Chapter 01€¦ · Web viewChapter 01. Marketing in Today's Business Milieu True/False Questions...

Chapter 01 Marketing in Today's Business Milieu

Chapter 01Marketing in Today's Business Milieu

True/False Questions

1. Even with great marketing, vast numbers of potential customers have never heard of some products or services. True False

2. The American Marketing Association defines marketing as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large". True False

3. Marketing is relevant only to people in the organization that work directly in the marketing department. True False

4. Of all the business fields, marketing is most visible to people outside the organization. True False

5. Sustainability refers to practices of socially responsible firms that incorporate doing well by doing good. True False

6. A firm with a production orientation assumes that "if you build it, they will come". True False

7. Dell Computers employs one-to-one marketing by allowing a customer essentially to customize the product features that he or she desires. True False

1-1


8. Don Peppers and Martha Rogers popularized the term one-to-one marketing, True False

9. Fred Wiersema's book The New Market Leaders states that marketers will continue to more power than customers in both B2B and B2C markets. True False

10. Firms today have learned to be open about products and services with consumers who have endless sources of information, including blogs, chat rooms and independent Web sites. True False

11. Customer orientation and market orientation are opposing concepts. Customer-oriented firms look at customers as individuals and market-oriented firms look at the market as a whole. True False

12. Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients on Web sites enable them to self-diagnose and self-prescribe and saves the physician time. True False

13. Gen Yers tends to value relationships with marketers like State Farm Insurance in exactly the same way their parents do. True False

14. Little m marketing refers to tactics and programs the firm uses to reach its stakeholders. True False

1-2


15. Big M marketing refers to the strategic, long-term, firm-level commitment to investing in marketing. True False

16. It is important that everyone in the organization understand the concept of customer orientation. After all, every employee has an internal customer. True False

17. Firms today are beginning to understand the importance of marketing metrics to assess marketing performance. True False

Multiple Choice Questions

18. The _____________ aspect of a firm is generally the most visible to people outside the organization. A. Financial managementB. AccountingC. MarketingD. Information technologyE. Operations management

19. Great marketing starts with ______________________. A. Listening to customersB. Designing a great productC. Offering the lowest priceD. Word-of-mouth endorsementsE. Selling a product where customers can easily find it

1-3


20. Entrepreneurs and Fortune 500 firms alike should recognize that marketing efforts _____________. A. Need to instill basic marketing orientation in the entire organization including engineering, finance, and administrative staffsB. Include telling other people in the firm need to know what the marketing department is doing but others have no marketing responsibilityC. Should be the job for the "marketing department". Other departments should only be concerned with their core activities like manufacturing or financeD. Should include training only people who interact with customers to have a marketing focusE. None of the above

21. Last year, a professional golfer made $100,000,000 dollars from celebrity endorsements. This illustrates why many people think of marketing as primarily about ______________. A. Adding costs to productsB. Overstating claimsC. AdvertisingD. Pushy salespeopleE. Celebrities sponsor the best products

22. Marketing misnomers occur because many people think of marketing as __________. A. Pushy salespeopleB. Advertising and celebrity spokespersonsC. The firm's department of advertisingD. Overstated product claimsE. All of the above

23. When you tell someone you are a marketing major in college, he or she may think you want a career in ________________. A. ManagementB. Information technologyC. SalesD. Customer serviceE. Financial planning

1-4


24. __________ is not a marketing function. A. ResearchB. AdvertisingC. Brand developmentD. Public relationsE. Research and development

25. Peter Drucker, the father of modern management, stated that the only purpose of an organization is _____________. A. To create productsB. To make products affordable and accessible to the majority of the publicC. To improve the quality of life for all peopleD. To create a customerE. To respect the environment

26. Peter Drucker, the father of modern management, believed that marketing _____________. A. Should be a separate function within the businessB. That it is the business as seen from an internal point of viewC. That it is the business as seen from the customer's point of viewD. That is so basic that it is a central dimension of the entire businessE. Should improve the quality of life for society

27. AMA's first official definition of marketing was released in ______. A. 1925B. 1948C. 1967D. 1985

28. AMA's first official definition reflected its roots in ______. A. Advertising of all kinds of productsB. Sales of consumer packaged goodsC. Production in factoriesD. Distribution of agricultural productsE. Public relations and publicity

1-5


29. AMA's second official definition of marketing was released in ______. A. 1925B. 1948C. 1967D. 1985

30. AMA's second official definition of marketing reflected the view of that time towards marketing activities as ______. A. AdvertisingB. ProductionC. 4 PsD. SellingE. Distribution

31. AMA's current official definition of marketing was released in ______. A. 1965B. 1985C. 2000D. 2007

32. AMA's current official definition of marketing reflects the view towards marketing activities as ______. A. Focused on strategyB. Focused on tactics like using electronic commerce and new media like You TubeC. Focused on relationships with suppliers and customersD. Focused on value, through creating, communicating, delivering and exchanging offering that create valueE. A and D

1-6


33. After a recent 141-day strike, members of the union members in California went back to work at area grocery stores. The union negotiated raises, better healthcare benefits, and a one-tier pay scale. The role of the union may best be described as a ________. A. Governmental bodyB. StakeholderC. VendorD. Internal customerE. Management group

34. Companies that promote sustainability practices like Starbucks, that has a stringent recycling program, or General Electric, that makes compact fluorescent light bulbs (CFLs), are practicing ______________. A. Green marketingB. Public relationsC. PublicityD. Shotgun marketingE. One-to-one marketing

35. It took Nike ____ years to replace the greenhouse gas in the heels of Nike Air shoes. A. 3B. 6C. 10D. 14E. 18

36. Nike Air shoes were discovered to have a greenhouse gas in the heel air pocket. The company did not change the design _______________. A. Until some environmental groups found out and complainedB. Since it did not have to change under the lawC. Because engineers were working on more profitable designsD. Until it spent millions of dollars and many years to get a good new designE. A and D

1-7


37. Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's web site. Bryan is practicing the central tenet of marketing called ____________. A. ValueB. ExchangeC. GrowthD. SustainabilityE. Barter

38. Value may be defined as the ratio of bundled benefits received to the cost incurred by the customer to receive those benefits. ____________ is not thought of as one of the costs. A. Monetary costB. Time to shopC. Skill or expertiseD. Poor service qualityE. Customer satisfaction

39. Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T. This is an example of _____________. A. Production orientationB. Selling orientationC. Marketing orientationD. Buzz marketing orientationE. Business orientation

40. The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of _____________. A. Production orientationB. Selling orientationC. Marketing orientationD. Buzz marketing orientationE. Business orientation

1-8


41. High pressure selling _____________. A. Is practiced today by many companiesB. Has a marketing orientationC. Sparked laws to protect consumersD. A and CE. None of the above

42. Companies that conduct research using focus groups, consumer surveys, and in-person interviews most likely have a ____________. A. Production orientationB. Selling orientationC. Marketing orientationD. Buzz marketing orientationE. Business orientation

43. The marketing concept was introduced ______________. A. After the Civil WarB. After World War IC. After the Great DepressionD. In the 1950sE. In the 1960s

44. The marketing concept was first articulated in writing in the Annual Report of ______________. A. Ford Motor CompanyB. AT&TC. RCAD. General MotorsE. General Electric

1-9


45. Making a change in any of the marketing mix elements will _______________. A. Leave the other elements unchangedB. Possibly have an impact on another elementC. Have a domino effect on the other elementsD. Require the firm to introduce new productsE. Require an increase in promotion

46. Creating, communicating, delivering and exchanging offerings that have value may be thought of as ___________________. A. The marketing mix or 4 PsB. The firm's strategic planC. Sales orientationD. Production orientationE. Exchange

47. Creating value focuses on _____________________. A. Product developmentB. Branding and positioningC. Attention to serviceD. PricingE. All of the above

48. Communicating and delivering value focuses on _____________________. A. Supply chain managementB. Branding and positioningC. retailingD. integrated marketing communicationE. A, B, and D

1-10


49. The Clean-O company makes an all-purpose cleaner for the hospital and nursing home market that is guaranteed to kill 99% of staphylococcus germs, a major concern for medical facilities. The company is not interested in pursuing the consumer market. Clean-O has adopted a ___________. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. Relationship orientationE. Product orientation

50. Fernandez Brothers, Inc. provides accounting services to small businesses. Before and after tax season, the partners meet with each client company. It sends a monthly newsletter to update clients with tax changes. The firm's business practices revolve around putting the customer at the center when developing services and practices. Smith Brothers has adopted a ________________ approach. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. Relationship orientationE. Product orientation

51. Customers may visit the Land's End clothing web site and order a pair of jeans that will be made especially for them. Land's End has adopted a ___________ approach. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. Product orientationE. Relationship orientation

52. Don Peppers and Martha Rogers promote the idea of ____________. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. One-to-one marketing orientationE. Relationship orientation

1-11


53. The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service to feel tailored is known as ____. A. Market orientationB. Product orientationC. Differentiation orientationD. One-to-one marketing orientationE. Relationship orientation

54. _____________ is not part of the marketing mix. A. ProductB. DistributionC. PromotionD. PriceE. Manufacturing

55. High tech media options like cell phones and the internet have had a huge impact the ________ aspect of marketing A. ProductB. PromotionC. PriceD. DistributionE. Research

56. XYZ department store advertises the "biggest sale of the year" every weekend and offers extra bargains to early bird customers. ABC department store advertises seasonal sales and employees send handwritten notes to customers who spend more than a certain amount of money. This implies that _______________________. A. XYZ is short-term oriented and ABC is long-term orientedB. XYZ is focused on selling and ABC is focused on relationship buildingC. Both firms are trying to achieve the same goal of profitability so tactics do not matter.D. XYZ must be more successful since it advertises every weekE. Both a and b

1-12


57. Relationship-oriented firms are _______________; A. Driven by meeting this quarter's financial projectionsB. Seeking the most profitable customers who are highly satisfied with the firm's offeringC. Constantly investing in new customers and hope they become long-termD. Often scrambling to replace lost customersE. Trying to retain all customers

58. Jack wants to get his new computer from the most famous mass customization marketer. He should purchase from __________. A. CompaqB. Hewlett–PackardC. AppleD. DellE. Gateway

59. Customer Relationship Management is designed to __________. A. Assign a sales representative to a particular customerB. Allow software to manage marketingC. Facilitate higher levels of customer satisfactionD. Identify the most profitable customersE. C and D

60. __________ is not one of the new market realities identified by Fred Wiersema. A. Increase in demandB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate

1-13


61. The wristwatch industry was surprised when consumers began telling time by looking at their cell phones. This trend is identified by Wiersema's new market reality of _____________________. A. Increase in demandB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate

62. Walk into almost any grocery store today and the first thing you may see is ready-to-eat meals. This trend is identified by Wiersema's new market reality of _____________________. A. Increase in demandB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate

63. Jim got over 21 million hits when he visited a search engine to find out how to build his own web site. This trend is identified by Wiersema's new market reality of _____________________. A. Easy growth makes hard timesB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate

64. There are about ___________ of new packaged goods products introduced each year. A. 10,000B. 25,000C. 50,000D. 100,000E. over 500,000

1-14


65. The average consumer is exposed to about ___________ paid commercial messages every day. A. 500—1,000B. 1,000—2,000C. 600—3,000D. 2,000—4,000E. over 4,000

66. The average American eats out ___ times a week. A. 3B. 5C. 7D. 8E. 12

67. When Chili's, TGI Friday's , Outback Steakhouse and other fast-casual restaurants began offering curbside delivery for call-in customers, the trend seemed unnoticed by the ‘fast-food' chains like McDonalds. This illustrates Fred Wiersema's new market reality of ____________________. A. Competitors proliferateB. All secrets are open secretsC. Innovation is universalD. Information overwhelms and depreciatesE. Easy growth makes hard times

68. Kraft Foods planned to introduce more than 80 new products in 2008. This illustrates Fred Wiersema's new market reality of ____________________. A. Competitors proliferateB. All secrets are open secretsC. Innovation is universalD. Information overwhelms and depreciatesE. Easy growth makes hard times

1-15


69. In 2008, Verizon announced its intentions to purchase Alltel Wireless. This illustrates Fred Wiersema's new market reality of ____________________. A. Competitors proliferateB. All secrets are open secretsC. Innovation is universalD. Information overwhelms and depreciatesE. Easy growth makes hard times

70. The Internet has made it easy for customers to access information, disinformation, post their opinions and read other people's opinions. From a marketer's point of view, this has caused _______. A. A shift to product glut and customer shortageB. A shift in generational values and preferencesC. A shift in power from marketers to consumersD. A shift to demanding return on marketing investmentE. A shift to Marketing (Big M) and marketing (little m)

71. Generational shifts impact marketing in terms of human resources. Older and younger generations may have _________________. A. Different attitudes towards work life versus family lifeB. Expectations about job satisfaction and rewardsC. Preferred modes of learning and workingD. All of the aboveE. None of the above

72. State Farm Insurance offers products through a network of 16,000 independent agents. Assume that the company wants to launch a marketing campaign towards college students. Which marketing tactic would you recommend? A. TV advertising during the evening newsB. Sponsoring National Public Radio during morning drive timeC. Setting up a My Space contest to win gas moneyD. Sponsorship of a Rolling Stones concert tourE. Direct mail

1-16


73. In a series of chatty podcasts called "Talking About the Benjamins", Michael Patrick Duffy, CEO of a credit union, offered tips on money management to increase membership. Most likely these talks were aimed at ___________. A. TweensB. Gen XC. Gen YD. Silent GenerationE. Young BoomersF. Older Boomers

74. Starbucks does not use advertising to promote its stores. This decision most likely reflects the company's _____________. A. Advertising budgetB. Marketing (Big M)C. Marketing (little m)D. Relationship orientationE. Sales orientation

75. Strategic marketing refers to __________________. A. The firm's commitment to long-term growth through internal focus on production and customer satisfactionB. Working with competitors, when appropriate, and with suppliersC. Understanding the market, competitors, and other external forces, and focus on internal capabilities to plan for the futureD. Making a non-wavering commitment on which customers to serveE. The study of promotion, distribution, delivery, and production

76. The long-term objective of strategic marketing is ____________. A. Customer satisfaction at all costsB. Profitability through building a customer-oriented organizationC. Understanding where the company with be in 10, 20, 30 yearsD. Getting ahead while doing well in societyE. Studying the competition

1-17


77. Southwest Air was the only airline in the U.S. that did not lose money in the year following the 9/11 terrorist attacks on the United States in 2001. This decision most likely reflects the company's _____________. A. Advertising budgetB. Marketing (Big M)C. Marketing (little m)D. Relationship orientationE. Sales orientation

78. Customer orientation must be understood by _____________. A. The sales forceB. Top managementC. Top management and middle managementD. Frontline personnelE. Everyone in the organization

79. All internal organizational practices should be aligned around ____. A. The billing systemB. ManagementC. ManufacturingD. The customerE. Information technology

80. In order for Marketing (Big M) to succeed, it must be championed by __________. A. The sales forceB. Top managementC. Top management and middle managementD. Frontline personnelE. Everyone in the organization

1-18


81. Sheila and Barbara are billing department managers in a call center. Senior management has given employees only a limited amount of time to spend with each customer who phones. Sheila and Barbara want to make strategic marketing changes. They must have the support of ____________ in order to succeed. A. The sales forceB. Top managementC. Top management and middle managementD. Frontline personnelE. Everyone in the organization

82. (Little m) marketing includes ____________. A. Marketing strategyB. AdvertisingC. Brand imageD. A and CE. B and C

83. _______________ is an example a market-driving firm. A. AppleB. MicrosoftC. DisneyD. None of the aboveE. A, B, and C

84. Many companies today pay their advertising agencies based on how much sales or market share increase after a particular advertising campaign is executed. This most likely occurs because _____________. A. Marketing is viewed internally as an investmentB. There has been an increased demand for marketing accountability by CEOs and shareholdersC. Effective planning requires metricsD. If it can't be measured, it can't be managedE. All of the above

1-19


85. Today many CEOs and shareholders expect to measure results of marketing efforts because ___________. A. Marketing metrics today are designed to assign specific results to specific marketing programsB. They are unrealistic in believing that all marketing is measurableC. It is easy to doD. All of the aboveE. A and C

86. Marketing today is ____________. A. Essentially the same as 20 years agoB. Not impacted by the rest of the worldC. Seeks to add value by understanding the past of marketing and change drivers for the futureD. So confusing no one understands itE. Accountable only to shareholders and management

87. The purpose of marketing metrics is to ____________ key benchmarks for improvement just as financial metrics guide the financial management of the firm. A. identifyB. trackC. evaluateD. provideE. all of the above

1-20


Short Answer Questions

88. How does the American Marketing Association define marketing?

89. Identify marketing stakeholders.

90. Define societal marketing and give an example of a firm that practices it.

91. Give an example of an industry or firm that has transformed environmentally harmful products to environmentally friendly products.

1-21


92. How has the Internet empowered customers? Give an example.

93. How can a firm create marketing-driving strategies? Give an example.

94. Discuss the difference in being market-driven and market-driving. Give examples of each.

95. What does "everyone in the firm owns marketing" mean?

1-22


96. Give an example of a brand to which you have an emotional attachment. What has the firm done to create that emotional appeal?

Essay Questions

97. George inherited his family business 30 years ago. The company makes shelving for grocery and drug store chains. Three customers account for 85% of revenue. Recently, one of the grocers went out of business and George is struggling to find a customer to replace the lost revenue. His attitude towards marketing has always been that it is an unnecessary expense. George has asked you to give him advice. How can you dissuade him from the outdated ideas he has about this and other marketing misnomers.

98. Erin, a tenacious entrepreneur, has grown her closet organizer company to $20 million in sales and has 65 employees. She has directed the firm's marketing since its inception and believes she instinctively knows which marketing efforts will bring success. Her new assistant Heather, who just completed a Marketing Management course, wants to find a way to measure results. What should Heather say to Erin to convince her this is necessary?

1-23


99. Paul and Bryce are writing a business plan to submit to a bank to ask for a loan to start a French restaurant. Paul has worked in finance for five years and Bryce is a chef. Unfortunately, neither has much experience in marketing and they think that marketing equals advertising. They have asked you to explain the marketing concept as it is viewed today. What do you say?

100. State Farm Insurance offers products through a network of 16,000 independent agents. Assume that the company wants to launch a marketing campaign towards college students. What does State Farm need to know about the way Gen X communicates? What marketing tactics would you recommend and why?

101. What conditions existed after World War II that caused the marketing concept to emerge? What marked the transition from the selling concept to the marketing concept?

1-24


102. Firms such as General Electric and Starbucks try to practice the concept of "doing well by doing good". What does this mean? What are some of the challenges faced by a firm that wants to create products that fit this concept?

103. Long-term oriented firms need to be aware of change drivers that most likely will have a significant impact on the future of marketing and business in general. What areas of shift do you recommend these firms study?

1-25


104. Bedtime Mattress Company is sales-driven. The company has high levels of employee turnover, frequent sales, and is short-term oriented. What do you believe management should know about Big M Marketing and little m marketing?

105. Which two brands do you think do a good job of connecting emotionally to the consumer? Support your answer with examples of what the firm has done to make that emotional appeal to the consumer. Can you defend your claims with tactics in addition to advertising?

1-26


Chapter 01 Marketing in Today's Business Milieu Answer Key

True/False Questions

1. (p. 3) Even with great marketing, vast numbers of potential customers have never heard of some products or services. TRUE

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Identify marketing misnomers

2. (p. 4) The American Marketing Association defines marketing as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large". TRUE

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Define marketing

3. (p. 4) Marketing is relevant only to people in the organization that work directly in the marketing department. FALSE

AACSB Standard: reflective thinkingBloom's Taxonomy: comprehensionDifficulty: EasyLearning Objective: Identify marketing misnomers

1-27


4. (p. 6) Of all the business fields, marketing is most visible to people outside the organization. TRUE

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Define marketing and marketing management

5. (p. 9) Sustainability refers to practices of socially responsible firms that incorporate doing well by doing good. TRUE

AACSB Standard: ethicsBloom's Taxonomy: comprehensionDifficulty: EasyLearning Objective: Understand the evolution of marketing

6. (p. 12) A firm with a production orientation assumes that "if you build it, they will come". TRUE

AACSB Standard: reflective thinkingBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Understand the evolution of marketing

7. (p. 16) Dell Computers employs one-to-one marketing by allowing a customer essentially to customize the product features that he or she desires. TRUE

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: moderateLearning Objective: Understand the evolution of marketing

1-28


8. (p. 15) Don Peppers and Martha Rogers popularized the term one-to-one marketing, TRUE

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: marketing evolution

9. (p. 16) Fred Wiersema's book The New Market Leaders states that marketers will continue to more power than customers in both B2B and B2C markets. FALSE

AACSB Standard: reflective thinkingBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Understand the evolution of marketing

10. (p. 18) Firms today have learned to be open about products and services with consumers who have endless sources of information, including blogs, chat rooms and independent Web sites. TRUE

AACSB Standard: information technologyBloom's Taxonomy: applicationDifficulty: moderateLearning Objective: Understand the evolution of marketing

1-29


11. (p. 15) Customer orientation and market orientation are opposing concepts. Customer-oriented firms look at customers as individuals and market-oriented firms look at the market as a whole. FALSE

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: difficultLearning Objective: Evolution of marketing

12. (p. 19) Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients on Web sites enable them to self-diagnose and self-prescribe and saves the physician time. FALSE

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Define marketing and marketing management

13. (p. 21) Gen Yers tends to value relationships with marketers like State Farm Insurance in exactly the same way their parents do. FALSE

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Understand the evolution of marketing

1-30


14. (p. 21) Little m marketing refers to tactics and programs the firm uses to reach its stakeholders. TRUE

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Define marketing and marketing management

15. (p. 20) Big M marketing refers to the strategic, long-term, firm-level commitment to investing in marketing. TRUE

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Define marketing and marketing management

16. (p. 21) It is important that everyone in the organization understand the concept of customer orientation. After all, every employee has an internal customer. TRUE

AACSB Standard: CommunicationBloom's Taxonomy: comprehensionDifficulty: EasyLearning Objective: Define marketing and marketing management

17. (p. 22) Firms today are beginning to understand the importance of marketing metrics to assess marketing performance. TRUE

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Understand the evolution of marketing

1-31


Multiple Choice Questions 18. (p. 5) The _____________ aspect of a firm is generally the most visible to people outside the organization. A. Financial managementB. AccountingC. MarketingD. Information technologyE. Operations management


19. (p. 3) Great marketing starts with ______________________. A. Listening to customersB. Designing a great productC. Offering the lowest priceD. Word-of-mouth endorsementsE. Selling a product where customers can easily find it


20. (p. 3) Entrepreneurs and Fortune 500 firms alike should recognize that marketing efforts _____________. A. Need to instill basic marketing orientation in the entire organization including engineering, finance, and administrative staffsB. Include telling other people in the firm need to know what the marketing department is doing but others have no marketing responsibilityC. Should be the job for the "marketing department". Other departments should only be concerned with their core activities like manufacturing or financeD. Should include training only people who interact with customers to have a marketing focusE. None of the above


1-32


21. (p. 5) Last year, a professional golfer made $100,000,000 dollars from celebrity endorsements. This illustrates why many people think of marketing as primarily about ______________. A. Adding costs to productsB. Overstating claimsC. AdvertisingD. Pushy salespeopleE. Celebrities sponsor the best products

AACSB Standard: reflective thinkingBloom's Taxonomy: AnalysisDifficulty: moderateLearning Objective: Identify marketing misnomers

22. (p. 4) Marketing misnomers occur because many people think of marketing as __________. A. Pushy salespeopleB. Advertising and celebrity spokespersonsC. The firm's department of advertisingD. Overstated product claimsE. All of the above

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Identify marketing misnomers

1-33


23. (p. 5) When you tell someone you are a marketing major in college, he or she may think you want a career in ________________. A. ManagementB. Information technologyC. SalesD. Customer serviceE. Financial planning

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Identify marketing misnomers

24. (p. 7) __________ is not a marketing function. A. ResearchB. AdvertisingC. Brand developmentD. Public relationsE. Research and development

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Identify marketing misnomers

25. (p. 8) Peter Drucker, the father of modern management, stated that the only purpose of an organization is _____________. A. To create productsB. To make products affordable and accessible to the majority of the publicC. To improve the quality of life for all peopleD. To create a customerE. To respect the environment

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: difficultLearning Objective: Understand the evolution of marketing

1-34


26. (p. 8) Peter Drucker, the father of modern management, believed that marketing _____________. A. Should be a separate function within the businessB. That it is the business as seen from an internal point of viewC. That it is the business as seen from the customer's point of viewD. That is so basic that it is a central dimension of the entire businessE. Should improve the quality of life for society


27. (p. 9) AMA's first official definition of marketing was released in ______. A. 1925B. 1948C. 1967D. 1985


28. (p. 9) AMA's first official definition reflected its roots in ______. A. Advertising of all kinds of productsB. Sales of consumer packaged goodsC. Production in factoriesD. Distribution of agricultural productsE. Public relations and publicity


29. (p. 9) AMA's second official definition of marketing was released in ______. A. 1925B. 1948C. 1967D. 1985


1-35


30. (p. 9) AMA's second official definition of marketing reflected the view of that time towards marketing activities as ______. A. AdvertisingB. ProductionC. 4 PsD. SellingE. Distribution


31. (p. 8) AMA's current official definition of marketing was released in ______. A. 1965B. 1985C. 2000D. 2007


1-36


32. (p. 8) AMA's current official definition of marketing reflects the view towards marketing activities as ______. A. Focused on strategyB. Focused on tactics like using electronic commerce and new media like You TubeC. Focused on relationships with suppliers and customersD. Focused on value, through creating, communicating, delivering and exchanging offering that create valueE. A and D

AACSB Standard: reflective thinkingBloom's Taxonomy: knowledgeDifficulty: difficultLearning Objective: Understand the evolution of marketing

33. (p. 9) After a recent 141-day strike, members of the union members in California went back to work at area grocery stores. The union negotiated raises, better healthcare benefits, and a one-tier pay scale. The role of the union may best be described as a ________. A. Governmental bodyB. StakeholderC. VendorD. Internal customerE. Management group

AACSB Standard: reflective thinkingBloom's Taxonomy: knowledgeDifficulty: difficultLearning Objective: Define marketing and marketing management

1-37


34. (p. 10) Companies that promote sustainability practices like Starbucks, that has a stringent recycling program, or General Electric, that makes compact fluorescent light bulbs (CFLs), are practicing ______________. A. Green marketingB. Public relationsC. PublicityD. Shotgun marketingE. One-to-one marketing

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Recognize key change drivers for the future

35. (p. 10) It took Nike ____ years to replace the greenhouse gas in the heels of Nike Air shoes. A. 3B. 6C. 10D. 14E. 18

AACSB Standard: ethicsBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Define what marketing and marketing management really are

36. (p. 10) Nike Air shoes were discovered to have a greenhouse gas in the heel air pocket. The company did not change the design _______________. A. Until some environmental groups found out and complainedB. Since it did not have to change under the lawC. Because engineers were working on more profitable designsD. Until it spent millions of dollars and many years to get a good new designE. A and D

AACSB Standard: ethicsBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Define what marketing and marketing management really are

1-38


37. (p. 10) Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's web site. Bryan is practicing the central tenet of marketing called ____________. A. ValueB. ExchangeC. GrowthD. SustainabilityE. Barter

AACSB Standard: CommunicationBloom's Taxonomy: comprehensionDifficulty: EasyLearning Objective: Define marketing and marketing management

38. (p. 10) Value may be defined as the ratio of bundled benefits received to the cost incurred by the customer to receive those benefits. ____________ is not thought of as one of the costs. A. Monetary costB. Time to shopC. Skill or expertiseD. Poor service qualityE. Customer satisfaction

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Define marketingLearning Objective: marketing management

1-39


39. (p. 12) Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T. This is an example of _____________. A. Production orientationB. Selling orientationC. Marketing orientationD. Buzz marketing orientationE. Business orientation

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Understand the evolution of marketing

40. (p. 12) The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of _____________. A. Production orientationB. Selling orientationC. Marketing orientationD. Buzz marketing orientationE. Business orientation

AACSB Standard: CommunicationBloom's Taxonomy: comprehensionDifficulty: moderateLearning Objective: Understand the evolution of marketing

1-40


41. (p. 12) High pressure selling _____________. A. Is practiced today by many companiesB. Has a marketing orientationC. Sparked laws to protect consumersD. A and CE. None of the above

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Understand the evolution of marketing

1-41


42. (p. 13) Companies that conduct research using focus groups, consumer surveys, and in-person interviews most likely have a ____________. A. Production orientationB. Selling orientationC. Marketing orientationD. Buzz marketing orientationE. Business orientation


43. (p. 12) The marketing concept was introduced ______________. A. After the Civil WarB. After World War IC. After the Great DepressionD. In the 1950sE. In the 1960s


44. (p. 13) The marketing concept was first articulated in writing in the Annual Report of ______________. A. Ford Motor CompanyB. AT&TC. RCAD. General MotorsE. General Electric


1-42


45. (p. 13) Making a change in any of the marketing mix elements will _______________. A. Leave the other elements unchangedB. Possibly have an impact on another elementC. Have a domino effect on the other elementsD. Require the firm to introduce new productsE. Require an increase in promotion

AACSB Standard: CommunicationBloom's Taxonomy: comprehensionDifficulty: moderateLearning Objective: Define marketing and marketing management

46. (p. 11, 13) Creating, communicating, delivering and exchanging offerings that have value may be thought of as ___________________. A. The marketing mix or 4 PsB. The firm's strategic planC. Sales orientationD. Production orientationE. Exchange

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Understand the evolution of marketing

47. (p. 14) Creating value focuses on _____________________. A. Product developmentB. Branding and positioningC. Attention to serviceD. PricingE. All of the above

AACSB Standard: analyticBloom's Taxonomy: comprehensionDifficulty: moderateLearning Objective: Understand the evolution of marketing

1-43


48. (p. 14) Communicating and delivering value focuses on _____________________. A. Supply chain managementB. Branding and positioningC. retailingD. integrated marketing communicationE. A, B, and D


49. (p. 14) The Clean-O company makes an all-purpose cleaner for the hospital and nursing home market that is guaranteed to kill 99% of staphylococcus germs, a major concern for medical facilities. The company is not interested in pursuing the consumer market. Clean-O has adopted a ___________. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. Relationship orientationE. Product orientation

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: most difficultLearning Objective: Understand the evolution of marketing

1-44


50. (p. 15) Fernandez Brothers, Inc. provides accounting services to small businesses. Before and after tax season, the partners meet with each client company. It sends a monthly newsletter to update clients with tax changes. The firm's business practices revolve around putting the customer at the center when developing services and practices. Smith Brothers has adopted a ________________ approach. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. Relationship orientationE. Product orientation

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: most difficultLearning Objective: Understand the evolution of marketing

51. (p. 16) Customers may visit the Land's End clothing web site and order a pair of jeans that will be made especially for them. Land's End has adopted a ___________ approach. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. Product orientationE. Relationship orientation

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: difficultLearning Objective: Understand the evolution of marketing

1-45


52. (p. 15) Don Peppers and Martha Rogers promote the idea of ____________. A. Market orientationB. Mass customization orientationC. Differentiation orientationD. One-to-one marketing orientationE. Relationship orientation


53. (p. 15-16) The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service to feel tailored is known as ____. A. Market orientationB. Product orientationC. Differentiation orientationD. One-to-one marketing orientationE. Relationship orientation


1-46


54. (p. 13) _____________ is not part of the marketing mix. A. ProductB. DistributionC. PromotionD. PriceE. Manufacturing


55. (p. 13-14) High tech media options like cell phones and the internet have had a huge impact the ________ aspect of marketing A. ProductB. PromotionC. PriceD. DistributionE. Research

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: moderateLearning Objective: Understand the evolution of marketing

1-47


56. (p. 13-15) XYZ department store advertises the "biggest sale of the year" every weekend and offers extra bargains to early bird customers. ABC department store advertises seasonal sales and employees send handwritten notes to customers who spend more than a certain amount of money. This implies that _______________________. A. XYZ is short-term oriented and ABC is long-term orientedB. XYZ is focused on selling and ABC is focused on relationship buildingC. Both firms are trying to achieve the same goal of profitability so tactics do not matter.D. XYZ must be more successful since it advertises every weekE. Both a and b

AACSB Standard: reflective thinkingBloom's Taxonomy: applicationDifficulty: moderateLearning Objective: Understand the evolution of marketing

57. (p. 15) Relationship-oriented firms are _______________; A. Driven by meeting this quarter's financial projectionsB. Seeking the most profitable customers who are highly satisfied with the firm's offeringC. Constantly investing in new customers and hope they become long-termD. Often scrambling to replace lost customersE. Trying to retain all customers

AACSB Standard: reflective thinkingBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Understand the evolution of marketing

1-48


58. (p. 16) Jack wants to get his new computer from the most famous mass customization marketer. He should purchase from __________. A. CompaqB. Hewlett–PackardC. AppleD. DellE. Gateway

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Understand the evolution of marketing

59. (p. 15) Customer Relationship Management is designed to __________. A. Assign a sales representative to a particular customerB. Allow software to manage marketingC. Facilitate higher levels of customer satisfactionD. Identify the most profitable customersE. C and D

AACSB Standard: analyticAACSB Standard: reflective thinkingBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Key change drivers on the future of marketing

60. (p. 16) __________ is not one of the new market realities identified by Fred Wiersema. A. Increase in demandB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: difficultLearning Objective: Key change drivers on the future of marketing

1-49


61. (p. 17) The wristwatch industry was surprised when consumers began telling time by looking at their cell phones. This trend is identified by Wiersema's new market reality of _____________________. A. Increase in demandB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Key change drivers on the future of marketing

62. (p. 17) Walk into almost any grocery store today and the first thing you may see is ready-to-eat meals. This trend is identified by Wiersema's new market reality of _____________________. A. Increase in demandB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate


1-50


63. (p. 17) Jim got over 21 million hits when he visited a search engine to find out how to build his own web site. This trend is identified by Wiersema's new market reality of _____________________. A. Easy growth makes hard timesB. Customers have less time than everC. Information overwhelms and depreciatesD. All secrets are open secretsE. Competitors proliferate

AACSB Standard: analyticBloom's Taxonomy: comprehensionDifficulty: EasyLearning Objective: Key change drivers on the future of marketing

64. (p. 17) There are about ___________ of new packaged goods products introduced each year. A. 10,000B. 25,000C. 50,000D. 100,000E. over 500,000

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Recognize key change drivers for the future

1-51


65. (p. 16) The average consumer is exposed to about ___________ paid commercial messages every day. A. 500—1,000B. 1,000—2,000C. 600—3,000D. 2,000—4,000E. over 4,000

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Recognize key change drivers for the future

66. (p. 18) The average American eats out ___ times a week. A. 3B. 5C. 7D. 8E. 12

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Key change drivers on the future of marketing

1-52


67. (p. 17) When Chili's, TGI Friday's , Outback Steakhouse and other fast-casual restaurants began offering curbside delivery for call-in customers, the trend seemed unnoticed by the ‘fast-food' chains like McDonalds. This illustrates Fred Wiersema's new market reality of ____________________. A. Competitors proliferateB. All secrets are open secretsC. Innovation is universalD. Information overwhelms and depreciatesE. Easy growth makes hard times

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: most difficultLearning Objective: Key change drivers on the future of marketing

68. (p. 17) Kraft Foods planned to introduce more than 80 new products in 2008. This illustrates Fred Wiersema's new market reality of ____________________. A. Competitors proliferateB. All secrets are open secretsC. Innovation is universalD. Information overwhelms and depreciatesE. Easy growth makes hard times

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: most difficultLearning Objective: Key change drivers on the future of marketing

1-53


69. (p. 17) In 2008, Verizon announced its intentions to purchase Alltel Wireless. This illustrates Fred Wiersema's new market reality of ____________________. A. Competitors proliferateB. All secrets are open secretsC. Innovation is universalD. Information overwhelms and depreciatesE. Easy growth makes hard times

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: most difficultLearning Objective: Key change drivers on the future of marketing

70. (p. 18) The Internet has made it easy for customers to access information, disinformation, post their opinions and read other people's opinions. From a marketer's point of view, this has caused _______. A. A shift to product glut and customer shortageB. A shift in generational values and preferencesC. A shift in power from marketers to consumersD. A shift to demanding return on marketing investmentE. A shift to Marketing (Big M) and marketing (little m)

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: difficultLearning Objective: Key change drivers on the future of marketing

1-54


71. (p. 19) Generational shifts impact marketing in terms of human resources. Older and younger generations may have _________________. A. Different attitudes towards work life versus family lifeB. Expectations about job satisfaction and rewardsC. Preferred modes of learning and workingD. All of the aboveE. None of the above


72. (p. 19) State Farm Insurance offers products through a network of 16,000 independent agents. Assume that the company wants to launch a marketing campaign towards college students. Which marketing tactic would you recommend? A. TV advertising during the evening newsB. Sponsoring National Public Radio during morning drive timeC. Setting up a My Space contest to win gas moneyD. Sponsorship of a Rolling Stones concert tourE. Direct mail

AACSB Standard: reflective thinkingBloom's Taxonomy: applicationDifficulty: EasyLearning Objective: Understand the evolution of marketing

1-55


73. (p. 19) In a series of chatty podcasts called "Talking About the Benjamins", Michael Patrick Duffy, CEO of a credit union, offered tips on money management to increase membership. Most likely these talks were aimed at ___________. A. TweensB. Gen XC. Gen YD. Silent GenerationE. Young BoomersF. Older Boomers


74. (p. 19-20) Starbucks does not use advertising to promote its stores. This decision most likely reflects the company's _____________. A. Advertising budgetB. Marketing (Big M)C. Marketing (little m)D. Relationship orientationE. Sales orientation

AACSB Standard: analyticBloom's Taxonomy: comprehensionDifficulty: moderateLearning Objective: Define marketing and marketing management

1-56


75. (p. 20) Strategic marketing refers to __________________. A. The firm's commitment to long-term growth through internal focus on production and customer satisfactionB. Working with competitors, when appropriate, and with suppliersC. Understanding the market, competitors, and other external forces, and focus on internal capabilities to plan for the futureD. Making a non-wavering commitment on which customers to serveE. The study of promotion, distribution, delivery, and production

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: most difficultLearning Objective: Define marketing and marketing management

76. (p. 20) The long-term objective of strategic marketing is ____________. A. Customer satisfaction at all costsB. Profitability through building a customer-oriented organizationC. Understanding where the company with be in 10, 20, 30 yearsD. Getting ahead while doing well in societyE. Studying the competition

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: most difficultLearning Objective: Define marketing and marketing management

1-57


77. (p. 20-21) Southwest Air was the only airline in the U.S. that did not lose money in the year following the 9/11 terrorist attacks on the United States in 2001. This decision most likely reflects the company's _____________. A. Advertising budgetB. Marketing (Big M)C. Marketing (little m)D. Relationship orientationE. Sales orientation

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: moderateLearning Objective: Define marketing and marketing management

78. (p. 21) Customer orientation must be understood by _____________. A. The sales forceB. Top managementC. Top management and middle managementD. Frontline personnelE. Everyone in the organization

AACSB Standard: CommunicationBloom's Taxonomy: knowledgeDifficulty: EasyLearning Objective: Recognize key change drivers for the future

1-58


79. (p. 21) All internal organizational practices should be aligned around ____. A. The billing systemB. ManagementC. ManufacturingD. The customerE. Information technology


80. (p. 21) In order for Marketing (Big M) to succeed, it must be championed by __________. A. The sales forceB. Top managementC. Top management and middle managementD. Frontline personnelE. Everyone in the organization


1-59


81. (p. 21) Sheila and Barbara are billing department managers in a call center. Senior management has given employees only a limited amount of time to spend with each customer who phones. Sheila and Barbara want to make strategic marketing changes. They must have the support of ____________ in order to succeed. A. The sales forceB. Top managementC. Top management and middle managementD. Frontline personnelE. Everyone in the organization

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: moderateLearning Objective: Define marketing and marketing management

82. (p. 22) (Little m) marketing includes ____________. A. Marketing strategyB. AdvertisingC. Brand imageD. A and CE. B and C


1-60


83. (p. 21) _______________ is an example a market-driving firm. A. AppleB. MicrosoftC. DisneyD. None of the aboveE. A, B, and C


84. (p. 22-23) Many companies today pay their advertising agencies based on how much sales or market share increase after a particular advertising campaign is executed. This most likely occurs because _____________. A. Marketing is viewed internally as an investmentB. There has been an increased demand for marketing accountability by CEOs and shareholdersC. Effective planning requires metricsD. If it can't be measured, it can't be managedE. All of the above

AACSB Standard: analyticBloom's Taxonomy: comprehensionDifficulty: difficultLearning Objective: Define marketing and marketing management

1-61


85. (p. 22-23) Today many CEOs and shareholders expect to measure results of marketing efforts because ___________. A. Marketing metrics today are designed to assign specific results to specific marketing programsB. They are unrealistic in believing that all marketing is measurableC. It is easy to doD. All of the aboveE. A and C


86. (p. 24) Marketing today is ____________. A. Essentially the same as 20 years agoB. Not impacted by the rest of the worldC. Seeks to add value by understanding the past of marketing and change drivers for the futureD. So confusing no one understands itE. Accountable only to shareholders and management


1-62


87. (p. 22) The purpose of marketing metrics is to ____________ key benchmarks for improvement just as financial metrics guide the financial management of the firm. A. identifyB. trackC. evaluateD. provideE. all of the above


Short Answer Questions

88. (p. 9) How does the American Marketing Association define marketing?

Marketing the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.


1-63


89. (p. 9) Identify marketing stakeholders.

Any person inside or outside the firm with whom marketing interacts, impacts, and is impacted by. This includes all internal stakeholders—like finance, accounting, production, etc. and external stakeholders—customers, shareholders, vendors, governmental bodies, and labor unions.


90. (p. 9) Define societal marketing and give an example of a firm that practices it.

Societal marketing refers to marketing that views society at large as a stakeholder. One example in the forefront today is many firms' emphasis on green marketing. These firms are committed to communicating sustainability practices to the public. One example is GE's ‘Imagineering' advertising.


91. (p. 10) Give an example of an industry or firm that has transformed environmentally harmful products to environmentally friendly products.

The air conditioning industry stopped using the hazardous product Freon and began to use Puron, a refrigerant that reduces chlorine emissions and the depletion of the ozone layer.

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Define marketing and marketing management

1-64


92. (p. 18) How has the Internet empowered customers? Give an example.

The Internet has provided people all over the world with information at their fingertips. Pricing has become more transparent, the availability of products has increased, and anyone can share an opinion of a product, service, person, government, or idea. For example, Amazon.com allows customers to rate products.


93. (p. 9) How can a firm create marketing-driving strategies? Give an example.

Apple uncovered needs that consumers did not know they had. When Apple launched the iPhone, many non-Apple computer users lined up to get the phone and paid a premium price for a device that made it easy to use a phone, camera, the Internet, and created a new market.


1-65

http://www.amazon.com/


94. (p. 21) Discuss the difference in being market-driven and market-driving. Give examples of each.

A firm that is market-driven seeks to understand current customer needs and wants and finds ways to fulfill them. Southwest Airline is a good example of a firm that understands passengers want to spend little time in the gate area, get on and off a plane as quickly as possible, and obtain luggage without delays. A market-driving firm seeks to fulfill needs that the consumer does not realize exist or are possible. Apple changed the way consumers look at telecommunication when it introduced the iPhone. It created a new market.


95. (p. 3) What does "everyone in the firm owns marketing" mean?

It means that anyone in the company may interact with customers, suppliers, and other stakeholders. All employees represent the brand and need to be trained to think about their interactions this way.

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: moderateLearning Objective: Define marketing and marketing management

96. (p. 15) Give an example of a brand to which you have an emotional attachment. What has the firm done to create that emotional appeal?

Answers with vary depending on the student. Examples are as follows: Coors Light beer is a brand that students seem to like because of the funny advertising campaign on TV. Budweiser is another brand that has created tug-at-the-heartstrings ads like the one where the dog trains the Clydesdale so that he can make the team!

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: EasyLearning Objective: Define who marketing contributes to the firm's success

1-66


Essay Questions

97. (p. 5) George inherited his family business 30 years ago. The company makes shelving for grocery and drug store chains. Three customers account for 85% of revenue. Recently, one of the grocers went out of business and George is struggling to find a customer to replace the lost revenue. His attitude towards marketing has always been that it is an unnecessary expense. George has asked you to give him advice. How can you dissuade him from the outdated ideas he has about this and other marketing misnomers.

Explain that marketing is not only advertising. Good personal selling today will focus on relationships, not order-taking. Tell him about Big M and little m.

AACSB Standard: analyticBloom's Taxonomy: applicationDifficulty: moderateLearning Objective: Identify marketing misnomers

98. (p. 6) Erin, a tenacious entrepreneur, has grown her closet organizer company to $20 million in sales and has 65 employees. She has directed the firm's marketing since its inception and believes she instinctively knows which marketing efforts will bring success. Her new assistant Heather, who just completed a Marketing Management course, wants to find a way to measure results. What should Heather say to Erin to convince her this is necessary?

Erin needs to understand that marketing metrics are essential in today's business environment.● If it can't be measured, it can't be managed.● Marketing is an investment, not an expense so she should expect to approach marketing as she would any other investment in the firm.● Metrics hold people responsible. As she has to cede control of tasks, metrics will give her a way to evaluate people and programs.


1-67


99. (p. 8) Paul and Bryce are writing a business plan to submit to a bank to ask for a loan to start a French restaurant. Paul has worked in finance for five years and Bryce is a chef. Unfortunately, neither has much experience in marketing and they think that marketing equals advertising. They have asked you to explain the marketing concept as it is viewed today. What do you say?

The 2007 AMA definition:● Focuses on the more strategic aspects of marketing, which positions marketing as a core contributor to overall firm success● Recognizes marketing as an activity, set of institutions, and processes – that is, marketing is not just a "department" in an organization● Shifts the areas of central focus of marketing to value – creating, communicating, delivering, and exchanging offerings of value to various stakeholders


100. (p. 19) State Farm Insurance offers products through a network of 16,000 independent agents. Assume that the company wants to launch a marketing campaign towards college students. What does State Farm need to know about the way Gen X communicates? What marketing tactics would you recommend and why?

SF should recognize that a generational shift in values and preferences has occurred. Gen X is much less likely to value the personal relationships their parents and grandparents have with their insurance agents. Gen X is much more receptive to electronic commerce. SF should make it easy to apply for coverage and pay bills online. The company may try to reach college students through My Space or Facebook or hiring a text messaging marketing firm.

AACSB Standard: analyticBloom's Taxonomy: knowledgeDifficulty: difficultLearning Objective: Recognize key change drivers for the future

1-68


101. (p. 12) What conditions existed after World War II that caused the marketing concept to emerge? What marked the transition from the selling concept to the marketing concept?

● Pent-up demand for consumer goods and services after the war● Euphoric focus on family and a desperate need to regain a normalcy of day-to-day life after years of war (which, of course, ultimately produced the Baby Boomer generation)● Opening up of production capacity dominated for years by war production ● Advent of readily available mainframe computing capability, and especially the associated statistical analytic techniques that allowed for more sophisticated market research

In the 1950s, these forces, combined with growing frustration with high pressure selling sparked a shift in the focus of American business.


102. (p. 9) Firms such as General Electric and Starbucks try to practice the concept of "doing well by doing good". What does this mean? What are some of the challenges faced by a firm that wants to create products that fit this concept?

● Some industries have more trouble than others in creating environmentally responsible products (Freon vs. Air Nike shoes)● minimize environmental waste

AACSB Standard: analyticBloom's Taxonomy: comprehensionDifficulty: difficultLearning Objective: Understand the evolution of marketing

1-69


103. (p. 16) Long-term oriented firms need to be aware of change drivers that most likely will have a significant impact on the future of marketing and business in general. What areas of shift do you recommend these firms study?

● Shift to product glut and customer shortage● Shift in information power from marketer to customer● Shift in generational values and preferences● Shift to demanding return on marketing investment● Shift to Marketing (“Big M”) and marketing (“little m”)

AACSB Standard: analyticBloom's Taxonomy: evaluationDifficulty: difficultLearning Objective: Recognize key change drivers for the future

104. (p. 9) Bedtime Mattress Company is sales-driven. The company has high levels of employee turnover, frequent sales, and is short-term oriented. What do you believe management should know about Big M Marketing and little m marketing?

Big M is strategic marketing, which means a long-term, firm-level commitment to investing in marketing – supported at the highest organization level – for purpose of enhancing organizational performance. Little m serves the firm and its stakeholders at a functional or operational level – hence marketing (little m) might be thought of as tactical marketing. Marketing (little m) takes place at the functional or operational level of a firm.


1-70


105. (p. 15) Which two brands do you think do a good job of connecting emotionally to the consumer? Support your answer with examples of what the firm has done to make that emotional appeal to the consumer. Can you defend your claims with tactics in addition to advertising?

Example: ● iPod had great advertising from Day 1 with the dancing silhouettes. I want to be cool and have as much fun as the people listening in the ads! iPhones led the way in user-friendly technology convergence. Apple has an image of being a rebel, cooler, and anti-establishment. Look at the ads for Apple computer and Microsoft. MS is painted as a stodgy conservative company and the products don't work as well as Apple's do. Apple goes to great length to keep products top-secret until they are released. In fact, the press gives the company so much free publicity that people line up hours before retailers open to say they got and iPod or iPhone on the first day.

AACSB Standard: analyticBloom's Taxonomy: evaluationDifficulty: difficultLearning Objective: Define marketing and marketing management

1-71

Chapter 01€¦ · Web viewChapter 01. Marketing in Today's Business Milieu True/False Questions...

Documents

Transcript of Chapter 01€¦ · Web viewChapter 01. Marketing in Today's Business Milieu True/False Questions...