MRKT- Chapter 1

Differentiate the six categories of marketing.

As marketing has evolved into an organization-wide activity, its application has broadened to include product, person, place, cause, event, and organization marketing.

Identify the eight functions of marketing physical goods.

Marketers must utilize the full set of marketing functions to build and maintain lasting relationships: buying, selling, transporting, storing, standardizing and grading, financing, risk taking, and securing marketing information.

Contrast the focus of marketing activities during the five eras of marketing history.

Marketing has been viewed and practiced differently over the decades. Its focus today is on building relationships.

Given a description of a company's marketing mix, classify the elements of the marketing mix and the category of marketing.

The elements of the marketing mix have distinct characteristics and uses. Marketers must decide how best to apply them to each of the six categories of marketing.

You have just graduated from college and are searching for jobs online. Your ideal position would be in cause marketing. Which of the following positions would come closest to your ideal?

Your state's Department of Environmental Protection is seeking a candidate who will plan an ad campaign to promote the theme "Save Our Trees: Don't Waste Paper."

There's Nothing Like Knitting is a unique new shop that sells unusual varieties of wool. Thanks to heavy advertising leading up to its grand opening, the shop was crowded with eager knitters during its first two weeks. But suppliers were late in shipping their products, so TNLK soon ran short of merchandise. The owners brought backup goods from their warehouse, but the ceiling of the flimsy storage building had leaked and the wool was wet and moldy. Angry customers demanded refunds and didn't come back. Now TNLK is on the brink of bankruptcy. TNLK's problems reflected breakdown in which of the functions of marketing?

c. Buying, transporting, and storing

Which one of the following statements best describes the basic goal of marketing?

e. Marketing creates value by providing different types of utility to customers.

Marketing has been viewed and practiced differently over the decades. Today, Marketing is focused on:

Building relationships

The goal of Marketing is

Satisfy customers

Fill in the words from the drop-down list that would best complete the passages. It is estimated that, on average, marketing costs account for % of overall product costs. These costs are not associated with manufacturing, product design, or any of the other functions. Instead, the expenditures go toward the performance of universal functions of marketing.

50%; production; eight

Marketing creates value through how many types of utility?

Four 1. Form- product ready to go and use 2. Time- when product is available 3. Place- where can we get it? 4. Ownership- idea that you can repurpose the product

Describe the four variables of the marketing mix.

Marketing strategy begins by identifying a target audience. Then marketers combine the marketing mix variables of product, price, distribution, and promotion to satisfy the needs of the target audience.

The marketing mix variables include all of the following EXCEPT:

People Marketing mix variables include: Promotion Distribution Product Price

Which of the following is NOT a marketing function, which builds lasting relationships?

Promoting

The marketer's goal is to move new customers to:

Regular purchasers; loyal supporters; and advocates

Explain how relationship marketing can move customers up the loyalty ladder.

Relationship marketing gives a company new opportunities to steadily increase customers' loyalty. When they start as new customers, the marketer's goal is to move them up to regular purchasers, loyal supporters, and ultimately advocates.

Summarize how marketing creates value through the four types of utility.

The goal of any marketing effort is to boost utility: the power of a good or service to satisfy the needs and wants of consumers. The four types of utility include form, time, place, and ownership.

Procter & Gamble wants to determine both the market share of Iams and the customer lifetime value of Iams buyers. These measurements are calculated based on different variables. Customer lifetime value calculations are complex, but are usually based on the frequency and dollar amounts of an individual customer's purchases, how long the relationship endures, how purchasing patterns change over the course of the relationship, the cost of servicing customers, the profitability of each customer over time, and whether existing customers bring in new customers through word of mouth or other means. A number of possible measurements are listed below. Choose those answers that are not focused on customer lifetime value.

a. Percentage of industrywide annual sales represented by Iams products. c. Number of competitors and how much pet food each competitor sells per year.

International retailer IKEA is known not only for value-priced furniture and home goods, but also for the unique children's playrooms and family cafeterias offered in all its stores. These amenities enhance which type(s) of utility for IKEA customers?

a. Place

In a memo giving the time and date for your company's marketing strategy session, you see that the only topic on the agenda is "Promotion." Knowing that promotion is only one variable in the marketing mix, you contact the memo writer to suggest additional topics that will cover all the relevant variables. What topics do you suggest?

a. Price, Product, and Distribution

You have been hired as a marketing director for Terraineous, a hiking apparel and footwear company. Your most urgent problem is that sales of its newest product, a hiking boot, are failing to meet projections. In analyzing the situation, you learn that the company is falling short in customer service; no one has been designated to answer buyers' questions about how to clean and care for the boot. When you meet with the CEO, you want to pinpoint exactly which variable of the marketing mix is at the root of this problem. What should you tell her?

a. The problem stems from the product variable, because this variable may involve decisions about customer service.

You work for a multimillion-dollar supermarket chain whose executives have been strategizing around ways to enhance their relationships with customers. Which of the following steps would you take to address this need if your company is committed to the practices of the relationship era?

b. Institute a loyalty program that rewards regular customers through a point system.

For decades Superior Ski Hotel was a thriving New England resort, relying on families who returned faithfully year after year. Its marketers had complete confidence in the loyalty of their longtime customers, so their only promotional campaigns focused on attracting new customers by offering steep discounts on first-time stays. But as competition intensified, Superior began to lose business. Eventually the hotel was forced to close. Which of the following principles of relationship marketing did the company neglect?

b. While it's important to attract new customers, it's even more important to encourage current customers to keep coming back.

Nike has been able to capitalize on its relationship with basketball star LeBron James, not only by endorsing him, but by also developing a LeBron James Collection composed of T-shirts, socks, basketball apparel, and sneakers. The LeBron X shoe line has been especially successful: When released, the base shoe was priced at about $180, while a version embedded with Nike-plus sensors—which track how high a player can jump and how far he or she can run—sold for $260. Which of the following statements about the LeBron X shoe line is NOT accurate?

c. Nike's effort to sell the line is primarily an example of person marketing.

The central focus of the marketer's activities is to develop mutually beneficial relationships with customers and potential customers. If the marketer is able to convince the customer to buy the firm's products, then the customer's lifetime value to the firm is enhanced. Marketers also seek to encourage customers to _________________ the firm's products because that will ____________ the customer's lifetime value to the firm. Which of the following terms/words best express what marketers should do to enhance a customer's lifetime value to the firm?

d. recommend; increase