MKTG 350 Chapter 1

sales orientation

- first half of 20th century - focus shifted to selling products to many buyers - sales were viewed as the major means of increasing profit - business people believed personal selling, advertising, and distribution were the most important marketing activities

product orientation period

- second half of 19th century - industrial revolution improved sped and efficiency - firms were producing more products and competition was greater

what are the two non monetary costs?

- time/ effort a customer spent to find a desired product - risk

Which of the following equations describes customer value?

Customer value= customer benefits - customer costs

What is the first step for marketers in implementing the marketing concept?

Establish an information system to discover customers' real needs

You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You recommend that the nonprofit engage in marketing activities. The executive director tells you that because it is a nonprofit that does not engage in selling activities and has a small budget, the nonprofit has no use for marketing. You disagree and explain that marketing is not just for for-profit organizations. You explain the different ways the nonprofit can engage in marketing without changing its practices or the mission. Which of the following marketing activities would be most feasible for this nonprofit?

Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event

marketing concept is not another definition of marketing but rather

a management philosophy guiding an organization's overall activities

Samuel spent $500 on a new television set. How much of this price is likely to go toward marketing expenses?

about 250$

higher population growth of hispanics lead amazon to include Spanish language options on the site

appealing to target market

ex: life proof phone case are designed for consumers who have an active lifestyle. what Is this an example of

appealing to target markets

marketing mix factors are

controllable and can be limited

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor.

controllable; uncontrollable

product variable involves

creating or modifying brand names and packaging, may also involve warranty and repair

Anthony works at a local electronics retailer. He has two customers in particular that he sees regularly. One customer, Mr. Johnson, comes in frequently asking about new deals. However, he rarely buys anything, and when he does buy something it is usually small. The other customer, Mr. Montoya, comes in a little less frequently. He does not purchase products all the time, but when he does the products are expensive. Anthony recognizes that Mr. Montoya is a more valuable customer over time than Mr. Johnson. He has therefore worked hard to develop a strong relationship with Mr. Montoya. What marketing method is Anthony most likely using to direct his actions?

customer lifetime value

Which stakeholders are the focal point of all marketing activities?

customers

who are often considered to be core stakeholders in developing marketing strategy?

customers and competitors

During the holiday season, a Bluetooth speaker was in such high demand that it sold out quickly at a local Walmart. When Walmart tried to order more, it learned that the suppliers had so many orders to fill that it would not be able to fill Walmart's order for two weeks. What type of marketing mix variable does this problem involve?

distribution

internet and electronic commerce has dramatically influenced which marketing mix variable

distribution

subway has restaurants not only in malls but also inside Walmarts, churches, hospitals etc.

distribution variable

The essence of marketing is to develop satisfying _______ from which both customers and marketers benefit.

exchanges

product

good, service, or idea

Marketing environmental forces are often _______.

interdependent

which of the following sentences is true about a marketing exchange?

it requires four conditions to take place

The marketing concept is based upon the idea that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. During which orientation (time period) are marketers most likely to adopt the marketing concept?

market orientation

Which of the following is a major benefit of marketing?

marketing knowledge enhances consumer awareness

market orientation

mid 20th century - an organization- wide commitment to researching and responding to customer needs - linked with new product innovation by developing a strategic focus to explore and develop new products to serve target markets

wat is used as a competitive tool

price

what is the most flexible variable in the marketing mix

price

Lime is using social media to ask consumers about the qualities they desire in an electric scooter. The firm hopes to develop a new type of electric scooter based on the feedback it receives. Which marketing mix variable is Lime addressing?

product

iPhone continuing to upgrade their phones to the next version is an example of what marketing mix variable

product

which marketing mix variable relates directly to customers wants and needs

product

what are the four parts of the marketing mix?

product, pricing, distribution, promotion

Lumos Labs, the maker of brain-training app Lumosity, released advertisements that claimed its app was able to prevent Alzheimer's. The Federal Trade Commission fined Lumos Labs $2 million, saying that the company did not have the science to back up its ads. What type of marketing mix variable is involved in this situation?

promotion

publicity that provides info, often in mass media is a form of what marketing mix

promotion

Sheryl works at Southwest Airlines as a digital marketer. A major part of her job is communicating with customers, answering questions and letting them know about how the airline offers them the best in customer value. Sheryl is working to create long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges with customers. This is an example of _______.

relationship marketing

Charlotte loves her mom's edible cookie dough recipe, and she assumes everyone else will too. She starts a cookie dough business. Charlotte views promotion, such as advertising and personal selling, as the most important activities needed to sell her product. She figures that consumers only have to learn about her product before becoming loyal and steadfast customers. What type of orientation does Charlotte seem to embrace?

sales orientation

marketing is more than

simply advertising or selling a product

marketers must

strive to develop a marketing mix that matches the needs of customers in their target market

Customers choose to go to Buffalo Wild Wings based upon the value they place on the total product—including the food, service, atmosphere of the restaurant, and more. The process consumers use to determine value is highly _______.

subjective

Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispanic consumers, other ethnic groups seem to like the product as well. For this product, Hispanic consumers comprise Kroger's _______.

target market

motel vs. hotel both provide room with a bed and bathroom but each has a different level of service

this is an example of value because customers will judge which type of accommodation offers the best value to the benefits they desire and their willingness and ability to pay

marketing mix can be used to enhance perceptions of value

true

some companies target multiple markets

true

value

•A customer's subjective assessment of benefits relative to costs in determining the worth of a product

Customer lifetime value

•A key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts - •Can be calculated by taking the sum of the customer's present value contributions to profit margins over a specific time frame

marketing concept

•A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals

target market

•A specific group of customers on whom an organization focuses its marketing efforts

to maintain an exchange relationship

•Buyers must be satisfied with the good, service, or idea obtained •Sellers must be satisfied with the financial reward or something else of value received

stakeholders

•Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

relationship marketing

•Establishing long-term, mutually satisfying buyer-seller relationships •Focuses on value enhancement through the creation of more satisfying exchanges •Continually deepens the buyer's trust in the company •Increases the firm's understanding of the customer's needs

in distribution variable, these three costs must be minimized

•Inventory •Transportation •Storage

the evolution of marketing goes through which three periods

•Production orientation •Sales orientation •Market orientation

marketing environment

•The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

price variable

•The price variable relates to decisions and actions associated with pricing objectives and policies and actual product prices

the promotion variable

•The promotion variable relates to activities used to inform and persuade to create a desired response

exchanges

•The provision or transfer of goods, services, or ideas in return for something of value

for an exchange to occur

•Two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires •The exchange should provide a benefit or satisfaction to both parties involved in the transaction •Each party must have confidence in the promise of the "something of value" held by the other •To build trust, the parties to the exchange must meet expectations

customer relationship management

•Using information about customers to create marketing strategies that develop and sustain desirable customer relationships

customer costs

•include anything a buyer must give up to obtain the benefits the product provides, including cost, time, effort, and risk

customer benefits

•include anything a buyer receives in an exchange