BUS 346 Ch. 1 – Flashcards
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When a tee shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," their statement reflects the views that were popular in which era of the evolution of marketing?
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Production-oriented
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Marketing involves all of the following EXCEPT:
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Production scheduling
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Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing?
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Satisfying customer needs and wants
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Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people. When reading about the core aspects of marketing, Julia is relieved to see that in marketing:
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All parties to an exchange should be satsified
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Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and:
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The ability to buy them
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Of primary interest to marketers are ___________________ buyers.
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Qualified potential
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When referring to "exchange," marketers are focusing on:
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Trading things of value
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Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering:
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Information
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Which of the following is a core aspect of marketing?
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Making product, price, place, and promotion decisions
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Which of the following questions must be addressed when making marketing decisions?
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How is the product to be designed? How much should the product cost? Where should the product be promoted? How will the product be delivered to the customer? --(answer on test: "all of these") (4 P's)
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Fiona has developed a new software application that automatically recalculates and reformats accounting information based on the standards used in each country. Her product is superior to anything that exists on the market. Which of the following questions will she have to address when making marketing decisions?
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-How the software will be promoted? -What price should she charge? -Should she sell her software on the Internet? -In what country should she offer the software for sale first? --(answer on test: "all of these") (4 P's)
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Marketing traditionally has been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including all of the following EXCEPT:
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Performance
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What are the 4 P's?
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Product Price Place Promotion
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The four Ps comprise the marketing mix, which is the ______________ set of activities that the firm uses to respond to the wants of its target markets.
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Controllable
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The fundamental goal of marketers when creating goods, services, or combinations of both, is to:
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Create value
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Marketing includes offering:
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Goods, services, and ideas
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Brian is struggling with the choice of publishing his new book, "How to cook Polish Barbeque" as an e-book or a paperback. Brian is addressing which core marketing aspect?
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Making product decisions
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The basic difference between a good and a service is that a good:
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Can be physically touched (tangible)
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UPS washes its trucks nightly so they are always clean, and requires its delivery people to wear clean, unwrinkled uniforms. UPS probably established these rules because they know that:
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Consumers' judgements of the benefits they receive from services are tied to the image of the producer
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Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is:
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Expanding from offering just goods to also offering services
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The owner of The Pipe Doctor, a plumbing service, often orders the sinks, faucets, and toilets he installs for his customers. Since he is paid for these items and also for the labor to install them, the Pipe Doctor:
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Provides both goods and services
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The price of a product:
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-Is usually expressed in terms of money -Includes the time involved in the purchase decision -Includes the effort and energy involved in researching the product -Is everything the buyer gives up to obtain the product. --(answer on test: "all of these")
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Marketers must determine the price of a product carefully on the basis of the potential buyers' beliefs about:
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Its value
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Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes:
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The value of their time and energy
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Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on:
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How different customers perceive her service
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Delivering the value proposition is also known as:
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Supply chain management (Place)
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Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called:
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Supply chain management (Place)
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Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of:
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Supply chain management (Place)
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Supply chain management involves integrating the efforts of:
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Suppliers Manufacturers Warehouses Stores --(answer on test: "all of these")
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The marketing goal of getting the "right quantities to the right locations, at the right time" is:
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Supply chain management (Place)
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Marketers involved in supply chain management are constantly balancing the:
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goal of minimizing costs against satisfying the service levels the customers expect
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The importance of supply chain management is often overlooked in the study of marketing because:
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Many of the activities take place behind the scenes
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When considering career choices in marketing, many students overlook supply chain management because:
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Many of the activities take place behind the scenes
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UPS, FedEx, DHL, and other shipping companies support other firms'________________ marketing goals.
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Supply chain management
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Promotion=
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Communication by a marketer that informs, persuades, and reminds potential customers about a product to influence their opinions and elicit a response
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The goal of promotion is to _______________ potential buyers about a product or service.
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Inform Persuade Remind --(answer on test: "all of these")
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Every Christmas season, Anheuser-Busch runs television ads featuring Clydesdale horses in a winter scene. These ads focus on the promotional goal of __________ consumers about Budweiser, the company's brand of beer.
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Reminding
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Local television advertising often includes ads for automobiles dealerships using actors trying to create a sense of excitement and urgency among consumers. These ads are attempting to achieve the promotional goal of _____________ potential buyers.
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Persuading
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Effective promotion enhances a product or service's:
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Perceived value
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By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to:
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Increase the perceived value of their products
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The traditional marketing channel through which consumers most often find and purchase goods and services is known as:
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B2C
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Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as:
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Market intermediaries
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Auction sites like eBay have increased opportunities for ________ marketing.
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C2C
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As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided to maintain their existing dealer networks. The car manufacturers considered switching from _____ to _____ marketing
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B2B; C2C
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Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase _________ marketing.
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C2C
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Which of the following is NOT true about marketing ideas?
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The marketing of ideas does not involved true exchange of value
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Valerie's firm researched what its employees wanted from their jobs. It then communicated a brand image for the firm and worked to ensure that the employees' experiences matched what was advertised. The firm is using:
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Employment marketing
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Employment marketing=
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the application of marketing techniques to improve employee recruitment and retention
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Joseph is about to graduate near the top of his class and has been looking at some forward-thinking firms. He had expected the job market to be tight, but found that some firms were using employment marketing to attract the candidates they want and need. He noticed these firms used all of the following approaches EXCEPT:
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assuming that the right candidates will learn about the firm and apply for jobs without any encouragement --(b/c employment marketing means a firm is proactive in the recruitment process)
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The "Got Milk" advertising campaign, designed to increase consumption of milk, was intended to help market a(n):
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Industry
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The evolution of marketing progressed along the following continuum:
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1) Production Era 2) Sales Era 3) Marketing Era 4) Value-based marketing Era
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The idea that a good product will sell itself is associated with the _______________ era of marketing
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Production
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Production era assumed:
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If companies built good products, they would sell without any particular effort. It was not focused on customer wants and needs.
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Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the ____________ era of marketing.
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Production
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Melanie works for a small computer software company. Her boss is constantly improving their products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the _____________ era of marketing.
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Production
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During the ______________ era, firms had excess capacity and used personal selling and advertising to generate customers.
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Sales
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Sales Era
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Firms believed that a hard-sell approach was the answer to building sales
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The prevailing marketing strategy of the ______________ era was to find customers for inventories that went unsold.
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Sales
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Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era
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Sales
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Many U.S. companies first discovered marketing during the _________ era.
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Marketing
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Marketing Era
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Companies began thinking in terms of meeting the customer needs
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During the marketing era:
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The customer is king
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During the ____________ era manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products.
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Marketing
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During the ____________ era manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
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Value-based marketing
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Value-Based Marketing Era
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Firms began to recognize that value creation is key to success for most firms
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Value is:
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what you get for what you give
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Value=
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Benefits received - the cost of acquiring the product (what you get, for what you give)
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Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates in the _________ marketing era.
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Value-based
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Serena studies her customer profiles, market research data, complaints, and other information attempting to better understand what her customers want. Serena operates in the __________ era of marketing.
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Value-based
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In delivering value, marketing firms attempt to find the most desirable balance between:
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Providing benefits to customers and keeping costs down
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Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant to improve benefits to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or:
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Improve products/services at the same cost
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Some consumers will try to get a lot of merchandise for a small amount of money. In marketing, this is known as:
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Customers seeking value
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Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, taking their suggestions and building customized tour packages for each one. Peter's approach is based on:
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Value cocreation
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Value-based marketing depends on:
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-Knowing what the customer perceives as the key benefits of a product or service -Balancing customer benefits with reasonable costs -Knowing what benefits customers would do without to keep prices down -Looking at quality from the customer's perspective --(answer on test: "all of these")
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Ann Marie has been working on pricing for the hotel where she works. She knows business travelers stay at the hotel because it has easy access to the airport, and others stay there because it is convenient to the shopping and entertainment districts. She is unsure whether she should raise rates for the business travelers, the leisure travelers, both, or neither. As she works to find the best pricing mix, she'll have to look at the ways these travelers will evaluate the benefits of staying at the hotel. In doing so, Ann Marie will be using:
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Value-based marketing
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Janine has a new clothing design she would like to market, but she knows that creating and delivering value to consumers is a challenge. She has seen other designers' successful products copied by other firms soon after they were introduced. For Janine, the major problem she faces in creating and delivering value is probably that:
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Competitors constantly enter the markets
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In 2006, the film "Supersize Me" provided a critical view of McDonald's and its products that caused some consumers to stop eating at McDonald's. The company was caught off guard and had to move quickly to develop a response. In terms of value-based marketing, McDonald's faced what potential problem?
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Consumer perceptions change quickly
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To become a more value driven organization, Pokrah University is holding regular coffee-hour discussions with its students and is surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through:
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Building relationships with customers
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As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven principle of:
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Sharing information across an organization
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BestBulk clothing store is striving to become a more value-driven organization. Its managers should ensure that the staff shares information about:
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Customers Competitors Clients Inventories --(answer on test: "all of these")
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In the past, manufacturer's representatives did not have up-to-minute data about the products they were selling. Today, manufacturer's representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value driven through:
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Sharing information across an organization
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Value-driven firms constantly measure the ___________ that customers perceive, compared to the prices of their offerings.
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Benefits
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One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in:
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Long-term loyalties
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Even though they operate from out-of-the-way airports and offer few extra services, discount airlines like Ryanair and EasyJet have been successful. Consumers obviously consider:
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the benefit of lower prices to be greater than the cost of reduced services and less convenience
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To become value-driven, firms should:
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-Share information across the entire organization about customers and competitors -Prioritize relationships with customers above individual transactions -Balance benefits with costs to create value for customers --(answer on test: "all of these")
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A buyer's representative in a real estate purchase was asked by her customer "Is this a fair offer?" She responded. "You are only trying to buy one house. Do you want to offer more money than you have to?" The buyer's representative recognized that in most situations, home buyers are engaged in:
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Transactions
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If you are involved in a buying or selling situation in which you do not expect to do business with the other party again, you are engaged in a(n):
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Transaction
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A relational orientation is based on the philosophy that buyers and sellers develop:
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A long-term relationship
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Many firms with complex products have "missionary" salespeople who assist customers with problems and implementation programs. These salespeople rarely sell products but often become involved in and knowledgeable about specific customers' needs and wants. These salespeople focus on a(n) _______________ orientation with their customers.
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Relational
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After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that:
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Lifetime profitability of relationships matters more than profits from each transaction
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After hurricanes like Katrina, many small building contractors will flock to the damaged area charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a ___________ marketing orientation.
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Transactional
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Melinda, a marketing executive, is trying to explain customer relationship management (CRM) to her parents. She explains that CRM is a way of thinking that translates into ___________________ to identify and build long-term relationships with her customers.
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A set of strategies Programs Efforts Systems --(answer on test: "all of these")
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The goal of customer relationship management is to:
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identify and build loyalty among a firm's customers
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Firms and organizations use customer relationship management to:
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-Provide their best customers with the products they need -Systematically collect information about customers -Offer special promotions that appeal to different groups of customers -Target their best customers for special attention --(answer on test: "all of these")
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CRM=
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Customer Relations Management
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Franco uses a database software system to remind him when his customers should be ready to re-order his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be "in the buying mode." Franco's system is part of:
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Customer Relations Management
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Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of:
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Customer relation management
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Marketing was once an afterthought to:
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Production
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Many inventors struggle with the question, "I made it; now how do I get rid of it?" They have made the error of considering marketing as
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An afterthought
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Your roommate, a non-business major, sees you reading your marketing text. He or she asks, "Why is Marketing Important" You respond by saying all of the following EXCEPT:
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Marketers are the most important profit center in any organization
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Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She knew things were slowing down but now she has data confirming her impression. Based on this information, one important function Georgia should provide is:
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Advising the production and purchasing departments to produce/order smaller quantities of products
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Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of:
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Alerting the logistics department when to ship products
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After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of:
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Engaging customers and developing long-term relationships
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Marketing provides the critical function of ________________ when companies expand globally
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Understanding customers
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Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of:
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Identifying opportunities to expand
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One of the most important challenges in marketing globally is to:
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Adapt to the local situation but to maintain strategy and identity
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Imagine a country where an anti-marketing dictator orders all marketing efforts to be stopped. Producers are still allowed to produce, and consumers are allowed to consume but no marketing is allowed. In such a situation:
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-There will be no advertising, making it difficult to learn about producers' offerings -Producers will probably over- or underestimate the amount of product customers will buy -Consumers will have difficulty comparing the value of different producers' offerings -Producers will have difficulty determining where to ship their products and when --(answer on test: "all of these")
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Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in
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Effective supply chain management
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Tanya has created a distinctive line of jams, fruit butters and preserves using local, organically grown fruits. She sells these to specialty stores, whose upscale customers appreciate the products and can afford to pay the premium price needed to cover costs. Tanya is concerned about creating value across the entire supply chain, which means that:
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-She is concerned that her suppliers provide her with the high-quality ingredients she needs at a price she can afford -She is concerned that the specialty stores will be able to pay the premium price she needs to charge, but at a price that still allows the stores to sell the products at prices their customers are willing to pay -She would like to create effective relationships with her suppliers and her customers to support the effective marketing of the product to the ultimate customer -She wants to ensure that her suppliers adhere carefully to organic farming practices so that she can offer this benefit to her customers --(answer on test: "all of these")
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Marketing enriches societies by:
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Encouraging employees to participate and invest in socially responsible activities and charities
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A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing?
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Marketing isn't essential now, but it will be when the product takes off
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Many entrepreneurs are successful through marketing efforts designed to:
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Satisfy unfulfilled needs
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Which of the following describes a situation in which a company conducts research to understand what potential employees are seeking, as well as what they think of the company?
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Employment marketing
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Entrepreneurs=
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People who initiate, organize, operate and assume the risk of a business venture
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When a radio station holds an online contest in which you must log on to their website and submit your personal details such as name, phone number and email in order to participate, the radio station:
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Has offered an exchange
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A(n) _________ is the trade of things of value between the buyer and the seller so that each is better off as a result.
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Exchange
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Traditionally, marketing activities have been divided into product, price, place and promotion. Select the term that best describes the four Ps.
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Marketing Mix
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Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?
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Place
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The primary purpose of the ________ plan is to specify the marketing activities for a specific time
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Marketing
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The process of value __________, in which customers collaborate in product design, often provides additional value to the firm's customers
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Cocreation
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When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, they are trying to ensure what type of behavior from their employees?
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Ethical
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Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he would sell monthly. He has researched his competition and talked to some customers and has decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on?
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Place
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Marketing=
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The activity, set of institutions, and process for creating, capturing, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large
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Jeff opened a sporting apparel store and has signed a lease on the property. He has also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on?
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Price
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At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described?
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Market-oriented
