new products such as the Apple Watch, iPad, iPhone, and Mac laptops/desktops.

Technological

Scenario 1.2. A recent Council of Supply Chain Management Professionals meeting featured an executive from Caterpillar, largely considered the world's leading manufacturer of construction and mining equipment. The executive discussed the capabilities of their firm regarding tracking the carriers or transportation vendors who facilitate the movement of parts needed for manufacturing as well as finished goods. The company utilizes a solution from GT Nexus which provides end-to-end visibility of its carriers across different shipping modes including air transportation, ocean, inland waterways, and over-the-road trucking. The GT Nexus technology solution tracks on-time performance of the carriers within each shipping mode and assists Caterpillar in determining the cost-effectiveness of specific carrier vendors as well as shipping modes. Caterpillar utilizes the information to assist them in their decision-making as to when to utilize different modes of transportation (e.g., air freight versus ocean) as well as decisions within a mode (e.g., one-day air versus two- or three-day air). In addition, Caterpillar engages in customer analysis research to determine consumers' sensitivity to price as well as the importance of timely delivery. Additional insight regarding customer needs aids Caterpillar in their judgments about pricing and delivery schedules for parts and equipment. Caterpillar's investment in the technology solution as well as customer insights has helped the company achieve its revenue and profitability goals. Refer to Scenario 1.2. Which environmental factor did Caterpillar leverage to implement a solution to track shippers and study the on-time delivery rates for each transportation vendor?

Technological

A new local business is interested in implementing the marketing concept. As part of employee training, it wants to utilize a business phrase or slogan which best embodies the marketing concept. Which of the following would be the best phrase for the company to utilize?

The customer is always right

Which of the following statements is true regarding the marketing concept?

The marketing concept is a managerial philosophy guiding all aspects of an organization's business.

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 co-chief executive of Chipotle. This decision indicates a response to concerns about

The marketing environment

The marketing environment forces only impact customers and enable marketing managers to easily adjust to their marketing mix to successfully serve customers.

The marketing environment forces are stable and help marketing managers determine the appropriate marketing mix.

Which of the following best characterizes the forces of the marketing environment?

The various forces ensure that the marketing environment will remain fairly certain in the future.

A family that organizes and advertises a garage sale is performing marketing activities.

True

Fitbit, the leading manufacturer and marketer of wearable activity tracker devices faced an obstacle when their 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 the leader in the activity tracker market, with a market share of more than 70% of activity trackers sold in the United States. 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.

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

Value

The equation: value = customer benefits—customer costs is known as:

Value

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.

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

customer

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