Professional Documents
Culture Documents
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1. Today’s successful companies at all levels have one thing in common. The common
theme can best be described as one where the companies are:
a. oriented around public service.
b. strongly customer focused and heavily committed to marketing.
c. moving toward globalization and socialization.
d. more interested in governmental regulation and control than ever before.
2. According to Bernie Marcus, cofounder of Home Depot, the Holy Grail of business
is:
a. the bottom line.
b. promotion, promotion, and more promotion.
c. an almost blind, passionate commitment to taking care of customers.
d. meet every competitive threat with strength, commitment, and the courage to win.
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5. Wal-Mart has become the world’s largest retailer by delivering on its promise,
“Always low prices—always.” This would be an example of the marketing
philosophy that says:
a. “Take care of your customers, and market share and profits will follow.”
b. “Buy cheap, sell cheap.”
c. “Always take discounts and pass some of them on to consumers.”
d. “Distribution is the secret to all conquests in marketing.”
6. Today, marketing must be understood in a new sense that can be characterized as:
a. “telling and selling.”
b. “management of youth demand.”
c. “get there first with the most.”
d. “satisfying customer needs.”
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10. Basic needs, such as those for food, clothing, and safety, refer to:
a. physical needs.
b. social needs.
c. individual needs.
d. physical wants.
11. __________ are shaped by one’s society and are described in terms of objects.
a. Needs
b. Wants
c. Demands
d. Transactions
14. Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need is called a:
a. demand.
b. basic staple.
c. product.
d. service.
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15. A _______________ is any activity or benefit offered for sale that is essentially
intangible and does not result in the ownership of anything.
a. demand
b. basic staple
c. product
d. service
17. The difference between the values the customer gains from owning and using a
product and the costs of obtaining the product is called ______________.
a. customer quality
b. customer satisfaction
c. customer value
d. perceptual relationships
18. Customers often do not judge product values and costs accurately or objectively.
Instead, they act on ___________________.
a. customer satisfaction
b. customer quality
c. needs
d. perceived value
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20. With respect to customer satisfaction, smart companies aim to:
a. give the customer anything and everything they want.
b. make customers addicted to their products and services.
c. delight customers by promising only what they can deliver, then delivering more
than they promise.
d. always save the customers money, time, and other resources.
21. An approach in which all the company’s people are involved in constantly improving
the quality of products, services, and business processes is called:
a. Cigna 1000.
b. total quality management.
c. total relationship opportunity.
d. exchange management.
22. Marketing occurs when people decide to satisfy needs and wants through ________.
a. selling
b. exchange
c. transaction
d. relationships
24. Trading your old calculator for tickets to a Garth Brooks concert would be what kind
of transaction?
a. monetary transaction
b. barter transaction
c. market transaction
d. customer transaction
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25. Transaction marketing is part of the larger idea of _________________.
a. customer returns and allowances
b. trade discounts
c. relationship marketing
d. promotional stimulation marketing
26. A _______________ consists of the company and all its supporting stakeholders.
a. demand channel
b. marketing network
c. communication triad
d. product flow process
27. As CEOs and other managers have reviewed business functions, they have found
that, ultimately, ___________ is the art of attracting, keeping, and growing
profitable customers.
a. marketing
b. finance
c. electronic commerce
d. demand management
29. The main actors in a modern marketing system would include all of the following
EXCEPT: (Select the LEAST LIKELY.)
a. suppliers.
b. marketing intermediaries.
c. the end user.
d. advertising agencies.
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30. The analysis, planning, implementation, and control of programs designed to create,
build, and maintain beneficial exchanges with target buyers for the purpose of
achieving organizational objectives is called ___________________.
a. relationship marketing
b. demand management
c. marketing
d. marketing management
31. If the Golden Gate Bridge becomes consistently overcrowded with an unsafe level of
traffic, the California Transit Authority in San Francisco might have to undertake a
_______________ campaign to reduce traffic levels during high demand periods of
the day or week.
a. public relations
b. regulation program
c. demarketing
d. sales
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34. Taco Bell has found that the lifetime value of a Taco Bell customer is about
$12,000. Study has shown that the key to customer retention is:
a. offer the lowest prices.
b. constantly advertise.
c. offer superior customer value and satisfaction.
d. offer a variety of products.
35. Jim Koch, founder of Samuel Adams beer, was often seen talking to bartenders and
bar customers to encourage consumption of his brewery’s products. This would be
an illustration of which of the following marketing practice stages?
a. intrepreneurial marketing
b. entrepreneurial marketing
c. formulated marketing
d. demand-based marketing
36. John Botros feels the heat of competition on his new Internet-based home delivery
pizza business. Rather than just advertising, John is encouraging his managers to get
out of their offices and meet the public on their own ground. In fact, Botros makes it
a practice to give at least one public speech per week. This would be an illustration of
which of the following marketing practice stages?
a. intrepreneurial marketing
b. entrepreneurial marketing
c. formulated marketing
d. demand-based marketing
37. Over time, marketing management has offered five distinct concepts under which
organizations conduct their marketing activities. Which of the following DOES NOT
belong on the correct list of these concepts?
a. econometric concept
b. production concept
c. product concept
d. marketing concept
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38. The _______________ holds that consumers will favor products that are available
and highly affordable (therefore, management should work on improving production
and distribution efficiency).
a. product concept
b. production concept
c. production cost expansion concept
d. marketing concept
39. The _________________ holds that consumers will favor products that offer the
most quality, performance, and innovative features. Thus, an organization should
devote energy to making continuous product improvements.
a. marketing concept
b. production concept
c. selling concept
d. product concept
40. If a manufacturer was following the product concept, their operating philosophy
would rely on which of the following phrases?
a. “Build a better mousetrap, and the world will beat a path to your door.”
b. “Location, location, location.”
c. “Watch your costs at all cost.”
d. “The consumer is king.”
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43. _______________________ holds that achieving organizational goals depends on
determining the needs and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than competitors do.
a. The marketing concept
b. The product concept
c. The selling concept
d. The societal marketing concept
44. All of the following organizational philosophy phrases are associated with the
marketing concept EXCEPT: (Pick the phrase that DOES NOT fit.)
a. “We make it happen for you.”
b. “To fly, to serve.”
c. “If it ain’t broke, don’t fix it.”
d. “Let us exceed your expectations.”
45. The ________________ questions whether the pure marketing concept is adequate
in an age of environmental problems, resource shortages, rapid population growth,
worldwide economic problems, and neglected social services.
a. service concept
b. societal marketing concept
c. product concept
d. not-for-profit concept
46. In an example discussed in your text, Johnson & Johnson’s recall of their Tylenol
product following the discovery that several bottles of Tylenol had been laced with
cyanide is consistent with which business philosophy?
a. the marketing concept
b. the product concept
c. the selling concept
d. the societal marketing concept
47. The major marketing developments as we enter the new millennium can be summed
up in a single theme:
a. innovation.
b. the Internet.
c. virtuality.
d. connectedness.
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Answer: (d) Difficulty: (2) Page: 25
48. The major force behind the new connectedness in marketing is:
a. technology.
b. globalization.
c. social consciousness.
d. privatization.
51. Under which of the following marketing connections would “connecting through
strategic alliances” most likely fall?
a. Connections with Customers
b. Connections with Government
c. Connections with Marketing Partners
d. Connections with the World Around Us
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52. If the United States—and the world—has become a “salad bowl” of diverse ethnic,
cultural, social, and locational groups, then one could say that:
a. consumer groups have blended to the extent that a marketer can not tell one
consumer from another.
b. one-to-one marketing no longer works.
c. profitable customers are rapidly becoming a thing of the past.
d. because consumers are maintaining their diversity, they are forming themselves
into consumer communities.
53. With respect to connecting with customers, which of the following is most likely
the current trend?
a. A focus on finding new customers.
b. A focus on removing customers.
c. A focus on current customer retention.
d. A focus on “share of market.”
54. The best illustration of direct marketing listed below would be:
a. shoppers at Land’s End can build a “virtual model” with their own hair color and
use the model to aid in reviewing products for potential purchase.
b. Ford Motor Company now designs all models of their popular pickups in at
least 12 colors.
c. most banks now sell automobile insurance.
d. Wal-Mart has a policy of EDLP (everyday low pricing) as a strategic weapon.
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56. Dell Computer recently ran advertisements telling how it partners with Microsoft
and Intel to provide customized e-business solutions. This would be an example of
which of the following?
a. mix network
b. supply management
c. relationship channel
d. strategic alliance
57. Which of the following phrases would best describe the current attitude about
connections with the world around us?
a. “Let the buyer beware.”
b. “America First.”
c. “Think Locally, Act Globally.”
d. “Outsource Everything.”
59. With respect to connections with customers, be sales and product centered, serve any
customer, and make standardized products would be examples of which form of
thinking?
a. the new marketing thinking
b. the old marketing thinking
c. global marketing
d. relationship marketing thinking
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60. Marketing locally and globally, conducting e-commerce in marketspaces, and
60 assuming social and environmental responsibility would be examples of which form
of thinking?
a. the new marketing thinking
b. the old marketing thinking
c. global marketing
d. relationship marketing thinking
TRUE/FALSE QUESTIONS
62. The twofold goal of marketing is to attract new customers by promising superior
value and to keep and grow current customers by delivering satisfaction.
64. Selling is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and values
with others.
65. The first of the core marketing concepts that should be explored by the marketer
wishing to do business is needs, wants, and demands.
67. Human wants that are backed by buying power are called demands.
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68. In outstanding companies, people at all levels—including top management—stay
close to customers.
69. A demand is anything that can be offered to a market to satisfy a need or want.
71. Marketing myopia occurs when sellers are so taken with their products that they
focus only on existing wants and lose sight of underlying customer needs.
72. The difference between the values the customer gains from owning and using a
product and the costs of obtaining the product is called customer satisfaction.
73. One party gives X to another party and gets Y in return. This would be an example
of a transaction.
74. The concepts of exchange and relationships lead to the concept of demarketing.
76. If a company used $10 million on television advertising, a sales force of 200 people,
and had a marketing department to coordinate and further marketing efforts, the
company would be employing the marketing practice of interpreneurial marketing.
77. The primary concept used in selling unsought goods such as encyclopedias or
insurance is the product concept.
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78. The selling concept takes an “inside-out” perspective toward the exchange process.
79. The production concept questions whether the pure marketing concept is adequate
in an age of environmental problems, resource shortages, rapid population growth,
worldwide economic problems, and neglected social services.
80. Connecting more selectively, connecting for life, and connecting directly are all
characteristics connections with customers.
81. Keeping old customers would be a part of the old marketing thinking as applied to
connections with customers.
82. Marketing locally and globally would be part of the new marketing thinking as
applied to connections with the world around us.
ESSAY QUESTIONS
Answer:
Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and values with
others. Economic roles include: meeting needs, wants, and demands (of a variety of
types); creating products; creating value and satisfaction; aiding in the facilitation of
exchanges, transactions, and mutually beneficial relationships; developing markets;
meeting social needs of consumers; increasing consumer choice, and providing fair
profits for business organizations.
84. List and briefly discuss the core marketing concepts. All of these concepts are
important to understanding the definition of marketing.
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Answer:
The core marketing concepts can be seen in Figure 1-1. They are listed as: a) needs,
wants, and demands; b) products, services, and experiences; c) value, satisfaction, and
quality; d) exchange, transactions, and relationships; and e) markets. These key concepts
are linked and form the basis by which marketing is understood and practiced.
85. List and briefly discuss three ways Nike has demonstrated that they care about their
customers.
Answer:
Nike seems to care as much about its customers’ lives as their bodies. Ways that the
company demonstrates that it cares are:
(a) It doesn’t just promote sales, it promotes sports for the benefit of all.
(b) Nike invests in a wide range of lesser-known sports, even though they provide less
lucrative marketing opportunities.
(c) Nike is focusing on innovations (especially those demanded by the consumers).
(d) Nike is developing new product lines (especially those demanded by the consumers).
(e) The company is creating sub-brands that often focus outside traditional Nike
boundaries (such as hiking shoes and gear).
(f) Nike is de-emphasizing the swoosh (the emphasis is on quality and consumer fit
rather than bigness and advertising muscle).
(g) Nike is entering new markets aggressively (especially overseas).
All of these moves were prompted by suggestions and recommendations from consumers.
Answer:
Marketing management is the analysis, planning, implementation, and control of
programs designed to create, build, and maintain beneficial exchanges with target buyers
for the purpose of achieving organizational objectives. As shown in the discussion
provided in the chapter, marketing management seeks to manage demand efficiently and
effectively so as to help consumers obtain value in their transactions with the company.
By doing this correctly, the company earns a profit for its labors. Marketing management
recognizes that customers have a lifetime value and seek to maintain the customer
relationship as an important organizational objective.
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87. Marketing practice often passes through three stages. List and briefly describe each
of these stages.
Answer:
The stages may be listed as:
1). Entrepreneurial marketing—most companies are started by individuals who live by
their wits. They visualize an opportunity and knock on every door to gain attention.
2). Formulated marketing—as small companies achieve success, they inevitably move
toward more formulated marketing. They use television advertising, sales forces, and
marketing departments to achieve their goals and objectives.
3). Intrepreneurial marketing—many large and mature companies get stuck in
formulated marketing, pouring over the latest reports and doing research to fine-tune
their efforts. These companies sometimes lose their marketing creativity and passion.
They now need to re-establish within their companies the entrepreneurial spirit and
actions that made them successful in the first place.
88. Carefully list and then compare the five marketing management philosophies. Be
sure to indicate the key components of each philosophy.
Answer:
a). Production Concept: Consumers favor products that are available and highly
affordable. Management should focus on improving production and distribution
efficiency. The production concept is still useful in two types of situations: (1) when the
demand for a product exceeds the supply (management should look for ways to increase
production) and (2) when the product’s cost is too high (improved productivity is needed
to bring it down).
b). Product Concept: Consumers favor products that offer the most value, performance,
and innovative features. Therefore, the organization should devote its energy to making
continuous product improvements. This concept can lead to marketing myopia if not
watched.
c). Selling Concept: Consumers will not normally buy enough products on their own,
therefore, the organization must undertake a large-scale selling and promotion effort.
Most firms practice this concept when they have overcapacity.
d). Marketing Concept: Delivering the needs and wants more efficiently than the
competition. This is an “outside-in” perspective as opposed to the selling concept’s
“inside-out” perspective.
e). Societal Marketing Concept: The company determines customer needs and wants
and society’s best interest. Conflicts in this concept are usually between short-run wants
versus long-term gains in welfare.
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89. The new connected millennium has brought about changes for the marketing
function. Using connecting technologies (computer, information, communication, and
transportation), marketers are seeking to connect in three ways. List and describe these
three connections.
Answer:
The three connections are listed as:
1). Connections with Customers—considerations are connecting more selectively,
connecting for life, and connecting directly.
2). Connections with Marketing Partners—considerations are connecting with other
company departments, connecting with suppliers and distributors, and connecting
through strategic alliances.
3). Connections with the World Around Us—considerations are global connections,
connections with values and responsibilities, and broadened connections.
90. Marketing connections are in transition. Compare and contrast the old marketing
thinking versus the new marketing thinking using the connection forms suggested in the
chapter.
Answer:
Students should apply connections with customers, connections with marketing partners,
and connections with the world around us to the old marketing thinking and the new
marketing thinking. The comparisons and contrasts are shown in Table 1-1. Students
should not be required to list all of these comparisons and contrasts. However, they
should be required to demonstrate the differences between the two forms of thinking and
what the ramifications of these two paths might be for marketing in the future.
APPLICATION QUESTION
91. You have just been hired by Blue Flash Water Corporation to administer a
relationship marketing program for the company. The company manufactures and
distributes a purity-guaranteed, non-carbonated, bottled drinking water product to grocery
and convenience stores in the southwestern United States. The company’s desire is to
build strong economic and social ties to customers by promising and consistently
delivering high-quality products, good service, and fair prices. In order to do this, Blue
Flash wants you to build a marketing network for them. Write down your ideas on what a
marketing network is, how it might relate to the concept of relationship marketing, and
designate the components of a what you perceive to be a marketing network for Blue
Flash Water Corporation.
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Answer:
Students should be allowed to be creative with this question. This question should not be
attempted unless the students have been exposed to the concepts of relationship
marketing and a marketing network. If they have, the question’s answers should be
somewhat similar to the information indicated below.
According to the text, beyond creating short-term transactions, marketers need to build
long-term relationships with valued customers, distributors, dealers, and suppliers.
Today, companies want to build a unique company asset called a marketing network. A
marketing network consists of the company and all its supporting stakeholders. These
would be the customers, employees, suppliers, distributors, retailers, ad agencies, and
others with whom it has built mutually profitable business relationships. Tools that the
marketer might use to develop stronger bonds with consumers might be to add or increase
financial benefits, social benefits, structural ties, and make sure that all customers are
profitable customers. The idea behind relationship marketing through a marketing
network is that if a company builds a good network of relationships with key
stakeholders, profits will follow for all.
Students should describe customers (for the bottled water market), consider how
dedicated employees might aid in the formation of relationships, consider where the
company gets its purified water (suppliers), how it distributes the water, the retailers
(outlets) that carry the product, and the ad agencies that have designed themes for the
water (how could the Blue Flash name be used). Structure can be given to this
arrangement at the discretion of the instructor. The objective is to get the student familiar
with the components of a relationship marketing effort and the stakeholders of a
marketing network.
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