mktg 351 chapter 1

marketing is the process of
creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
the focal point of all marketing activities is
customers
Organizations should define themselves not according to the products they produce but according to
how they satisfy their customers
The definition of marketing implies that ______ should receive benefits from exchange relationships.
both customers and businesses
The primary value that a marketer expects to receive from a customer in an exchange relationship is
the price charged for the product
A target market
is a specific group of customers on whom a company focuses its marketing efforts.
Kashi Heart to Heart TM cereal is aimed at people concerned about their heart health. These people represent the Kashi
target market
SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD’s
target market
Distribution, price, promotion, and product are all elements of
the marketing mix
A marketing manager decides what combination of variables is needed to satisfy customers’ needs for a
general type of product. What are the essential variables that the marketing manager combines?
Product, price, distribution, and promotion variables
the marketing mix is built around
the customer
Marketing managers strive to develop a marketing mix that
matches the needs of the target market.
The product variable of the marketing mix can include all of the following except
consumer perception of the product price.
The three basic forms that a product can take are
services, ideas, and goods
A physical product you can touch is a
good
The application of mechanical and human efforts to either people or objects to provide intangible benefits to
customers is known as a(n)
service
Which of the following companies is the best example of a service marketer?
A) FedEx

b) Sony

c) Abercrombie & Fitch

d) The Democratic Party

e) General Electric

fedEx
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets
ideas
The Church of the Latter Day Saints has used advertising for many years to market its
ideas
Which of the following is most likely to be an idea marketer?

a) Car salesperson

b) Airline pilot

c) Attorney

d) Abuse counselor

e) Orthodontist

abuse counselor
Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing

mix for Nike.

a) price

b) good

c) product

d) promotion

e) distribution

product
Making modifications to packaging or brand names involves the _____ component of the marketing mix.
product
Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix.
distribution
Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about
the best way to distribute his products
Consumers buying products online have dramatically affected the ___________ variable of the marketing
mix.
distribution
Changing the hours of operation for a service business involves the _____ component of the marketing mix.
distribution
Which of the following scenarios involves the distribution element of the marketing mix?

a) Deciding whether or not a certain product should continue to be sold

b) Determining whether an advertising message would be more effective on television or in magazines

c) Choosing between a company jet or the airlines for executive travel

d) Deciding whether or not to have retail outlets in addition to a website

e) Developing a new warranty policy for an existing product

Deciding whether or not to have retail outlets in addition to a website
The element of the marketing mix used to increase awareness of a product or company is
promotion
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product’s benefits. This calls for activity in which of the following marketing mix
variables?
promotion
Boca Burger’s website features information about products, recipes, and nutritional values, but customers
cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool.
promotional
When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet
program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix.
product; promotion
Marketers often speak of the “controllable” variables in the practice of marketing. Which of the following is not considered one of the controlled variables?
competition
The concept of “exchange” is fundamental to the definition of marketing. What is the best description of exchange?
Provision or transfer of goods, services, or ideas in return for something of value
For an exchange to occur, four conditions must exist: first, two or more individuals, groups, or organizations must participate, and each must possess “something of value” that the other desires; second, the exchange must provide a benefit or satisfaction to both parties; third, each must have confidence in the promise of the “something of value” held by the other; and fourth,
to build trust, parties to the exchange must meet expectations.
Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects
of the definition of marketing is illustrated here?
exchange
Marketing facilitates exchange relationships between buyers and sellers. What is marketing’s intended outcome for this relationship?
satisfaction for both buyer and seller
Which is the following statements about marketing forces is correct?
They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
the forces of the marketing environment include
political, legal and regulatory, sociocultural, technological, economic, and competitive.
A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal,
sociocultural, and economic forces on the firm’s operations. The marketing manager is examining the
___________ that influence(s) the firm’s strategy.
marketing environment
A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing.
marketing environment
StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net
dolphins. This decision indicates a response to concerns about
marketing envrionment
Which of the following is essentially an uncontrollable factor in developing a marketing mix?
government relations
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they
affect a marketing manager’s decisions and actions by influencing buyer’s reactions to the firm’s marketing mix.
The marketing environment is best described as being
dynamic and changing
the marketing concept is best described as
a philosophy stating that an organization should try to satisfy customers' needs through a coordinated

set of activities that allows the organization to achieve its goals.

According to the marketing concept, an organization should try to
provide products that satisfy customer’s needs and allow the organization to achieve its goals.
The marketing concept is a management philosophy that affects
affects all efforts of the organization
The marketing concept focuses on
satisfying customers’ needs in a way that helps to achieve organizational objectives.
The marketing concept is a philosophy that states that an organization should try to satisfy customers’ needs and also
achieve the organizations
Which one of the following statements by a company president best reflects the marketing concept?
We have organized our business to make certain that customers get what they want.
the marketing concept affects
all organizational activities
When Campbell’s introduced a line of low-sodium soups in response to customer demand, it was following
which one of the following philosophies?
marketing concept
The Jackson Hewitt company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, it should adopt which of the following philosophies?
the customer is always right
the marketing concept is
a management philosophy
As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation.
production
During the Industrial Revolution demand for manufactured goods was
strong
From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation.
sales
U.S. Electric, the maker of a highly innovative xenon light bulb, finds that it has excess inventory. The firm increases its advertising budget by 50 percent and doubles its sales staff. This company is operating as if it were in which of the following orientations?
sales
American Express implements a program of calling its current cardholders to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?
market
A market orientation is an organization-wide effort that includes all of the following activities except
focusing on the marketing department only
Which of the following best describes the acceptance of the marketing concept by American organizations?
The marketing concept has yet to be fully accepted by all organizations.
Which of the following is not an example of the implementation of the marketing concept?
a) Jimmy Dean’s Sausage introduces turkey sausage patties for a healthier alternative to pork.
b) Mar’s Candy asks customers to vote online for a new color for its Mars candy.
c) Burger King reduces the labor costs to produce its sausage-egg biscuits.
d) Microsoft offers rewards for users who can find flaws in its new software.
e) Saab introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision.
Burger King reduces the labor costs to produce its sausage-egg biscuits.
Health Care Systems, Inc. rolls out an innovative nurse-on- call information system available online. The product is not widely accepted because patients don’t see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?
an information system to determine customers needs
When Wonder introduced a new bread made with white whole wheat in response to customer demand, it was following which of the following philosophies?
marketing concept
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
relationship marketing
A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might
be a bad idea because MegaGrain’s long-term survival, like most companies, depends on
creating and maintaining satisfying exchange relationships
In managing customer relationships, the three primary ways profits can be obtained are by
enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
Customer relationship management (CRM) begins its focus on customers with
information
Long-term relationships with profitable customers is the key objective of
customer relationship management
Managing customer relationships requires identifying patterns of ___________ and then using that information to focus on the most promising and profitable customers.
buying behavior
Marketing consists primarily of selling and advertising.
false
The broadest and simplest definition of marketing states that it is the development and efficient distribution of products for consumer segments.
false
Customers are the focal point of all marketing activities.
true
A family that organizes and advertises a garage sale is performing marketing activities.
true
A target market is a specific group of customers on whom an organization focuses its marketing efforts.
true
Target markets can be people who buy the product but do not necessarily use the product.
true
The marketing mix consists of three major variables: product, price, and distribution.
false (4)
Products can be goods, services, or ideas.
true
Services are provided by applying human and mechanical efforts to people or objects.
true
The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible.
true
The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business organization.
false
The marketing concept is a management philosophy, not a second definition of marketing.
true
Marketing costs consume about one-half of a buyer’s dollar.
true
Approximately 20 percent of civilian employees in this country perform marketing activities.
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