MKT 301 TESTING YOUR KNOWLEDGE

The processes of marketing create, communicate, and _______ value to customers.

deliver

In order to build a loyal following and move customers up the loyalty ladder, after purchase companies must

deliver excellent customer service.

JK Boat Marketing Agency does not sell directly to consumers. However, the firm provides credit to boat distributors—a different but important marketing function. JK is involved with the _________ function.

Financing

Providing funds to be used for purchase inventory prior to sale is considered which type of marketing function?

Financing

Resorts often target more marketing efforts to guests who have previously stayed on the property than to prospective guests. This is because:

It costs more to acquire new customers than to maintain existing customers.

Assume you want to increase the number of customers by applying the marketing concept. Which of the following strategies would be inconsistent with this approach?

Offer more product variety than competition.

Which of the following statements about relationship marketing is(are) false?

Relationship marketing is ineffective in repairing damaged relationships. Relationship marketing cannot rejuvenate unprofitable customers.

A local restaurant offers half-price wings and pizza on Wednesdays but due an error related to the _____ function of marketing, it did not have sufficient supply of chicken wings and couldn't fulfill customer requests for the menu item on a recent Wednesday night.

buying

Sylvia often takes photos of her meals at restaurants and posts them to Instagram and Facebook as well as shares them with her Snapchat friends. This practice often creates positive word-of-mouth about the restaurants and is known as _____ marketing.

buzz

Al Gore, former Vice President has recently released a new film, An Inconvenient Truth Sequel about the effects of climate change. His advocacy for changes related to the reliance on fossil fuels is an example of _____ marketing.

cause

Some homeowners tie yellow ribbons around a tree to call attention to missing soldiers. This is an example of _____ marketing.

cause

As a popular singer, you agreed to perform free at a concert to benefit the local homeless shelter. This is an example of:

cause marketing

The marketing concept is a companywide _________ with the objective of achieving long-run success.

consumer orientation

Auvi-Q is the manufacturer of a "talking epi pen" to provide needed medication when a person experiences an allergic reaction. The product is only available by prescription and is delivered directly to patients (or their parents) via mail. The direct home delivery method is Auvi-Q's method of ______, an element of the marketing mix.

distribution

Netflix is a popular media streaming service and also produces a variety of original content for its subscribers such as House of Cards and Orange is the New Black. The decision by Netflix to release an entire series at one time rather than release one episode per week—thereby changing the availability of its original content is part of its _____ element of the marketing mix.

distribution

One area of high growth prospects for full-time employment are for over-the-road truck drivers who transport products and are a critical part of the supply chain which is part of the ______ element of the marketing mix.

distribution

Recently, customers' shopping patterns have changed and they are spending more time shopping via the Internet compared to stores. As a consequence, brick-and-mortar stores must consider how to manage the ______ element of the marketing mix to respond to the change in consumer shopping habits.

distribution

Williams Sonoma is a popular retail store typically located in upscale malls or stand-alone locations and may offer cooking classes and merchandise for the home chef. The decision to support a mall location or build a stand-alone retail store relates to the _____ element of the marketing mix.

distribution

Standardization and grading relates to:

ensuring customers' expectations of product size, weight, and composition are met.

A local real estate agency decides to sponsor the high school's homecoming game. The firm is engaging in _____ marketing.

event

The Olympic Games attract some of the world's best known marketers, who pay millions of dollars in return for being identified as official sponsors. They engage in the type of nontraditional marketing known as:

event marketing.

Compared to a seller's market, a buyer's market has _____ buyers for _____ goods and/or services.

fewer; more

A local furniture retailer is running a sales promotion where customers can receive 0% interest for 5 years when spending $1000 or more on new furniture. The offering of 0% interest for 5 years is an example of the _____ function of marketing.

financing

The lifetime value of a customer includes the tangible revenues a customer brings to the firm, minus its ______ to attract and keep the customer.

investment

The revenues derived from a firm's relationship with a customer are collectively known and measured as that customer's:

lifetime value

A firm in the relationship era focuses on building and maintaining _______ relationships with suppliers.

long-term

The cost to maintain existing customers is _____ compared to the cost to attract new ones.

lower

Products and services may have different types of utility. These include all of the following except:

marketability

Marketing strategies are built around four variables—product, price, distribution, and promotion, which are known as the marketing _____.

mix

You are in charge of developing marketing messages for your firm that can be transmitted via wireless technology. In other words, you have responsibility for:

mobile marketing

Compared to a buyer's market, a seller's market has _____ buyers for ____ goods and services.

more; fewer

Car dealerships usually provide ownership utility. They do this by:

negotiating price.

The NFL sells customized hats, jerseys, and other items of clothing to fans of its football teams. This is an example of _____ marketing.

organization

The American Cancer Society engages in various efforts to influence others to recognize its goals, accept its services, or contribute to ACS in some way. The American Cancer Society is involved in _________ marketing, a category of nontraditional marketing.

organizational

Christie Brinkley has been one of the world's most popular models for decades. She is also one of the most prominent models over the age of 50. You are thrilled that she has agreed to endorse your firm's anti-aging cream. When you develop print ads and TV commercials featuring Ms. Brinkley, you will be involved with the ______ category of nontraditional marketing.

person marketing

A sports arena is being inaugurated by a famous Olympic athlete. This is an example of:

person marketing.

Starbucks has opened many outlets in hotels and airports. What type of utility is Starbucks creating for customers?

place

Walmart has a store location within a 1-2 mile radius of most people living in the United States, which provides _____ utility to consumers.

place

Yellowstone National Park often utilizes newsletters delivered via e-mail to individuals who have visited the park or registered with the park to receive updates and information. This is an example of _____ marketing.

place

You were pleased to receive permission from the city to set up a satellite outlet of your café in the municipal library. This will enable you to increase your product's ______ utility.

place

Your job at the City Chamber of Commerce is to attract tourists to the area. This means you are focused on _____ marketing.

place

A resort in Bermuda offers island tours designed for teens. This is an example of:

place marketing

The U.S. Postal Service sells stamps in vending machines. This creates:

place utility

The production function is not responsible for creating:

place utility nor time utility.

Caterpillar, a heavy machinery and construction equipment manufacturer is known as having very high quality and typically generates high loyalty among its customers who are willing to purchase its products even though it requires a higher level of investment. Which element of the marketing mix relates to customers willingness to spend more money on Caterpillar's products?

price

Chelsey was recently shopping at Costco and noticed that an item was marked $9.97, which she mentally equated to $10. Costco's decision to use $9.97 instead of $10 relates to the _____ element of the marketing mix.

price

Patrick was shopping at a local sporting goods store and noticed a special offer on Nike sports socks. The store was offering 3 pairs for $29.99 or a single pair for $11.99 and featured an aisle display of the socks with a large sign providing the details of the offer. The store's decision to offer 3 pairs for $29.99 or one pair for $11.99 relates to the _____ element of the marketing mix.

price

Convenience stores such as Casey's offer a wide variety of products and typically charge more for items such as bread, milk, and other essentials compared to grocery stores or dollar stores. Customers appreciate the convenience of these small stores and believe they receive good value even though they are paying more for these items than at a grocery retailer. This is an example of the _____ element of the marketing mix

pricing

Men's Warehouse offers a variety of clothing options for men from casual attire to suits and accessories. The decision to provide a one-stop shopping option for men with its large selection of items relates to the _____ element of the marketing mix.

product

Netflix is a popular media streaming service and also produces a variety of original content for its subscribers such as House of Cards and Orange is the New Black. The decision by Netflix to cast actors/actresses in its shows is part of its _____ element of the marketing mix.

product

Pharmaceutical companies spend millions of dollars on research and development as part of gaining approval to market a new drug utilizing several phases of testing and complying with all regulations of the Food and Drug Administration. The research and development expenses relate most directly to the _____ element of the marketing mix.

product

Recently, Lays chips has sponsored a contest called "Do Us a Flavor" to obtain customer ideas and preferences for new flavors of Lays chips. Lays produces the top flavors and offers them to the market through their regular distribution channel. The new flavors of potato chips relate to the _____ element of the marketing mix.

product

Taco Bell has partnered with Frito Lay to offer Doritos branded items on their menu. This partnership relates best to the _____ element of the marketing mix.

product

Williams Sonoma is a popular retail store typically located in upscale malls or stand-alone locations and may offer cooking classes and merchandise for the home chef. Chris and Carmen were completing their wedding gift registry list and reviewing the different models of coffee makers available at Williams Sonoma. They were surprised that the models ranged in price from $39.99 to over $750 for an upscale espresso machine. Williams Sonoma decisions about the number and type of coffee makers to offer in its store relates to the _____ element of the marketing mix.

product

Increasingly sophisticated production techniques facilitated the transition from the _____ era to the ____era.

production, sales

Axe is a popular brand of body care for men offering body spray and deodorants. They have been innovative users of YouTube to gain customers' interest in its products and persuade them to purchase the items at the retail store. YouTube is utilized as part of the ______ element of the marketing mix.

promotion

Consumers are exposed to a myriad of messages from companies on a daily basis whether through television advertisements, billboards, radio announcements, or social media posts. These messages are part of a company's _______ mix.

promotion

Many news organizations such as The Wall Street Journal, New York Times, and Huffington Post purchase sponsored posts with Facebook to create awareness and entice consumers to subscribe to their publication. The sponsored Facebook posts are part of these companies' _____ plan, an element of the marketing mix.

promotion

Patrick was shopping at a local sporting goods store and noticed a special offer on Nike sports socks. The store was offering 3 pairs for $29.99 or a single pair for $11.99 and featured an aisle display of the socks with a large sign providing the details of the offer. The store's decision to use an aisle display with signage of the special offer relates to the _____ element of the marketing mix

promotion

Recently, Lays chips has sponsored a contest called "Do Us a Flavor" to obtain customer ideas and preferences for new flavors of Lays chips. Lays produces the top flavors and offers them to the market through their regular distribution channel. The marketing efforts related to creating awareness of the contest and getting customers to vote for their favorite flavor is an example of the _____ element of the marketing mix.

promotion

Huggies, a popular diaper brand often sends coupons and "new mom" tips to its customers through e-mail, newsletters, or direct mail. This is an example of the _____ era of marketing.

relationship

Some restaurants offer free desserts to repeat customers. This is an example of:

relationship marketing.

What is one benefit of converting indifferent customers into loyal customers discussed in the text?

repeat sales

Suppliers such as Frito Lay often pay "slotting allowances" to retail stores in order to gain shelf space of new products. The slotting allowance is additional compensation to the retailer and is common practice in grocery store retail marketing. A retailer might argue that the fee is justified in order to compensate the store in case the product is not successful since the retail store could suffer losses related to the opportunity cost associated with the shelf space. In this example, the retail chain is managing the _____ function of product marketing.

risk-taking

Carlos is an account manager with Stryker, a leading medical device manufacturer. Carlos typically meets with orthopedic surgeons and hospitals to influence adoption of his company's products. Which function of marketing is most associated with Carlos' position with Stryker?

sales

You work for a real estate brokerage to market timeshares, a type of vacation property generally considered a luxury product or discretionary item. The firm assumes that the task of personal selling and advertising is to persuade people to buy and reinforce how customers might benefit from the purchase. Your employer has a _____ orientation.

sales

St. Joseph Medical Center strives to meet and exceed customer needs and also must comply with industry regulations to gather customer insight about services. St. Joseph typically sends recently served patients a survey via e-mail or mail to complete so that they can identify how well the hospital is meeting customer needs. This is an example of the _____ function of marketing

securing marketing information

The _____ function of marketing helps marketers determine what consumers want or need as well as gaining insight about competitors and channel members.

securing marketing information

Trek, a bicycle manufacturer typically sends new customers a survey after purchase to learn more about their decision process, evaluation of the retail store where they purchased the bike, as well as their perceptions about the bike's features. The survey is an example of the _______ function of marketing.

securing marketing information

A local furniture retailer is running advertisements on television and local radio stations to create awareness of its offer of 0% interest for 5 years when spending $1000 or more on new furniture. The TV and radio advertisements are an example of the _____ function of marketing.

selling

Companies today utilize social media such as Facebook, Instagram, and YouTube to stay connected with their "following" and build a loyal customer base. This is an example of the _____ era of marketing.

social

Write Pro is a content development service aiming to recruit writers. As part of their marketing strategy, Write Pro generates time and place utility by:

soliciting applicants at college career fairs in the spring.

Automobile manufacturers typically work with their suppliers to customize parts for vehicles including basics such as nuts and bolts to ensure the proper level of quality, size, and ability to withstand force of a moving vehicle. Which function of marketing best relates to the example and partnership between automobile manufacturers and their suppliers?

standardization and grading

The local Coca-Cola distributor maintains a large facility to hold products so that they can easily be delivered to customers via their direct store delivery method of vans and trucks. The facility is an example of the _____ function of marketing for Coca-Cola.

storing

Walmart has a complex network of storage facilities and trucks to ensure that products can be delivered to any of its store locations within 24 hours. The storage facilities that Walmart uses is an example of the _____ function of marketing.

storing

American Eagle's customers are typically aged 14 to 25, which describes its _________.

target market

Walmart has a complex network of storage facilities and trucks to ensure that products can be delivered to any of its store locations within 24 hours. The delivery trucks that Walmart uses are an example of the _____ function of marketing.

transporting

Identify the characteristic(s) applicable to the sales era of marketing.

trend toward seller's markets belief that consumers will resist purchasing nonessential items

Before relationship marketing can achieve its ultimate goal—turning customers into advocates—it needs to:

turn customers into loyal supporters.

_____ is the power of a good or service to satisfy the wants of consumers.

utility