1) Which of the following statements about marketing is TRUE?
A) It is of little importance when products are standardized.
B) It can help create jobs in the economy by increasing demand for goods and services.
C) It helps to build a loyal customer base but has no impact on a firm's intangible assets.
D) It is not needed in an Internet-fueled environment.
E) It is seldom used by nonprofit organizations.
Answer: B
Diff: 1
LO: 1.1: Why is marketing important?
AACSB: Reflective thinking
2) A marketer's only concern is how best to create demand for a new product produced by his/her company. Marketing has little value for society as a whole.
Answer: FALSE
Diff: 1
LO: 1.1: Why is marketing important?
AACSB: Reflective thinking
3) ________ management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
A) Marketing
B) Knowledge
C) Operations
D) Strategic
E) Distribution
Answer: A
Diff: 1
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
4) As economies advance, a growing proportion of the economy's activities focuses on the production of ________.
A) products
B) events
C) experiences
D) luxury goods
E) services
Answer: E
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
5) Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information
Answer: D
Diff: 1
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking; Application of knowledge
6) Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________.
A) idea
B) place
C) luxury item
D) event
E) service
Answer: D
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Application of knowledge
7) The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing.
A) event
B) property
C) service
D) place
E) idea
Answer: D
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking; Application of knowledge
8) People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market.
A) demographic
B) business
C) need
D) geographic
E) service
Answer: C
Diff: 3
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking
9) Four key customer markets are the consumer, business, global, and ________ market.
A) demographic
B) physical
C) nonprofit
D) product
E) exclusive
Answer: C
Diff: 1
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking
10) For marketers, the term market refers to which of the following?
A) a set of touch points such as store layouts and package designs
B) a physical place where buyers and sellers gather
C) a collection of buyers and sellers who transact over a particular product
D) consumers and not businesses
E) customer groups
Answer: E
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking
11) The responses marketers seek from prospects include all of the following EXCEPT ________.
A) decampment
B) attention
C) a purchase
D) a vote
E) a donation
Answer: A
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
12) In marketing cosmetics, laundry detergent, and products like Pringles to consumers, P&G manages ________ such as eye-catching package designs and innovative product functions.
A) events
B) prospects
C) markets
D) brands
E) touch points
Answer: E
Diff: 3
LO: 1.2: What is the scope of marketing?
AACSB: Application of knowledge
13) Which of the following is NOT a consumer touch point?
A) store layouts
B) package designs
C) product functions
D) shipping and logistics
E) All of these are touch points.
Answer: E
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking
14) A short definition of marketing is "meeting needs profitably."
Answer: TRUE
Diff: 1
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking
15) Services constitute the bulk of most countries' production and marketing efforts.
Answer: FALSE
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking
16) Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.
Answer: TRUE
Diff: 1
LO: 1.2: What is the scope of marketing?
17) Attracting tourists to Wisconsin is an example of marketing properties.
Answer: FALSE
Diff: 2
LO: 1.2: What is the scope of marketing?
18) "Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience.
Answer: FALSE
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
19) Selling through creative advertising is the most important element in business marketing.
Answer: FALSE
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Diverse and multicultural work environments
20) Marketing has been described as being both an "art" and a "science." Discuss the differences and similarities between these two marketing thrusts. Provide your theoretical response and a "real-life" example where you have seen both processes work effectively at creating customer value and loyalty.
Answer: The student should demonstrate his or her understanding that the marketer must use data to understand customer needs and translate this understanding into properly designed products and services. This requires application of state-of-the art tools and techniques. It is also an art as marketers try to find creative solutions to consumer needs.
Diff: 3
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
21) Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities.
Answer: The types of entities that are marketed are:
∙ goods–physical goods
∙ services–hotels and car rental services
∙ events–time-based events such as trade shows
∙ experiences–Walt Disney's Magic Kingdom
∙ persons–celebrity marketing
∙ places–cities, states, regions, and even whole nations
∙ properties–intangible rights of ownership of either real property or financial property
∙ organizations–corporate identity
∙ information–information produced and marketed as a product
∙ ideas–marketing the basic idea of a market offering
Diff: 3
LO: 1.2: What is the scope of marketing?
AACSB: Analytical thinking; Application of knowledge
22) Selling is not the most important part of marketing. Explain why not.
Answer: According to Peter Drucker, "The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available."
Diff: 2
LO: 1.2: What is the scope of marketing?
AACSB: Reflective thinking
23) ________ are basic human requirements, while ________ are the ways in which those requirements are satisfied.
A) Wants; needs
B) Demands; wants
C) Needs; wants
D) Needs; demands
E) Demands; needs
Answer: C
Diff: 1
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
24) When Frank buys his own house, he would like to have a home theater system and a Jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the Jacuzzi is an example of a(n) ________.
A) need
B) want
C) demand
D) market
E) prospect
Answer: B
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Analytical thinking; Application of knowledge
25) When companies measure the number of people who are willing and able to buy their products, they are measuring ________.
A) demand
B) price elasticity
C) real needs
D) standard of living
E) disposable income
Answer: A
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
26) A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.
A) secondary
B) unstated
C) delight
D) secret
E) stated
Answer: D
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
27) Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs.
A) brand
B) value proposition
C) deal
D) marketing plan
E) demand
Answer: B
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
28) Marketers identify which segments of buyers present the greatest opportunity. These segments are called ________ markets.
A) target
B) capital
C) tertiary
D) demographic
E) developing
Answer: A
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
29) ________ reflects a customer's judgment of a product's performance in relation to his or her expectations.
A) Brand equity
B) Satisfaction
C) Value
D) Perception
E) Brand image
Answer: B
Diff: 1
LO: 1.3: What are some core marketing concepts?
30) The value of an offering is described as the ________.
A) price consumers are charged for a product
B) cost of manufacturing a product
C) degree to which consumer demand for a product is positive
D) sum of the tangible and intangible benefits and costs to customers
E) intangible benefits gained from a product
Answer: D
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
31) When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________.
A) segment the market
B) provide a service
C) enter a new market
D) develop brand loyalty
E) position its product
Answer: E
Diff: 3
LO: 1.3: What are some core marketing concepts?
AACSB: Analytical thinking; Application of knowledge
32) If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________ channel.
A) service
B) distribution
C) communication
D) relationship
E) standardized
Answer: A
Diff: 3
LO: 1.3: What are some core marketing concepts?
AACSB: Application of knowledge
33) The ________ is the channel from raw materials to components to final products that are carried to final buyers.
A) communication channel
B) distribution channel
C) supply chain
D) service chain
E) marketing chain
Answer: C
Diff: 1
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
34) The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________.
A) supply chain
B) global market
C) value proposition
D) competition
E) marketing environment
Answer: D
Diff: 1
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
35) The ________ environment includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.
A) economic
B) management
C) strategic
D) task
E) tactical
Answer: D
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Analytical thinking
36) Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where it comes from. These are examples of ________ media.
A) owned
B) earned
C) paid
D) service
E) marketing
Answer: A
Diff: 3
LO: 1.3: What are some core marketing concepts?
AACSB: Application of knowledge
37) Wants are basic human requirements, such as food and shelter.
Answer: FALSE
Diff: 1
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
38) The customer value triad consists of a combination of quality, durability, and price.
Answer: FALSE
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Analytical thinking
39) Walmart and Target stores could be part of the distribution channel for a marketer of hair care products.
Answer: TRUE
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Application of knowledge
40) The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena.
Answer: FALSE
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Analytical thinking
41) The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one, is an example of a demand.
Answer: FALSE
Diff: 3
LO: 1.3: What are some core marketing concepts?
AACSB: Application of knowledge
42) Consumers often have many needs that are not readily obvious. Just observing their behavior inside a retail store is not enough to get a true understanding of their "needs." List and briefly describe the five types of needs that most consumers have.
Answer: Suppose a customer wants to buy a car. The five types of customer needs with respect to this example are:
1. stated needs–the customer wants an inexpensive car
2. real needs–the customer wants a car whose operating cost, not its initial price, is low
3. unstated needs–the customer expects good service from the dealer
4. delight needs–the customer would like the dealer to include an onboard navigation system
5. secret needs–the customer wants to be seen by friends as a savvy consumer
Diff: 3
LO: 1.3: What are some core marketing concepts?
AACSB: Analytical thinking
43) What is the relationship between Apple's brand and its value proposition?
Answer: Apple's value proposition is the set of benefits that satisfy customers' needs. This intangible value proposition is made physical by an offering, including some combination of products, services, information, and experiences–for example, Apple's mobile devices and services provided in its stores. Apple's brand is an offering from a known source that people associate with qualities such as innovation and fun. Thus, the brand contributes to the experiences that make the value proposition physical.
Diff: 3
LO: 1.3: What are some core marketing concepts?
AACSB: Application of knowledge
44) Distinguish between the concepts of value and satisfaction.
Answer: The offering will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses between different offerings on the basis of his or her perception about which product will deliver the most value. Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service, and price (called the customer-value triad). Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or outcome) in relation to his or her expectations.
Diff: 2
LO: 1.3: What are some core marketing concepts?
AACSB: Reflective thinking
45) Ford Motor Company knows that to reach its target markets, it may use three kinds of marketing channels. What are these three marketing channels, and how might Ford use each of them?
Answer: The three marketing channels are communication, distribution, and service channels. Ford uses advertising to position its products and convey a certain message to consumers (communication channel). The delivery of cars to end consumers would require a distribution channel, such as a car dealership, and the company can have tie-ups with insurance companies to provide car insurance (service channel).
Diff: 3
LO: 1.3: What are some core marketing concepts?
AACSB: Analytical thinking; Application of knowledge
46) In an attempt to create greater competition and growth opportunities, countries often ________.
A) increase trade barriers
B) protect industries
C) deregulate industries
D) encourage intermediation
E) reduce privatization
Answer: C
Diff: 3
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Diverse and multicultural work environments
47) Which of the three transformative forces mentioned in the chapter is associated with the Boston Consulting Group believing brand marketers must enhance their "digital balance sheets"?
A) demographics
B) accountability
C) social responsibility
D) globalization
E) technology
Answer: E
Diff: 3
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
48) The three central trends in Marketing 3.0 are collaborative marketing, globalization, and ________.
A) cultural relevance
B) horizontal marketing
C) consumer well-being
D) the rise of a creative society
E) sustained technological development
Answer: D
Diff: 3
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
49) The Body Shop, Timberland, and Patagonia behave in environmentally responsible ways that differentiate them from competitors, build consumer preference, and achieve notable sales and profit gains. This is an example of ________.
A) social responsibility
B) technology
C) globalization
D) collaboration
E) goodwill
Answer: A
Diff: 1
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Application of knowledge
50) The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels.
A) disintermediation
B) diversification
C) reduced competition
D) deregulation
E) privatization
Answer: A
Diff: 2
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
51) In response to threats from such companies as Amazon.com, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This is known as ________.
A) reintermediation
B) disintermediation
C) retail transformation
D) e-collaboration
E) new-market synchronization
Answer: A
Diff: 2
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Application of knowledge
52) The overabundance of information available on the Internet has made it more difficult for consumers to compare product features and prices.
Answer: FALSE
Diff: 2
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
53) The marketplace isn't what it used to be. List and briefly discuss the new behaviors, opportunities, and challenges that await the marketer in the 21st century.
Answer: Responses to this question should include:
∙ changing technology—e-commerce; mobile Internet; Web penetration; sharing information is power
∙ globalization—international trade; multiculturalism
∙ social responsibility—need to consider ethical, environmental, legal, and social context of activities
∙ dramatically changed marketplace—new consumer and company capabilities
Diff: 2
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
54) Discuss the concept of disintermediation and provide an example.
Answer: Disintermediation grew out of the rush to embrace the dot-coms and e-commerce. Essentially, the dot-coms removed many of the traditional intermediaries by encouraging consumers to deal directly with the company via the Internet. "Brick-and-click" businesses eventually brought some of the intermediaries back through a process called reintermediation.
Diff: 2
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Information technology
55) The digital revolution has placed a whole new set of capabilities in the hands of consumers and businesses. Describe the advantages that you as a consumer have today that your parents or grandparents didn't have.
Answer: Responses to this question should include:
∙ a substantial increase in buying power
∙ a greater variety of available goods and services
∙ a great amount of information about practically anything
∙ greater ease in interacting and placing and receiving orders
∙ an increased ability to compare products and services
Diff: 3
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
56) The Internet has given today's companies a new set of capabilities. Among those capabilities is the ability to operate a new information channel. Describe how information can be used by the marketer in this new channel.
Answer: Companies can operate a powerful new information and sales channel, the Internet, with augmented geographical reach to inform and promote their businesses and products worldwide. By establishing one or more Web sites, a company can list its products and services, its history, its business philosophy, its job opportunities, and other information of interest to visitors. This provides consumers with a direct access to the company. Almost all Web sites include a "contact us" section that enables consumers to put forth their queries and interact with the company directly. This in turn allows marketers to be aware of people's opinions and preferences.
Diff: 3
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
57) Discuss how globalization has affected the marketing environment.
Answer: New transportation, shipping, and communication technologies have made it easier for us to know the rest of the world, to travel, to buy and sell anywhere. Globalization has made countries increasingly multicultural. US minorities have much economic clout, and their buying power is growing faster than that of the general population. Globalization changes innovation and product development as companies take ideas and lessons from one country and apply them to another.
Diff: 3
LO: 1.4: What forces are defining the new marketing realities?
AACSB: Reflective thinking
58) Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs, and mass distribution.
A) selling-oriented
B) product-oriented
C) production-oriented
D) marketing-oriented
E) consumer-oriented
Answer: C
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
59) Tracy's is a chain of hair dressing salons for women. They use television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. In so doing, Tracy's is practicing ________ marketing.
A) internal
B) integrated
C) socially responsible
D) global
E) relationship
Answer: B
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking; Application of knowledge
60) The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders.
A) brand
B) supply chain
C) marketing network
D) value proposition
E) service channel
Answer: C
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
61) Which of the following statements is most consistent with the integrated marketing approach?
A) A good product will sell itself.
B) If left alone, consumers are inclined to purchase only inexpensive products.
C) All communication to consumers must deliver a consistent message irrespective of the medium.
D) In order to succeed, the main focus should be on having an efficient production process in place.
E) Online marketing is less important than traditional marketing efforts.
Answer: C
Diff: 3
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
62) Which of the following reflects the "people" component of the marketing mix?
A) the creativity, discipline, and structure brought to marketing management
B) the development of new products by the marketers
C) the firm's consumer-directed activities
D) the right set of processes to guide activities and programs within the firm
E) the internal marketing of the firm
Answer: E
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
63) Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing?
A) programs
B) processes
C) promotion
D) people
E) performance
Answer: A
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
64) At the heart of any marketing program is the firm's ________, its tangible offering to the market.
A) strategy
B) product
C) brand
D) value
E) people
Answer: B
Diff: 1
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
65) ________ activities include those the company undertakes to make the product accessible and available to target customers.
A) Line extension
B) Segmentation
C) Marketing research
D) Channel
E) New-product development
Answer: D
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
66) The production concept is one of the newest concepts in business.
Answer: FALSE
Diff: 1
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
67) The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
Answer: FALSE
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
68) The selling concept holds that consumers will prefer products that are ethical, environmentally responsible, legal, and social in the context of marketing activities and programs.
Answer: FALSE
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
69) Relationship marketing aims to build mutually satisfying long-term relationships with key parties.
Answer: TRUE
Diff: 1
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
70) Proponents of holistic marketing consider internal marketing to be as important as marketing to consumers.
Answer: TRUE
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
71) A firm's tangible offering to the market includes product quality, design, features, and packaging.
Answer: TRUE
Diff: 1
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
72) Building strong brands is the marketing task where the marketer is using a reliable marketing information system to monitor the marketing environment so s/he can assess market potential and forecast demand.
Answer: FALSE
Diff: 1
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Application of knowledge
73) The competing concepts under which organizations have conducted marketing activities include: the production concept, product concept, selling concept, marketing concept, and holistic marketing concept. Evaluate the advantages and disadvantages of each concept. Which concept do you believe is the most effective? Why?
Answer: Although students may be expected to research each concept, they should conclude the most effective concept is the holistic marketing concept, where companies need to have a more complete, cohesive approach that goes beyond traditional applications of the marketing concept.
Diff: 3
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
74) Define internal marketing and its role in the company. Outline how various departments within the company can demonstrate a customer focus.
Answer: Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Internal marketing must take place on two levels. At one level, the various marketing functions must work together. At the second level, other departments must embrace marketing and a "think customer" attitude.
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Reflective thinking
75) Identify and define the traditional four Ps. Also identify the new four Ps and the reason for developing the new interpretation.
Answer: The traditional four Ps are:
1. Product (product variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns)
2. Price (list price, discounts, allowances, payment period, credit terms)
3. Promotion (sales promotion, advertising, sales force, public relations, direct marketing)
4. Place (channels, coverage, assortments, locations, inventory, transportation)
However, given the breadth, complexity, and richness of marketing, as exemplified by holistic marketing, these 4 Ps are not the whole story anymore. Updating them to reflect the holistic marketing concept, researchers in this field arrived at a more representative set that encompasses modern marketing realities: people, processes, programs, and performance.
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
76) Arthur Jones has decided to start a business. He wants to manufacture lawn mowers and believes in the production concept. If this approach is taken, what will be Mr. Jones' primary areas of concentration as he builds his business?
Answer: This orientation holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on high production efficiency, low costs, and mass distribution. Jones will also want an efficient production process in place. This approach is also used when a company wants to expand the market. Students may use these facts as they design their answer.
Diff: 1
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
77) Increasingly, a key goal of marketing is to develop deep, enduring relationships with all entities that directly or indirectly affect the success of the firm. Discuss the merits of relationship marketing. From your experience as a consumer, describe the relationship marketing efforts undertaken by a company of your choice.
Answer: Students should understand that the relationship between any supplier and customer is not just in the mechanics of the transaction, but more importantly how the customer is treated during the transaction. The better the relationship, the more the likelihood of the customer remaining loyal. They should pick a company that has served them well and made them feel special each and every time.
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
78) What would be the marketing network elements for a motorcycle company such as Harley-Davidson?
Answer: A marketing network consists of the company and its supporting stakeholders. These stakeholders for Harley-Davidson are its customers, employees, suppliers, distributors, retailers, repair services, ad agencies, lobby groups, and motorcycle support clubs. The operating principle is simple: Build an effective network of relationships with key stakeholders, and profits will follow.
Diff: 2
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
79) What are the basic elements of the marketing mix for a bank? What does the holistic marketing concept broaden these elements to include?
Answer: The basic elements are product (for example, types of accounts), place (such as bank branches, website, and mobile apps), promotion (advertising, social media, and so on), and price, including fees and interest charges. Updating them to reflect the holistic marketing concept results in a set that encompasses people, processes, programs, and performance.
Diff: 1
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
80) Atlas camera division produces a range of professional quality 35mm and consumer-friendly digital cameras. The 35mm market is rapidly declining and the faster-growing digital camera segment is saturated with competition, so Atlas is struggling with sales. Identify the marketing tasks the management team would need to address to make Atlas competitive in the digital camera space.
Answer: Student answer should include several of these:
∙ Capture marketing insights to monitor the marketing environment, assess market potential, and forecast demand
∙ Connect with customers by creating value for chosen target markets and developing strong, profitable, long-term relationships with customers
∙ Gain an understanding of how organizational buyers buy, train the sales force in presenting product benefits, and take changing global opportunities and challenges into account
∙ Build strong brands by segmenting the market and targeting those it can best serve with a positioning that will resonate with them
∙ Create value through the firm's tangible offering to the market (product quality, design, features, and packaging)
∙ Decide how to communicate the value to the target market
∙ Manage the marketing organization in a way that considers global opportunities and challenges, social responsibility, and ethics
Diff: 3
LO: 1.5: What tasks are necessary for successful marketing management?
AACSB: Analytical thinking
