Defining Marketing for the New Realities Answers 1

A Framework for Marketing Management Chapter 1 Defining Marketing for the New Realities 1) Which of the following statements about marketing is TRUE? A) It is of little importance when products are standardized. B) It can help create jobs in the economy by increasing demand for goods and services. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. D) It is not needed in an Internet-fueled environment. E) It is seldom used by nonprofit organizations. Answer: B 2) A marketer's only concern is how best to create demand for a new product produced by his/her company. Marketing has little value for society as a whole. Answer: FALSE 3) ________ management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. A) Marketing B) Knowledge C) Operations D) Strategic E) Distribution Answer: A 4) As economies advance, a growing proportion of the economy's activities focuses on the production of ________. A) products B) events C) experiences D) luxury goods E) services Answer: E 5) Car rental firms, hair dressers, and management consultants provide ________. A) goods B) experiences C) events D) services E) information Answer: D 6) Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________. A) idea B) place C) luxury item D) event E) service Answer: D 7) The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing. A) event B) property C) service D) place E) idea Answer: D 8) People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market. A) demographic B) business C) need D) geographic E) service Answer: C 9) Four key customer markets are the consumer, business, global, and ________ market. A) demographic B) physical C) nonprofit D) product E) exclusive Answer: C 10) For marketers, the term market refers to which of the following? A) a set of touch points such as store layouts and package designs B) a physical place where buyers and sellers gather C) a collection of buyers and sellers who transact over a particular product D) consumers and not businesses E) customer groups Answer: E 11) The responses marketers seek from prospects include all of the following EXCEPT ________. A) decampment B) attention C) a purchase D) a vote E) a donation Answer: A 12) In marketing cosmetics, laundry detergent, and products like Pringles to consumers, P&G manages ________ such as eye-catching package designs and innovative product functions. A) events B) prospects C) markets D) brands E) touch points Answer: E 13) Which of the following is NOT a consumer touch point? A) store layouts B) package designs C) product functions D) shipping and logistics E) All of these are touch points. Answer: E 14) A short definition of marketing is "meeting needs profitably." Answer: TRUE 15) Services constitute the bulk of most countries' production and marketing efforts. Answer: FALSE 16) Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies. Answer: TRUE 17) Attracting tourists to Wisconsin is an example of marketing properties. Answer: FALSE 18) "Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience. Answer: FALSE 19) Selling through creative advertising is the most important element in business marketing. Answer: FALSE 20) Marketing has been described as being both an "art" and a "science." Discuss the differences and similarities between these two marketing thrusts. Provide your theoretical response and a "real-life" example where you have seen both processes work effectively at creating customer value and loyalty. Answer: The student should demonstrate his or her understanding that the marketer must use data to understand customer needs and translate this understanding into properly designed products and services. This requires application of state-of-the art tools and techniques. It is also an art as marketers try to find creative solutions to consumer needs. 21) Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities. Answer: The types of entities that are marketed are: ∙ goods–physical goods ∙ services–hotels and car rental services ∙ events–time-based events such as trade shows ∙ experiences–Walt Disney's Magic Kingdom ∙ persons–celebrity marketing ∙ places–cities, states, regions, and even whole nations ∙ properties–intangible rights of ownership of either real property or financial property ∙ organizations–corporate identity ∙ information–information produced and marketed as a product ∙ ideas–marketing the basic idea of a market offering 22) Selling is not the most important part of marketing. Explain why not. Answer: According to Peter Drucker, "The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available." 23) ________ are basic human requirements, while ________ are the ways in which those requirements are satisfied. A) Wants; needs B) Demands; wants C) Needs; wants D) Needs; demands E) Demands; needs Answer: C 24) When Frank buys his own house, he would like to have a home theater system and a Jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the Jacuzzi is an example of a(n) ________. A) need B) want C) demand D) market E) prospect Answer: B 25) When companies measure the number of people who are willing and able to buy their products, they are measuring ________. A) demand B) price elasticity C) real needs D) standard of living E) disposable income Answer: A 26) A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize. A) secondary B) unstated C) delight D) secret E) stated Answer: D 27) Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs. A) brand B) value proposition C) deal D) marketing plan E) demand Answer: B 28) Marketers identify which segments of buyers present the greatest opportunity. These segments are called ________ markets. A) target B) capital C) tertiary D) demographic E) developing Answer: A 29) ________ reflects a customer's judgment of a product's performance in relation to his or her expectations. A) Brand equity B) Satisfaction C) Value D) Perception E) Brand image Answer: B 30) The value of an offering is described as the ________. A) price consumers are charged for a product B) cost of manufacturing a product C) degree to which consumer demand for a product is positive D) sum of the tangible and intangible benefits and costs to customers E) intangible benefits gained from a product Answer: D 31) When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________. A) segment the market B) provide a service C) enter a new market D) develop brand loyalty E) position its product Answer: E 32) If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________ channel. A) service B) distribution C) communication D) relationship E) standardized Answer: A 33) The ________ is the channel from raw materials to components to final products that are carried to final buyers. A) communication channel B) distribution channel C) supply chain D) service chain E) marketing chain Answer: C 34) The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________. A) supply chain B) global market C) value proposition D) competition E) marketing environment Answer: D 35) The ________ environment includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers. A) economic B) management C) strategic D) task E) tactical Answer: D 36) Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where it comes from. These are examples of ________ media. A) owned B) earned C) paid D) service E) marketing Answer: A 37) Wants are basic human requirements, such as food and shelter. Answer: FALSE 38) The customer value triad consists of a combination of quality, durability, and price. Answer: FALSE 39) Walmart and Target stores could be part of the distribution channel for a marketer of hair care products. Answer: TRUE 40) The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena. Answer: FALSE 41) The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one, is an example of a demand. Answer: FALSE 42) Consumers often have many needs that are not readily obvious. Just observing their behavior inside a retail store is not enough to get a true understanding of their "needs." List and briefly describe the five types of needs that most consumers have. Answer: Suppose a customer wants to buy a car. The five types of customer needs with respect to this example are: 1. stated needs–the customer wants an inexpensive car 2. real needs–the customer wants a car whose operating cost, not its initial price, is low 3. unstated needs–the customer expects good service from the dealer 4. delight needs–the customer would like the dealer to include an onboard navigation system 5. secret needs–the customer wants to be seen by friends as a savvy consumer 43) What is the relationship between Apple's brand and its value proposition? Answer: Apple's value proposition is the set of benefits that satisfy customers' needs. This intangible value proposition is made physical by an offering, including some combination of products, services, information, and experiences–for example, Apple's mobile devices and services provided in its stores. Apple's brand is an offering from a known source that people associate with qualities such as innovation and fun. Thus, the brand contributes to the experiences that make the value proposition physical.