Defining Marketing for the 21st CenturyMultiple Choice 1. The most formal definition of marketing is ________. a. meeting needs profitably b. identifying and meeting human and social needs c. the four Ps (product, price, place, promotion) d. an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders e. improving the quality of life for consumers 2. ________ takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. a. Marketing management b. Forecasting c. Segmentation d. Targeting e. Distribution 3. Marketing management is ________. a. managing the marketing process b. monitoring the profitability of the company’s products and services c. selecting target markets d. developing marketing strategies to move the company forward e. the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value 4. A social definition of marketing says ________. a. effective marketing requires companies to remove intermediary parties to achieve a closer connection with direct consumers b. a company should focus exclusively on achieving high production efficiency, low costs, and mass distribution to facilitate the broadest possible access to the company’s products c. marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others d. marketing is the process of extracting maximal value from consumers to facilitate corporate growth e. marketing is the process of aggressive selling and promotion to encourage the purchase of products that might otherwise be unsought by the consumer Shopping goods c. Durable g. favorable. salesperson. a. a donation) from another party. marketer. we implement ads d. and unique image in the minds of their target publics. we sell quality A ________ is someone seeking a response (attention. customer b. we sell hope e. products b.________ goods constitute the bulk of most countries’ production and marketing efforts. ________ actively work to build a strong. Organizations e. we make cosmetics. In ________. Event 5. in the store. ________. negative demand b. called the ________. irregular demand e. fund-raiser. latent demand c. Information b. In the factory. services 6. a growing proportion of their activities focus on the production of ________. a. we challenge competitors c. As economies advance. prospect e. nonexistent demand . 9. we make profits b. Impulse h. a. Physical i. contributor c. a. a purchase. events c. celebrity. declining demand d. places e. a vote. a. Service j. Properties 7. Durable goods d. audience 8. consumers may share a strong need that cannot be satisfied by an existing product. f. politician. experiences d. voter d. 10. ________. negative demand 11. nonexistent demand b. nonprofit and governmental markets e. all of the above 15. irregular demand d. overfull demand d. a. a. negative demand e. buying power c. a. In ________. a. and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image in markets called ________. brand image b. In ________. Companies selling mass consumer goods and services such as soft drinks. people b. excessive e. cosmetics. business markets b. latent demand b. demographic segment d. price e. creating superior packaging c. but a stronger role may be played by the sales force. overfull demand c. more customers would like to buy the product than can be satisfied. social class position e. advertising can play a role. consumers dislike the product and may even pay a price to avoid it. a. a. ensuring the product’s availability d. In business markets. consumer markets d. performance . irregular demand c. Marketers often use the term ________ to cover various groupings of customers. air travel. distribution c. service markets 14. declining demand 12. Much of a brand’s strength in consumer markets depends on ________. backing the product with engaging communications and reliable service e. and the company’s reputation for reliability and quality. promotion d. market 13. global markets c. developing a superior product b. a. a. opportunity analysis e. needs b. needs 19. demands e. designing marketing strategies. targeting e. and they are shaped by our society. a. Demands.16. how to adapt their product and service features to each country d. and managing the marketing effort. segmentation b. partner relationship management . The identification and profiling of distinct groups of buyers who might prefer or require varying product and service mixes is known as ________. A(n) ________ need is a need that the consumer explicitly verbalizes. or solo manufacturer) c. real c. Demands. which countries to enter b. integration c. a. Global marketers must decide ________. strategic planning c. how to enter each country (as an exporter. ________ are basic human requirements. wants c. a. The ________ process consists of analyzing marketing opportunities. all of the above 17. secret 20. share of customer 18. marketing planning b. Needs. joint venture partner. developing marketing programs. licenser. market research d. ________ are the ways in which we satisfy those requirements. Wants. contract manufacturer. selecting target markets. how to price their products in different countries e. unstated d. disintermediation d. delight e. Needs. stated b. wants d. primary markets c. tertiary markets d. delight d. target market e. offering d. market offering d. Value d. the firm develops a ________. value offering b. demand 22. a. The offering is then positioned in the minds of the target buyers as delivering some central benefit(s). demographic markets e. a set of benefits that they offer to customers to satisfy their needs. segment offering e. brand b. a. Comparison shopping . real b. social offering 25. Loyalty b. a. Companies address needs by putting forth a(n) ________. a. focused markets 24. stated 23. secret e. target markets b. A(n) ________ need is one that motivates the consumer but that the consumer is reluctant or unwilling to explicitly verbalize. Expectations e. niche offering c. value proposition c. unstated c. These segments are called ________. ________ reflects a customer’s judgment of a product’s performance in relation to his or her expectations. a.21. the marketer identifies which segments present the greatest opportunity. Satisfaction c. During market segmentation analysis. For each target market. Value reflects ________. strategic environment d. service channel b. The ________ is a long channel stretching from raw materials to components to final products that are carried to final buyers. brand channel d. distributing. intermediary channel 27. A value proposition d. relationship channel e. service channel e.26. management environment c. ________ includes all the actual and potential rival offerings and substitutes that a buyer might consider. the sum of the perceived tangible and intangible benefits and costs to customers e. the marketer is using what is called a ________. communication channel b. Competition b. The supply chain e. the price consumers are charged for a product b. the degree to which consumer demand for the product is positive d. If a marketer decides to use warehouses. distribution channel c. and insurance companies to facilitate transactions with potential buyers. the cost of manufacturing a product c. and the target customers. a. The ________ includes the actors involved in producing. suppliers. transportation companies. tactical environment . supply chain d. a. The product offering c. The marketing environment 30. a. all of the above 29. a. The main actors are the company. and promoting the offering. distributors. banks. dealers. operations environment b. distribution channel c. task environment e. marketing channel 28. a. e-collaboration e. industry convergence d. customization c.com. e-commerce d. new-market synchronization . eBay. and performances. experience f. In response to threats from such companies as AOL. Rising promotion costs and shrinking profit margins are the result of ________. customer delight h. Many countries have ________ industries to create greater competition and growth opportunities. a. Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries—this is called ________. They are marketing a(n) ________ rather than a product assortment. Yahoo!. and dozens of others. total service solution i. Amazon. heightened competition e. scientifically segmented e. This process became known as ________. a. a. demonstrations. globalization c. E*TRADE. regulated d. reintermediation b. heightened competition 33. customer value g. created mass market 32. deregulated c. privatization e. lectures. entrepreneurial retailers are building entertainment into stores with coffee bars. acquisition In response to giant retailers and category killers. a. disintermediation c. globalization b. open-market b. deregulation d. changing technology b.31. established manufacturers and retailers became “brick-and-click” oriented by adding online services to their existing offerings. intangible benefit(s) 34. production d. customer-centered strategies 38. Managers of ________-oriented businesses concentrate on achieving high production efficiency. well-established brand names d. computers. selling e. holistic marketing 39. factory customization e. production concept d. information technology c. marketing c. a. and cemetery plots. consumer 37. product concept e. holistic marketing concept . goods that buyers normally do not think of buying. selling concept c. product b. The ________ concept holds that consumers will favor those products that offer the most quality. a. selling b. performance. improved communication flow b.35. Many brick-and-click competitors became stronger contenders in the marketplace than the pure-click firms because they had a larger pool of resources to work with and ________. a. marketing e. and database marketing software. The feasibility of companies dealing with customers one at a time has risen as a result of advances in ________. a. the Internet. marketing concept b. product c. The ________ is practiced most aggressively with unsought goods. such as insurance. better prices b. one-on-one communications e. a. greater value c. or innovative features. direct-selling capability 36. low costs. production d. just-in-time manufacturing d. encyclopedias. and mass distribution. marketing d. confrontation process 44. strategy c. product e. This was first demonstrated for companies practicing a ________—understanding and meeting customers’ expressed needs. Several scholars have found that companies who embrace the marketing concept achieve superior performance. reactive market orientation b. selling c. who drew contrasts between the selling and marketing concepts. external focus c. holistic marketing e. competency b. marketing b.40. will ordinarily not buy enough of the organization’s products. ________ is preoccupied with the need to convert products into cash. marketing d. Companies that practice both a reactive and proactive marketing orientation are implementing a ________ and are likely to be the most successful. holistic marketing 41. impulsive market orientation e. if left alone. total market orientation d. a. proactive marketing orientation c. a. sales . total market orientation b. a. a. service marketing 43. Companies that adopt and employ the marketing concept switch from being solely product centered to being more ________ centered. According to Theodore Levitt. customer focus e. customer e. holistic market orientation 42. competitive. production b. a. direct marketing d. The ________ concept holds that consumers and businesses. selling c. customer focus d. and positioning e. Demand-based c. and other marketing partners. Relationship e. Direct d. place. and price d. production. The four Ps are characterized as being ________. holistic union c. supply chain network e. a. Holistic marketing c. place. product. promotion. One traditional depiction of marketing activities is in terms of the marketing mix or four Ps. integrated network 48. production. Demand-centered marketing 46. promotion. product. design. processes. place. Synthetic 47. The strength of the ________ depends on the mutually profitable business relationships built by the company and its supporting stakeholders. and activities that recognizes the breadth and interdependencies of their effects.45. suppliers. and price b. marketing network d. Niche marketing b. and implementation of marketing programs. price. price. Holistic b. and place c. distributors. positioning. Supply chain marketing e. a. positioning. product. a. and place . Relationship marketing d. sales network b. a. promotion. ________ Marketing aims to build mutually satisfying long-term relations with key parties such as customers. ________ can be seen as the development. environmental. service offer b. Holistic marketing incorporates ________. sales support team d. share of customer c. intangible assets d. packaging e. distributor and supplier relations. a. an understanding of broader concerns in the ethical. focused business model c. The ________ holds that the organization’s task is to determine the needs. ethically responsible marketing manager e. legal. cross-functional teams e. the marketing mix e. Companies are recognizing that much of their market value comes from ________. product c. and intellectual capital. customer preferences 51. production-centered business 53. ensuring that everyone in the organization embraces appropriate marketing principles. safe product design b. auxiliary offer . especially senior management. variable assets b. a. employees. a. Holistic marketing incorporates ________. and social context of marketing activities. customer-centered business b. customer base. direct-sales policies 52. particularly their brands. a. a. At the heart of any marketing program is the ________the firm’s tangible offering to the market. strategic planning 50. wants. the value proposition c. social responsibility marketing d.49. profit objectives b. societal marketing concept d. and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being. internal marketing d. cultural marketing c. tangible assets e. the political-legal system. and the socialcultural arena.” 56. 58. Unwholesome demand occurs when consumers’ purchases vary on a seasonal. they are engaged in latent demand. 69. and growing customers through creating. 63. Wants are basic human requirements such as food or air. retailers. Companies selling their goods to nonprofit organizations may charge an extra premium over their normal prices because these organizations are largely indifferent to price. Value marketing is the “art and science of choosing target markets and getting. economics. delivering. 65. When consumers share a strong need that cannot be satisfied by an existing product. as when you shop in a store. wholesalers. or even hourly basis. A distribution channel includes distributors. Services constitute the bulk of most countries’ production and marketing effort. 57. “Friends Don’t Let Friends Drive Drunk. 59. and communicating superior customer value. keeping. A marketspace is physical. The main actors in the task environment are the components of demographics. Companies selling goods and services in the global marketplace have the advantage of being able to sell the goods and services in almost the same way as they do in their domestic market. Most marketers satisfy everyone in a market—that’s how they stay in business. . The customer-value triad consists of a combination of quality. technology. 61. A short definition of marketing is “meeting needs profitably. or deliver the physical product or service(s) to the buyer or user. service. Regulation of industries has created greater competition and growth opportunities because the playing field has been leveled. 64.” is an example of marketing an experience to an interested audience. 66. sell. and agents that display.” 55. Demands are wants for specific products backed by an ability to pay. 62. and price. weekly. 68. 67. daily.True/False 54. physical setting. monthly. 60. and direct marketing are all part of what is called the offering mix. . 76. The proliferation of targeted media and communication channels has allowed marketers to become much more aware of their target consumers’ preferences and to customize both products and messages for individual consumers. packaging. 83. and transportation. marketing should focus on the customer and other departments should focus on the business itself. and activities that recognizes their breadth and interdependencies. 82. 70. Relationship marketing aims to build mutually satisfying long-term relationships with key parties. 81. The marketing-mix component called promotion includes such items as product variety. design. 78. When a marketer makes decisions involving channels. 84. 71. 80. Internal marketing is an appropriate practice to be used in holistic marketing. design. 77. Advertising. 74. In most companies. and warranties.Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries. The marketing concept is one of the oldest concepts in business. and implementation of marketing programs. or innovative features. services. processes. Companies can facilitate and speed external communication among customers by creating online and off-line “buzz” through brand advocates and user communities. 75. The marketing concept stresses a customer-centered approach to marketing. sales promotion. the marketer is making what are called place decisions. The selling concept holds that consumers will favor those products that offer the most quality. 72. locations. The overabundance of information available on the Internet has made it more difficult for consumers to compare product features and prices. One of the key themes of integrated marketing is that there are very few marketing activities that can effectively communicate and deliver value. The selling concept is based on the development. performance. 79. 73. Attracting a new customer may cost five times as much as doing a good enough job to retain an existing one. assortments. Marketing people are involved in marketing 10 types of entities. environmentally responsible. We can distinguish among five types of customer needs. Performance marketing involves reviewing metrics assessing market share. selling concept. 87. The selling relationship concept holds that consumers will prefer products that are ethical. List and briefly characterize the eight demand states described in the text. Which concept do you believe is the most effective? Why? . product concept. and holistic marketing concept. 91. The competing concepts under which organizations have conducted marketing activities include: the production concept. Marketers are skilled in stimulating demand for a company’s products. customer loss rate. and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being. List and briefly characterize those entities. 89. marketers are responsible for demand management. Evaluate the advantages and disadvantages of each concept as defined and presented in your textbook. legal. Essay 88. Just as production and logistics professionals are responsible for supply management. customer satisfaction. List and provide an example of each of those customer needs. 90.85. 86. but this is too limited a view of the tasks they perform. and composition of demand to meet the organization’s objectives. and social in the context of marketing activities and programs. wants. marketing concept. The societal marketing concept holds that the organization’s task is to determine the needs. and product quality in the evaluation of the effectiveness of marketing activities. Marketing managers seek to influence the level. timing.