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In 2005, the American Marketing Association changed the definition of marketing that
had stood for 20 years. The major changes in the definition included a shift from
delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a
shift from creating exchanges to creating __________.
a. satisfaction; customer relationships
b. value; customer relationships
c. quality; transactions
d. value; satisfaction
e. quality; value
Many products, such as candy, soft drinks, and gum are sold via intensive distribution.
However, this strategy has a major drawback. What is it?
a. It maximizes profit margin rather than sales volume.
b. It encourages customers to shop around for the lowest price.
c. It promotes a very high degree of brand switching.
d. The manufacturer must give up a good degree of control over pricing and product
display.
e. It gives customers fewer opportunities to find the product.
By focusing on efficiency of operations and processes, lower costs, and delivering good
value, Southwest Airlines attempts to build a competitive advantage based on:
a. production orientation.
b. customer intimacy.
c. process improvement.
Which of the following IS NOT an example of mass customization?
a. A college creates a custom degree program to match your unique needs.
b. A customer orders a custom teddy bear from Build-A-BearWorkshop.com.
c. Dell offers fully customized computers based on your needed configuration.
d. A bank employee logs into the e-procurement system to browse a fully customized
catalog of office supplies.
e. You order a customized vase of flowers from 1-800-Flowers.com.
What type of planning deals with specific markets or market segments and the
development of marketing programs that will fulfill the needs of customers in those
markets?
a. market planning
b. strategic planning
c. local planning
d. lower-level planning
e. tactical planning
Which of the following is the best example of a brand mark?
a. Honda
b. Nike's swoosh
c. WD-40
__________ is a broad concept that relates to an organization's obligation to maximize
its positive impact on society while minimizing its negative impact.
a. Marketing ethics
b. Corporate philanthropy
c. Social responsibility
Furniture Mart offers services such as financing and home delivery to its customers.
What type of utility is Furniture Mart trying to increase?
a. time utility
b. place utility
c. possession utility
Which of the following statements is TRUE with respect to the relationship between
price and revenue?
a. When business is good, a price increase will increase revenue.
b. When business is bad, a price increase will increase revenue.
c. Price cuts must be offset by an increase in sales volume to keep the same level of
revenue.
d. In highly differentiated markets, price cuts will capture greater market share.
e. In highly commoditized markets, price cuts will increase revenue.
Why are firms so obsessed with the pricing element of the marketing mix?
a. Because pricing is the most difficult element of the marketing mix to change.
b. Because the firm's pricing has a direct bearing on its ability to increase revenue.
c. Because pricing is the only marketing element that matters to customers.
d. Because pricing is the best part of the marketing mix in which to make an educated
guess about the most appropriate strategy.
e. Because pricing is directly responsible for demand.
Because service capacity is perishable and service demand is highly time dependent,
service firms employ yield management strategies in an effort to:
a. control costs.
b. control demand through effective advertising strategies.
c. establish fair guidelines for overbooking capacity.
d. shift customer demand to other firms that can handle the excess business.
e. balance price and revenue considerations with their need to fill unused capacity.
In the context of marketing planning, why is it vital that the marketing plan be capable
of selling itself to top management?
a. Because top managers are responsible for executing the marketing plan.
b. Because top managers must be able to evaluate the performance of the marketing
program.
c. Because top managers must be able to clearly communicate the strategy to external
stakeholders.
d. Because top managers must decide whether the marketing plan is the best use for the
organization's scarce resources.
e. Because top managers are compensated on how well the marketing strategy works.
Which of the following IS NOT good advice with respect to leveraging customer
satisfaction from a strategic point of view?
a. Understand what can go wrong in fulfilling customers' needs.
b. Offer a satisfaction guarantee.
c. Flesh out all uncontrollable issues and attempt to prevent them.
d. Make it easy for customers to complain.
e. Make customer satisfaction measurement an ongoing priority.
Work activities that absorb inputs to create information and communication outputs that
ensure the consistent day-to-day operation of the firm are referred to as:
a. organizational values.
b. shared goals and values.
c. organizational systems and processes.
Firms engage in __________ when their intimate knowledge and expertise in one
market allows them to offer customized marketing programs that not only deliver
needed products but also provide needed solutions to customers' problems.
a. single segment targeting
b. market specialization
c. selective targeting
__________ is defined as a customer's subjective evaluation of benefits relative to costs
to determine the worth of a firm's product offering relative to other product offerings.
a. Quality
b. Value
c. Price
Discuss the challenges and opportunities associated with planning and developing
marketing strategy in today's economy. Why is marketing strategy both exciting and
challenging?
Discuss the different views or interpretations of marketing as a function of business,
including the AMA's 2007 change in the definition of marketing. Why do you think the
AMA changed the definition?
Compare and contrast the traditional use of power in a marketing channel versus today's
notion of integrated and collaborative supply chains. Do the five traditional power bases
still play a role in today's era of collaboration? Explain.
Identify and discuss the many challenges of being ethical and socially responsible.
Focus on challenges at both the individual (employee) level and the managerial level.
Discuss the relationship between customer expectations and customer satisfaction.
What might cause expectations to be higher or lower? How is the zone of tolerance a
useful diagnostic tool in terms of developing strategies aimed at improving customer
satisfaction?
Briefly explain and discuss the five types of utility. Which type(s) of utility is(are) the
most important and why?
Discuss the role of sales promotion in consumer markets. In your answer, identify
several types of consumer sales promotion activities and how they might be used in an
overall IMC program.
