CHAPTER 1

An Overview of Strategic Marketing

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Suppose you are a marketing manager at Procter & Gamble for a new, all-purpose cleaning product. List four marketing mix ariables and describe t!e decisions and acti ities associated wit! eac!. AACSB: Reflective Thinking, Product, Price, Promotion, Distribution DF: M P ge: ! T"#e: AP #escribe se eral acti ities encompassed by t!e distribution ariable. AACSB: Reflective Thinking, Distribution DF: M P ge: $

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%xplain w!y marketing efforts s!ould be oriented toward creating and sustaining satisfying exc!ange relations!ips. AACSB: An l"tic, Str teg", M rketing #l n DF: ' P ge: ( T"#e: %& '!at is meant by t!e term rel tionshi# m rketing( )ow does relations!ip marketing affect t!e customer( AACSB: Reflective Thinking, Str teg" DF: ' P ge: )* T"#e: %& '!at are t!e t!ree ways t!at marketing en ironment forces affect a marketer+s ability to create satisfying exc!ange relations!ips( AACSB: An l"tic, Str teg" DF: M P ge: (+), T"#e: %& '!at is meant by t!e term m rketing conce#t, and w!at departments of a company does it affect( AACSB: Reflective Thinking, Str teg" DF: ' P ge: )) T"#e: %& '!at does it mean for a company to be marketing-oriented( '!at are t!e most important factors in ol ed in being marketing-oriented( AACSB: Reflective Thinking, Str teg" DF: M P ge: )T"#e: %& #efine t!e term v lue, and explain !ow people determine a product+s alue. AACSB: Communic tion, M rketing #l n DF: ' P ge: ). T"#e: %& #efine t!e term m rketing m n gement, and describe its four ma0or components. AACSB: Communic tion, M rketing #l n DF: ' P ge: )/ T"#e: %& '!y is marketing important to businesses and to t!e economy( AACSB: Reflective Thinking, Str teg" DF: M P ge: )$+,)

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%xplain w!y a knowledge of m rketing #rinci#les is beneficial for all students. AACSB: An l"tic DF: ' P ge: * T"#e: %& #efine t!e term t rget m rket and pro ide an example for a product of your c!oice. AACSB: Communic tion, M rketing #l n DF: ' P ge: * T"#e: %&

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

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Chapter 1: An Overview of Strategic Marketing #iscuss t!e concept of green m rketing and w!y it is important to marketers. AACSB: An l"tic, Product, Str teg", M rketing Pl n DF: M P ge: ,,+,#escribe t!e t!ree different types of #roducts. AACSB: Communic tion, M rketing #l n DF: '

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#iscuss t!e e olution of t!e m rketing conce#t t!roug! t!e arious types of orientation. AACSB: An l"tic, Str teg" DF: M P ge: ),+)T"#e: %& 8arketing is t!e process of a9 promoting products t!roug! personal selling and ad ertising to de elop and maintain fa orable relations!ips wit! customers and stake!olders. b9 creating, distributing, promoting, and pricing products to facilitate satisfying exc!ange relations!ips wit! customers and to de elop and maintain fa orable relations!ips wit! stake!olders in a dynamic en ironment. c9 deli ering a standard of li ing to a society. d9 creating, distributing, promoting, and pricing goods, ser ices, and ideas to facilitate t!e ac!ie ement of t!e firm+s ob0ecti es. e9 focusing on customers+ needs. Ans: b AACSB: Communic tion, M rketing #l n DF: M 01: 01) P ge: * T"#e: %& 6!e focal point of all marketing acti ities is a9 products. b9 t!e marketing mix. c9 profits. d9 sales. e9 customers. Ans: e AACSB: Communic tion, M rketing #l n

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'!ic! of t!e following best describes :intendo+s initial strategy w!en introducing t!e 'ii( a9 ;ncrease its sales of software to current gamers b9 ;ncrease its sales of game consoles to t!e under-"* market c9 ;ncrease its sales of game consoles by broadening t!e appeal of gaming to all ages d9 ;ncrease its sales of !ig!-powered gaming consoles e9 ;ncrease its sales of consoles wit! !ig!-performance grap!ics Ans: c AACSB: An l"tic, Str teg" DF: M 01: 01) P ge: .2! T"#e: AP 6!e definition of marketing implies t!at <<<<<< s!ould recei e benefits from exc!ange relations!ips. a9 only customers b9 only businesses c9 company management d9 bot! customers and businesses e9 only t!e most important customers Ans: d AACSB: Communic tion, M rketing #l n DF: ' 01: 01) P ge: * T"#e: %&

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

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Chapter 1: An Overview of Strategic Marketing 6!e primary alue t!at a marketer expects to recei e from a customer in an exc!ange relations!ip is a9 t!e price c!arged for t!e product. b9 customer satisfaction. c9 references to ot!er potential customers. d9 =uality merc!andise t!at meets expectations. e9 few returns of t!e merc!andise purc!ased. Ans: AACSB: Communic tion, Str teg" DF: ' 01: 01) P ge: * T"#e: AP 4 target market a9 in ol es a large number of customers. b9 is a specific group of customers on w!om a company focuses its marketing efforts. c9 already !as se eral competitors ying for customers+ business. d9 is t!e same as a salesperson+s prospecti e client list. e9 is a customer group classified as people wit! similar demograp!ic c!aracteristics. Ans: b AACSB: Communic tion, M rketing #l n DF: ' 01: 01, P ge: *+. T"#e: %&

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3oca-3ola is aiming its #iet 3oke Plus >wit! itamins and minerals9 at !ealt!-conscious customers. 6!ese !ealt!-conscious customers represent 3oke+s a9 audience. b9 sales alternati e. c9 business group. d9 target market. e9 focus group. Ans: d AACSB: Communic tion, M rketing #l n DF: M 01: 01, P ge: / T"#e: AP Sunny# is aimed at mot!ers wit! c!ildren under age twel e. 6!ese mot!ers represent Sunny#+s a9 target market. b9 consumer ad ocates. c9 marketing strategy. d9 marketing mix. e9 marketing tactic. Ans: AACSB: Communic tion, M rketing #l n DF: ' 01: 01, P ge: !+/ T"#e: AP #istribution, price, promotion, and product are all elements of a9 marketing strategy. b9 t!e marketing mix. c9 a target market. d9 a consumer good. e9 a business strategy. Ans: b AACSB: Communic tion, Product, Price, Promotion, Distribution P ge: . T"#e: %&

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4 marketing manager decides w!at combination of ariables is needed to satisfy customers+ needs for a general type of product. '!at are t!e essential ariables t!at t!e marketing manager combines( a9 Product, price, distribution, and promotion ariables b9 8arketing en ironment ariables c9 Product and promotion ariables d9 Product, price, and customer ariables e9 Product, price, customer, and promotion ariables Ans: AACSB: Communic tion, M rketing #l n DF: ' 01: 01, P ge: . T"#e: %&

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

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Chapter 1: An Overview of Strategic Marketing 6!e marketing mix is built around t!e a9 product. b9 company. c9 customer. d9 employee. e9 retail outlet. Ans: c AACSB: Communic tion, M rketing #l n

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8arketing managers stri e to de elop a marketing mix t!at a9 minimi?es marketing costs. b9 matc!es w!at competitors are offering. c9 best matc!es t!e abilities of t!e firm. d9 matc!es t!e needs of t!e target market. e9 generates t!e !ig!est le el sales. Ans: d AACSB: Communic tion, M rketing #l n DF: M

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6!e product ariable of t!e marketing mix can include all of t!e following e3ce#t a9 creation of brand names. b9 consumer perception of t!e product price. c9 de elopment of product packaging. d9 warranty issues. e9 repair ser ices. Ans: b AACSB: Communic tion, Product, DF: M 01: 01, P ge: $ 6!e t!ree basic forms t!at a product can take are a9 markets, products, and images. b9 goods, ideas, and intangibles. c9 brands, ser ices, and tangibles. d9 ser ices, ideas, and goods. e9 ideas, ser ices, and t!ings. Ans: d AACSB: Communic tion, Product, 4 p!ysical product you can touc! is a>n9 a9 ser ice. b9 good. c9 idea. d9 concept. e9 p!ilosop!y. Ans: b AACSB: Communic tion, Product,

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6!e application of mec!anical and !uman efforts to eit!er people or ob0ects to pro ide intangible benefits to customers is known as a>n9 a9 issue. b9 experience. c9 idea. d9 good. e9 ser ice. Ans: e AACSB: Communic tion, Product, DF: M 01: 01, P ge: / T"#e: %&

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

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Chapter 1: An Overview of Strategic Marketing '!ic! of t!e following companies is t!e best example of a ser ice marketer( a9 @ed%x b9 Sony c9 4bercrombie & @itc! d9 6!e #emocratic Party e9 General %lectric Ans: AACSB: An l"tic, Product DF: M 01: 01, P ge: / T"#e: AP 8ot!ers 4gainst #runk #ri ing >84##9 is a group t!at works to c!ange attitudes and laws about dri ing under t!e influence of alco!ol. 84## primarily markets a9 goods. b9 ideas. c9 ser ices. d9 political figures. e9 applications. Ans: b AACSB: An l"tic, Product DF: ' 01: 01, P ge: /+$ T"#e: AP 6!e 3!urc! of t!e Latter #ay Saints !as used ad ertising for many years to market its a9 goods. b9 ser ices. c9 experiences. d9 production. e9 ideas. Ans: e AACSB: Communic tion, Product, DF: M 01: 01, P ge: / '!ic! of t!e following is most likel" to be an idea marketer( a9 3ar salesperson b9 4irline pilot c9 4ttorney d9 4buse counselor e9 Art!odontist Ans: d AACSB: An l"tic, Product DF: ' 01: 01,

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#eciding to add gel insoles to its running s!oes would be a c!ange in t!e <<<<< element of t!e marketing mix for :ike. a9 price b9 good c9 product d9 promotion e9 distribution Ans: c AACSB: An l"tic, Product DF: ' 01: 01, P ge: / T"#e: AP 8aking modifications to packaging or brand names in ol es t!e <<<<< component of t!e marketing mix. a9 price b9 promotion c9 market d9 distribution e9 product Ans: e AACSB: Reflective Thinking, Product, DF: M 01: 01, P ge: $ T"#e: %&

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

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Chapter 1: An Overview of Strategic Marketing ;ssues of in entory le els and storage costs are bot! concerns relating to t!e <<<<< ariable of t!e marketing mix. a9 distribution b9 product c9 exc!ange d9 price e9 promotion Ans: AACSB: Reflective Thinking, Distribution DF: ' 01: 01, P ge: $ T"#e: %& 5ob #onaldson runs a successful w!olesale business t!at sells e=uipment to restaurants t!roug!out t!e 8idwest. )e is considering purc!asing !is own fleet of trucks to deli er t!e e=uipment instead of relying on a s!ipper as !e is currently doing. 6!is most closely represents a decision about a9 w!ic! market !e s!ould target. b9 t!e best way to distribute !is products. c9 !ow to effecti ely promote !is business. d9 t!e product !e pro ides to !is customer. e9 w!ic! supplier !e s!ould use. Ans: b AACSB: Reflective Thinking, Distribution DF: M 01: 01, P ge: $ T"#e: AP 3onsumers buying products online !a e dramatically affected t!e <<<<<<<<<<< ariable of t!e marketing mix. a9 product b9 price c9 distribution d9 researc! e9 promotion Ans: c AACSB: Communic tion, Distribution DF: ' 01: 01, P ge: $ T"#e: %& 3!anging t!e !ours of operation for a ser ice business in ol es t!e <<<<< component of t!e marketing mix. a9 product b9 price c9 distribution d9 promotion e9 marketing concept Ans: c AACSB: Reflective Thinking, Distribution DF: M P ge: $ T"#e: %& '!ic! of t!e following scenarios in ol es t!e distribution element of t!e marketing mix( a9 #eciding w!et!er or not a certain product s!ould continue to be sold b9 #etermining w!et!er an ad ertising message would be more effecti e on tele ision or in maga?ines c9 3!oosing between a company 0et or t!e airlines for executi e tra el d9 #eciding w!et!er or not to !a e retail outlets in addition to a website e9 #e eloping a new warranty policy for an existing product Ans: d AACSB: An l"tic, Str teg", Distribution DF: M 01: 01, P ge: $ T"#e: %& 6!e element of t!e marketing mix used to increase awareness of a product or company is a9 communication. b9 product. c9 price. d9 distribution. e9 promotion. Ans: e AACSB: Communic tion, Promotion DF: ' 01: 01, P ge: $ T"#e: %&

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

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Chapter 1: An Overview of Strategic Marketing '!en #uPont de elops new carpet fibers t!at are !ig!ly stain-resistant and durable, it must educate consumers about t!e product+s benefits. 6!is calls for acti ity in w!ic! of t!e following marketing mix ariables( a9 Price b9 Promotion c9 #istribution d9 Product e9 Packaging Ans: b AACSB: Reflective Thinking, Promotion DF: ' 01: 01, P ge: $ T"#e: AP Boca Burger+s website features information about products, recipes, and nutritional alues, but customers cannot actually purc!ase products from t!e website. 6!is website is most likely used primarily as a <<<<<< marketing tool. a9 promotional b9 distributional c9 pricing d9 targeting e9 production Ans: AACSB: An l"tic, Promotion DF: M 01: 01, P ge: $ T"#e: AP '!en Burger Cing offers //-cent '!oppers to increase store traffic, it is altering w!ic! aspect of t!e marketing mix( a9 Price b9 Promotion c9 #istribution d9 Product e9 6arget market Ans: AACSB: An l"tic, Price DF: ' 01: 01, P ge: ( T"#e: AP

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'!en #ata3omp 3orp., a producer of computer software, delayed t!e introduction of its new spreads!eet program to modify t!e package, its sc!eduled maga?ine ad ertisements announcing t!e new product needed to be re ised. ;n t!is case, a c!ange in t!e <<<<<<<<<<< ariable caused c!anges in t!e <<<<<<<<<<< ariable of t!e marketing mix. a9 distributionD promotion b9 distributionD product c9 productD price d9 productD promotion e9 promotionD price Ans: d AACSB: Reflective Thinking, Str teg", Product, Promotion DF: M 01: 01, P ge: /+( T"#e: AP 8arketers often speak of t!e EcontrollableF ariables in t!e practice of marketing. '!ic! of t!e following is not considered one of t!e controlled ariables( a9 Product b9 Price c9 #istribution d9 3ompetition e9 Promotion Ans: d AACSB: Communic tion, M rketing #l n DF: ' 01: 01, P ge: ( T"#e: %&

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

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Chapter 1: An Overview of Strategic Marketing 6!e concept of Eexc!angeF is fundamental to t!e definition of marketing. '!at is t!e best description of e3ch nge( a9 4cti ities t!at are performed primarily by producers and manufacturers b9 #e elopment of products, distribution c!annels, promotional strategies, and pricing ob0ecti es to satisfy customer re=uirements c9 6ransfer of products in return for monetary considerations d9 Pro ision or transfer of goods, ser ices, or ideas in return for somet!ing of alue e9 6ransfer of products t!at takes place only between for-profit organi?ations Ans: d AACSB: Reflective Thinking, M rketing Pl n DF: ' 01: 01, P ge: ( T"#e: %& @or an exc!ange to occur, four conditions must existG first, two or more indi iduals, groups, or organi?ations must participate, and eac! must possess Esomet!ing of alueF t!at t!e ot!er desiresD second, t!e exc!ange must pro ide a benefit or satisfaction to bot! partiesD t!ird, eac! must !a e confidence in t!e promise of t!e Esomet!ing of alueF !eld by t!e ot!erD and fourt!, a9 t!e parties must agree to participate in t!e trading of Esomet!ing of alue.F b9 to build trust, parties to t!e exc!ange must meet expectations. c9 bot! parties must participate in t!e trading of t!e Esomet!ing of alue.F d9 one party must be willing to compromise. e9 one party must !a e sufficient bank credit to finance t!e exc!ange. Ans: b AACSB: Reflective Thinking, M rketing Pl n DF: M 01: 01, P ge: ( T"#e: %& 8ark goes to a ending mac!ine, deposits H1.11, and recei es a Sprite. '!ic! one of t!e following aspects of t!e definition of marketing is illustrated !ere( a9 Production conception b9 Satisfaction of organi?ational goals c9 #istribution of ideas d9 Product planning e9 %xc!ange Ans: e AACSB: An l"tic, M rketing Pl n DF: ' 01: 01, P ge: ( T"#e: AP 8arketing facilitates exc!ange relations!ips between buyers and sellers. '!at is marketing+s intended outcome for t!is relations!ip( a9 Profits for t!e seller b9 4 good bargain on t!e product for t!e buyer c9 5educing t!e seller+s in entory d9 Ane party !a ing to compromise in t!e exc!ange e9 Satisfaction for bot! t!e buyer and seller Ans: e AACSB: An l"tic, M rketing Pl n DF: ' 01: 01, P ge: ( T"#e: %& '!ic! of t!e following statements about marketing en ironment forces is not correct( a9 6!ey influence customers by affecting t!eir lifestyles, standards of li ing, and preferences and needs for products. b9 6!ey may influence customers+ reactions to a firm+s marketing mix. c9 6!ey fluctuate slowly and t!ereby create t!reats to a firm+s marketing mix. d9 6!ey can fluctuate =uickly and dramatically. e9 6!ey !elp determine w!et!er and !ow a marketing manager can perform certain marketing acti ities. Ans: c AACSB: An l"tic, M rketing Pl n DF: M 01: 01, P ge: )4 T"#e: C5

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

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Chapter 1: An Overview of Strategic Marketing 9 6!e forces of t!e marketing en ironment include a9 political, legal and regulatory, sociocultural, tec!nological, economic, and competiti e. b9 sociocultural, legal, regulatory, economic, and competiti e. c9 legal, regulatory, political, and sociocultural. d9 competiti e and noncompetiti e forces t!at affect most lifestyles. e9 fairly static components. Ans: AACSB: Communic tion, M rketing #l n DF: ' 01: 01, P ge: )4 T"#e: %& 4 marketing manager for a small computer manufacturer is analy?ing t!e potential effects of political, legal, sociocultural, and economic forces on t!e firm+s operations. 6!e marketing manager is examining t!e <<<<<<<<<<< t!at influence>s9 t!e firm+s strategy. a9 operating situation b9 marketing en ironment c9 surroundings d9 economic conditions e9 trends Ans: b AACSB: Reflective Thinking, M rketing Pl n, Str teg" DF: ' 01: 01, P ge: )4 T"#e: AP '!ic! of t!e following best c!aracteri?es t!e forces of t!e marketing en ironment( a9 6!e forces are relati ely stable o er time and are interrelated wit! one anot!er. b9 6!ere are few o erlapping aspects of t!ese forcesD t!erefore, a c!ange in one is unlikely to result in a c!ange in anot!er. c9 6!e arious forces ensure t!at t!e marketing en ironment will remain fairly certain in t!e future. d9 6!ese forces c!ange dramatically o er time, but a c!ange in one force is unlikely to impact anot!er force. e9 6!e forces c!ange dramatically and =uickly, and a c!ange in one force is likely to affect t!e ot!er forces. Ans: e AACSB: Reflective Thinking, M rketing Pl n DF: M 01: 01, P ge: )4 T"#e: %& 4 c!ange in t!e minimum drinking age in any gi en state illustrates a c!ange in t!e <<<<<<<<<<< for 8iller Brewing. a9 marketing mix b9 marketing en ironment c9 marketing concept d9 marketing task e9 product concept Ans: b AACSB: An l"tic, M rketing Pl n DF: D 01: 01, P ge: )4 T"#e: AP StarCist 6una announced a dolp!in-safe policy and stopped buying tuna from fis!ing essels t!at net dolp!ins. 6!is decision indicates a response to concerns about a9 target market selection. b9 t!e marketing en ironment. c9 t!e reduction of marketing costs. d9 marketing mix decisions. e9 efficiency in marketing acti ities. Ans: b AACSB: An l"tic, M rketing Pl n DF: M 01: 01, P ge: )4 T"#e: AP

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

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Chapter 1: An Overview of Strategic Marketing '!ic! of t!e following is essentially an uncontrollable factor in de eloping a marketing mix( a9 Product adaptations b9 Pricing strategies c9 Go ernment regulations d9 4d ertising campaigns e9 5etail locations Ans: c AACSB: An l"tic, M rketing Pl n DF: ' 01: 01, P ge: )4+)) T"#e: %& 6!e forces of t!e marketing en ironment primarily affect marketers in t!ree waysG 6!ey influence customers by affecting t!eir lifestyles and preferences for productsD t!ey determine w!et!er or !ow a marketing manager can perform certain marketing acti itiesD and t!ey a9 affect a marketing manager+s decisions and actions by influencing buyers+ reactions to t!e firm+s marketing mix. b9 dictate t!at c!anges be made to t!e existing marketing mix despite any negati e reactions from customers. c9 make most new products obsolete ery =uickly so t!at researc! and de elopment must continually de elop new products. d9 cause most ad ertising to be ineffecti e at communicating product benefits due to rapidly c!anging en ironmental forces. e9 c!ange a customer+s decisions about t!e appropriate marketing mix for t!e company and its arious products. Ans: AACSB: Reflective Thinking, M rketing Pl n DF: M 01: 01, P ge: )4 T"#e: %& 6!e marketing en ironment is best described as being a9 composed of controllable ariables. b9 composed of ariables independent of one anot!er. c9 an indirect influence on t!e performance of marketing acti ities. d9 dynamic and c!anging. e9 slow, wit! infre=uent fluctuations. Ans: d AACSB: An l"tic, M rketing Pl n DF: ' 01: 01,

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6!e marketing concept is best defined as a9 a second definition of marketing. b9 a p!ilosop!y stating t!at an organi?ation s!ould try to satisfy customers+ needs t!roug! a coordinated set of acti ities t!at allows t!e organi?ation to ac!ie e its goals. c9 t!e performance of business acti ities t!at direct t!e flow of goods and ser ices from producer to customer or user. d9 a p!ilosop!y stating t!at an organi?ation s!ould attempt to accomplis! its goals wit! no regard for t!e needs of customers. e9 t!e inclusion of marketing acti ities in t!e acti ities of an organi?ation. Ans: b AACSB: Reflective Thinking, M rketing Pl n, Str teg" DF: ' 01: 01P ge: )) T"#e: %& 4ccording to t!e marketing concept, an organi?ation s!ould try to a9 consider s!ort-run ob0ecti es and cas! flow needs before de eloping new products. b9 define its business as Emaking a product.F c9 pro ide products t!at satisfy customers+ needs and allow t!e organi?ation to ac!ie e its goals. d9 put most of its emp!asis on marketing acti ities and be less concerned wit! finance, accounting, and personnel. e9 iew selling acti ities as t!e ma0or means of increasing profits. Ans: c AACSB: Communic tion, M rketing #l n DF: ' 01: 01P ge: )) T"#e: %&

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

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Chapter 1: An Overview of Strategic Marketing 6!e marketing concept is a management p!ilosop!y t!at affects a9 only marketing acti ities. b9 all efforts of t!e organi?ation. c9 mainly t!e efforts of sales personnel. d9 mainly customer relations. e9 only business organi?ations. Ans: b AACSB: Communic tion, M rketing #l n DF: M 01: 01, P ge: )) T"#e: C5 6!e marketing concept focuses on a9 ac!ie ing t!e goals of top executi es. b9 creating maximum isibility for t!e firm. c9 maximi?ing sales. d9 maximi?ing market s!are. e9 satisfying customers+ needs in a way t!at !elps to ac!ie e organi?ational ob0ecti es. Ans: e AACSB: Communic tion, M rketing #l n DF: D 01: 01P ge: ))

11

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6!e marketing concept is a p!ilosop!y t!at states t!at an organi?ation s!ould try to satisfy customers+ needs and also a9 increase market s!are. b9 increase sales. c9 ac!ie e t!e organi?ation+s goals. d9 produce !ig!-=uality products. e9 coordinate its acti ities to increase production. Ans: c AACSB: Communic tion, M rketing #l n DF: ' 01: 01P ge: )) T"#e: %& '!ic! one of t!e following statements by a company president best reflects t!e marketing concept( a9 'e !a e organi?ed our business to make certain t!at customers get w!at t!ey want. b9 'e belie e t!at t!e marketing department must organi?e to sell w!at we produce. c9 'e !a e organi?ed an aggressi e sales force in our company to promote our products. d9 'e try to produce only !ig!-=uality, tec!nically efficient products. e9 'e try to encourage company growt!. Ans: AACSB: Reflective Thinking, Str teg" DF: M 01: 01P ge: )) T"#e: AP 6!e marketing concept affects a9 0ust t!e marketing department. b9 all organi?ational acti ities. c9 only marketing and finance. d9 only production and marketing. e9 few decisions in an organi?ation. Ans: b AACSB: Communic tion, M rketing #l n

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'!en 3ampbell+s introduced a line of low-sodium soups in response to customer demand, it was following w!ic! one of t!e following p!ilosop!ies( a9 Selling concept b9 Production concept c9 3ustomer concept d9 8arketing concept e9 5etailing concept Ans: d AACSB: Reflective Thinking, M rketing Pl n DF: D 01: 01P ge: ))2), T"#e: AP

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

12
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Chapter 1: An Overview of Strategic Marketing 6!e Iackson )ewitt company wants to adopt t!e marketing concept as a business p!ilosop!y. 6o be consistent wit! t!is decision, it s!ould adopt w!ic! of t!e following p!ilosop!ies( a9 6!e customer is always rig!t. b9 8aking money is our business. c9 Sell, sell, sell. d9 Ceep prices low. e9 @ocus on today. Ans: AACSB: Reflective Thinking, M rketing Pl n DF: ' 01: 01P ge: )) T"#e: AP 6!e marketing concept is a9 a management p!ilosop!y. b9 synonymous wit! exc!ange. c9 a component of t!e marketing mix. d9 a function of t!e marketing en ironment. e9 focused solely on satisfying customer ob0ecti es. Ans: AACSB: Communic tion, M rketing #l n

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4s t!e ;ndustrial 5e olution came to t!e 7nited States, most firms operated in a>n9 <<<<<<<<<<< orientation. a9 marketing b9 societal c9 sales d9 e olutionary e9 production Ans: e AACSB: Reflective Thinking, M rketing Pl n DF: M 01: 01P ge: ), T"#e: %& e#uring t!e ;ndustrial 5e olution demand for manufactured goods was a9 weak. b9 nonexistent. c9 declining. d9 strong. e9 mediocre. Ans: d AACSB: Reflective Thinking, M rketing Pl n 01: 01-

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@rom t!e 1/"1s to t!e 1/*1s, demand for manufactured goods decreased, leading to t!e <<<<<< orientation. a9 production b9 marketing c9 re olutionary d9 sales e9 reduction Ans: d AACSB: An l"tic, M rketing Pl n DF: ' 01: 01P ge: ), T"#e: %& 7.S. %lectric, t!e maker of a !ig!ly inno ati e xenon lig!t bulb, finds t!at it !as excess in entory. 6!e firm increases its ad ertising budget by *1 percent and doubles its sales staff. 6!is company is operating as if it were in w!ic! of t!e following orientations( a9 Production b9 Sales c9 8arketing d9 3ustomer e9 Societal Ans: b AACSB: Reflective Thinking, Str teg" DF: M 01: 01P ge: ),+)T"#e: AP

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

Chapter 1: An Overview of Strategic Marketing -,. 4merican %xpress implements a program of calling its current card!olders to find out w!at c!anges t!ey would like to see in t!e ser ices pro ided. 6!e firm is ex!ibiting c!aracteristics associated wit! w!ic! of t!e following orientations( a9 Production b9 Sales c9 8arketing d9 Social e9 #e elopment Ans: c AACSB: Reflective Thinking, M rketing Pl n DF: M 01: 01P ge: ),+)T"#e: AP 4 marketing orientation is an organi?ation-wide effort t!at includes all of t!e following acti ities e3ce#t a9 researc!ing customers+ needs. b9 focusing on t!e marketing department only. c9 generating marketing intelligence for use in t!e organi?ation. d9 being responsi e to customers+ e er-c!anging wants and needs. e9 disseminating marketing intelligence across departments wit!in t!e organi?ation. Ans: b AACSB: Reflective Thinking, Str teg" DF: M 01: 01P ge: )T"#e: C5

13

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'!ic! of t!e following best describes t!e acceptance of t!e marketing concept by 4merican organi?ations( a9 6!e marketing concept !as yet to be fully accepted by all organi?ations. b9 4ll organi?ations fully utili?e t!e marketing concept to run t!eir businesses. c9 :early !alf of all organi?ations are still in t!e sales orientation and !a e not implemented t!e marketing concept. d9 8ost organi?ations !a e really not accepted t!e marketing concept because of its many costs and problems. e9 4lt!oug! 4merican organi?ations fully accept t!e marketing concept, many foreign companies do not. Ans: AACSB: An l"tic, M rketing Pl n DF: ' 01: 01P ge: )T"#e: %& '!ic! of t!e following is not an example of t!e implementation of t!e marketing concept( a9 Iimmy #ean+s Sausage introduces turkey sausage patties for a !ealt!ier alternati e to pork. b9 8ar+s 3andy asks customers to ote online for a new color for its 8&8+s candy. c9 Burger Cing reduces t!e labor costs to produce its sausage-egg biscuits. d9 8icrosoft offers rewards for users w!o can find flaws in its new software. e9 Saab introduces pop-up rollo er bars in its con ertibles to protect its consumers in t!e e ent of a serious collision. Ans: c AACSB: An l"tic, Str teg" DF: M 01: 01P ge: )-+)* T"#e: AP )ealt! 3are Systems, ;nc. rolls out an inno ati e nurse-on-call information system a ailable online. 6!e product is not widely accepted because patients don+t see t!e need for suc! a ser ice. 6!is situation represents a failure in w!ic! aspect of implementing t!e marketing concept( a9 6!e customer information system b9 6!e organi?ational structure c9 6op-management commitment d9 6ec!nological ad ancement e9 Scanning corporate capabilities Ans: AACSB: An l"tic, M rketing Pl n DF: M 01: 01P ge: )-+)* T"#e: AP

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

14
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Chapter 1: An Overview of Strategic Marketing 8arketers use t!e term E<<<<<<<<<<<F to describe establis!ing long-term, mutually satisfying buyer-seller relations!ips. a9 relations!ip marketing b9 customer ser ice c9 marketing management d9 exc!ange e9 utility Ans: AACSB: Communic tion, M rketing #l n DF: ' 01: 01* P ge: )* T"#e: %& 6oday, establis!ing long-term, mutually beneficial arrangements in w!ic! bot! t!e buyer and seller focus on alue en!ancement t!roug! t!e creation of more satisfying exc!anges is known as a9 marketing synt!esis. b9 relations!ip marketing. c9 a marketing orientation. d9 t!e marketing concept. e9 strategic marketing. Ans: b AACSB: Communic tion, M rketing #l n DF: ' 01: 01* P ge: )* T"#e: %& 4 0unior marketing executi e at 8egaGrain 3ereals suggests increasing t!e package si?e and price of its best-selling brand wit!out increasing t!e amount of cereal inside t!e box. )er superior warns t!at t!is mig!t be a bad idea because 8egaGrain+s long-term sur i al, like most companies, depends on a9 cost-cutting measures. b9 continually selling to new customers and markets. c9 creating and maintaining satisfying exc!ange relations!ips. d9 !ig!- olume, low-margin sales. e9 increasing s!elf space for t!eir brands. Ans: c AACSB: 'thics, Str teg", Product DF: M 01: 01* P ge: )* T"#e: AP ;n managing customer relations!ips, t!e t!ree primary ways profits can be obtained are by a9 ac=uiring new customers, en!ancing t!e profitability of new customers, and s!ortening t!e duration of relations!ips wit! existing customers. b9 en!ancing t!e profitability of existing customers, eliminating customers w!o pro ide smaller profits, and finding new customers. c9 extending t!e lengt! of relations!ips wit! customers, cutting organi?ational costs, and en!ancing t!e profitability of new customers. d9 eliminating long-term customers w!o !a e decreased purc!ases, finding new customers, and increasing sales to existing customers. e9 en!ancing t!e profitability of existing customers, extending t!e duration of relations!ips wit! customers, and obtaining new customers. Ans: e AACSB: An l"tic, M rketing Pl n DF: ' 01: 01* P ge: )* T"#e: %& 3ustomer relations!ip management >3589 begins its focus on customers wit! a9 communication. b9 product. c9 distribution. d9 information. e9 promotion. Ans: d AACSB: Communic tion, M rketing #l n DF: ' 01: 01*

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

.,.

Chapter 1: An Overview of Strategic Marketing Long-term relations!ips wit! profitable customers is t!e key ob0ecti e of a9 personal selling. b9 customer relations!ip management. c9 production oriented firms. d9 e-marketing. e9 distribution c!annels. Ans: b AACSB: Communic tion, Str teg" DF: ' 01: 01* P ge: ). T"#e: %& 3ustomer relations!ip management focuses on using <<<<<<<<<<< about customers to create marketing strategies. a9 internal communication b9 information c9 purc!asing power insig!ts d9 marketing mix knowledge e9 implementation knowledge Ans: b AACSB: An l"tic, Str teg" DF: M 01: 01* P ge: ). T"#e: %&

15

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<<<<<<<< is a customer+s sub0ecti e assessment of benefits relati e to costs in determining t!e wort! of a product. a9 8arketing orientation b9 8onetary price c9 Product assessment d9 Price assessment e9 Jalue Ans: e AACSB: Communic tion, M rketing #l n DF: ' 01: 01* P ge: ). T"#e: %& 6!e e=uation a buyer applies to assess a product+s alue is a9 alue K monetary price L customer benefits. b9 alue K customer costs L customer benefits. c9 alue K customer benefits L customer costs. d9 alue K customer benefits L monetary price. e9 alue K customer benefits L time and effort. Ans: c AACSB: Communic tion, M rketing #l n DF: '

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3ustomer costs include anyt!ing t!e buyer must gi e up in order to obtain t!e benefits t!e product pro ides. 6!e most ob ious customer cost is a9 risk. b9 time. c9 monetary price. d9 effort. e9 a ailability. Ans: c AACSB: Communic tion, M rketing #l n DF: ' 01: 01* P ge: ). T"#e: %& '!ic! of t!e following would not be a customer cost considered in determination of product alue( a9 Product+s purc!ase price b9 6ime spent purc!asing t!e product c9 %ffort spent purc!asing t!e product d9 Benefits recei ed in t!e exc!ange for t!e products e9 5isk of purc!asing t!e product Ans: d AACSB: An l"tic, M rketing Pl n DF: M 01: 01* P ge: ). T"#e: C5

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

16
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Chapter 1: An Overview of Strategic Marketing Scott, a buyer for a medium-si?ed company, is assessing t!e alue of competing software products for use in !is firm. '!ic! of t!e following would not be a customer benefit considered in !is determination of t!is product+s alue( a9 Speed of deli ery b9 %ase of installation c9 4 ailability of tec!nical support d9 4 ailability of training assistance e9 8onetary price Ans: e AACSB: An l"tic, M rketing Pl n DF: ' 01: 01* P ge: ). T"#e: AP 6aco Bell is introducing some of its products into supermarkets, ending mac!ines, college campuses, and ot!er locations to increase its product a ailability and con enience. Ane reason 6aco Bell is doing so is to a9 decrease customer benefits. b9 increase customer costs. c9 increase customer alue. d9 increase distribution expenses. e9 decrease promotion expenses. Ans: c AACSB: An l"tic, Technolog", Str teg" DF: M 01: 01* P ge: ). T"#e: AP 8arketing management is defined as a process of a9 maintaining an appropriate and efficient marketing mix for a target market. b9 establis!ing performance standards and e aluating actual performances against t!ese standards. c9 pro iding products t!at satisfy customers+ needs t!roug! a coordinated set of acti ities. d9 facilitating satisfying exc!anges between an organi?ation and its customers. e9 planning, organi?ing, implementing, and controlling marketing acti ities. Ans: e AACSB: Communic tion, M rketing #l n DF: ' 01: 01. P ge: )/ T"#e: %& <<<<<< is t!e degree to w!ic! an exc!ange !elps ac!ie e an organi?ation+s ob0ecti es. a9 3ontrolling b9 %ffecti eness c9 Success rate d9 %fficiency e9 Ab0ecti ity Ans: b AACSB: Communic tion, M rketing #l n DF: ' 01: 01. P ge: )/

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<<<<<< refers to minimi?ing t!e resources an organi?ation must spend to ac!ie e a specific le el of desired exc!anges. a9 %ffecti eness b9 Producti ity c9 %fficiency d9 Ab0ecti ity e9 3ost cutting Ans: c AACSB: Communic tion, M rketing #l n DF: ' 01: 01. P ge: )/ T"#e: %& 4 systematic process of assessing opportunities and resources, determining marketing ob0ecti es, and de eloping a marketing strategy and plans for implementation and control describes w!ic! of t!e following marketing management acti ities( a9 Strategic planning b9 8arketing control c9 ;mplementation d9 Argani?ing e9 Planning Ans: e AACSB: An l"tic, Str teg" DF: ' 01: 01. P ge: )/ T"#e: %&

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2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

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Chapter 1: An Overview of Strategic Marketing #e eloping t!e internal structure of a firm+s marketing unit relates to w!ic! of t!e following marketing management acti ities( a9 8arketing control b9 ;mplementation c9 Argani?ing d9 Planning e9 8anaging Ans: c AACSB: An l"tic, Str teg" DF: D 01: 01. P ge: )/ T"#e: %& <<<<<<<<< of marketing plans !inges on coordination of marketing acti ities, moti ation of marketing personnel, and effecti e communication wit!in t!e marketing unit. a9 ;mplementation b9 Planning c9 Argani?ing d9 8arketing control e9 Strategic planning Ans: AACSB: Communic tion, M rketing #l n DF: M 01: 01. P ge: )/ T"#e: %&

17

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111. ;f 8c#onald+s runs a promotion ad ertising Big 8acs for H1.*1, it must ensure t!at eac! of t!e company+s restaurants !as sufficient staff and product on !and to !andle expected demand. 6!is relates to w!ic! of t!e following marketing management acti ities( a9 Strategic planning b9 Planning c9 Argani?ing d9 ;mplementation e9 8arketing control Ans: d AACSB: An l"tic, Str teg" DF: M 01: 01. P ge: )/ T"#e: AP 111. <<<<<<<<< is t!e process of establis!ing performance standards, comparing actual performance wit! establis!ed standards, and reducing t!e difference between desired and actual performance. a9 ;nternal control analysis b9 8arketing control c9 8arket flow regulation d9 %n ironmental market analysis e9 %xternal analysis Ans: b AACSB: Reflective Thinking, Str teg" DF: D 01: 01. P ge: )/ T"#e: %& 11". 6!e ;nternet !as been used as a searc! engine to find information about a marketer+s product or ser ice by about <<<< percent of adults in t!e 7.S. a9 ,* b9 -. c9 ." d9 /1 e9 // Ans: d AACSB: Communic tion, Technolog" DF: ' P ge: ,) T"#e: %&

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

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Chapter 1: An Overview of Strategic Marketing 11$. ;nitiati es intended to impro e an organi?ation+s positi e impact on society and t!e natural en ironment are called a9 en ironmental marketing b9 green marketing c9 socially-responsible marketing d9 energy-conscious marketing e9 socially-conscious marketing Ans: b AACSB: Communic tion, M rketing #l n DF: ' P ge: ,) T"#e: %& 11&. Anline sales account for about <<<< percent of all retail sales in t!e 7.S. a9 * b9 11 c9 "* d9 $1 e9 &1 Ans: AACSB: Communic tion, Technolog" DF: ' P ge: ,) 11*. @or most firms, t!e costs of marketing acti ities consume approximately w!at portion of t!e consumer+s dollar( a9 Ane-!alf b9 Ane-fift! c9 Ane-fourt! d9 Ane-t!ird e9 Ane-sixt! Ans: AACSB: Communic tion, M rketing #l n DF: M 01: 01! P ge: )$ T"#e: %& 11,. ;n today+s market en ironment, you mig!t pay H1* for a 3# by your fa orite musical artist. 4pproximately !ow muc! of t!at price goes to acti ities related to marketing >promotion, distribution, profit margins9( a9 H1.-1 b9 H$.&1 c9 H*.11 d9 H-.*1 e9 H1".-* Ans: d AACSB: An l"tic, Price DF: M 01: 01! P ge: )$ T"#e: AP 11-. 8arketing acti ities are a9 used by all si?es of organi?ations including for-profit, nonprofit, and go ernment agencies. b9 limited to use by larger for-profit and nonprofit organi?ations. c9 implemented only to increase profits for t!e organi?ation and to expand t!e scope of its customer base. d9 used by all types and si?es of businesses but are not used by nonprofit organi?ations. e9 used by small businesses and small nonprofit organi?ations t!e most. Ans: AACSB: Communic tion, M rketing #l n DF: ' 01: 01! P ge: )$ T"#e: %& 11.. 8arketing acti ities a9 are aimed at persuading customers t!roug! ad ertising. b9 in ol e mainly distribution and promotion decisions. c9 and selling acti ities are basically t!e same. d9 are important only w!en a firm is de eloping new products or entering new markets. e9 !elp sell an organi?ation+s products and generate financial resources for t!e firm. Ans: e AACSB: Communic tion, M rketing #l n DF: M 01: 01! P ge: )$ T"#e: %&

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

Chapter 1: An Overview of Strategic Marketing

19

11/. 8arketing knowledge and skills a9 are not necessary for a nonprofit organi?ation. b9 en!ance consumer awareness and !elp pro ide people wit! satisfying goods and ser ices. c9 constitute t!e marketing mix. d9 were most important during t!e production era. e9 are most aluable for ad ertising executi es but less important for w!olesalers and distributors. Ans: b AACSB: Communic tion, M rketing #l n DF: ' 01: 01! P ge: )( T"#e: %& 111. 6!e public is becoming more aware of !ow marketers+ acti ities affect t!e welfare of consumers and society. 4s a result, more firms are working to a9 raise prices in order to increase t!eir profits so t!at t!ey can contribute to p!ilant!ropic causes. b9 reduce t!e =uality of t!eir products in order to sa e money and pro ide less expensi e products to t!eir consumers. c9 reduce t!eir profits by donating more time and money to impro e social welfare and en ironmental conditions. d9 enact laws re=uiring companies to work toward t!e welfare of customers and society. e9 create a responsible approac! to de eloping long-term relations!ips wit! customers and society. Ans: e AACSB: Reflective Thinking, Str teg", 'thics DF: ' 01: 01! P ge: ,) T"#e: %& 111. 4pproximately w!at percentage of ci ilian workers in t!e 7nited States performs marketing acti ities( a9 "* to $$ percent b9 .1 to /" percent c9 &" to *1 percent d9 ,& to -, percent e9 11 to "1 percent Ans: AACSB: Communic tion, M rketing #l n DF: D 01: 01! P ge: ,T"#e: %& 7se t!e following to answer =uestions 11"-11,G Greensprings 3emetery in upstate :ew Mork, offers a full-ser ice funeral and burial t!at is non-toxic to t!e en ironment. 4ll materials used in t!e burial are natural and will decompose wit! no negati e impact. Greensprings+ ser ice is relati ely new in t!e 7nited States, but ser ices of t!is type are common in Great Britain. 4 typical burial in Greensprings+ cemetery includes a casket made from bamboo, wicker, paper, or ot!er natural material. 6!ere are no !eadstones of stone or concrete t!at will detract from t!e landscape, but trees and plants as NmarkersN are allowed. 6!e cost for a burial at Greensprings is approximately H$,111, compared to about H,,111 at most traditional cemeteries. 4lt!oug! business was slow at first, Greensprings is now experiencing an increase in t!e number of burials, due to referrals and a newly-de eloped website. 6!e owners of Greensprings were pre iously in t!e cemetery business, and are acti e conser ationists. 4fter conducting researc! and finding t!at t!ere were natural burial sites in Great Britain, t!ey wanted to pro ide an alternati e to ot!er en ironmentally-conscious 4mericans like t!emsel es. 11". 5eferrals and a new website !a e !elped Greensprings+ business grow. 6!ese would come under w!ic! of t!e following marketing mix ariables( a9 Product b9 Price c9 #istribution d9 Promotion e9 Promotion and price Ans: d AACSB: Reflective Thinking, Product, Price, Promotion, Distribution DF: ' 01: 01, P ge: /+$ T"#e: AP

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

Chapter 1: An Overview of Strategic Marketing

11$. Greensprings+ main competiti e ad antage o er traditional cemeteries comes from its attention to w!ic! element in t!e marketing mix( a9 Product b9 Price c9 Promotion d9 #istribution e9 8arketing researc! Ans: AACSB: Reflective Thinking, Str teg" DF: M 01: 01, P ge: /+( T"#e: AP 11&. 3ompared to Greensprings+ approac! to funerals, traditional cemeteries are using t!e <<<<<<<<< concept. a9 marketing b9 selling c9 product d9 people e9 ser ice Ans: c AACSB: Reflective Thinking, Str teg" DF: M 01: 01P ge: ))+), T"#e: AP 11*. 6!e owners of Greensprings 3emeteries are apparently operating under w!ic! of t!e following orientations( a9 Sales orientation b9 8arketing orientation c9 Production orientation d9 Business orientation e9 Profit orientation Ans: b AACSB: Reflective Thinking, Str teg" DF: ' 01: 01P ge: ),+)T"#e: AP 11,. Greensprings+ competitors, t!e traditional cemeteries, focus on ad ertising and personal selling of t!eir ser ices. 6!is indicates a>n9 <<<<<<<<< orientation. a9 sales b9 marketing c9 production d9 en ironmental e9 marketing concept Ans: AACSB: Reflective Thinking, Str teg" DF: ' 01: 01P ge: ),+)T"#e: AP 7se t!e following to answer =uestions 11--1"1G Paws and 3laws )otel is a full-ser ice pet salon and boarding kennel. Paws and 3laws !as an interacti e website w!ere customers can directly book a grooming appointment, obedience class, or o ernig!t accommodations for t!eir dog or cat. Paws and 3laws !as se eral unexpected ser ices, suc! as a ,11-s=uare foot swimming pool, complete wit! slide and dog-friendly graduated steps to !elp t!em exit t!e pool. 3ustomers can also drop t!eir dog or cat off eac! morning for pet day care. Paws and 3laws !as a pick-up and deli ery ser ice, webcams in e ery kennel so t!at pet families can iew t!eir pets w!ile away, and pet NfurnitureN so t!at t!e cats and dogs can lie on sofas 0ust like at !ome. Paws and 3laws is also open "& !ours a day, $,* days eac! year so t!at customers can pick up t!eir pet at any time. 6!e cost for an o ernig!t stay at Paws and 3laws a erages H*1, compared to competing kennels at about H$1. 6!e day care costs are H"* for eit!er a dog or cat. 6!e ma0ority of Paws and 3laws+ competitors don+t offer t!e day care ser ice, and re=uire an two-day minimum for o ernig!t stays. 3urrently, t!e Paws and 3laws )otel is operating in se eral large cities on t!e west coast, but is t!inking of expanding t!eir ser ices in more locations across t!e 7.S.

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

Chapter 1: An Overview of Strategic Marketing 21 6!e director of marketing at Paws and 3laws suggested talking to pet owners about w!at type of ser ices t!ey would like to !a e a ailable. 6!ese discussions led to t!e pet day care and "&-!our !ours of operation. Pre iously, Paws and 3laws was more interested in competing based on its prices. 11-. Paws and 3laws+ target market is most likel" to be w!ic! of t!e following( a9 6!e dogs and cats w!o stay t!ere b9 Pet owners w!o go on acation fre=uently c9 @amilies wit! small c!ildren and se eral pets d9 Suburban families wit! two-income !ouse!olds e9 7rban professionals w!o tra el often Ans: e AACSB: Reflective Thinking, M rketing Pl n DF: M 01: 01, T"#e: AP

P ge: *+.

11.. 6!e fact t!at Paws and 3laws is open "& !ours eac! day is part of w!ic! marketing mix ariable( a9 Product b9 Price c9 Promotion d9 #istribution e9 %n ironment Ans: d AACSB: Reflective Thinking, Product, Price, Promotion, Distribution DF: ' 01: 01, P ge: $ T"#e: AP 11/. Paws and 3laws is now in t!e process of employing t!e a9 marketing concept. b9 marketing mix. c9 promotion orientation. d9 sales orientation. e9 product orientation. Ans: AACSB: Reflective Thinking, Str teg" DF: '

01: 01-

P ge: ))2),

T"#e: AP

1"1. ;f Paws and 3laws employs t!e p!ilosop!y of building a relations!ip wit! its dog and cat customers, and t!eir owners, it will be implementing t!e a9 marketing concept. b9 production concept. c9 sales concept. d9 marketing mix. e9 marketing en ironment. Ans: AACSB: Reflective Thinking, Str teg" DF: ' 01: 01P ge: ))+), T"#e: AP 1"1. Pre iously, Paws and 3laws was most likely using w!ic! type of orientation( a9 8arketing b9 3ustomer c9 Sales d9 Production e9 Ser ice Ans: c AACSB: Reflective Thinking, Str teg" DF: ' 01: 01P ge: ),+)1"". 6 @ 8arketing consists primarily of selling and ad ertising. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' T"#e: %&

T"#e: AP

01: 01)

P ge: *

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

22

Chapter 1: An Overview of Strategic Marketing 1"$. 6 @ 6!e broadest and simplest definition of marketing states t!at it is t!e de elopment and efficient distribution of products for consumer segments. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' 01: 01) P ge: * T"#e: %& 1"&. 6 @ 3ustomers are t!e focal point of all marketing acti ities. Ans: True AACSB: Communic tion, M rketing #l n DF: ' T"#e: %&

01: 01)

P ge: *

1"*. 6 @ 4 family t!at organi?es and ad ertises a garage sale is performing marketing acti ities. Ans: True AACSB: Reflective Thinking, M rketing Pl n DF: ' 01: 01, P ge: * T"#e: %& 1",. 6 @ 4 target market is a specific group of customers on w!om an organi?ation focuses its marketing efforts. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01, P ge: * T"#e: %& 1"-. 6 @ 4 target market is always defined by demograp!ics. Ans: F lse AACSB: Communic tion, M rketing #l n

DF: M

P ge: !+/

T"#e: %&

1".. 6 @ 6arget markets can be people w!o bu" t!e product but do not necessarily use t!e product. Ans: True AACSB: Communic tion, M rketing #l n DF: M P ge: !+/ T"#e: %& 1"/. 6 @ 6!e marketing mix consists of t!ree ma0or ariablesG product, price, and distribution. Ans: F lse AACSB: Communic tion, Product, Price, Promotion, Distribution DF: ' P ge: . T"#e: %& 1$1. 6 @ ;n marketing, a product can be a good or a ser ice but not an idea. Ans: F lse AACSB: Communic tion, Product, DF: ' 01: 01,

01: 01,

P ge: /

T"#e: %&

1$1. 6 @ 8arketing efforts do not in ol e t!e design and de elopment of products. Ans: F lse AACSB: Communic tion, Product, DF: ' 01: 01, P ge: $ 1$". 6 @ Products can be goods, ser ices, or ideas. Ans: True AACSB: Communic tion, Product,

T"#e: %&

DF: '

01: 01,

P ge: /

T"#e: %&

1$$. 6 @ Ser ices are pro ided by applying !uman and mec!anical efforts to people or ob0ects. Ans: True AACSB: Communic tion, Product, DF: ' 01: 01, P ge: / T"#e: %& 1$&. 6 @ 6!e actual p!ysical production of goods is a marketing acti ity. Ans: F lse AACSB: Communic tion, Product, DF: ' 01: 01,

P ge: /+$

T"#e: %&

1$*. 6 @ Promotion can !elp sustain interest in establis!ed products t!at !a e long been a ailable. Ans: True AACSB: Communic tion, Promotion DF: ' 01: 01, P ge: $ T"#e: %&

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

Chapter 1: An Overview of Strategic Marketing

23

1$,. 6 @ 6!e distribution ariable in a marketing mix is directed toward making products a ailable in t!e =uantities desired to as many target market customers as possible and keeping t!e total in entory, transportation, and storage costs as low as possible. Ans: True AACSB: Communic tion, Distribution DF: M 01: 01, P ge: $ T"#e: %& 1$-. 6 @ 3ustomers are interested in a product+s price because t!ey are concerned about t!e alue obtained in an exc!ange. Ans: True AACSB: Communic tion, Price DF: ' 01: 01, P ge: ( T"#e: %& 1$.. 6 @ Price is seldom used as a competiti e tool. Ans: F lse AACSB: Communic tion, Price DF: '

01: 01,

P ge: (

T"#e: %&

1$/. 6 @ @or an exc!ange situation to arise, only one condition must existG two or more indi iduals, groups, or organi?ations must eac! possess somet!ing t!at t!ey alue and are willing to gi e up to recei e t!e Esomet!ing of alueF !eld by t!e ot!er indi idual, group, or organi?ation. Ans: F lse AACSB: Reflective Thinking, M rketing Pl n DF: M 01: 01, P ge: ( T"#e: %& 1&1. 6 @ @or an exc!ange to occur, at least one of t!e parties must be willing to gi e up !is or !er Esomet!ing of alue.F Ans: F lse AACSB: Reflective Thinking, M rketing Pl n DF: ' 01: 01, P ge: ( T"#e: %& 1&1. 6 @ 8arketing acti ities do not always result in exc!anges. Ans: True AACSB: Communic tion, M rketing #l n DF: M T"#e: %&

01: 01,

P ge: (

1&". 6 @ 6!e outcomes of a marketer+s decisions and actions may be affected by t!e ariables in t!e marketing en ironment. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01, P ge: )4 T"#e: %& 1&$. 6 @ 3!anges in t!e marketing en ironment always !urt marketing efforts. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' 01: 01, T"#e: %& 1&&. 6 @ 6!e marketing en ironment is a set of static, unc!anging surroundings. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' 01: 01, T"#e: %&

P ge: )4

P ge: )4

1&*. 6 @ 6!e marketing concept stresses t!at a business organi?ation can best ac!ie e its goal by pro iding customer satisfaction t!roug! coordinated acti ities. Ans: True AACSB: Communic tion, Str teg" DF: M 01: 01P ge: )) T"#e: %& 1&,. 6 @ 4c!ie ement of t!e firm+s o erall goals is part of t!e marketing concept. Ans: True AACSB: Communic tion, Str teg" DF: M 01: 01P ge: ))

T"#e: %&

1&-. 6 @ 6!e marketing concept is a p!ilosop!y t!at a business organi?ation s!ould employ to satisfy customers+ needs w!ile ac!ie ing t!e o erall goals of t!e organi?ation.

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

24

Chapter 1: An Overview of Strategic Marketing Ans: True AACSB: Reflective Thinking, Str teg"

DF: '

01: 01-

P ge: ))

T"#e: %&

1&.. 6 @ 6!e marketing concept is a p!ilant!ropic p!ilosop!y aimed at !elping customers at t!e expense of t!e business organi?ation. Ans: F lse AACSB: Reflective Thinking, Str teg" DF: M 01: 01P ge: )) T"#e: %& 1&/. 6 @ 6!e marketing concept is a management p!ilosop!y, not a second definition of marketing. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01P ge: ))+), T"#e: %& 1*1. 6 @ 6!e marketing concept deals only wit! marketing acti ities. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' T"#e: %&

01: 01-

P ge: ))

1*1. 6 @ Profit, e en at t!e expense of customers+ satisfaction, is t!e ma0or t!rust of t!e marketing concept. Ans: F lse AACSB: Reflective Thinking, Str teg" DF: ' 01: 01P ge: )) T"#e: %& 1*". 6 @ 6!e marketing concept directly affects marketing acti ities but s!ould !a e negligible impact on ot!er organi?ational acti ities. Ans: F lse AACSB: Communic tion, Str teg" DF: M 01: 01P ge: ))+), T"#e: %& 1*$. 6 @ 6!e marketing concept stresses t!at an organi?ation can best ac!ie e its ob0ecti es by being customer-oriented. Ans: True AACSB: Communic tion, Str teg" DF: ' 01: 01P ge: ))+), T"#e: %& 1*&. 6 @ 6!e marketing concept de eloped out of a se=uence of t!ree erasG t!e production orientation, t!e marketing orientation, and t!e industrial orientation. Ans: F lse AACSB: An l"tic, Str teg" DF: M 01: 01P ge: ))2), T"#e: %& 1**. 6 @ #uring t!e marketing orientation, businesspeople reali?ed t!at if t!ey could produce products efficiently, customers would buy t!em. Ans: F lse AACSB: An l"tic, Str teg" DF: ' 01: 01P ge: )T"#e: %& 1*,. 6 @ #uring t!e marketing orientation, businesspeople reali?ed t!at products, w!ic! by t!is time could be made relati ely efficiently, would !a e to be promoted t!roug! muc! personal selling and ad ertising. Ans: F lse AACSB: An l"tic, Str teg" DF: ' 01: 01P ge: )T"#e: %& 1*-. 6 @ 4 marketing orientation re=uires t!e organi?ation-wide generation of market intelligence pertaining to current and future customer needs, dissemination of t!e intelligence across departments, and organi?ation-wide responsi eness to it. Ans: True AACSB: An l"tic, Str teg" DF: ' 01: 01P ge: )T"#e: %& 1*.. 6 @ 6o implement t!e marketing concept, an organi?ation must first establis! an information system to disco er customers+ real needs and t!en use t!e information to create products to satisfy t!ose needs. Ans: True AACSB: An l"tic, Str teg" DF: ' 01: 01P ge: )-+)* T"#e: %& 1*/. 6 @ 6o satisfy customers+ ob0ecti es as well as its own, a company must coordinate all its acti ities.

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .

Ans: True

AACSB: An l"tic, Str teg"

Chapter 1: An Overview of Strategic Marketing DF: ' 01: 01P ge: )-+)* T"#e: %&

25

1,1. 6 @ 4t t!e most basic le el, profits can be obtained t!roug! relations!ips by ac=uiring new customers, en!ancing t!e profitability of existing customers, and extending t!e duration of customer relations!ips. Ans: True AACSB: An l"tic, Str teg" DF: ' 01: 01* P ge: )* T"#e: %& 1,1. 6 @ 5elations!ip marketing is s!ort-term, mutually beneficial arrangements in w!ic! t!e buyer and seller focus on t!e creation of satisfying exc!anges. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' 01: 01* P ge: )* T"#e: %& 1,". 6 @ 3ustomer relations!ip management is t!e use of information about customers to create marketing strategies t!at de elop and sustain desirable customer relations!ips. Ans: True AACSB: Communic tion, Str teg" DF: ' 01: 01* P ge: )* T"#e: %& 1,$. 6 @ ;n general, w!en marketers focus on customers c!osen for t!eir lifetime alue, t!ey earn lower profits in future periods t!an w!en t!ey focus on customers selected for ot!er reasons. Ans: F lse AACSB: Communic tion, Str teg" DF: M 01: 01* P ge: ). T"#e: %& 1,&. 6 @ Jalue K customer costs L customer benefits. Ans: F lse AACSB: Communic tion, M rketing #l n

DF: '

P ge: ).

T"#e: %&

1,*. 6 @ Basic and extended warranties can reduce risk, a ma0or customer cost. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01* T"#e: %& 1,,. 6 @ 3ustomer benefits include time and effort. Ans: F lse AACSB: Communic tion, M rketing #l n T"#e: %&

P ge: )!

DF: '

01: 01*

P ge: ).

1,-. 6 @ 6!e process people use to determine t!e alue of a product is not !ig!ly scientific. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01* P ge: ). T"#e: %& 1,.. 6 @ 8arketing management is t!e process of planning, organi?ing, implementing, and controlling marketing acti ities to facilitate and expedite exc!anges effecti ely and efficiently. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01. P ge: )/ T"#e: %& 1,/. 6 @ ;n marketing management, planning is a systematic process of assessing opportunities and resources, determining marketing ob0ecti es, and de eloping a marketing strategy and plans for implementation and control. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01. P ge: )/ T"#e: %& 1-1. 6 @ Argani?ing marketing acti ities !inges on coordination of marketing acti ities, moti ation of marketing personnel, and effecti e communication wit!in t!e unit. Ans: F lse AACSB: Reflective Thinking, Str teg" DF: M 01: 01. P ge: )/ T"#e: %&

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part.

26

Chapter 1: An Overview of Strategic Marketing 1-1. 6 @ ;mplementation of marketing plans re=uires moti ating marketing personnel, coordinating t!eir acti ities, and integrating t!eir acti ities bot! wit! t!ose in ot!er areas of t!e company and wit! t!e marketing efforts of personnel in external organi?ations. Ans: True AACSB: Reflective Thinking, Str teg" DF: ' 01: 01. P ge: )/ T"#e: %& 1-". 6 @ 8arketing costs consume about one-=uarter of a buyer+s dollar. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' T"#e: %& 1-$. 6 @ 8arketing costs consume about one-!alf of a buyer+s dollar. Ans: True AACSB: Communic tion, M rketing #l n DF: ' T"#e: %&

01: 01!

P ge: )$

01: 01!

P ge: )$

1-&. 6 @ @or a business organi?ation to remain !ealt!y and to sur i e, it must sell products and make profits. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01! P ge: )$ T"#e: %& 1-*. 6 @ Cnowing about marketing can !elp you e aluate t!e types of correcti e measures needed to stop =uestionable marketing practices. Ans: True AACSB: Communic tion, M rketing #l n DF: ' 01: 01! P ge: )( T"#e: %& 1-,. 6 @ 4pproximately "1 percent of ci ilian employees in t!is country perform marketing acti ities. Ans: F lse AACSB: Communic tion, M rketing #l n DF: ' 01: 01! P ge: ,T"#e: %&

2 "111 3engage Learning. 4ll 5ig!ts 5eser ed. 6!is edition is intended for use outside of t!e 7.S. only, wit! content t!at may be different from t!e 7.S. %dition. 8ay not be scanned, copied, duplicated, or posted to a publicly accessible website, in w!ole or in part. .