57. Market-oriented firms primarily focus their efforts upon:
a.
improving the technological skills and competitive advantages of the firm
b.
satisfying the organization’s needs for low overhead
c.
achieving the company’s societal responsibilities inexpensively
d.
distributing goods and services
e.
satisfying the wants and needs of their customers
58. Which of the following statements about a typical sales-oriented business is TRUE?
a.
The company develops its products to meet the needs of specific groups of people.
b.
The primary goal of the company is profit through customer satisfaction.
c.
The company invests the majority of its resources in promoting its products and services.
d.
The company is in business to satisfy customers’ wants and needs and deliver superior
value.
e.
All of these statements about a typical sales-oriented business are true.
59. _____ is defined as the relationship between benefits and the sacrifice necessary to obtain those
benefits.
a.
Opportunity cost
b.
Marketing utility
c.
Market quality
d.
Satisfaction percentage
e.
Customer value
60. The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by
FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of
the express-delivery market. Which of the following statements describes this situation?
a.
The USPS is perceived as offering greater customer value.
b.
FedEx is perceived as offering greater customer value.
c.
FedEx and the USPS offer the same customer value.
d.
Customer value is not an issue in deciding which express-delivery service to use.
e.
The USPS should lower its prices even further to increase market share.
61. Marketers interested in offering customer value can:
a.
offer products that perform
b.
give the buyer facts
c.
offer organization-wide commitment in service and after-sales support
d.
avoid unrealistic pricing
e.
do all of these
62. Because Charlene works the late shift, she really loves TiVo because it allows her to watch her
favorite TV shows on her own schedule. TiVo provides what element of value to Charlene?
a.
Offering products that perform
b.
Earning her trust
c.
Avoiding unrealistic pricing
d.
Giving her facts
e.
Co-creation
63. Which of the following is the customer’s evaluation of a good or service in terms of whether that good
or service has met his or her needs and expectations?
a.
Value
b.
Perception
c.
Attitude
d.
Dissonance
e.
Satisfaction
64. When customer expectations regarding product quality, service quality, and value-based price are met
or exceeded, _____ is created.
a.
a value line
b.
a quality rift
c.
planning excellence
d.
customer satisfaction
e.
expectation satisfaction
65. 96 percent of USAA home insurance policy holders report that USAA representatives meets their
commitment in calling back customers quickly about claims. The most likely result of USAA’s efforts
is:
a.
management empowerment
b.
retailer-customer synergy
c.
customer satisfaction
d.
transactional marketing
e.
disintermediation
66. Nordstrom department store emphasizes _____ by accepting returns on items not purchased there.
a.
management empowerment
b.
management-customer synergy
c.
customer satisfaction
d.
transactional marketing
e.
direct selling
67. _____ is a strategy that focuses on keeping and improving relationships with current customers.
a.
Commitment selling
b.
Relationship marketing
c.
Transactional marketing
d.
Market engineering
e.
Organization-customer synergy
68. Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on
cars. The device beams signals to dealers who can remotely diagnose or spot trouble. The device
allows car dealerships to maintain a closer bond with their customers by offering maintenance before a
problem leaves customers with an inoperable or possibly dangerous car. With the device, dealers can
better engage in:
a.
management empowerment
b.
management-customer synergy
c.
relationship marketing
d.
transactional marketing
e.
direct selling
69. Kellogg’s gives consumers the chance to receive a free DVD. Consumers who buy five boxes of
specially marked cereal can cut out the coupons and mail in their completed official form to get a free
DVD. Kellogg’s is engaging in:
a.
transactional marketing
b.
sports distribution
c.
relationship marketing
d.
one-to-one marketing
e.
customer transformation
70. Frequent-flyer programs are an example of financial incentives to customers in exchange for their
continuing patronage. After flying a certain number of miles or flying a specified number of times, the
frequent-flyer program participant earns a free flight or some other award such as free lodging.
Airlines that use frequent-flyer programs are practicing:
a.
commitment selling
b.
transaction marketing
c.
transformational marketing
d.
marketing engineering
e.
relationship marketing
71. Most successful relationship marketing strategies depend on:
a.
customer-oriented personnel
b.
effective training programs
c.
employees with authority to make decisions and solve problems
d.
teamwork
e.
all of these
72. The Geek Squad is a tech support station located inside every Best Buy electronics retail store. Best
Buy gives intensive training to the Geeks. The purpose of this training is to:
a.
improve customer service
b.
give higher education benefits to employees
c.
promote the company image by increasing public awareness
d.
reduce the need of empowerment
e.
increase employment levels
73. Some market-oriented firms give employees expanded authority to solve customer problems on the
spot. This is known as:
a.
training
b.
deregulation
c.
empowerment
d.
commissioning
e.
mediating
74. _____ gives customers the feeling their concerns are being addressed and at the same time gives
employees the feeling their expertise matters to management.
a.
Management-employee synergy
b.
Organizational entropy
c.
Managerial reciprocity
d.
Empowerment
e.
Delegation
75. The Ritz Carlton has Service Values which guide employees in providing its Gold Standard service.
One of the service values states “I own and immediately resolve guest problems.” The Ritz Carlton
management uses _____ to provide customer service.
a.
training
b.
deregulation
c.
empowerment
d.
commissioning
e.
mediating
76. As part of instituting an empowerment program, a marketing director should:
a.
hire college graduates who have the latest training in marketing management techniques
b.
create a customer-service department and place a key staff person in charge of the
department
c.
train the company’s staff to judge the quality of the products the firm produces
d.
allow non-management employees to resolve problems on their own without prior
approval from their immediate supervisors
e.
conduct a survey of the company’s marketing staff to learn about employee morale
77. _____ is the collaborative efforts of people to achieve common objectives.
a.
Effort training
b.
Teamwork
c.
Empowerment
d.
OJT training
e.
Mediation
78. TUFF SHED, Inc. is one of the leading suppliers of installed storage buildings and garages in the
United States. TUFF SHED mandates that sales, management and construction teams work together to
anticipate and eliminate potential problems. They make sure customers get the right buildings for their
needs, and they all are built well and in a timely manner. By using teamwork, TUFF SHED:
a.
operates successfully using a production orientation
b.
provides its customer with a high level of satisfaction
c.
has a high employee turnover rate
d.
does not deliver superior customer service
e.
has a sales orientation
79. A sales-oriented firm defines its business (or mission) in terms of:
a.
employees
b.
goods and services
c.
customers
d.
competitors
e.
benefits
80. A market-oriented firm defines its business in terms of:
a.
goods and services
b.
the benefits its customers seek
c.
employee empowerment
d.
competitive position
e.
customer satisfaction
81. Redefining the business mission of a mattress manufacturer as “a good night’s sleep” rather than
stating the mission as “the manufacture of high-quality mattresses” will:
a.
not stimulate an awareness of changes in consumer desires
b.
be too broad a statement to be of any real use in serving customers
c.
stifle creativity in discovering opportunities to serve customers
d.
help ensure the firm retains its focus on customers
e.
ensure the core products will be retained
82. One of the reasons given for the decline of Britannica is that the firm defined its business as publishing
books instead of providing information. Britannica failed to:
a.
define its mission in terms of the benefits its customers seek
b.
ignore the marketing concept of serving customer needs and wants
c.
realize “customers only want what they know”
d.
have a sales orientation
e.
empower the consumer
83. Walker Farms has heard from many of its customers that they would like organic produce. As a result,
Walker Farms became a certified organic farm. Walker realizes that, while not all consumers are
willing to pay the higher prices for organic produce, his customers want the organic produce. Walker
realized:
a.
he missed sales by not concentrating on the average customer
b.
different customer groups have different needs and wants
c.
he is a sales-oriented farm
d.
his business is about selling the cheapest vegetables
e.
his aim is a goal of profit through maximum sales volume
84. A market-oriented organization targets its products at:
a.
the “average customer”
b.
the “loyal customer”
c.
everybody
d.
specific groups of people
e.
the total market
85. One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve
profitability through sales volume, it would probably be:
a.
promotion-oriented
b.
price-oriented
c.
sales-oriented
d.
production-oriented
e.
retail-oriented
86. The owner of Maine Kitchen Art bowls, spoons, and cutting boards knows marketing can make his
company a success. He wants to rely solely on promotion as the technique for attracting customers. He
advertises extensively in cooking magazines and provides retailers who carry his product with
attractive displays. From this information, you know that Maine Kitchen Art has a _____ orientation.
a.
market
b.
societal
c.
production
d.
sales
e.
product
87. FujiFilm Computer Products has improved the efficiency and productivity of its plant, which
manufactures printing technology. For the new fiscal year, the company projects a production increase
of 25 percent and has instructed its sales force to aggressively distribute and promote the product. The
CEO is sure the market will absorb more product if the sales force is determined and assertive.
Apparently FujiFilm:
a.
has an outward organizational focus on its customers wants and preferences
b.
seeks its goals primarily through the use of intensive promotion
c.
directs its products to specific groups of people
d.
is in the business of satisfying customers
e.
profits through customer satisfaction
88. A sales-oriented organization seeks to achieve profitability through:
a.
the development of long-term relationships with customers
b.
sales volume
c.
providing customer satisfaction
d.
creating customer value
e.
All of these
89. All of the following are good reasons to study marketing EXCEPT:
a.
Marketing creates consumer needs.
b.
Marketing plays an important role in society.
c.
Marketing is important to business.
d.
Marketing offers outstanding career opportunities.
e.
Marketing affects your life every day.
90. What percentage of the civilian workforce in the United States performs marketing activities?
a.
about 10 percent
b.
less than 25 percent
c.
between 25 and 33 percent
d.
almost 50 percent
e.
more than 75 percent
91. Martina spent $30 at the grocery store this afternoon. About how much of that sum paid for marketing
costs?
a.
$3.00
b.
$7.00
c.
$10.00
d.
$15.00
e.
$25.00
92. Refer to Harley-Davidson. The company mission statement indicates that which marketing
management philosophy is embraced by this company?
a.
Sales orientation
b.
Market orientation
c.
Production orientation
d.
Societal marketing orientation
e.
Promotional orientation
93. Refer to Harley-Davidson. Harley-Davidson’s customer-driven approach embodies an
organization-wide commitment to service and support so that customers attain benefits relative to the
price they pay for the product. Which element of an organization’s focus is this commitment
satisfying?
a.
Empowerment
b.
Customer value
c.
Customer acquisition
d.
Creativity
e.
Primary goal making
94. Refer to Harley-Davidson. Customer-oriented personnel who ride the products they make and sell,
sponsorship of motorcycle clubs and parties, and employee attendance at bike rallies all work together
at Harley-Davidson to implement which type of strategy?
a.
Relationship marketing
b.
Social marketing
c.
Internal marketing
d.
External marketing
e.
Empowered marketing
95. Refer to Harley-Davidson. A Harley-Davidson rider attending a bike rally in Sturgis, South Dakota
approached an H-D employee with a complaint about a defective engine part. The H-D employee
immediately made arrangements for the part to be shipped to the rally at no charge to the customer.
The fact that H-D employees have the authority to solve customers’ problems quickly illustrates that
these employees are given:
a.
authority training
b.
customer value giving
c.
cross-utilization
d.
teamwork
e.
empowerment
96. Refer to Harley-Davidson. Based on the description of the company, Harley-Davidson most likely
does all of the following EXCEPT:
a.
seek to achieve profitability through sales volume
b.
hope to build long-term relationships with customers
c.
define its business in terms of the benefits its customers want
d.
understand that different customer groups want different things
e.
recognize that marketing is not just a responsibility of the marketing department
97. Refer to Starbucks. Which of the four conditions did NOT exist in the minds of the Starbucks
consumer, resulting in declining sales?
a.
Each party has something of value to the other party
b.
Each party is capable of communication and delivery
c.
Each party is free to accept or reject the exchange offer
d.
Each party believes it is appropriate or desirable to deal with the other party
e.
There must be at least two parties for exchange to occur
98. Refer to Starbucks. For more than thirty years Starbucks held the orientation of “If we build it, they
will come.” This philosophy is most in line with a _____ orientation.
a.
sales
b.
market
c.
production
d.
societal marketing
e.
product
99. Refer to Starbucks. Starbucks customers wanted more value from their coffee. Starbucks management
responded to customers through the Starbucks card rewards program. Which element of value was
Starbucks management working to increase?
a.
Products that perform
b.
Earning trust
c.
Avoiding unrealistic pricing
d.
Giving the buyer facts
e.
Co-creation
100. Refer to Starbucks. The creation of a consumer-response blog is an example of _____.
a.
how to increase sales
b.
technology at its best
c.
relationship marketing
d.
good training
e.
product improvements
101. Refer to Starbucks. The fact that management realized that coffee drinkers had different needs whether
be using coupons, wanting a milder brew of coffee or free Wi-Fi shows that Starbucks is now using a
_____-oriented approach.
a.
sales
b.
market
c.
production
d.
societal marketing
e.
product
102. Refer to Circuses. The aggressive promotions used by advance men indicate that decades ago the
circuses probably had a _____ orientation.
a.
sales
b.
market
c.
production
d.
societal marketing
e.
product
103. Refer to Circuses. Now circuses are trying to satisfy customers’ needs and wants and to profit through
customer satisfaction. They have adopted a _____ orientation.
a.
societal marketing
b.
selling
c.
production
d.
market
e.
retail
104. Refer to Circuses. To exhibit a societal marketing orientation, circuses could:
a.
rely on publicity and avoid any promotions
b.
empower their employees to satisfy customer wants
c.
donate a percentage of their profits to local educational institutions
d.
use relationship marketing
e.
emphasize customer value
105. Refer to Circuses. One of the tent venues is called Barnum’s Kaleidoscope, and it is in a permanent
location with the hopes that people who see the show will want to return and see it again as well as
bring their friends and relatives to the production. Which of the following techniques would most
likely advance this strategy of referrals and repeat business?
a.
Relationship marketing
b.
Empowerment
c.
Sales orientation
d.
Authority to delegate
e.
Transactional marketing
106. Refer to Circuses. The circus’s goal of redesigning the circus experience is being completed through
the coordination of many marketing activities, such as value pricing, a product that includes exciting
performances, tent venue locations, and promotion. These activities make up the _____ for the
circuses.
a.
opportunity analysis
b.
value of marketing
c.
marketing environment
d.
target market
e.
marketing mix
ESSAY
1. Explain how marketing is both a philosophy and a set of activities.
2. What is the American Marketing Association’s (AMA) definition of marketing and what does
marketing entail?
3. Describe the concept of exchange, and list the five conditions that must be satisfied for exchange to
occur. If all conditions are met, does that guarantee exchange will occur? Explain why or why not.
4. Name and describe the four marketing management philosophies.
5. What is the marketing concept? According to the marketing concept, what determines if a sale will
actually occur?
6. What is the fundamental problem with a sales orientation? Explain your answer.
7. An entrepreneur has set up a company to manufacture and market GPS systems for hunters. He has
decided a sales orientation would best suit his new company. What are important considerations for
this firm when it adopts this orientation? What are potential pitfalls of this orientation the owner needs
to understand?
8. Explain the marketing concept and market orientation. What three requirements are necessary to
implement a market orientation?
9. Explain the societal marketing orientation, and give an example of a company implementing this
orientation.
10. What is customer value? What are the six ways marketers can make sure customers perceive their
companies/products as sources of value?
11. Compare and contrast the sales and market orientations using the following five characteristics as
guidelines: (1) organization‘s focus, (2) business the organization is in, (3) people to whom the product
is directed, (4) the organization’s primary goal, and (5) tools used to achieve that goal.
12. Consider the following statement: “Relationship marketing is not possible in a firm embracing a
production orientation.” Do you agree or disagree with this statement? Explain your answer.
13. Discuss the elements needed to implement successful relationship marketing strategies.
14. List the three advantages of defining the company’s business in terms of the benefits customers seek
instead of in terms of goods and services.
15. There are several important reasons to study marketing. Name three of these reasons.
16. Explain how marketing is important to business and society.
17. Explain the career opportunities offered by marketing.