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CHAPTER 1

MARKETING IN A CHANGING WORLD: CREATING CUSTOMER VALUE AND SATISFACTION MULTIPLE CHOICE QUESTIONS 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. Answer: (b) Difficulty: (1) Page: 4 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. Answer: (c) Difficulty: (2) Page: 4 3. Creating __________________ is at the very heart of modern marketing thinking and practice. a. profit maximization b. increased stock value c. award winning products d. customer value and satisfaction Answer: (d) Difficulty: (2) Page: 4 4. The twofold goal of marketing is to attract new customers by promising superior value and: a. win advertising and industry awards for excellence. b. to keep and grow current customers by delivering satisfaction. c. enhance shareholder value. d. pay as few taxes as possible. Answer: (b) Difficulty: (1) Page: 4

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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.” Answer: (a) Difficulty: (2) Page: 4 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.” Answer: (d) Difficulty: (2) Page: 5 7. _________________ is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. a. Management b. Marketing c. Econometrics d. Demand Answer: (b) Difficulty: (1) Page: 5 8. The most basic concept underlying marketing is that of: a. products and services. b. human needs. c. barter. d. transactions. Answer: (b) Difficulty: (3) Page: 5 9. ____________ are states of felt deprivation. a. Demands b. Wants c. Needs d. Core transactions Answer: (c) Difficulty: (1) Page: 5

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When backed by buying power. social needs. c. individual needs. b. are constantly inventing new products. needs. Answer: (d) Difficulty: (2) Page: 5 13. a. __________ are shaped by one’s society and are described in terms of objects. product.: a. refer to: a. use. and safety. d. Answer: (d) Difficulty: (2) Page: 6 14. Transactions Answer: (b) Difficulty: (1) Page: 5 12. physical needs. relationships. d. people at all levels. such as those for food. Basic needs. or consumption that might satisfy a want or need is called a: a.10. Anything that can be offered to a market for attention. clothing. wants become: a. b. basic staple. physical wants. Wants c. c. demand. b. demands. Answer: (c) Difficulty: (2) Page: 7 3 . d. In outstanding companies. b. object relationships. including top management. stay close to customers. are addicted to time management. Needs b. c. Demands d. acquisition. service. Answer: (a) Difficulty: (2) Page: 5 11. d. work more than eight hours a day. c.

d. b. Answer: (b) Difficulty: (3) Page: 8 17. customer satisfaction c.15. needs d. so taken with its products that it focuses only on existing wants and loses sight of underlying consumer needs. customer quality c. If a company is guilty of “marketing myopia. in danger of having dangerous cost overruns because it is trying to please too many diverse customer groups. The difference between the values the customer gains from owning and using a product and the costs of obtaining the product is called ______________. product d. falling into the trap of “copying” rather than “inventing” products. Customers often do not judge product values and costs accurately or objectively. a. Instead. A _______________ is any activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything. guilty of prejudice toward certain customer groups. a. c. perceptual relationships Answer: (c) Difficulty: (3) Page: 8 18.” then it is: a. customer quality b. a. Customer needs Answer: (a) Difficulty: (3) Page: 10 4 . basic staple c. Customer quality c. they act on ___________________. customer satisfaction b. demand b. a. Customer value d. Customer satisfaction b. customer value d. perceived value Answer: (d) Difficulty: (2) Page: 10 19. _________________ depend(s) on a product’s perceived performance in delivering value relative to a buyer’s expectations. service Answer: (d) Difficulty: (1) Page: 7 16.

time. exchange c. give the customer anything and everything they want. then delivering more than they promise. barter transaction c. c. selling b. total quality management. An approach in which all the company’s people are involved in constantly improving the quality of products. Answer: (c) Difficulty: (2) Page: 10 21. always save the customers money. customer transaction Answer: (b) Difficulty: (1) Page: 12 5 .20. Marketing occurs when people decide to satisfy needs and wants through ________. make customers addicted to their products and services. b. market transaction d. relationships Answer: (b) Difficulty: (2) Page: 12 23. exchange management. c. d. b. services. market Answer: (c) Difficulty: (3) Page: 12 24. exchange c. d. and business processes is called: a. transaction d. smart companies aim to: a. A(n) ______________ consists of a trade of values between parties. sale b. transaction d. total relationship opportunity. a. Cigna 1000. monetary transaction b. a. Answer: (b) Difficulty: (2) Page: 11 22. With respect to customer satisfaction. delight customers by promising only what they can deliver. Trading your old calculator for tickets to a Garth Brooks concert would be what kind of transaction? a. and other resources.

suppliers. a. keeping.) a. A _______________ consists of the company and all its supporting stakeholders. marketing network c. a market is thought to be: a. the set of actual and potential buyers of a product. relationship marketing d. communication triad d. demand channel b. marketing intermediaries. trade discounts c. demand management Answer: (a) Difficulty: (2) Page: 14 28. d. b. The main actors in a modern marketing system would include all of the following EXCEPT: (Select the LEAST LIKELY. a. ___________ is the art of attracting. the people who may buy the product. c. finance c. customer returns and allowances b. product flow process Answer: (b) Difficulty: (3) Page: 12 27. Answer: (c) Difficulty: (2) Page: 14 29. ultimately. a. d. electronic commerce d. Transaction marketing is part of the larger idea of _________________. the end user. the square in the middle of the city where trade occurs. promotional stimulation marketing Answer: (c) Difficulty: (3) Page: 12 26. As CEOs and other managers have reviewed business functions. wherever a marketer sells products. c. In a contemporary sense. Answer: (d) Difficulty: (2) Page: 15. advertising agencies.25. they have found that. marketing b. and growing profitable customers. Figure 1-2 6 . b.

marketing management Answer: (d) Difficulty: (2) Page: 15 31. c. build.30. In the past. marketing d. b. demarketing d. increase demand. reduce or shift demand. “first in. a. demand management c. This meant that growing markets supplied endless new consumer candidates and the company did not have to worry about older customers who might become dissatisfied and leave the company’s marketing offerings. and control of programs designed to create. regulation program c. If the Golden Gate Bridge becomes consistently overcrowded with an unsafe level of traffic. d. initiate demand. a. The aim of demarketing is to: a. Answer: (d) Difficulty: (1) Page: 16 33. 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. sales Answer: (c) Difficulty: (2) Page: 16 32. marketers followed a _______________ approach to gaining customers. a. public relations b. implementation. relationship marketing b. first out” b. destroy demand. “treadmill” c. planning. “funnel” d. The analysis. “leaky bucket” Answer: (d) Difficulty: (2) Page: 16 7 . and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives is called ___________________.

offer the lowest prices. d. Answer: (c) Difficulty: (2) Page: 17 35. formulated marketing d.34. production concept c. formulated marketing d. demand-based marketing Answer: (a) Difficulty: (3) Page: 17 37. Which of the following DOES NOT belong on the correct list of these concepts? a. This would be an illustration of which of the following marketing practice stages? a. offer a variety of products.000. Rather than just advertising. Botros makes it a practice to give at least one public speech per week. demand-based marketing Answer: (b) Difficulty: (2) Page: 17 36. Over time. constantly advertise. In fact. entrepreneurial marketing c. Jim Koch. b. Study has shown that the key to customer retention is: a. intrepreneurial marketing b. c. intrepreneurial marketing b. John Botros feels the heat of competition on his new Internet-based home delivery pizza business. marketing management has offered five distinct concepts under which organizations conduct their marketing activities. product concept d. Taco Bell has found that the lifetime value of a Taco Bell customer is about $12. was often seen talking to bartenders and bar customers to encourage consumption of his brewery’s products. marketing concept Answer: (a) Difficulty: (2) Page: 19 8 . offer superior customer value and satisfaction. founder of Samuel Adams beer. econometric concept b. This would be an illustration of which of the following marketing practice stages? a. John is encouraging his managers to get out of their offices and meet the public on their own ground. entrepreneurial marketing c.

management should work on improving production and distribution efficiency).” d. the selling concept Answer: (d) Difficulty: (3) Page: 20 42. “Build a better mousetrap. If a manufacturer was following the product concept. the product concept c. “Watch your costs at all cost. the marketing concept b. the production concept d. an organization should devote energy to making continuous product improvements.” Answer: (a) Difficulty: (3) Page: 20 41. “The consumer is king. a. location. a. location. and innovative features. marketing concept Answer: (b) Difficulty: (2) Page: 19 39. production concept c.” b. “Location. product concept b. When faced with overcapacity. a. most firms practice _________________. performance. The _______________ holds that consumers will favor products that are available and highly affordable (therefore. Thus. and the world will beat a path to your door. their operating philosophy would rely on which of the following phrases? a. production concept c. Which philosophy of business is typically practiced when marketing unsought goods? a. selling concept d.” c. the marketing concept b. the selling concept Answer: (d) Difficulty: (2) Page: 20 9 . production cost expansion concept d. product concept Answer: (d) Difficulty: (3) Page: 20 40. The _________________ holds that consumers will favor products that offer the most quality. marketing concept b. c. the product concept.38. the production concept d.

In an example discussed in your text. rapid population growth. The societal marketing concept Answer: (a) Difficulty: (2) Page: 20 44. not-for-profit concept Answer: (b) Difficulty: (2) Page: 22 46. c.) a. _______________________ 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.” c. The product concept c. societal marketing concept c. “Let us exceed your expectations.” Answer: (c) Difficulty: (1) Page: 20 45. resource shortages. 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. “If it ain’t broke. b. a. All of the following organizational philosophy phrases are associated with the marketing concept EXCEPT: (Pick the phrase that DOES NOT fit. worldwide economic problems.” b. the Internet. The major marketing developments as we enter the new millennium can be summed up in a single theme: a. The ________________ questions whether the pure marketing concept is adequate in an age of environmental problems. virtuality. 10 . “We make it happen for you. connectedness. don’t fix it. d. innovation. The marketing concept b.” d. the product concept c. The selling concept d. to serve. a. the selling concept d. the marketing concept b. and neglected social services. “To fly. product concept d. service concept b. the societal marketing concept Answer: (d) Difficulty: (2) Page: 23 47.43.

Which of the following WOULD NOT be among those areas? (Select the one that DOES NOT fit. Connections with Customers b.Answer: (d) Difficulty: (2) Page: 25 48. Answer: (a) Difficulty: (1) Page: 25 49. b. technology. globalization. privatization. Connections with Marketing Partners d. Connections with Customers b. c. a. Micronet b. The major force behind the new connectedness in marketing is: a. The Internet c. _______________ is the vast and burgeoning global web of computer networks which links computer users of all types around the world. d. The Defense Department security d. Connections with Government c. social consciousness. and transportation connect three primary areas. Connections with Government c. Figure 1-5 11 . Connections with the World Around Us Answer: (b) Difficulty: (1) Page: 27. The connecting technologies of the computer. The telecommunication system Answer: (b) Difficulty: (1) Page: 26 50. Connections with the World Around Us Answer: (c) Difficulty: (2) Page: 27. Figure 1-5 51. Connections with Marketing Partners d. communication. information. Under which of the following marketing connections would “connecting through strategic alliances” most likely fall? a.) a.

Answer: (d) Difficulty: (3) Page: 27 53. If the United States—and the world—has become a “salad bowl” of diverse ethnic. Wal-Mart has a policy of EDLP (everyday low pricing) as a strategic weapon. most banks now sell automobile insurance. b. b. they are forming themselves into consumer communities. Ford Motor Company now designs all models of their popular pickups in at least 12 colors. relationship channel d. and locational groups. A focus on finding new customers. profitable customers are rapidly becoming a thing of the past. which of the following is most likely the current trend? a. and the distributors. c. d. d. the computer manufacturer. Answer: (a) Difficulty: (3) Page: 30 55. one-to-one marketing no longer works. 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. supply chain c.” Answer: (c) Difficulty: (3) Page: 30 54. A focus on “share of market. d. A ___________ for personal computers consists of suppliers of computer chips and other components. c. With respect to connecting with customers. b. c. strategic alliance Answer: (b) Difficulty: (2) Page: 31 12 . A focus on removing customers. because consumers are maintaining their diversity. cultural. The best illustration of direct marketing listed below would be: a. social. mix network b. a. retailers. then one could say that: a. consumer groups have blended to the extent that a marketer can not tell one consumer from another. and others who sell the computers to businesses and final customers. A focus on current customer retention.52.

an ethical marketing campaign c. Which of the following phrases would best describe the current attitude about connections with the world around us? a. serve any customer. Table 1-1 13 . strategic alliance Answer: (d) Difficulty: (3) Page: 32 57. “Let the buyer beware. Act Globally.” d. relationship channel d.” c. “Outsource Everything. With respect to connections with customers.56. the new marketing thinking b. takes out ads in the university or college newspaper.” b. a relationship marketing campaign d. “America First. and enlists the aid of campus groups to aid with these social problems. mix network b. be sales and product centered. Dell Computer recently ran advertisements telling how it partners with Microsoft and Intel to provide customized e-business solutions. a sales promotional marketing campaign Answer: (a) Difficulty: (1) Page: 35 59. this would be an example of which of the following? a. supply management c. This would be an example of which of the following? a. relationship marketing thinking Answer: (b) Difficulty: (2) Page: 36. the old marketing thinking c. If a university or college posts antismoking and antidrinking materials at strategic locations. global marketing d.” Answer: (c) Difficulty: (2) Page: 33 58. “Think Locally. a social marketing campaign b. and make standardized products would be examples of which form of thinking? a.

60. and 60 assuming social and environmental responsibility would be examples of which form of thinking? a. Answer: (False) Difficulty: (2) Page: 5 65. Answer: (True) Difficulty: (2) Page: 4 63. global marketing d. 6. Marketing locally and globally. conducting e-commerce in marketspaces. wants. Human wants that are backed by buying power are called demands. and demands. A want is a state of felt deprivation. Figure 1-1 66. 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. The first of the core marketing concepts that should be explored by the marketer wishing to do business is needs. Answer: (True) Difficulty: (1) Page: 5 14 . Answer: (False) Difficulty: (2) Page: 5 67. the old marketing thinking c. Selling is the delivery of customer satisfaction at a profit. relationship marketing thinking Answer: (a) Difficulty: (2) Page: 36. Marketing is really only selling and advertising. Table 1-1 TRUE/FALSE QUESTIONS 61. the new marketing thinking b. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. Answer: (False) Difficulty: (2) Page: 4 62. Answer: (True) Difficulty: (2) Page: 5. Answer: (False) Difficulty: (2) Page: 5 64.

people at all levels—including top management—stay close to customers.68. Answer: (True) Difficulty: (1) Page: 12 74. and had a marketing department to coordinate and further marketing efforts. a sales force of 200 people. The concepts of exchange and relationships lead to the concept of demarketing. The primary concept used in selling unsought goods such as encyclopedias or insurance is the product concept. Answer: (False) Difficulty: (2) Page: 7 70. If a company used $10 million on television advertising. The concept of a product is limited to physical objects. Answer: (True) Difficulty: (3) Page: 8 72. Answer: (False) Difficulty: (3) Page: 8 73. 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. In outstanding companies. 16 75. Answer: (False) Difficulty: (1) Page: 7 71. A demand is anything that can be offered to a market to satisfy a need or want. Answer: (True) Difficulty: (1) Page: 6 69. Answer: (False) Difficulty: (3) Page: 14. Answer: (True) Difficulty: (2) Page: 16 76. Answer: (False) Difficulty: (3) Page: 17 77. This would be an example of a transaction. One party gives X to another party and gets Y in return. Marketing to reduce demand temporarily or permanently is called demarketing. Answer: (False) Difficulty: (2) Page: 20 15 . 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. the company would be employing the marketing practice of interpreneurial marketing.

Answer: (False) Difficulty: (2) Page: 22 80. Marketing locally and globally would be part of the new marketing thinking as applied to connections with the world around us. and neglected social services. resource shortages. Difficulty: (2) Page: 4. Answer: (True) Difficulty: (2) Page: 27. Figure 1-5 81. meeting social needs of consumers. worldwide economic problems. and connecting directly are all characteristics connections with customers. 5. 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. Table 1-1 82. Figure 1-1 and associated text 84. and demands (of a variety of types). Answer: (False) Difficulty: (2) Page: 36. List and briefly discuss the core marketing concepts. developing markets. Keeping old customers would be a part of the old marketing thinking as applied to connections with customers.78. increasing consumer choice. rapid population growth. 16 . All of these concepts are important to understanding the definition of marketing. The selling concept takes an “inside-out” perspective toward the exchange process. creating value and satisfaction. Connecting more selectively. Define marketing and discuss its role in the economy. The production concept questions whether the pure marketing concept is adequate in an age of environmental problems. Answer: (True) Difficulty: (1) Page: 36. Answer: (True) Difficulty: (2) Page: 21 79. creating products. aiding in the facilitation of exchanges. and mutually beneficial relationships. wants. and providing fair profits for business organizations. transactions. Economic roles include: meeting needs. connecting for life. Table 1-1 ESSAY QUESTIONS 83.

(e) The company is creating sub-brands that often focus outside traditional Nike boundaries (such as hiking shoes and gear). the company earns a profit for its labors. satisfaction. List and briefly discuss three ways Nike has demonstrated that they care about their customers. services. Ways that the company demonstrates that it cares are: (a) It doesn’t just promote sales. Marketing management recognizes that customers have a lifetime value and seek to maintain the customer relationship as an important organizational objective. Answer: Nike seems to care as much about its customers’ lives as their bodies.Answer: The core marketing concepts can be seen in Figure 1-1. (c) Nike is focusing on innovations (especially those demanded by the consumers). and e) markets. and control of programs designed to create. 10. wants. Marketing at Work 1-1 86. marketing management seeks to manage demand efficiently and effectively so as to help consumers obtain value in their transactions with the company. c) value. and quality. even though they provide less lucrative marketing opportunities. and experiences. (f) Nike is de-emphasizing the swoosh (the emphasis is on quality and consumer fit rather than bigness and advertising muscle). (b) Nike invests in a wide range of lesser-known sports. All of these moves were prompted by suggestions and recommendations from consumers. transactions. it promotes sports for the benefit of all. Difficulty: (2) Page: 5-14. and relationships. Difficulty: (2) Page: 15 17 . As shown in the discussion provided in the chapter. and demands. (g) Nike is entering new markets aggressively (especially overseas). These key concepts are linked and form the basis by which marketing is understood and practiced. b) products. (d) Nike is developing new product lines (especially those demanded by the consumers). implementation. By doing this correctly. build. and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. Define and describe the marketing management concept. Difficulty: (2) Page: 9. d) exchange. planning. Answer: Marketing management is the analysis. They are listed as: a) needs. Figure 1-1 and associated text 85.

b). 3). They use television advertising. Formulated marketing—as small companies achieve success. This is an “outside-in” perspective as opposed to the selling concept’s “inside-out” perspective. Carefully list and then compare the five marketing management philosophies. This concept can lead to marketing myopia if not watched. 2). Production Concept: Consumers favor products that are available and highly affordable. Marketing Concept: Delivering the needs and wants more efficiently than the competition. Most firms practice this concept when they have overcapacity. e). therefore. Intrepreneurial marketing—many large and mature companies get stuck in formulated marketing. they inevitably move toward more formulated marketing. Selling Concept: Consumers will not normally buy enough products on their own. These companies sometimes lose their marketing creativity and passion. Difficulty: (3) Page: 19-23 18 . List and briefly describe each of these stages. and marketing departments to achieve their goals and objectives. Therefore. performance. Entrepreneurial marketing—most companies are started by individuals who live by their wits. Answer: a). pouring over the latest reports and doing research to fine-tune their efforts. and innovative features. They visualize an opportunity and knock on every door to gain attention. Product Concept: Consumers favor products that offer the most value. Marketing practice often passes through three stages. Difficulty: (2) Page: 17 88. the organization should devote its energy to making continuous product improvements. Answer: The stages may be listed as: 1). c). Societal Marketing Concept: The company determines customer needs and wants and society’s best interest. Be sure to indicate the key components of each philosophy. They now need to re-establish within their companies the entrepreneurial spirit and actions that made them successful in the first place. Conflicts in this concept are usually between short-run wants versus long-term gains in welfare. 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).87. d). sales forces. the organization must undertake a large-scale selling and promotion effort. Management should focus on improving production and distribution efficiency.

You have just been hired by Blue Flash Water Corporation to administer a relationship marketing program for the company. Figure 1-5 90. 19 . non-carbonated. Using connecting technologies (computer. and broadened connections. and connections with the world around us to the old marketing thinking and the new marketing thinking. Blue Flash wants you to build a marketing network for them. Marketing connections are in transition. connecting with suppliers and distributors. The company’s desire is to build strong economic and social ties to customers by promising and consistently delivering high-quality products. and fair prices. In order to do this. List and describe these three connections. The new connected millennium has brought about changes for the marketing function. Compare and contrast the old marketing thinking versus the new marketing thinking using the connection forms suggested in the chapter. and connecting through strategic alliances. bottled drinking water product to grocery and convenience stores in the southwestern United States. 3). However. Answer: Students should apply connections with customers. 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. marketers are seeking to connect in three ways. connections with values and responsibilities. The company manufactures and distributes a purity-guaranteed. Write down your ideas on what a marketing network is.89. Answer: The three connections are listed as: 1). and connecting directly. how it might relate to the concept of relationship marketing. Connections with Marketing Partners—considerations are connecting with other company departments. and transportation). 2). communication. The comparisons and contrasts are shown in Table 1-1. connections with marketing partners. good service. Students should not be required to list all of these comparisons and contrasts. Difficulty: (3) Page: 26-35. Connections with Customers—considerations are connecting more selectively. Connections with the World Around Us—considerations are global connections. and designate the components of a what you perceive to be a marketing network for Blue Flash Water Corporation. Table 1-1 APPLICATION QUESTION 91. connecting for life. information. Difficulty: (3) Page: 36.

structural ties. and make sure that all customers are profitable customers. marketers need to build long-term relationships with valued customers. A marketing network consists of the company and all its supporting stakeholders. consider where the company gets its purified water (suppliers). social benefits. the question’s answers should be somewhat similar to the information indicated below. If they have. Structure can be given to this arrangement at the discretion of the instructor. Students should describe customers (for the bottled water market). how it distributes the water. distributors. The objective is to get the student familiar with the components of a relationship marketing effort and the stakeholders of a marketing network. Tools that the marketer might use to develop stronger bonds with consumers might be to add or increase financial benefits. and suppliers. consider how dedicated employees might aid in the formation of relationships. suppliers. and others with whom it has built mutually profitable business relationships. The idea behind relationship marketing through a marketing network is that if a company builds a good network of relationships with key stakeholders. ad agencies. This question should not be attempted unless the students have been exposed to the concepts of relationship marketing and a marketing network. retailers. dealers. employees. According to the text. distributors. These would be the customers. companies want to build a unique company asset called a marketing network. beyond creating short-term transactions. Today. and the ad agencies that have designed themes for the water (how could the Blue Flash name be used). Difficulty: (2) Page: 12 and associated text 20 . the retailers (outlets) that carry the product.Answer: Students should be allowed to be creative with this question. profits will follow for all.