Assessment 1 True and False

Marketing is basically selling and advertising
F
Customer satisfaction is the extent to which a firm fulfills a consumer’s needs, desires, and expectations
T
If a firm produces the right goods or services, marketing has little role to play in creating customer satisfaction
F
Marketing creates task utility, but not time or place utility
F
The job of marketing is to guide the development of form and task utility, and to provide time, place and possession utilities
T
In advanced economies, marketing costs only about 10 percent of each consumer’s dollar
F
Micro-marketing is the performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client
T
Marketing activities should begin with potential customer needs, not with the production process
T
Production, not marketing, should determine what products are to be made
F
Marketing is concerned with individual transactions rather than with building ongoing relationships with customers because that is the job of people in the public relations department
F
An economic system is the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption among various people and groups in the society
T
A market-directed economy is one in which government planners decide what and how much is to be produced and distributed by whom, when, to whom, and why
F
Marketing does not occur unless there are two or more parties who want to exchange something for something else
T
A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and/or services
T
The advantages of working with intermediaries (middlemen) increase as the number of producers and customers, their distance apart, and the number and variety of competing products increase
T
“Economies of scale” means that as a company produces more of a product, the total cost of production goes up
F
Both mass production and effective marketing are needed to satisfy the economic needs of an advanced economy
T
Buying, selling, transporting, and storing are all universal marketing functions
T
Marketing ethics are the moral standards that guide marketing decisions and actions
T
Moral standards often vary from one society to another and among groups within a society, so there is likely to be disagreement about what option is corrent when it comes to marketing ethics
T
During the “production era” a company focuses on production–because few products are available in the market
T
During the “sales era,” the firm tries to improve short-run marketing policy planning to tie together its activities
F
The “marketing concept” means that a firm emphasizes making a profit above all other objectives
F
A firm that adopts the “marketing concept” will aim all its efforts at satisfying customers, while trying to make a profit
T
A firm that makes products which are eay to produce and then tries to sell them has a production orientation
T
The three basic ideas in the marketing concept are 1) putting the marketing manager in charge of the whole firm, 2) a competitive orientation, and 3) an emphasis on profit
F
When a firm makes a total company efort to satisfy its customers, and profit–not just sales–is an objective of the firm, the company is practicing the “marketing concept.”
T
Customer value is the difference that a customer sees between the benefits of a firm’s offering and the costs of obtaining those benefits
T
When it comes to customer value, it is the customer’s view that matters, not the view of the marketing manager
T
L. L. Bean has achieved success because its customers typically view the benefits of buying its products as greater than the costs
T
The marketing concept applies to nonprofit organizations as well as to businesses
T
The marketing concept says that it is a firm’s obligation to improve its positive effects on society and reduce its negative effects
F
Organizations that have adopted the marketing concept are concerned about marketing ethics as well as broader issues of social responsibility
T
Strategic planning is the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities
T
A marketing strategy is composed of two interrelated parts–a target market and a marketing mix
T
Mass marketing means focusing on some specific customers, as opposed to assuming that everyone is the same and will want whatever the firm offers.
F
The “four Ps” of the marketing mix are People, Products, Price, and Promotion
F
Product, Place, Promotion, and Price are the four major variables (decision areas) in a firm’s marketing mix
T
Although the customer should be the target of all marketing efforts, customers are not part of a marketing mix
T
The Product area of the marketing mix may involve a service and/or a physical good which satisfies some customers’ needs
T
The Place area is concerned with getting the right product to the target market
T
The single most important factor is screen possible marketing opportunities is the long-run trends facing the company
F
Attractive opportunities for a particular firm are those that the firm has some chance of doing something about–given its resources and objectives
T
Differentiation means that the marketing mix is distinct from and better than what is available from a computer
T
Differentiation means that the marketing mix is distinct from and better than what is available from a competitor
T
Differentiation often requires a firm to fine-tune its marketing mix to meet the specific needs of its target market(s)
T
Differentiation emphasizes uniqueness rather than similarity
T
A good SWOT analysis helps a manager focus on a strategy that takes advantages of the firm’s opportunities and strengths while avoiding its weaknesses and threats to its success
T
The letters in “SWOT analysis” are in abbreviation for the first letters of words “strengths, weaknesses, opportunities, and threats”
T
Marketing opportunities involving present products and present markets are called “market penetration” opportunities
T
When Lexus added a new sport utility vehicle to the “luxury-oriented” selection at its existing dealers, it was seeking “market development” opportunities
F
If KFC added tacos to the “chicken-oriented” menu in its existing restaurants, it would be seeking “market development” opportunities
F
When a firm tries to increase sales by offering new or improved products to its present markets, this is called “product development”
T
A market is a group of sellers who offer substitute ways of satisfying customer needs
F
Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets
T
Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market
F
One of the difficult things about segmenting is that not every customer will neatly fit into some market segment
T
“Good” market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational
T
A “good” market segment should be composed of people who are as homogenous as possible with respect to their likely responses to marketing mix variable
T
“Good” market segments should be heterogeneous within and homogenous between
F
A “substantial” market segment is one which is big enough to be profitable
T
With the “multiple target market approach” the marketer combines two or more homogenous submarkets into one larger target market as a basis for one strategy
F
The more heterogeneous a firm’s target market becomes, the more likely the firm will see competition from an innovative segmenter
T
Dimensions that should be looked at when segmenting markets are geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop
T
A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market
T
“Positioning” shows how proposed and/or present brands are located in a market–as seen by customers
T
“Positioning” means using a map to show where a firm’s products are distributed geographically
F
Most economists assume that consumers are “economic buyers” who logically evaluate choices in terms of cost and value received to get the greatest satisfaction from spending their time and money
T
The economic-buyer theory assumes that consumers know all the facts and logically compare choices in terms of cost and value
T
According to our class discussion, consumer buying decisions are influenced by psychological variables, social influences, and the purchase situation
T
Family, social class, reference groups, and culture are the intrapersonal variables that affect a consumer’s buying decisions
F
The “hierarchy of needs” model suggests that we never reach a complete state of satisfaction, and that as lower level needs are satisfied, higher level needs become more dominant
T
Consumers do not usually see or hear all the stimuli that come their way
T
“Selective exposure” refers to a person’s ability to screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs
F
Reinforcement of a response decreases the likelihood of the same response the next time the drive occurs
F
Consumers may evaluate a product not just on how well it performs but on how it performs relative to their expectations
T
Activities, Interests, and Opinions are the “AIO” variables used in a lifestyle analysis
T
In light of the relationships between consumer expectations and satisfaction, it’s usually best for promotion to slightly “over promise” what the firm can actually deliver
F
Consumer buying decisions are affected by social influences such as motivation, perception, learning, attitudes, and personality
F
Buying responsibility and purchase influence between husband and wife vary greatly–depending on the product and the specific family
T
According to our class discussion the US social class system is usually measured in terms of occupation, education, and housing arrangements
T
Given the same income as middle-class consumers, lower-class consumers will handle themselves and their money very differently
T
The group of people to whom an individual looks when forming attitudes about a particular topic is his reference group for that topic
T
A personal normally has several reference groups
T
Reference group influence is likely to be greater for products which will not be seen by other individuals
F
Reference groups are more important when others will be able to “see” which product or brand we’re using
T
Opinion leaders for one subject or product are also usually opinion leaders for many other subjects or products
F
Word-of-mouth publicity from opinion leaders can be favorable or unfavorable
T
A reaction of British consumers to iced tea is an example of cultural influence
T
Needs, benefits sought, attitudes, motivation, and even how a consumer selects certain products all vary depending on the purchasing situation
T
A consumer interested in making a low involvement purchase is most likely to use “limited problem solving”–rather than one of the other levels of problem solving
F
Finding her favorite brand of shampoo temporarily out of stock, a supermarket shopper is more likely to take part in routinized response behavior than limited problem solving
F
The steps in the adoption process are awareness, interest,evaluation, trial, decision, and confirmation
T
Dissonance takes place when an individual is NOT confident about the rightness of a decision
T
It’s hazardous to rely on intuition in generalizing about cultural influences on consumer behavior from one country to another
T
Straight-rebuy buying takes longer than modified-rebuy or new-task buying and offers more chance for promotion impact by the seller
F
Negotiated contract buying would be used when the buyer knows precisely what he wants and the requirements of the job aren’t likely to change as the job is done
F
In cooperative relationships in a business market, the buyer and seller work together to jointly achieve both mutual and individual objectives
T
Consumer products, which are bought often, routinely, and without much thought, are convenience goods
T
Consumer products that a customer really wants and is willing to make a special effort to shop for and compare different possibilities are specialty products
F