Chapter 1 Marketing Fundamentals

question
Which of these statements is true about customer relationship management?
answer
It involves linking all processes of the company from its customers through its suppliers.
question
A market-oriented organization targets its products at "everybody" or "the average customer."
answer
False A sales-oriented organization targets its products at "everybody" or "the average customer." A market-oriented organization aims at specific groups of people. See 1-3: Differences between Sales and Market Orientations
question
Filmin Inc. has decided to increase the production of its printers. Filmin does not conduct market research before making its marketing decisions. To ensure profits for the company, Filmin has instructed its marketing force to aggressively advertise and promote its printers. The CEO of Filmin believes that the market will absorb more products if powerful promotion strategies are used. After increasing production of printers, the company plans to reduce the prices of the printers to encourage customers to buy them. Filmin appears to have a sales orientation.
answer
Filmin is most likely to be a sales-oriented firm. A sales orientation is based on the belief that people will buy more goods and services if aggressive sales techniques are used.
question
Libra Electronic Inc. has launched a new range of light-weight vacuum cleaners with enhanced features. Before developing the product, Libra Electronic conducted a thorough study about customer requirements. The company also studied the quality of its competitors' vacuum cleaners. Based on insights about customer wants and competitor strengths and weaknesses, Libra Electronic has designed vacuum cleaners that can be clearly distinguished from other brands. Libra Electronic most likely has a market orientation.
answer
Libra Electronic most likely has a market orientation. Achieving a market orientation involves obtaining information about customers, competitors, and markets; examining the information from a total business perspective; determining how to deliver superior customer value; and implementing actions to provide value to customers.
question
market-oriented organization recognizes that different customer groups want different features or benefits.
answer
True
question
A production-oriented firm focuses on its internal capabilities.
answer
True
question
Researchers at PPG Industries Inc. spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out heat. PPG had not conducted market research before deciding to design the windshield. Moreover, the windshield is priced higher compared to the other brands. The company has now introduced the windshield in the market and is hoping that the customers will like it. PPG most likely has a(n) production orientation.
answer
PG is most likely to be a production-oriented firm. A production orientation is a philosophy that focuses on the internal capabilities of a firm rather than on the desires and needs of the marketplace.
question
The fundamental problem with a sales orientation is a lack of understanding of the needs and wants of the marketplace. True
answer
True
question
The societal marketing orientation extends the marketing concept by acknowledging that some products that customers want may not really be in their best interests or the best interests of society as a whole.
answer
True
question
company that sets its goals and strategies based on what its current equipment can manufacture, what its engineering can design, and what the company itself can do best has a(n) production orientation.
answer
production orientation is a philosophy that focuses on the internal capabilities of a firm rather than on the desires and needs of the marketplace. It asks questions such as these: "What can we do best?" "What can our engineers design?" "What is easy to produce, given our equipment?"
1 of

Unlock all answers in this set

Unlock answers
question
Which of these statements is true about customer relationship management?
answer
It involves linking all processes of the company from its customers through its suppliers.
question
A market-oriented organization targets its products at "everybody" or "the average customer."
answer
False A sales-oriented organization targets its products at "everybody" or "the average customer." A market-oriented organization aims at specific groups of people. See 1-3: Differences between Sales and Market Orientations
question
Filmin Inc. has decided to increase the production of its printers. Filmin does not conduct market research before making its marketing decisions. To ensure profits for the company, Filmin has instructed its marketing force to aggressively advertise and promote its printers. The CEO of Filmin believes that the market will absorb more products if powerful promotion strategies are used. After increasing production of printers, the company plans to reduce the prices of the printers to encourage customers to buy them. Filmin appears to have a sales orientation.
answer
Filmin is most likely to be a sales-oriented firm. A sales orientation is based on the belief that people will buy more goods and services if aggressive sales techniques are used.
question
Libra Electronic Inc. has launched a new range of light-weight vacuum cleaners with enhanced features. Before developing the product, Libra Electronic conducted a thorough study about customer requirements. The company also studied the quality of its competitors' vacuum cleaners. Based on insights about customer wants and competitor strengths and weaknesses, Libra Electronic has designed vacuum cleaners that can be clearly distinguished from other brands. Libra Electronic most likely has a market orientation.
answer
Libra Electronic most likely has a market orientation. Achieving a market orientation involves obtaining information about customers, competitors, and markets; examining the information from a total business perspective; determining how to deliver superior customer value; and implementing actions to provide value to customers.
question
market-oriented organization recognizes that different customer groups want different features or benefits.
answer
True
question
A production-oriented firm focuses on its internal capabilities.
answer
True
question
Researchers at PPG Industries Inc. spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out heat. PPG had not conducted market research before deciding to design the windshield. Moreover, the windshield is priced higher compared to the other brands. The company has now introduced the windshield in the market and is hoping that the customers will like it. PPG most likely has a(n) production orientation.
answer
PG is most likely to be a production-oriented firm. A production orientation is a philosophy that focuses on the internal capabilities of a firm rather than on the desires and needs of the marketplace.
question
The fundamental problem with a sales orientation is a lack of understanding of the needs and wants of the marketplace. True
answer
True
question
The societal marketing orientation extends the marketing concept by acknowledging that some products that customers want may not really be in their best interests or the best interests of society as a whole.
answer
True
question
company that sets its goals and strategies based on what its current equipment can manufacture, what its engineering can design, and what the company itself can do best has a(n) production orientation.
answer
production orientation is a philosophy that focuses on the internal capabilities of a firm rather than on the desires and needs of the marketplace. It asks questions such as these: "What can we do best?" "What can our engineers design?" "What is easy to produce, given our equipment?"