1) hi!h of the following statements a"out marketing is true# A) $t is of little importan!e when pro%u!ts are stan%ar%i&e%' () $t !an help !reate )o"s in the e!onomy "y in!reasing %eman% for goo%s an% ser*i!es' C) $t helps to "uil% a loyal !ustomer "ase "ut has no impa!t on a firm+s intangi"le assets' D) $t is more important for "igger organi&ations than smaller ones' ,) $t is sel%om use% "y nonprofit organi&ations' Answer- ( .age /ef- 2 0")e!ti*e- 1 Diffi!ulty- ,asy 2) 11111111 goo%s !onstitute the "ulk of most !ountries+ pro%u!tion an% marketing efforts' A) Dura"le () $mpulse C) .hysi!al D) 2u3ury ,) $ntangi"le Answer- C .age /ef- 4 0")e!ti*e- 2 Diffi!ulty- ,asy 4) Car rental firms, hair %ressers, an% management !onsultants pro*i%e 11111111' A) goo%s () e3perien!es C) e*ents D) ser*i!es ,) information Answer- D .age /ef- 4 0")e!ti*e- 2 AAC5(- Analyti! 5kills Diffi!ulty- ,asy 1 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 9) :he 5o!!er orl% Cup is promote% aggressi*ely to "oth !ompanies an% fans' :his is an e3ample of marketing a(n) 11111111' A) i%ea () pla!e C) lu3ury item D) e*ent ,) ser*i!e Answer- D .age /ef- 4 0")e!ti*e- 2 Diffi!ulty- Mo%erate 5) :he ;Malaysia, :ruly Asia; a% !ampaign that show!ase% Malaysia+s "eautiful lan%s!ape an% its multi!ultural so!iety in or%er to attra!t tourists is an e3ample of 11111111 marketing' A) e*ent () property C) ser*i!e D) pla!e ,) i%ea Answer- D .age /ef- 4 0")e!ti*e- 2 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate <) $n alt Disney+s Magi! King%om, !ustomers !an *isit a fairy king%om, a pirate ship, or e*en a haunte% house' Disney is marketing a(n) 11111111' A) e3perien!e () ser*i!e C) e*ent D) organi&ation ,) goo% Answer- A .age /ef- 4 0")e!ti*e- 2 AAC5(- Analyti! 5kills Diffi!ulty- ,asy 2 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all =) 11111111 are "asi! human re>uirements, while 11111111 are the ways in whi!h those re>uirements are satisfie%' A) ants? nee%s () Deman%s? wants C) @ee%s? wants D) @ee%s? %eman%s ,) Deman%s? nee%s Answer- C .age /ef- 5 0")e!ti*e- 4 Diffi!ulty- ,asy A) hen Frank "uys his own house, he woul% like to ha*e a home theater system an% a )a!u&&i' 8e plans to sa*e enough money in the ne3t three years so that he !an fulfill his wish' Frank+s %esire for the home theater an% the )a!u&&i is an e3ample of a(n) 11111111' A) nee% () want C) %eman% D) unstate% nee% ,) latent %eman% Answer- ( .age /ef- 5 0")e!ti*e- 4 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate B) hen !ompanies measure the num"er of people who are willing an% a"le to "uy their pro%u!ts, they are measuring 11111111' A) %eman% () pri!e elasti!ity C) real nee%s D) stan%ar% of li*ing ,) %isposa"le in!ome Answer- A .age /ef- 5 0")e!ti*e- 4 Diffi!ulty- Mo%erate 4 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 17) A(n) 11111111 nee% is one that the !onsumer is relu!tant or unwilling to e3pli!itly *er"ali&e' A) se!on%ary () unstate% C) %elight D) se!ret ,) state% Answer- D .age /ef- < 0")e!ti*e- 4 Diffi!ulty- Mo%erate 11) A(n) 11111111 nee% is a nee% that the !onsumer e3pli!itly *er"ali&es' A) state% () affirmati*e C) unsought D) %elight ,) se!ret Answer- A .age /ef- 5 0")e!ti*e- 4 Diffi!ulty- Mo%erate 12) Companies a%%ress nee%s "y putting forth a 11111111, a set of "enefits that they offer to !ustomers to satisfy their nee%s' A) "ran% () *alue proposition C) %eal D) marketing plan ,) %eman% Answer- ( .age /ef- < 0")e!ti*e- 4 Diffi!ulty- Mo%erate 14) During market segmentation analysis, the marketer i%entifies whi!h segments present the greatest opportunity' :hese segments are !alle% 11111111' A) target markets () !apital markets C) tertiary markets D) %emographi! markets ,) %e*eloping markets Answer- A .age /ef- < 0")e!ti*e- 4 Diffi!ulty- Mo%erate 9 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 19) ________ refle!ts a !ustomer+s )u%gment of a pro%u!t+s performan!e in relation to his or her e3pe!tations' A) (ran% e>uity () 5atisfa!tion C) Calue D) .er!eption ,) (ran% image Answer- ( .age /ef- < 0")e!ti*e- 4 Diffi!ulty- ,asy 15) :he *alue of an offering is %es!ri"e% as 11111111' A) the pri!e !onsumers are !harge% for a pro%u!t () the !ost of manufa!turing a pro%u!t C) the %egree to whi!h !onsumer %eman% for a pro%u!t is positi*e D) the sum of the tangi"le an% intangi"le "enefits an% !osts to !ustomers ,) the intangi"le "enefits gaine% from a pro%u!t Answer- D .age /ef- < 0")e!ti*e- 4 Diffi!ulty- Mo%erate 1<) hen Col*o runs a%s suggesting that its !ars are the safest that money !an "uy, it is trying to 11111111' A) segment the market () pro*i%e a ser*i!e C) enter into a new market D) %e*elop "ran% loyalty ,) position its pro%u!t Answer- , .age /ef- < 0")e!ti*e- 4 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 1=) $f a marketer uses warehouses, transportation !ompanies, "anks, an% insuran!e !ompanies to fa!ilitate transa!tions with potential "uyers, the marketer is using a 11111111' A) ser*i!e !hannel () %istri"ution !hannel C) !ommuni!ation !hannel D) relationship !hannel ,) stan%ar%i&e% !hannel Answer- A .age /ef- < 0")e!ti*e- 4 Diffi!ulty- Mo%erate 5 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 1A) :he 11111111 is the !hannel stret!hing from raw materials to !omponents to final pro%u!ts that are !arrie% to final "uyers' A) !ommuni!ation !hannel () %istri"ution !hannel C) supply !hain D) ser*i!e !hain ,) marketing !hain Answer- C .age /ef- = 0")e!ti*e- 4 Diffi!ulty- ,asy 1B) :he a!tual an% potential ri*al offerings an% su"stitutes that a "uyer might !onsi%er are referre% to as the 11111111' A) supply !hain () glo"al market C) *alue proposition D) !ompetition ,) marketing en*ironment Answer- D .age /ef- = 0")e!ti*e- 4 Diffi!ulty- ,asy 27) :he 11111111 in!lu%es the a!tors in*ol*e% in pro%u!ing, %istri"uting, an% promoting an offering' :he main a!tors are the !ompany, suppliers, %istri"utors, %ealers, an% the target !ustomers' A) e!onomi! en*ironment () management en*ironment C) strategi! en*ironment D) task en*ironment ,) ta!ti!al en*ironment Answer- D .age /ef- = 0")e!ti*e- 4 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate < Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 21) $n an attempt to !reate greater !ompetition an% growth opportunities, !ountries often 11111111' A) in!rease tra%e "arriers () prote!t in%ustries C) %eregulate in%ustries D) en!ourage interme%iation ,) re%u!e pri*ati&ation Answer- C .age /ef- =DA 0")e!ti*e- 9 AAC5(- Multi!ultural an% %i*ersity un%erstan%ing Diffi!ulty- Mo%erate 22) /ising promotion !osts an% shrinking profit margins are the result of 11111111' A) new an% impro*e% te!hnology () %isinterme%iation C) in%ustry !on*ergen!e D) pri*ati&ation ,) heightene% !ompetition Answer- , .age /ef- A 0")e!ti*e- 9 Diffi!ulty- Mo%erate 24) $n%ustry "oun%aries are "lurring rapi%ly as !ompanies i%entify new opportunities at the interse!tion of two or more in%ustries' :his is !alle% 11111111' A) glo"ali&ation () !ustomi&ation C) in%ustry !on*ergen!e D) %isinterme%iation ,) pri*ati&ation Answer- C .age /ef- A 0")e!ti*e- 9 Diffi!ulty- ,asy 29) :he su!!ess of online pur!hasing resulte% in 11111111 in the %eli*ery of pro%u!ts an% ser*i!es "y inter*ening in the tra%itional flow of goo%s through %istri"ution !hannels' A) %isinterme%iation () %i*ersifi!ation C) re%u!e% !ompetition D) %eregulation ,) pri*ati&ation Answer- A .age /ef- A 0")e!ti*e- 9 Diffi!ulty- Mo%erate = Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 25) $n response to threats from su!h !ompanies as A02, Ama&on'!om, EahooF, e(ay, ,G:/AD,, an% %o&ens of others, esta"lishe% manufa!turers an% retailers "e!ame ;"ri!kDan%D !li!k; oriente% "y a%%ing online ser*i!es to their e3isting offerings' :his pro!ess is known as 11111111' A) reinterme%iation () %isinterme%iation C) retail transformation D) eD!olla"oration ,) newDmarket syn!hroni&ation Answer- A .age /ef- A 0")e!ti*e- 9 Diffi!ulty- Mo%erate 2<) hen e(ay an% Ama&on'!om !ut out the ma)ority of mi%%lemen that normally woul% parti!ipate in the e3!hange pro!ess, it is an e3ample of 11111111' A) %eregulation () re*erse au!tioning C) reinterme%iation D) %isinterme%iation ,) %i*ersifi!ation Answer- D .age /ef- A 0")e!ti*e- 9 AAC5(- Hse of information te!hnology Diffi!ulty- Mo%erate 2=) Disinterme%iation *ia the $nternet has resulte% in 11111111' A) higher pri!es () stronger "ran% loyalty C) greater emphasis on personal selling D) wellDesta"lishe% "ran% names ,) greater !onsumer "uying power Answer- , .age /ef- A 0")e!ti*e- 9 AAC5(- Hse of information te!hnology Diffi!ulty- Mo%erate A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 2A) ,a!h of the following is true a"out the $nternet+s impa!t on the way "usiness is !on%u!te% to%ay, ,IC,.: one' $%entify the e3!eption' A) $t has fa!ilitate% highDspee% !ommuni!ation among employees' () $t has empowere% !onsumers with easy a!!ess to information' C) $t !an "e use% as a powerful sales !hannel' D) $t has fa!ilitate% mass marketing "ut not the sale of !ustomi&e% pro%u!ts' ,) $t ena"les marketers to use so!ial me%ia to a%*ertise their pro%u!ts' Answer- D .age /ef- A 0")e!ti*e- 9 AAC5(- Hse of information te!hnology Diffi!ulty- ,asy 2B) Kotler an% Casoline suggeste% eight fa!tors that marketers must keep in min% in or%er to %eal with risk an% un!ertainty' hi!h of the following statements are they most likely to agree with when the en*ironment is un!ertain# A) Companies shoul% "e prepare% to implement a% ho! strategies whene*er re>uire%' () Companies shoul% push aggressi*ely for the market share of their !ompetitors' C) Companies shoul% fo!us less on their !ore segments, an% more on new target markets' D) Companies shoul% not in!rease marketing "u%gets in times of un!ertainty' ,) Companies shoul% fo!us an% impro*e their marginal "ran%s' Answer- ( .age /ef- B 0")e!ti*e- 9 Diffi!ulty- Mo%erate 47) hat are !ustomer tou!h points# A) all aspe!ts of the offering that %ire!tly affe!t !onsumer preferen!es () all nee%s an% wants of !ustomers C) all %ire!t or in%ire!t intera!tions "etween the !ustomer an% the !ompany D) all intera!tions "etween !ustomers an% !ompetitors ,) all fa!tors that affe!t "uying "eha*ior Answer- C .age /ef- 9 0")e!ti*e- 9 Diffi!ulty- Mo%erate B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 41) hi!h of the following hol%s that !onsumers prefer pro%u!ts that are wi%ely a*aila"le an% ine3pensi*e# A) the pro%u!t !on!ept () the pro%u!tion !on!ept C) the selling !on!ept D) the performan!e !on!ept ,) the marketing !on!ept Answer- ( .age /ef- B 0")e!ti*e- 9 Diffi!ulty- Mo%erate 42) :he 11111111 !on!ept hol%s that !onsumers will fa*or offerings with the "est >uality, performan!e, or inno*ati*e features' A) pro%u!t () marketing C) pro%u!tion D) selling ,) holisti! marketing Answer- A .age /ef- B 0")e!ti*e- 9 Diffi!ulty- ,asy 44) hi!h of the following !ategories of goo%s an% ser*i!es is most likely to re>uire an aggressi*e use of the selling !on!ept# A) shopping goo%s () unsought goo%s C) ne!essary goo%s D) lu3ury goo%s ,) !omplementary goo%s Answer- ( .age /ef- B 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 17 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 49) As a ma)or steel manufa!turer, 5teelMakers $n!' fo!uses on ha*ing the most effi!ient manufa!turing pro!esses in pla!e' :he !ompany "elie*es that its !ompetiti*e e%ge lies in its a"ility to offer the "est pri!es' :hey also maintain an e3!ellent %istri"ution network that ensures wi%e a*aila"ility of their pro%u!ts' 5teelMakers has a 11111111' A) selling orientation () pro%u!tion orientation C) pro%u!t orientation D) marketing orientation ,) so!ial orientation Answer- ( .age /ef- B 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 45) e"ma3 $n!' pro%u!e% an% markete% !ameras' After !onsi%era"le resear!h an% %e*elopment, they %e*elope% a new %igital !amera that ha% an array of new features' e"ma3 was so sure a"out the new offering that they e*en re%u!e% their marketing "u%get' hat sort of orientation %oes e"ma3 ha*e towar% the marketpla!e# A) pro%u!tion orientation () pro%u!t orientation C) selling orientation D) marketing orientation ,) holisti! marketing orientation Answer- ( .age /ef- B 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 4<) /i!k Johnson trains his !ompany+s sales for!e to go after the !onsumer' 8e repeate%ly asks his team to "ear in min% the essential fa!t that it is the sales team+s responsi"ility to rouse the !onsumer+s interest an% make him feel that he nee%s the pro%u!t' A true salesman is one who !an !on*ert an in%ifferent !onsumer walking into the store into a new !ustomer' Johnson "elie*es in the 11111111 !on!ept' A) pro%u!t () pro%u!tion C) selling D) marketing ,) so!ial responsi"ility Answer- C .age /ef- B 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 11 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 4=) Marketers at Johnny $n!' "elie*e in putting their !ustomers ahea% of e*erything else' :heir pro%u!ts are !arefully %esigne% to meet !ustomer re>uirements an% the entire fo!us is on a!hie*ing !ustomer satisfa!tion' Johnny $n!' follows the 11111111 !on!ept in %oing "usiness' A) pro%u!tion () pro%u!t C) selling D) marketing ,) so!ial responsi"ility Answer- D .age /ef- 17 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 4A) :he 11111111 !on!ept hol%s that !onsumers an% "usinesses, if left alone, will or%inarily not "uy enough of the organi&ation+s pro%u!ts' A) pro%u!tion () selling C) marketing D) pro%u!t ,) holisti! marketing Answer- ( .age /ef- B 0")e!ti*e- 9 Diffi!ulty- ,asy 4B) :he marketing !on!ept hol%s that 11111111' A) a firm shoul% fin% the right pro%u!ts for its !ustomers, an% not the right !ustomers for its pro%u!ts () !ustomers who are !oa3e% into "uying a pro%u!t will most likely "uy it again C) a new pro%u!t will not "e su!!essful unless it is pri!e%, %istri"ute%, an% sol% properly D) !onsumers an% "usinesses, if left alone, won+t "uy enough of the organi&ation+s pro%u!ts ,) a "etter pro%u!t will "y itself lea% people to "uy it without mu!h effort from the sellers Answer- A .age /ef- 17 0")e!ti*e- 9 Diffi!ulty- Mo%erate 12 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 97) 11111111 is "ase% on the %e*elopment, %esign, an% implementation of marketing programs, pro!esses, an% a!ti*ities that re!ogni&e their "rea%th an% inter%epen%en!ies' A) @i!he marketing () 8olisti! marketing C) /elationship marketing D) 5upply !hain marketing ,) Deman%D!entere% marketing Answer- ( .age /ef- 17 0")e!ti*e- 9 AAC5(- /efle!ti*e :hinking Diffi!ulty- Mo%erate 91) hat are the four "roa% !omponents of holisti! marketing# A) relationship, internal, position, an% performan!e marketing () integrate%, internal, position, an% performan!e marketing C) relationship, integrate%, internal, an% performan!e marketing D) integrate%, relationship, so!ial responsi"ility, an% position marketing ,) relationship, so!ial responsi"ility, internal, an% performan!e marketing Answer- C .age /ef- 17 0")e!ti*e- 9 Diffi!ulty- Mo%erate 92) 11111111 marketing aims to "uil% mutually satisfying longDterm !olla"oration with key !onstituents, su!h as !ustomers, employees, suppliers, %istri"utors, an% other marketing partners, in or%er to earn an% retain their "usiness' A) $ntegrate% () Deman%D"ase% C) Dire!t D) /elationship ,) $nternal Answer- D .age /ef- 11 0")e!ti*e- 9 Diffi!ulty- ,asy 14 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 94) :he ultimate out!ome of relationship marketing is a uni>ue !ompany asset !alle% the 11111111, !onsisting of the !ompany an% its supporting stakehol%ers' A) "ran% () supply !hain C) marketing network D) *alue proposition ,) ser*i!e !hannel Answer- C .age /ef- 11 0")e!ti*e- 9 Diffi!ulty- Mo%erate 99) hi!h of the following is most !onsistent with the integrate% marketing approa!h# A) A goo% pro%u!t will sell itself' () $f left alone, !onsumers are in!line% to pur!hase only ine3pensi*e pro%u!ts' C) All !ommuni!ation to !onsumers must %eli*er a !onsistent message irrespe!ti*e of the me%ium' D) $n or%er to su!!ee%, the main fo!us shoul% "e on ha*ing an effi!ient pro%u!tion pro!ess in pla!e' ,) 0nline marketing is less important than tra%itional marketing efforts' Answer- C .age /ef- 11 0")e!ti*e- 9 Diffi!ulty- Mo%erate 95) hi!h aspe!t of holisti! marketing moti*ates employees an% ensures that e*eryone in the organi&ation em"ra!es appropriate marketing prin!iples, espe!ially senior management# A) relationship marketing () integrate% marketing C) internal marketing D) network marketing ,) performan!e marketing Answer- C .age /ef- 11 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 19 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 9<) Finan!ial a!!ounta"ility an% so!ial responsi"ility marketing are elements of 11111111' A) performan!e marketing () relationship marketing C) internal marketing D) so!ial marketing ,) mass marketing Answer- A .age /ef- 12 0")e!ti*e- 9 Diffi!ulty- Mo%erate 9=) Companies are re!ogni&ing that mu!h of their market *alue !omes from 11111111, parti!ularly their "ran%s, !ustomer "ase, employees, %istri"utor an% supplier relations, an% intelle!tual !apital' A) *aria"le assets () *alue propositions C) intangi"le assets D) market offerings ,) in%ustry !on*ergen!e Answer- C .age /ef- 12 0")e!ti*e- 9 AAC5(- /efle!ti*e :hinking Diffi!ulty- ,asy 9A) :he 11111111 hol%s that the organi&ation+s task is to %etermine the nee%s, wants, an% interests of target markets an% to %eli*er the %esire% satisfa!tions more effe!ti*ely an% effi!iently than !ompetitors in a way that preser*es or enhan!es the !onsumer+s an% the so!iety+s wellD"eing' A) selling !on!ept () integrate% marketing !on!ept C) so!ial responsi"ility marketing !on!ept D) pro%u!tion !on!ept ,) relationship marketing !on!ept Answer- C .age /ef- 12 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- ,asy 15 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 9B) Joanna owns a !hain of fastDfoo% )oints' As the !hain "e!ame more an% more su!!essful, she %e!i%e% to !ontri"ute a share of her profits ea!h year to support !an!er resear!h' :his is an e3ample of 11111111' A) !orporate !ommunity in*ol*ement () en*ironmental marketing C) !auseDrelate% marketing D) "enefit marketing ,) responsi"le marketing Answer- C .age /ef- 14 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 57) M!Carthy !lassifie% marketing a!ti*ities into the four .s of the marketing mi3' :hese four .s stan% for 11111111' A) pro%u!t, positioning, pla!e, an% pri!e () pro%u!t, pro%u!tion, pri!e, an% pla!e C) promotion, pla!e, positioning, an% pri!e D) pla!e, promotion, pro%u!tion, an% positioning ,) pro%u!t, pri!e, promotion, an% pla!e Answer- , .age /ef- 14 0")e!ti*e- 9 Diffi!ulty- ,asy 51) $n!orporating the holisti! *iew of marketing, the four .s of the marketing mi3 !an "e up%ate% to 11111111' A) pro%u!t, positioning, people, an% pri!e () people, pro!esses, pla!e, an% promotion C) pro%u!t, pro!esses, pri!e, an% people D) people, pro!esses, programs, an% performan!e ,) pro%u!t, pri!e, promotion, an% people Answer- D .age /ef- 14 0")e!ti*e- 9 AAC5(- Multi!ultural an% %i*ersity un%erstan%ing Diffi!ulty- Mo%erate 1< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 52) hi!h of the following refle!ts the ;people; !omponent of the marketing mi3# A) the !reati*ity, %is!ipline, an% stru!ture "rought to marketing management () the %e*elopment of new pro%u!ts "y the marketers C) the firm+s !onsumerD%ire!te% a!ti*ities D) the right set of pro!esses to gui%e a!ti*ities an% programs within the firm ,) the internal marketing of the firm Answer- , .age /ef- 19 0")e!ti*e- 9 AAC5(- /efle!ti*e :hinking Diffi!ulty- Mo%erate 54) hi!h of the four new .s en!ompasses the ol% four .s as well as a range of other marketing a!ti*ities that might not fit well into the ol% *iew of marketing# A) programs () pro!esses C) promotion D) people ,) performan!e Answer- A .age /ef- 19 0")e!ti*e- 9 Diffi!ulty- Mo%erate 59) At the heart of any marketing program is the firm+s 11111111, its tangi"le offering to the market' A) strategy () pro%u!t C) "ran% D) *alue ,) people Answer- ( .age /ef- 19 0")e!ti*e- 5 Diffi!ulty- ,asy 55) 11111111 a!ti*ities in!lu%e those the !ompany un%ertakes to make the pro%u!t a!!essi"le an% a*aila"le to target !ustomers' A) 2ine e3tension () 5egmentation C) Marketing resear!h D) Channel ,) @ewDpro%u!t %e*elopment Answer- D .age /ef- 15 0")e!ti*e- 5 Diffi!ulty- Mo%erate 1= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 5<) A short %efinition of marketing is ;meeting nee%s profita"ly'; Answer- :/H, .age /ef- 2 0")e!ti*e- 2 AAC5(- Analyti! 5kills Diffi!ulty- ,asy 5=) :he H'5' e!onomy to%ay !onsists of a =7D47 ser*i!esDtoDgoo%s mi3' Answer- :/H, .age /ef- 4 0")e!ti*e- 2 Diffi!ulty- Mo%erate 5A) .roperties are tangi"le rights of ownership to either real property (real estate) or finan!ial property (sto!ks an% "on%s)' Answer- FA25, .age /ef- 4 0")e!ti*e- 2 Diffi!ulty- ,asy 5B) ;Frien%s Don+t 2et Frien%s Dri*e Drunk,; is an e3ample of marketing information to an intereste% au%ien!e' Answer- FA25, .age /ef- 9 0")e!ti*e- 2 AAC5(- /efle!ti*e :hinking Diffi!ulty- Mo%erate <7) 5hops an% stores ha*e a physi!al e3isten!e an% as su!h are e3amples of marketspa!e' Answer- FA25, .age /ef- 9 0")e!ti*e- 2 AAC5(- Hse of information te!hnology Diffi!ulty- ,asy <1) ants are "asi! human re>uirements, su!h as foo% an% shelter' Answer- FA25, .age /ef- 5 0")e!ti*e- 4 Diffi!ulty- ,asy <2) Deman%s are wants for spe!ifi! pro%u!ts "a!ke% "y an a"ility to pay' Answer- :/H, .age /ef- 5 0")e!ti*e- 4 AAC5(- Analyti! 5kills Diffi!ulty- ,asy 1A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all <4) :he !ustomer *alue tria% !onsists of a !om"ination of >uality, %ura"ility, an% pri!e' Answer- FA25, .age /ef- < 0")e!ti*e- 4 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate <9) A %istri"ution !hannel in!lu%es %istri"utors, wholesalers, retailers, an% agents that %isplay, sell, or %eli*er the physi!al pro%u!t or ser*i!e(s) to the "uyer or user' Answer- :/H, .age /ef- < 0")e!ti*e- 4 Diffi!ulty- ,asy <5) :he task en*ironment of a firm !onsists of %emographi!, e!onomi!, natural, an% te!hnologi!al en*ironments, as well as the politi!alDlegal system an% the so!ialD!ultural arena' Answer- FA25, .age /ef- = 0")e!ti*e- 4 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate <<) /egulation of in%ustries has !reate% greater !ompetition an% growth opportunities "e!ause the playing fiel% has "een le*ele%' Answer- FA25, .age /ef- =DA 0")e!ti*e- 9 AAC5(- /efle!ti*e :hinking Diffi!ulty- ,asy <=) Companies !an fa!ilitate an% spee% e3ternal !ommuni!ation among !ustomers "y !reating online an% offline ;"u&&; through "ran% a%*o!ates an% user !ommunities' Answer- :/H, .age /ef- A 0")e!ti*e- 9 Diffi!ulty- Mo%erate <A) :he selling !on!ept hol%s that !onsumers will fa*or those pro%u!ts that offer the most >uality, performan!e, or inno*ati*e features' Answer- FA25, .age /ef- B 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 1B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all <B) /elationship marketing aims to "uil% mutually satisfying longDterm relationships with key parties' Answer- :/H, .age /ef- 11 0")e!ti*e- 9 Diffi!ulty- ,asy =7) 0ne of the key themes of integrate% marketing is that there are *ery few marketing a!ti*ities that !an effe!ti*ely !ommuni!ate an% %eli*er *alue' Answer- FA25, .age /ef- 11 0")e!ti*e- 9 AAC5(- /efle!ti*e :hinking Diffi!ulty- Mo%erate =1) .roponents of holisti! marketing !onsi%er internal marketing to "e as important as marketing to !onsumers' Answer- :/H, .age /ef- 11 0")e!ti*e- 9 AAC5(- /efle!ti*e :hinking Diffi!ulty- Mo%erate =2) $ntegrate% marketing is the task of hiring, training, an% moti*ating a"le employees who want to ser*e !ustomers well' Answer- FA25, .age /ef- 11 0")e!ti*e- 9 Diffi!ulty- ,asy =4) .erforman!e marketing in*ol*es re*iewing metri!s assessing market share, !ustomer loss rate, !ustomer satisfa!tion, an% pro%u!t >uality in the e*aluation of the effe!ti*eness of marketing a!ti*ities' Answer- :/H, .age /ef- 12 0")e!ti*e- 9 Diffi!ulty- Mo%erate =9) CauseDrelate% marketing in*ol*es %onating a per!entage of re*enues to a spe!ifi! !ause "ase% on the re*enue o!!urring %uring the announ!e% perio% of support' Answer- :/H, .age /ef- 14 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 27 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all =5) Making gifts of money, goo%s, or time to help nonprofit organi&ations, groups, or in%i*i%uals is known as !orporate philanthropy' Answer- :/H, .age /ef- 14 0")e!ti*e- 9 Diffi!ulty- ,asy =<) Marketers are in*ol*e% in marketing 17 types of entities' 2ist an% "riefly !hara!teri&e these entities' Answer- :he types of entities that are markete% are (1) goo%sKphysi!al goo%s, (2) ser*i!esK hotels an% !ar rental ser*i!es, (4) e*entsKtimeD"ase% e*ents su!h as tra%e shows, (9) e3perien!esKalt Disney+s Magi! King%om, (5) personsK!ele"rity marketing, (<) pla!esK!ities, states, regions, an% e*en whole nations, (=) propertiesKintangi"le rights of ownership of either real property or finan!ial property, (A) organi&ationsK!orporate i%entity, (B) informationK information pro%u!e% an% markete% as a pro%u!t, an% (17) i%easKmarketing the "asi! i%ea of a market offering' .age /ef- 4D9 0")e!ti*e- 2 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate ==) A!!or%ing to 5tar"u!ks Chairman 8owar% 5!hult&, ;Consumers now !ommonly engage in a !ultural au%it of Lpro%u!t an% ser*i!eM pro*i%ers' .eople want to know your *alue an% ethi!s %emonstrate% "y how you treat employees, the !ommunity in whi!h you operate'; Dis!uss the !on!ept of so!ial responsi"ility marketing an% how it impa!ts "oth !ompanies an% !onsumers' Answer- :he so!ial responsi"ility marketing !on!ept hol%s that the organi&ation+s task is to %etermine the nee%s, wants, an% interests of target markets an% to %eli*er the %esire% satisfa!tion more effe!ti*ely an% effi!iently than !ompetitors in a way that preser*es or enhan!es the !onsumer+s an% so!iety+s longDterm wellD"eing' Many !ompanies a!ti*ely engage% in !orporate so!ial responsi"ility !ampaigns to "oth moti*ate employees an% attra!t !onsumers' As goo%s "e!ome more !ommo%iti&e%, an% as !onsumers grow more so!ially !ons!ious, some !ompanies are a%%ing so!ial responsi"ility as a way to %ifferentiate themsel*es from !ompetitors, "uil% !onsumer preferen!e, an% a!hie*e nota"le sales an% profit gains' :hey "elie*e !ustomers will in!reasingly look for signs of goo% !orporate !iti&enship' .age /ef- 12 0")e!ti*e- 9 AAC5(- ,thi!al /easoning Diffi!ulty- Mo%erate 21 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all =A) $%entify an% %efine the tra%itional four .s' Also i%entify the new four .s an% the reason for %e*eloping the new interpretation' Answer- :he tra%itional four .s are- .ro%u!t (pro%u!t *ariety, >uality, %esign, features, "ran% name, pa!kaging, si&es, ser*i!es, warranties, returns), .ri!e (list pri!e, %is!ounts, allowan!es, payment perio%, !re%it terms), .romotion (sales promotion, a%*ertising, sales for!e, pu"li! relations, %ire!t marketing), an% .la!e (!hannels, !o*erage, assortments, lo!ations, in*entory, transportation)' 8owe*er, gi*en the "rea%th, !omple3ity, an% ri!hness of marketing, as e3emplifie% "y holisti! marketing, these 9 .s are not the whole story any more' Hp%ating them to refle!t the holisti! marketing !on!ept, resear!hers in this fiel% arri*e% at a more representati*e set that en!ompasses mo%ern marketing realities- people, pro!esses, programs, an% performan!e' .age /ef- 12D14 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate =B) Dis!uss the !on!ept of %isinterme%iation an% pro*i%e an e3ample' Answer- Disinterme%iation grew out of the rush to em"ra!e the %otD!oms an% eD!ommer!e' ,ssentially, the %otD!oms remo*e% many of the tra%itional interme%iaries "y en!ouraging !onsumers to %eal %ire!tly with the !ompany *ia the $nternet' ;(ri!kDan%D!li!k; "usinesses e*entually "rought some of the interme%iaries "a!k through a pro!ess !alle% reintermediation. .age /ef- A 0")e!ti*e- 9 AAC5(- Hse of information te!hnology Diffi!ulty- ,asy A7) Eou ha*e "een gi*en the assignment of )ustifying !auseDrelate% marketing to your "oar% of %ire!tors' hat woul% "e your primary argument in fa*or of su!h a proposal# Answer- Companies see !auseDrelate% marketing as an opportunity to enhan!e their !orporate reputation, raise "ran% awareness, in!rease !ustomer loyalty, "uil% sales, an% in!rease press !o*erage' :hey "elie*e !ustomers will in!reasingly look for signs of goo% !orporate !iti&enship that go "eyon% supplying rational an% emotional "enefits' :his shoul% "e the main line of argument in support of any !auseDrelate% marketing effort' .age /ef- 12D14 0")e!ti*e- 9 AAC5(- Analyti! 5kills Diffi!ulty- Mo%erate 1' :he most formal %efinition of marketing is 11111111' a' meeting nee%s profita"ly "' i%entifying an% meeting human an% so!ial nee%s 22 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all !' the four .s (pro%u!t, pri!e, pla!e, promotion) %' an organi&ational fun!tion an% a set of pro!esses for !reating, !ommuni!ating, an% %eli*ering *alue to !ustomers an% for managing !ustomer relationships in ways that "enefit the organi&ation an% its stakehol%ers e' impro*ing the >uality of life for !onsumers Answer- % .age- 5 Diffi!ulty- Me%ium 2' 11111111 takes pla!e when at least one party to a potential e3!hange thinks a"out the means of a!hie*ing %esire% responses from other parties' a' Marketing management "' Fore!asting !' 5egmentation %' :argeting e' Distri"ution Answer- a .age- 5 Diffi!ulty- Me%ium AAC5(- Communi!ation 24 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 4' Marketing management is 11111111' a' managing the marketing pro!ess "' monitoring the profita"ility of the !ompanyNs pro%u!ts an% ser*i!es !' sele!ting target markets %' %e*eloping marketing strategies to mo*e the !ompany forwar% e' the art an% s!ien!e of !hoosing target markets an% getting, keeping, an% growing !ustomers through !reating, %eli*ering, an% !ommuni!ating superior !ustomer *alue Answer- e .age- 5 Diffi!ulty- ,asy 9' A so!ial %efinition of marketing says 11111111' a' effe!ti*e marketing re>uires !ompanies to remo*e interme%iary parties to a!hie*e a !loser !onne!tion with %ire!t !onsumers 29 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all "' a !ompany shoul% fo!us e3!lusi*ely on a!hie*ing high pro%u!tion effi!ien!y, low !osts, an% mass %istri"ution to fa!ilitate the "roa%est possi"le a!!ess to the !ompanyNs pro%u!ts !' marketing is a so!ietal pro!ess "y whi!h in%i*i%uals an% groups o"tain what they nee% an% want through !reating, offering, an% freely e3!hanging pro%u!ts an% ser*i!es of *alue with others %' marketing is the pro!ess of e3tra!ting ma3imal *alue from !onsumers to fa!ilitate !orporate growth e' marketing is the pro!ess of aggressi*e selling an% promotion to en!ourage the pur!hase of pro%u!ts that might otherwise "e unsought "y the !onsumer Answer- ! .age- 5 Diffi!ulty- Me%ium 5' 11111111 goo%s !onstitute the "ulk of most !ountriesN pro%u!tion an% marketing efforts' a' Dura"le "' $mpulse !' .hysi!al %' 5er*i!e e' ,*ent 25 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- ! .age- < Diffi!ulty- Me%ium <' As e!onomies a%*an!e, a growing proportion of their a!ti*ities fo!uses on the pro%u!tion of 11111111' a' pro%u!ts "' e*ents !' e3perien!es %' pla!es e' ser*i!es Answer- e .age- < Diffi!ulty- ,asy AAC5(- Analyti! 5kills =' 11111111 a!ti*ely work to "uil% a strong, fa*ora"le, an% uni>ue image in the min%s of their target pu"li!s' a' $nformation 2< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all "' 5hopping goo%s !' Dura"le goo%s %' 0rgani&ations e' .roperties Answer- % .age- = Diffi!ulty- Me%ium AAC5(- Analyti! 5kills A' Charles /e*son of /e*lon o"ser*e%- O$n the fa!tory, we make !osmeti!s? in the store, 11111111'P a' we make profits "' we !hallenge !ompetitors !' we implement a%s %' we sell hope 2= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all e' we sell >uality Answer- % .age- = Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking B' A 11111111 is someone seeking a response (attention, a pur!hase, a *ote, a %onation) from another party, !alle% the 11111111' a' salesperson? !ustomer "' fun%Draiser? !ontri"utor !' politi!ian? *oter %' marketer? prospe!t e' !ele"rity? au%ien!e Answer- % .age- = Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 17' $n 11111111, !onsumers may share a strong nee% that !annot "e satisfie% "y an e3isting pro%u!t' 2A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all a' negati*e %eman% "' latent %eman% !' %e!lining %eman% %' irregular %eman% e' none3istent %eman% Answer- " .age- A Diffi!ulty- Me%ium 11' $n 11111111, more !ustomers woul% like to "uy the pro%u!t than !an "e satisfie%' a' latent %eman% "' irregular %eman% !' o*erfull %eman% %' e3!essi*e e' negati*e %eman% 2B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- ! .age- A Diffi!ulty- Me%ium 12' $n 11111111, !onsumers %islike the pro%u!t an% may e*en pay a pri!e to a*oi% it' a' none3istent %eman% "' o*erfull %eman% !' irregular %eman% %' negati*e %eman% e' %e!lining %eman% Answer- % .age- A Diffi!ulty- Me%ium 14' Marketers often use the term 11111111 to !o*er *arious groupings of !ustomers' a' people 47 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all "' "uying power !' %emographi! segment %' so!ial !lass position e' market Answer- e .age- B Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 19' Companies selling mass !onsumer goo%s an% ser*i!es su!h as soft %rinks, !osmeti!s, air tra*el, an% athleti! shoes an% e>uipment spen% a great %eal of time trying to esta"lish a superior "ran% image in markets !alle% 11111111' a' "usiness markets "' glo"al markets !' !onsumer markets %' nonprofit an% go*ernmental markets e' ser*i!e markets 41 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- ! .age- B Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 15' Mu!h of a "ran%Ns strength in !onsumer markets %epen%s on 11111111' a' %e*eloping a superior pro%u!t "' !reating superior pa!kaging !' ensuring the pro%u!tNs a*aila"ility %' "a!king the pro%u!t with engaging !ommuni!ations an% relia"le ser*i!e e' all of the a"o*e Answer- e .age- B Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 1<' $n "usiness markets, a%*ertising !an play a role, "ut a stronger role may "e playe% "y the sales for!e, 11111111, an% the !ompanyNs reputation for relia"ility an% >uality' a' "ran% image "' %istri"ution 42 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all !' promotion %' pri!e e' performan!e Answer- % .ages- BK17 Diffi!ulty- 8ar% AAC5(- Communi!ation 1=' Qlo"al marketers must %e!i%e 11111111' a' whi!h !ountries to enter "' how to enter ea!h !ountry (as an e3porter, li!enser, )oint *enture partner, !ontra!t manufa!turer, or solo manufa!turer) !' how to a%apt their pro%u!t an% ser*i!e features to ea!h !ountry %' how to pri!e their pro%u!ts in %ifferent !ountries e' all of the a"o*e Answer- e .age- 17 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 44 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 1A' Mohan 5awhney has propose% the !on!ept of 11111111 to %es!ri"e a !luster of !omplementary pro%u!ts an% ser*i!es that are !losely relate% in the min%s of !onsumers "ut are sprea% a!ross a %i*erse set of in%ustries' a' metamarket "' *erti!al integration !' hori&ontal integration %' "etamarket e' syn!hroni&e% marketing Answer- a .age- 17 Diffi!ulty- 8ar% 1B' :he 11111111 pro!ess !onsists of analy&ing marketing opportunities, sele!ting target markets, %esigning marketing strategies, %e*eloping marketing programs, an% managing the marketing effort' a' marketing planning 49 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all "' strategi! planning !' market resear!h %' opportunity analysis e' share of !ustomer Answer- a .age- 11 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 27' 11111111 are "asi! human re>uirements? 11111111 are the ways in whi!h we satisfy those re>uirements, an% they are shape% "y our so!iety' a' ants? nee%s "' Deman%s? wants !' @ee%s? wants %' @ee%s? %eman%s e' Deman%s? nee%s 45 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- ! .age- 12 Diffi!ulty- Me%ium AAC5(- ,thi!al /easoning 21' A(n) 11111111 nee% is a nee% that the !onsumer e3pli!itly *er"ali&es' a' state% "' real !' unstate% %' %elight e' se!ret Answer- a .age- 12 Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking 22' :he i%entifi!ation an% profiling of %istin!t groups of "uyers who might prefer or re>uire *arying pro%u!t an% ser*i!e mi3es is known as 11111111' a' segmentation "' integration 4< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all !' %isinterme%iation %' targeting e' partner relationship management Answer- a .age- 14 Diffi!ulty- Me%ium 24' Companies a%%ress nee%s "y putting forth a(n) 11111111, a set of "enefits that they offer to !ustomers to satisfy their nee%s' a' "ran% "' *alue proposition !' offering %' target market e' %eman% Answer- " .age- 14 Diffi!ulty- Me%ium 4= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 29' A(n) 11111111 nee% is one that moti*ates the !onsumer "ut that the !onsumer is relu!tant or unwilling to e3pli!itly *er"ali&e' a' real "' unstate% !' %elight %' se!ret e' state% Answer- % .age- 14 Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking 25' During market segmentation analysis, the marketer i%entifies whi!h segments present the greatest opportunity' :hese segments are !alle% 11111111' a' target markets "' primary markets 4A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all !' tertiary markets %' %emographi! markets e' fo!use% markets Answer- a .age- 14 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 2<' For ea!h target market, the firm %e*elops a 11111111' :he offering is then positione% in the min%s of the target "uyers as %eli*ering some !entral "enefit(s)' a' *alue offering "' ni!he offering !' market offering %' segment offering e' so!ial offering Answer- ! .age- 14 Diffi!ulty- Me%ium 4B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 2=' 11111111 refle!ts a !ustomerNs )u%gment of a pro%u!tNs performan!e in relation to his or her e3pe!tations' a' 2oyalty "' 5atisfa!tion !' Calue %' ,3pe!tations e' Comparison shopping Answer- " .age- 19 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 2A' $f a marketer %e!i%es to use warehouses, transportation !ompanies, "anks, an% insuran!e !ompanies to fa!ilitate transa!tions with potential "uyers, the marketer is using what is !alle% a 11111111' a' ser*i!e !hannel "' %istri"ution !hannel !' "ran% !hannel 97 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' relationship !hannel e' interme%iary !hannel Answer- a .age- 19 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 2B' :he 11111111 is a long !hannel stret!hing from raw materials to !omponents to final pro%u!ts that are !arrie% to final "uyers' a' !ommuni!ation !hannel "' %istri"ution !hannel !' supply !hain %' ser*i!e !hannel e' marketing !hannel Answer- ! .age- 19 Diffi!ulty- Me%ium 91 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 47' Calue refle!ts 11111111' a' the pri!e !onsumers are !harge% for a pro%u!t "' the !ost of manufa!turing a pro%u!t !' the %egree to whi!h !onsumer %eman% for the pro%u!t is positi*e %' the sum of the per!ei*e% tangi"le an% intangi"le "enefits an% !osts to !ustomers e' all of the a"o*e Answer- % .age- 19 Diffi!ulty- 8ar% AAC5(- ,thi!al /easoning 41' 11111111 in!lu%es all the a!tual an% potential ri*al offerings an% su"stitutes that a "uyer might !onsi%er' a' Competition "' :he pro%u!t offering !' A *alue proposition %' :he supply !hain 92 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all e' :he marketing en*ironment Answer- a .age- 19 Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking 42' :he 11111111 in!lu%es the a!tors in*ol*e% in pro%u!ing, %istri"uting, an% promoting the offering' :he main a!tors are the !ompany, suppliers, %istri"utors, %ealers, an% the target !ustomers' a' operations en*ironment "' management en*ironment !' strategi! en*ironment %' task en*ironment e' ta!ti!al en*ironment Answer- % .age- 15 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 94 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 44' Many !ountries ha*e 11111111 in%ustries to !reate greater !ompetition an% growth opportunities' a' openDmarket "' %eregulate% !' regulate% %' s!ientifi!ally segmente% e' !reate% mass market Answer- " .age- 15 Diffi!ulty- Me%ium AAC5(- Multi!ulturalRDi*ersity 49' /ising promotion !osts an% shrinking profit margins are the result of 11111111' a' !hanging te!hnology "' glo"ali&ation !' %eregulation 99 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' pri*ati&ation e' heightene% !ompetition Answer- e .age- 15 Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking 45' $n%ustry "oun%aries are "lurring rapi%ly as !ompanies i%entify new opportunities at the interse!tion of two or more in%ustriesSthis is !alle% 11111111' a' glo"ali&ation "' !ustomi&ation !' in%ustry !on*ergen!e %' heightene% !ompetition e' a!>uisition Answer- ! .age- 15 Diffi!ulty- Me%ium 4<' $n response to giant retailers an% !ategory killers, entrepreneurial retailers are "uil%ing 95 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all entertainment into stores with !offee "ars, le!tures, %emonstrations, an% performan!es' :hey are marketing a(n) 11111111 rather than a pro%u!t assortment' a' e3perien!e "' !ustomer *alue !' !ustomer %elight %' total ser*i!e solution e' intangi"le "enefit(s) Answer- a .age- 15 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 4=' $n response to threats from su!h !ompanies as A02, Ama&on'!om, EahooF, e(ay, ,G:/AD,, an% %o&ens of others, esta"lishe% manufa!turers an% retailers "e!ame O"ri!kDan%D !li!kP oriente% "y a%%ing online ser*i!es to their e3isting offerings' :his pro!ess "e!ame known as 11111111' a' reinterme%iation "' %isinterme%iation !' eD!ommer!e 9< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' eD!olla"oration e' newDmarket syn!hroni&ation Answer- a .age- 1< Diffi!ulty- 8ar% AAC5(- Hse of $: 4A' Many "ri!kDan%D!li!k !ompetitors "e!ame stronger !onten%ers in the marketpla!e than the pureD!li!k firms "e!ause they ha% a larger pool of resour!es to work with an% 11111111' a' "etter pri!es "' greater *alue !' wellDesta"lishe% "ran% names %' oneDonDone !ommuni!ations e' %ire!tDselling !apa"ility Answer- ! .age- 1< Diffi!ulty- Me%ium AAC5(- Hse of $: 9= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 4B' Managers of 11111111Doriente% "usinesses !on!entrate on a!hie*ing high pro%u!tion effi!ien!y, low !osts, an% mass %istri"ution' a' selling "' pro%u!t !' pro%u!tion %' marketing e' !onsumer Answer- ! .age- 1A Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 97' :he feasi"ility of !ompanies %ealing with !ustomers one at a time has risen as a result of a%*an!es in 11111111, !omputers, the $nternet, an% %ata"ase marketing software' a' impro*e% !ommuni!ation flow "' information te!hnology !' )ustDinDtime manufa!turing 9A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' fa!tory !ustomi&ation e' !ustomerD!entere% strategies Answer- % .age- 1A Diffi!ulty- 8ar% AAC5(- Hse of $: 91' :he 11111111 !on!ept hol%s that !onsumers will fa*or those pro%u!ts that offer the most >uality, performan!e, or inno*ati*e features' a' pro%u!t "' marketing !' pro%u!tion %' selling e' holisti! marketing Answer- a .age- 1A Diffi!ulty- ,asy 92' :he 11111111 is pra!ti!e% most aggressi*ely with unsought goo%s, goo%s that "uyers 9B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all normally %o not think of "uying, su!h as insuran!e, en!y!lope%ias, an% !emetery plots' a' marketing !on!ept "' selling !on!ept !' pro%u!tion !on!ept %' pro%u!t !on!ept e' holisti! marketing !on!ept Answer- " .age- 1B Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 94' :he 11111111 !on!ept hol%s that !onsumers an% "usinesses, if left alone, will or%inarily not "uy enough of the organi&ationNs pro%u!ts' a' pro%u!tion "' selling !' marketing %' pro%u!t 57 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all e' holisti! marketing Answer- " .age- 1B Diffi!ulty- Me%ium 99' 5e*eral s!holars ha*e foun% that !ompanies who em"ra!e the marketing !on!ept a!hie*e superior performan!e' :his was first %emonstrate% for !ompanies pra!ti!ing a 11111111S un%erstan%ing an% meeting !ustomersN e3presse% nee%s' a' rea!ti*e market orientation "' proa!ti*e marketing orientation !' total market orientation %' impulsi*e market orientation e' holisti! market orientation Answer- a .age- 1B Diffi!ulty- Me%ium 95' A!!or%ing to :heo%ore 2e*itt, who %rew !ontrasts "etween the selling an% marketing !on!epts, 11111111 is preo!!upie% with the nee% to !on*ert pro%u!ts into !ash' 51 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all a' marketing "' selling !' %ire!t marketing %' holisti! marketing e' ser*i!e marketing Answer- " .age- 1B Diffi!ulty- Me%ium 9<' Companies that pra!ti!e "oth a rea!ti*e an% proa!ti*e marketing orientation are implementing a 11111111 an% are likely to "e the most su!!essful' a' total market orientation "' e3ternal fo!us !' !ustomer fo!us %' !ompetiti*e, !ustomer fo!us 52 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all e' !onfrontation pro!ess Answer- a .age- 1B Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 9=' Companies that a%opt an% employ the marketing !on!ept swit!h from "eing solely pro%u!t !entere% to "eing more 11111111 !entere%' a' !ompeten!y "' strategy !' marketing %' !ustomer e' sales Answer- % .age- 1B Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 9A' 11111111 !an "e seen as the %e*elopment, %esign, an% implementation of marketing programs, pro!esses, an% a!ti*ities that re!ogni&es the "rea%th an% inter%epen%en!ies of their effe!ts' 54 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all a' @i!he marketing "' 8olisti! marketing !' /elationship marketing %' 5upply !hain marketing e' Deman%D!entere% marketing Answer- " .ages- 1BK27 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 9B' 11111111 marketing aims to "uil% mutually satisfying longDterm relations with key parties su!h as !ustomers, suppliers, %istri"utors, an% other marketing partners' a' 8olisti! "' Deman%D"ase% !' Dire!t %' /elationship e' 5yntheti! 59 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- % .age- 27 Diffi!ulty- ,asy AAC5(- Communi!ation 57' :he strength of the 11111111 %epen%s on the mutually profita"le "usiness relationships "uilt "y the !ompany an% its supporting stakehol%ers' a' sales network "' holisti! union !' marketing network %' supply !hain network e' integrate% network Answer- ! .age- 22 Diffi!ulty- 8ar% AAC5(- Communi!ation 51' 0ne tra%itional %epi!tion of marketing a!ti*ities is in terms of the marketing mi3 or four .s' :he four .s are !hara!teri&e% as "eing 11111111' a' pro%u!t, positioning, pla!e, an% pri!e 55 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all "' pro%u!t, pro%u!tion, pri!e, an% pla!e !' promotion, pla!e, positioning, an% pri!e %' pla!e, promotion, pro%u!tion, an% positioning e' pro%u!t, pri!e, promotion, an% pla!e Answer- e .age- 22 Diffi!ulty- Me%ium 52' From a "uyerNs point of *iew, ea!h marketing tool is %esigne% to %eli*er a !ustomer "enefit' :he 5$CA !ustomerD!entri! "reak%own of marketing a!ti*ities in!lu%es 11111111' a' sale, intera!tion, *oi!e, an% a*aila"ility "' solution, information, *alue, an% a!!ess !' satisfa!tion, intention, *alue, an% a!!ount %' situation, importan!e, *aria"ility, an% awareness e' none of the a"o*e 5< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- " .age- 24 Diffi!ulty- Me%ium AAC5(- Multi!ulturalRDi*ersity 54' A firm !an 11111111 only in the long run' a' re%u!e its salesDfor!e si&e "' %e*elop new pro%u!ts !' !hange its pri!e %' mo%ify a%*ertising e3pen%itures e' All of the a"o*e may "e %one in the short or long run' Answer- " .age- 24 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 59' 8olisti! marketing in!orporates 11111111, ensuring that e*eryone in the organi&ation em"ra!es appropriate marketing prin!iples, espe!ially senior management' a' profit o")e!ti*es "' share of !ustomer 5= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all !' internal marketing %' the marketing mi3 e' strategi! planning Answer- ! .age- 29 Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 55' Companies are re!ogni&ing that mu!h of their market *alue !omes from 11111111, parti!ularly their "ran%s, !ustomer "ase, employees, %istri"utor an% supplier relations, an% intelle!tual !apital' a' *aria"le assets "' the *alue proposition !' intangi"le assets %' tangi"le assets e' !ustomer preferen!es Answer- ! .age- 2< Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking 5A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 5<' 8olisti! marketing in!orporates 11111111, an un%erstan%ing of "roa%er !on!erns in the ethi!al, en*ironmental, legal, an% so!ial !onte3t of marketing a!ti*ities' a' safe pro%u!t %esign "' !ultural marketing !' so!ial responsi"ility marketing %' !rossDfun!tional teams e' %ire!tDsales poli!ies Answer- ! .age- 2< Diffi!ulty- Me%ium 5=' :he 11111111 hol%s that the organi&ationNs task is to %etermine the nee%s, wants, an% interests of target markets an% to %eli*er the %esire% satisfa!tions more effe!ti*ely an% effi!iently than !ompetitors in a way that preser*es or enhan!es the !onsumerNs an% the so!ietyNs wellD "eing' a' !ustomerD!entere% "usiness 5B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all "' fo!use% "usiness mo%el !' so!ietal marketing !on!ept %' ethi!ally responsi"le marketing manager e' pro%u!tionD!entere% "usiness Answer- ! .age- 2= Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 5A' At the heart of any marketing program is the 11111111Sthe firmNs tangi"le offering to the market' a' ser*i!e offer "' pro%u!t !' sales support team %' pa!kaging e' au3iliary offer Answer- " .age- 2B Diffi!ulty- Me%ium AAC5(- Analyti! 5kill <7 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 5B' 11111111 a!ti*ities in!lu%e those the !ompany un%ertakes to make the pro%u!t a!!essi"le an% a*aila"le to target !ustomers' a' Consumer "eha*ior "' Market segmentation !' Marketing resear!h %' Channel e' @ewDpro%u!t %e*elopment Answer- % .ages- 2BD47 Diffi!ulty- Me%ium AAC5(- Communi!ation <7' Marketing fee%"a!k an% 11111111 pro!esses are ne!essary to un%erstan% the effi!ien!y an% effe!ti*eness of marketing a!ti*ities an% how "oth !oul% "e impro*e%' a' !ontrol "' analysis !' measurement <1 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' retrospe!ti*e e' !onsumer "eha*ior Answer- a .age- 47 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills :rueRFalse <1' A short %efinition of marketing is Omeeting nee%s profita"ly'P Answer- :rue .age- 5 Diffi!ulty- ,asy AAC5(- Analyti! 5kills <2' Calue marketing is the Oart an% s!ien!e of !hoosing target markets an% getting, keeping, an% growing !ustomers through !reating, %eli*ering, an% !ommuni!ating superior !ustomer *alue'P Answer- False .age- 5 Diffi!ulty- Me%ium <2 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all <4' 5er*i!es !onstitute the "ulk of most !ountriesN pro%u!tion an% marketing effort' Answer- False .age- < Diffi!ulty- Me%ium AAC5(- Analyti! 5kills <9' :he H'5' e!onomy to%ay !onsists of a =7K47 ser*i!esDtoDgoo%s mi3' Answer- :rue .age- < Diffi!ulty- Me%ium <5' OFrien%s DonNt 2et Frien%s Dri*e Drunk,P is an e3ample of marketing an e3perien!e to an intereste% au%ien!e' Answer- False .age- = Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking <<' Hnwholesome %eman% o!!urs when !onsumersN pur!hases *ary on a seasonal, monthly, weekly, %aily, or e*en hourly "asis' Answer- False .age- A Diffi!ulty- 8ar% AAC5(- Analyti! 5kills <4 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all <=' hen !onsumers share a strong nee% that !annot "e satisfie% "y an e3isting pro%u!t, they are engage% in latent %eman%' Answer- :rue .age- A Diffi!ulty- Me%ium <A' Companies selling goo%s an% ser*i!es in the glo"al marketpla!e ha*e the a%*antage of "eing a"le to sell the goo%s an% ser*i!es in almost the same way as they %o in their %omesti! market' Answer- False .age- 17 Diffi!ulty- ,asy AAC5(- Multi!ulturalRDi*ersity <B' Companies selling their goo%s to nonprofit organi&ations may !harge an e3tra premium o*er their normal pri!es "e!ause these organi&ations are largely in%ifferent to pri!e' Answer- False .age- 17 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking =7' A marketspa!e is physi!al, as when you shop in a store' Answer- False .age- 17 Diffi!ulty- Me%ium AAC5(- Hse of $: <9 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all =1' ants are "asi! human re>uirements su!h as foo% or air' Answer- False .age- 12 Diffi!ulty- Me%ium =2' Deman%s are wants for spe!ifi! pro%u!ts "a!ke% "y an a"ility to pay' Answer- :rue .age- 12 Diffi!ulty- ,asy AAC5(- Analyti! 5kills =4' Most marketers satisfy e*eryone in a marketSthatNs how they stay in "usiness' Answer- False .age- 14 Diffi!ulty- Me%ium =9' :he !ustomerD*alue tria% !onsists of a !om"ination of >uality, ser*i!e, an% pri!e' Answer- :rue .age- 19 Diffi!ulty- 8ar% AAC5(- Analyti! 5kills =5' A %istri"ution !hannel in!lu%es %istri"utors, wholesalers, retailers, an% agents that %isplay, sell, or %eli*er the physi!al pro%u!t or ser*i!e(s) to the "uyer or user' <5 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- :rue .age- 19 Diffi!ulty- ,asy =<' :he main a!tors in the task en*ironment are the !omponents of %emographi!s, e!onomi!s, physi!al setting, te!hnology, the politi!alDlegal system, an% the so!ialD!ultural arena' Answer- False .age- 19 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills ==' /egulation of in%ustries has !reate% greater !ompetition an% growth opportunities "e!ause the playing fiel% has "een le*ele%' Answer- False .age- 15 Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking =A' $n%ustry "oun%aries are "lurring at an in!re%i"le rate as !ompanies are re!ogni&ing that new opportunities lie at the interse!tion of two or more in%ustries' Answer- :rue .age- 15 Diffi!ulty- Me%ium =B' :he o*era"un%an!e of information a*aila"le on the $nternet has ma%e it more %iffi!ult for << Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all !onsumers to !ompare pro%u!t features an% pri!es' Answer- False .age- 1< Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking A7' Companies !an fa!ilitate an% spee% e3ternal !ommuni!ation among !ustomers "y !reating online an% offDline O"u&&P through "ran% a%*o!ates an% user !ommunities' Answer- :rue .age- 1= Diffi!ulty- ,asy AAC5(- Communi!ation A1' :he proliferation of targete% me%ia an% !ommuni!ation !hannels has allowe% marketers to "e!ome mu!h more aware of their target !onsumersN preferen!es an% to !ustomi&e "oth pro%u!ts an% messages for in%i*i%ual !onsumers' Answer- :rue .age- 1= Diffi!ulty- Me%ium AAC5(- Communi!ation A2' :he marketing !on!ept is one of the ol%est !on!epts in "usiness' Answer- False .age- 1A Diffi!ulty- Me%ium <= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all A4' :he selling !on!ept hol%s that !onsumers will fa*or those pro%u!ts that offer the most >uality, performan!e, or inno*ati*e features' Answer- False .age- 1A Diffi!ulty- Me%ium AAC5(- Analyti! 5kills A9' :he marketing !on!ept stresses a !ustomerD!entere% approa!h to marketing' Answer- :rue .age- 1B Diffi!ulty- ,asy AAC5(- Analyti! 5kills A5' :he selling !on!ept is "ase% on the %e*elopment, %esign, an% implementation of marketing programs, pro!esses, an% a!ti*ities that re!ogni&es their "rea%th an% inter%epen%en!ies' Answer- False .age- 1B Diffi!ulty- Me%ium AAC5(- Analyti! 5kills A<' /elationship marketing aims to "uil% mutually satisfying longDterm relationships with key parties' Answer- :rue .age- 27 Diffi!ulty- Me%ium <A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all A=' Attra!ting a new !ustomer may !ost fi*e times as mu!h as %oing a goo% enough )o" to retain an e3isting one' Answer- :rue .age- 22 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills AA' :he marketingDmi3 !omponent !alle% promotion in!lu%es su!h items as pro%u!t *ariety, %esign, pa!kaging, ser*i!es, an% warranties' Answer- False .age- 24 Diffi!ulty- Me%ium AB' hen a marketer makes %e!isions in*ol*ing !hannels, assortments, lo!ations, an% transportation, the marketer is making what are !alle% pla!e %e!isions' Answer- :rue .age- 24 Diffi!ulty- Me%ium B7' A%*ertising, sales promotion, an% %ire!t marketing are all part of what is !alle% the offering mi3' Answer- False .age- 24 Diffi!ulty- Me%ium <B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all B1' 0ne of the key themes of integrate% marketing is that there are *ery few marketing a!ti*ities that !an effe!ti*ely !ommuni!ate an% %eli*er *alue' Answer- False .age- 22 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking B2' $nternal marketing is an appropriate pra!ti!e to "e use% in holisti! marketing' Answer- :rue .age- 29 Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking B4' $n most !ompanies, marketing shoul% fo!us on the !ustomer an% other %epartments shoul% fo!us on the "usiness itself' Answer- False .age- 29 Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking B9' .erforman!e marketing in*ol*es re*iewing metri!s assessing market share, !ustomer loss rate, !ustomer satisfa!tion, an% pro%u!t >uality in the e*aluation of the effe!ti*eness of marketing a!ti*ities' =7 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Answer- :rue .age- 2< Diffi!ulty- Me%ium B5' :he selling relationship !on!ept hol%s that !onsumers will prefer pro%u!ts that are ethi!al, en*ironmentally responsi"le, legal, an% so!ial in the !onte3t of marketing a!ti*ities an% programs' Answer- False .age- 2= Diffi!ulty- Me%ium AAC5(- Analyti! 5kills B<' :he so!ietal marketing !on!ept hol%s that the organi&ationNs task is to %etermine the nee%s, wants, an% interests of target markets an% to %eli*er the %esire% satisfa!tions more effe!ti*ely an% effi!iently than !ompetitors in a way that preser*es or enhan!es the !onsumerNs an% the so!ietyNs wellD"eing' Answer- :rue .age- 2= Diffi!ulty- ,asy B=' CauseDrelate% marketing in*ol*es %onating a per!entage of re*enues to a spe!ifi! !ause "ase% on the re*enue o!!urring %uring the announ!e% perio% of support' Answer- :rue .age- 2= Diffi!ulty- Me%ium AAC5(- Analyti! 5kills =1 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all BA' Making gifts of money, goo%s, or time to help nonprofit organi&ations, groups, or in%i*i%uals is known as !orporate philanthropy' Answer- :rue .age- 2= Diffi!ulty- Me%ium BB' :o un%erstan% what is happening insi%e an% outsi%e the !ompany, the !ompany nee%s a relia"le marketing information system' Answer- :rue .age- 2A Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking 177' (e!ause of surprises an% %isappointments that !an o!!ur as marketing plans are implemente%, the !ompany will nee% fee%"a!k an% !ontrol to impro*e itself' Answer- :rue .age- 47 Diffi!ulty- ,asy AAC5(- /efle!ti*e :hinking ,ssay 171' Marketing has "een %es!ri"e% "eing "oth an OartP an% a Os!ien!e'P Dis!uss the %ifferen!es an% similarities "etween these two marketing thrusts' .ro*i%e your theoreti!al response an% a OrealDlifeP e3ample where you ha*e seen "oth pro!esses work effe!ti*ely at !reating !ustomer =2 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all *alue an% loyalty' 5uggeste% Answer- :he stu%ent shoul% %emonstrate his or her un%erstan%ing that the marketer must use %ata to un%erstan% !ustomer nee%s an% translate this un%erstan%ing into properly %esigne% pro%u!ts an% ser*i!es' :hey shoul% also see the OartP si%e of human "eha*ior, where the !ustomer makes %e!isions "ase% on emotions, su!h as the per!ei*e% "enefits' .age- 5 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 172' Marketing people are in*ol*e% in marketing 17 types of entities' 2ist an% "riefly !hara!teri&e those entities' 5uggeste% Answer- :he types of entities that marketing people are in*ol*e% in marketing are (1) goo%sSphysi!al goo%s, (2) ser*i!esShotels an% !ar rental, (4) e*entsStimeD"ase% e*ents su!h as tra%e shows, (9) e3perien!esSalt DisneyNs Magi! King%om, (5) personsS!ele"rity marketing, (<) pla!esS!ities, states, regions, an% e*en whole nations, (=) propertiesSintangi"le rights of ownership of either real property or finan!ial property, (A) organi&ationsS!orporate i%entity, (B) informationSinformation pro%u!e% an% markete% as a pro%u!t, an% (17) i%easS marketing the "asi! i%ea of a market offering' .ages- <K= Diffi!ulty- 8ar% AAC5(- Analyti! 5kills =4 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 174' Marketers are skille% in stimulating %eman% for a !ompanyNs pro%u!ts, "ut this is too limite% a *iew of the tasks they perform' Just as pro%u!tion an% logisti!s professionals are responsi"le for supply management, marketers are responsi"le for %eman% management' Marketing managers seek to influen!e the le*el, timing, an% !omposition of %eman% to meet the organi&ationNs o")e!ti*es' 2ist an% "riefly !hara!teri&e the eight %eman% states %es!ri"e% in the te3t' 5uggeste% Answer- :he eight %ifferent %eman% states are (1) negati*e %eman%S!onsumers %islike the pro%u!t an% may e*en pay a pri!e to a*oi% it, (2) none3istent %eman%S!onsumers may "e unaware or unintereste% in the pro%u!t, (4) latent %eman%S!onsumers may share a strong nee% that !annot "e satisfie% "y an e3isting pro%u!t, (9) %e!lining %eman%S!onsumers "egin to "uy the pro%u!t less fre>uently or not at all, (5) irregular %eman%S!onsumer pur!hases *ary on a seasonal, monthly, weekly, %aily, or e*en hourly "asis, (<) full %eman%S!onsumers are a%e>uately "uying all pro%u!ts put into the marketpla!e, (=) o*erfull %eman%Smore !onsumers woul% like to "uy the pro%u!t than !an "e satisfie%, an% (A) unwholesome %eman%S!onsumers may "e attra!te% to pro%u!ts that ha*e un%esira"le so!ial !onse>uen!es' .age- A Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 179' e !an %istinguish among fi*e types of !ustomer nee%s' 2ist an% pro*i%e an e3ample of ea!h of those !ustomer nee%s' 5uggeste% Answer- :he fi*e types of !ustomer nee%s are (note the e3ample from the te3t)- (1) state% nee%sSthe !ustomer wants an ine3pensi*e !ar, (2) real nee%sSthe !ustomer wants a !ar whose operating !ost, not its initial pri!e, is low, (4) unstate% nee%sSthe !ustomer e3pe!ts goo% =9 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all ser*i!e from the %ealer, (9) %elight nee%sSthe !ustomer woul% like the %ealer to in!lu%e an on"oar% na*igation system, an% (5) se!ret nee%sSthe !ustomer wants to "e seen "y frien%s as a sa**y !onsumer' .ages- 12K14 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 175' Distinguish "etween the !on!epts of *alue an% satisfa!tion' 5uggeste% Answer- :he offering will "e su!!essful if it %eli*ers *alue an% satisfa!tion to the target "uyer' :he "uyer !hooses "etween %ifferent offerings on the "asis of whi!h is per!ei*e% to %eli*er the most *alue' Calue refle!ts the per!ei*e% tangi"le an% intangi"le "enefits an% !osts to !ustomers' Calue !an "e seen as primarily a !om"ination of >uality, ser*i!e, an% pri!e (!alle% the !ustomerD*alue tria%)' 5atisfa!tion refle!ts a personNs !omparati*e )u%gments resulting from a pro%u!tNs per!ei*e% performan!e (or out!ome) in relation to his or her e3pe!tations' .ages- 14K19 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 17<' ,3amine an% %o!ument the fa!tors that ha*e "rought a"out !ustomersN higher e3pe!tations of their suppliers' hat are the ma)or shifts in marketing management that ha*e "rought a"out these !hanges# 5uggeste% Answer- 5tu%ents may not un%erstan% that our worl%Ns !apa!ity to pro%u!e pro%u!ts =5 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all e3!ee%s the nee%s' :herefore, !ustomers ha*e more !hoi!es an% !an "e more %eman%ing' :he time !run!h has allowe% new pro*i%ers to enter the market' For e3ample, @etfli3 !ompetes effe!ti*ely with (lo!k"uster Ci%eo "e!ause they %eli*er *i%eos to your home' $tNs ser*i!e like this that fits the !ustomer nee%s to satisfy what money !an "uyStime' 5tu%ents may use appropriate marketing management shifts as %es!ri"e% in the !hapter' .ages- 1<K1= Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking 17=' :he !ompeting !on!epts un%er whi!h organi&ations ha*e !on%u!te% marketing a!ti*ities in!lu%e- the pro%u!tion !on!ept, pro%u!t !on!ept, selling !on!ept, marketing !on!ept, an% holisti! marketing !on!ept' ,*aluate the a%*antages an% %isa%*antages of ea!h !on!ept as %efine% an% presente% in your te3t"ook' hi!h !on!ept %o you "elie*e is the most effe!ti*e# hy# 5uggeste% Answer- Although stu%ents will "e e3pe!te% to resear!h ea!h !on!ept, they shoul% !on!lu%e the most effe!ti*e !on!ept is the holisti! marketing !on!ept, where !ompanies nee% to ha*e a more !omplete, !ohesi*e approa!h that goes "eyon% tra%itional appli!ations of the marketing !on!ept' .ages- 1AK22 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 17A' $n!reasingly, a key goal of marketing is to %e*elop %eep, en%uring relationships with all people or organi&ations that !oul% %ire!tly or in%ire!tly affe!t the su!!ess of the firmNs marketing a!ti*ities' /elationship marketing has the aim of "uil%ing mutually satisfying longDterm relations with key partiesS!ustomers, suppliers, %istri"utors, an% other marketing partnersSin or%er to earn an% retain their "usiness' =< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Dis!uss the merits of relationship marketing' Des!ri"e in %etail a !ompany who is in "usiness to%ay that mo%els relationship marketing' 5uggeste% Answer- 5tu%ents shoul% un%erstan% the relationship "etween any supplier an% !ustomer is not )ust in the me!hani!s of the transa!tion, "ut more importantly how the !ustomer is treate% %uring the transa!tion' :he "etter the relationship, the more apt the !ustomer will remain loyal' :hey shoul% pi!k a !ompany that has ser*e% them well an% ma%e them feel spe!ial ea!h an% e*ery time' .ages- 27K22 Diffi!ulty- Me%ium AAC5(- Communi!ation 17B' $%entify an% %efine the four .s an% the !orrespon%ing !onsumerDoriente% 5$CA %imensions' 5uggeste% Answer- :he four .s are- .ro%u!t (pro%u!t *ariety, >uality, %esign, features, "ran% name, pa!kaging, si&es, ser*i!es, warranties, returns), .ri!e (list pri!e, %is!ounts, allowan!es, payment perio%, !re%it terms), .romotion (sales promotion, a%*ertising, sales for!e, pu"li! relations, %ire!t marketing), an% .la!e (!hannels, !o*erage, assortments, lo!ations, in*entory, transportation)' A !omplementary "reak%own of marketing a!ti*ities that approa!hes the pro!ess from a !ustomerD!entri! *iewpoint is the 5$CA framework- 5olution (8ow !an $ sol*e my pro"lem#), $nformation (here !an $ learn more a"out it#), Calue (hat is my total sa!rifi!e to == Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all get the solution#), an% A!!ess (here !an $ fin% it#)' .age- 24 Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 117' A!!or%ing to 5tar"u!ks Chairman 8owar% 5!hult&, OConsumers now !ommonly engage in a !ultural au%it of Lpro%u!t an% ser*i!eM pro*i%ers' .eople want to know your *alue an% ethi!s %emonstrate% "y how you treat employees, the !ommunity in whi!h you operate'P Dis!uss the !on!ept of so!ial responsi"ility marketing an% how it impa!ts "oth !ompanies an% !onsumers' 5uggeste% Answer- :he so!ietal marketing !on!ept hol%s that the organi&ationNs task is to %etermine the nee%s, wants, an% interests of target markets an% to %eli*er the %esire% satisfa!tion more effe!ti*ely an% effi!iently than !ompetitors in a way that preser*es or enhan!es the !onsumerNs an% so!ietyNs longDterm wellD"eing' Many !ompanies a!ti*ely engage% in !orporate so!ial responsi"ility !ampaigns to "oth moti*ate employees an% attra!t !onsumers' As goo%s "e!ome more !ommo%iti&e%, an% as !onsumers grow more so!ially !ons!ious, some !ompanies are a%%ing so!ial responsi"ility as a way to %ifferentiate themsel*es from !ompetitors, "uil% !onsumer preferen!e, an% a!hie*e nota"le sales an% profit gains' :hey "elie*e !ustomers will in!reasingly look for signs of goo% !orporate !iti&enship' .ages- 2<K2= Diffi!ulty- Me%ium AAC5(- ,thi!al /easoning A..2$CA:$0@ TH,5:$0@5 =A Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all Multiple Choi!e 111' hen $K,A noti!e% that people wante% goo% furniture at a su"stantially lower pri!e an% !reate% kno!k%own furniture, they %emonstrate% marketing sa**y an% turne% a pri*ate or so!ial nee% into a(n) 11111111' a' market nee% "' profita"le "usiness opportunity !' pro%u!t %e*elopment %' in*ention e' !ustomer want Answer- " .age- 5 Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking =B Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 112' Car rental firms, "ar"ers, an% management !onsultants pro*i%e 11111111' a' goo%s "' e3perien!es !' pla!es %' ser*i!es e' information Answer- % .age- < Diffi!ulty- ,asy AAC5(- Analyti! 5kills 114' alt DisneyNs Magi! King%om represents 11111111 marketing- Customers *isit a fairy king%om, a pirate ship, or a haunte% house' a' e3periential "' ser*i!es !' e*ent %' !ele"rity A7 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all e' goo%s Answer- a .age- < Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 119' Janet is *ery upset that she !anNt get ti!kets to the new /olling 5tones !on!ert' Ohy %o they keep a%*ertising the show if you !anNt get ti!kets#P won%ers Janet' hi!h of the following %eman% states applies to JanetNs situation# a' none3istent %eman% "' latent %eman% !' full %eman% %' unwholesome %eman% e' o*erfull %eman% Answer- e .age- A Diffi!ulty- Me%ium AAC5(- Analyti! 5kills A1 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 115' hen Ja!k pur!hases his airD!on%itioning unit in the winter to a*oi% the high pri!es foun% in the summer, he is e3hi"iting 11111111 %eman%' a' irregular "' %e!lining !' impulse %' latent e' negati*e Answer- a .age- A Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 11<' Julia hates smoking an% is willing to pay an e3tra ta3 )ust to help eliminate smoking in her !ity' 5he is e3hi"iting 11111111 with respe!t to smoking' a' negati*e %eman% "' none3istent %eman% !' latent %eman% A2 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' %e!lining %eman% e' unwholesome %eman% Answer- a .age- A Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 11=' $n a mo%ern e3!hange e!onomy, all of the following markets are likely to e3ist ,IC,.: 11111111' a' resour!e market "' manufa!turer market !' go*ernment market %' !onsumer market e' !lass market Answer- e .age- B Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking A4 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 11A' $n a simple marketing system, if the automo"ile in%ustry sen%s a%*ertising an% personal sales messages to prospe!ti*e "uyers, it e3pe!ts 11111111 in e3!hange' a' goo%s "' ser*i!es !' money %' information e' image enhan!ement Answer- % .age- B Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 11B' Automo"ile manufa!tures, new !ar an% use% !ar %ealers, finan!ing !ompanies, an% insuran!e !ompanies are all part of the automo"ile 11111111' a' marketpla!e "' marketspa!e !' metame%iary A9 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' marketportal e' metamarket Answer- e .age- 17 Diffi!ulty- Me%ium 127' hen Frank i%entifies a marketing opportunity to market his !ompanyNs ski an% snow"oar% helmets to "a"y "oomers intereste% in winter sports through a%*ertisements in enthusiast maga&ines, Frank is going through the 11111' a' metamarket "' marketing planning pro!ess !' so!ial marketing !on!ept %' supply !hain !onglomeration e' negati*e %eman% Answer- " .age- 11 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills A5 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 121' hen a !ustomer has a(n) 11111111 nee%, the !ustomer might e3pe!t something like a%miration from frien%s "e!ause he or she has pur!hase% something that might in%i!ate a !ertain market sa**y' a' real "' unstate% !' %elight %' se!ret e' state% Answer- % .age- 14 Diffi!ulty- 8ar% AAC5(- Analyti! 5kills 122' hen Col*o runs a%*ertisements suggesting that it is the safest !ar money !an "uy, it is engaging in whi!h of the following forms of marketing programming# a' :e!hnologi!al "' 5er*i!e !' Market segmentation A< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' .u"li! relations e' .ositioning Answer- e .age- 14 Diffi!ulty- Me%ium AAC5(- Communi!ation 124' hen online %otD!oms, su!h as e(ay an% Ama&on'!om !ut out the ma)ority of mi%%lemen that normally woul% parti!ipate in the e3!hange pro!ess, they were a%*o!ating 11111111' a' !ategory killers "' e*eryD%ayDlow pri!es !' reinterme%iation %' %isinterme%iation e' supply !hain !onglomeration Answer- % .age- 1< Diffi!ulty- Me%ium AAC5(- Hse of $: A= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 129' Hn%er whi!h of the following !ompany orientations towar% the marketpla!e woul% we e3pe!t to fin% the O"etter mousetrapP falla!y# a' .ro%u!tion !on!ept "' .ro%u!t !on!ept !' 5elling !on!ept %' Marketing !on!ept e' 8olisti! marketing !on!ept' Answer- " .age- 1A Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking 125' $f marketers are !hara!teri&e% as Ogar%eningP rather than Ohunting,P the 11111111 is most likely to "e the !on!ept the marketers are following' a' pro%u!tion !on!ept "' pro%u!t !on!ept !' selling !on!ept AA Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' marketing !on!ept e' so!ial responsi"ility !on!ept Answer- % .age- 1B Diffi!ulty- 8ar% AAC5(- /efle!ti*e :hinking 12<' hen 4M, 8., an% Motorola pra!ti!e resear!hing or imaging latent nee%s of !onsumers through a Opro"eDan%DlearnP pro!ess, they are most likely using whi!h of the following marketing orientations with respe!t to their !onsumers# a' 5elling orientation "' .romotion orientation !' 5upplyDsi%e orientation %' /ea!ti*e market orientation e' .roa!ti*e marketing orientation Answer- e .age- 1B Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking AB Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 12=' Companies that pra!ti!e 11111111 are implementing a total market orientation an% are likely to "e the most su!!essful' a' rea!ti*e market orientation "' proa!ti*e marketing orientation !' "oth rea!ti*e an% proa!ti*e marketing orientation %' !onsoli%ation an% a!>uisition e' Oin*ent an% marketP Answer- ! .age- 1B Diffi!ulty- Me%ium AAC5(- /efle!ti*e :hinking 12A' $n whi!h of the following %imensions of holisti! marketing might we fin% an emphasis on !ommuni!ations, pro%u!ts an% ser*i!es, an% !hannels# a' $nternal marketing "' $ntegrate% marketing !' 5o!ially responsi"le marketing B7 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all %' Qlo"al marketing e' /elationship marketing Answer- " .age- 21 Diffi!ulty- Me%ium AAC5(- Analyti! 5kills 129. Kroger supermarkets are aggressively pursuing a strategy of capturing a larger share of the customers stomach. Which of the following shifts in marketing management is most appropriate for this example a. !rom relying on ol" market positions to uncovering new ones. #. !rom marketing "oes the marketing to everyone "oes the marketing. c. !rom a focus on gaining market share to a focus on #uil"ing customer share. ". !rom focusing on profita#le transactions to focusing on customer lifetime value. e. !rom #uil"ing #ran"s through a"vertising to #uil"ing #ran"s through performance an" integrate" communications. $nswer% c &age% 22 'ifficulty% (ar" $$)*+% $nalytic *kills 1,-. $ num#er of companies.inclu"ing the +o"y *hop/ +en 0 1errys/ an" &atagonia.have achieve" nota#le sales an" profit gains #y a"opting an" practicing a form of the societal marketing concept calle" 22222222/ #y which a company with an image/ pro"uct/ or service to market #uil"s a relationship or partnership with a cause/ or a num#er of causes/ for mutual #enefit. a. social marketing #. environmental marketing c. cause3relate" marketing ". #enefit marketing e. responsi#le marketing $nswer% c &age% 24 'ifficulty% 5asy *hort $nswer B1 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 1,1. What woul" #e a goo" social "efinition of marketing *uggeste" $nswer% 6arketing is a societal process #y which in"ivi"uals an" groups o#tain what they nee" an" want through creating/ offering/ an" freely exchanging pro"ucts an" services of value with others. &age% 7 'ifficulty% 6e"ium 1,2. 'iscuss the eight "eman" states with respect to #ifocal lenses for glasses. *uggeste" $nswer% *tu"ent answers may vary/ #ut a possi#le answer inclu"es the following% 819 negative "eman".many people "ont want to a"mit they nee" #ifocals/ 829 nonexistent "eman".when #ifocal lenses were first intro"uce"/ people "i"nt know they existe"/ 8,9 latent "eman".#efore they were intro"uce"/ many people thought such a pro"uct woul" #e nice/ #ut "i"nt think it woul" ever exist/ 8:9 "eclining "eman".this will occur when something #etter is invente"/ such as surgery to repair the eyes/ 879 irregular "eman".the consumer perceives a nee" for eye care "evices only perio"ically/ possi#ly when they #egin having trou#le seeing/ 8;9 full "eman".the manufacturers of the lenses are making all they possi#ly can/ 849 overfull "eman".the manufacturers of the lenses cant make enough an" inventories are low/ an" 8<9 unwholesome "eman".seeking alternatives/ consumers may fin" that alternatives have un"esira#le social conse=uences. &age% < 'ifficulty% (ar" $$)*+% >eflective ?hinking 1,,. @ew terms are now #eing use" to "escri#e where marketing is "one. Asing the automo#ile market/ "escri#e automotive #uying #ehavior for a% 819 marketplace/ 829 marketspace/ an" 8,9 metamarket. *uggeste" $nswer% >esponses to this =uestion shoul" inclu"e a reference to the following% 819 marketplace.shopping for an automo#ile at a "ealers lot/ 829 marketspace.shopping for an automo#ile via the Bnternet/ e+ay/ or even "esigning your own car via a manufacturers We# site/ an" 8,9 metamarket.8a cluster of complementary pro"ucts an" services that are closely relate" in the customers min" #ut are sprea" across a "iverse set of in"ustries9 that might inclu"e insurance companies/ the racing in"ustry/ the travel in"ustry/ the customiCation in"ustry/ et cetera. Bn"ivi"ual answers might vary. &age% 1- 'ifficulty% 6e"ium $$)*+% $nalytic *kills 1,:. B"entify the five key functions of the )6D in lea"ing marketing within the organiCation. *uggeste" $nswer% ?he five key functions of the )6D in lea"ing marketing within the organiCation are% B2 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 819 strengthening #ran"s/ 829 measuring marketing effectiveness/ 8,9 "riving new3pro"uct "evelopment #ase" on customer nee"s/ 8:9 getting meaningful customer insights/ 879 utiliCing new marketing technology. &age% 11 'ifficulty% 6e"ium $$)*+% >eflective ?hinking 1,7. $ssume that you have #een given the task of assisting a company in "esigning its marketing planning process. What components shoul" #e in such a process +e specific in your answer. *uggeste" $nswer% ?he marketing planning process consists of analyCing marketing opportunities/ selecting target markets/ "esigning strategies/ "eveloping marketing programs/ an" managing the marketing effort. *tu"ents might also review !igure 1.; for a""itional information. &age% 11 'ifficulty% (ar" $$)*+% $nalytic *kills 1,;. )onsumers often have many nee"s that are not rea"ily o#vious. 1ust o#serving their #ehavior insi"e a retail store is not enough to get a true feel for their nee"s. Eist an" #riefly "escri#e the five types of nee"s that most consumers have. *uggeste" $nswer% ?he various consumer nee"s are% 819 state" nee"s.what the consumer says he or she wants.a car/ 829 real nee"s.the customer wants a car whose operating costs/ not its initial price/ is low/ 8,9 unstate" nee"s.the customer expects goo" service an" honesty from the "ealer/ 8:9 "elight nee"s.the customer woul" like a 'F' player set3up thrown in to guarantee a =uick signing of the purchase agreement/ an" 879 secret nee"s.inner fantasies such as gaining prestige with mem#ers of the opposite sex or frien"s. &ages% 12G1, 'ifficulty% (ar" $$)*+% $nalytic *kills 1,4. Wal36art knows that to reach its target markets three kin"s of marketing channels may #e use". What are these three marketing channels an" how might Wal36art use each of them *uggeste" $nswer% ?he three marketing channels are communication/ "istri#ution/ an" service channels. Wal36art coul" use a"vertising to communicate price specials to consumers 8communication channel9/ use wholesalers to assem#le merchan"ise assortments to #e sol" in the Wal36art stores 8"istri#ution channels9/ an" use transportation companies 8service channels9 to exten" Wal36arts glo#al reach. &age% 1: 'ifficulty% (ar" $$)*+% $nalytic *kills 1,<. ?he marketplace isnt what it use" to #e. Eist an" #riefly "iscuss what new #ehaviors/ new B4 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all opportunities/ an" new challenges await the marketer in the 21st century. *uggeste" $nswer% >esponses to this =uestion shoul" inclu"e% 819 changing technology/ 829 glo#aliCation/ 8,9 "eregulation/ 8:9 privatiCation/ 879 customer resistance/ 8;9 heightene" competition/ 849 in"ustry convergence/ 8<9 retail transformation/ an" 899 "isinterme"iation. &ages% 17G1; 'ifficulty% (ar" $$)*+% >eflective ?hinking 1,9. ?he "igital revolution has place" a whole new set of capa#ilities in the han"s of consumers an" #usinesses. )onsi"er what consumers have to"ay that they "i"nt have yester"ay. $s in"icate" in the chapter/ what woul" appear on such a list *uggeste" $nswer% >esponses to this =uestion shoul" inclu"e% 819 a su#stantial increase in #uying power/ 829 a greater variety of availa#le goo"s an" services/ 8,9 a great amount of information a#out practically anything/ 8:9 a greater ease in interacting an" placing an" receiving or"ers/ an" 879 an a#ility to compare notes on pro"ucts an" services. &age% 1; 'ifficulty% (ar" $$)*+% Ase of B? 1:-. 'iscuss the concept of "isinterme"iation an" provi"e an example. *uggeste" $nswer% 'isinterme"iation grew out of the rush to em#race the "ot3coms an" e3commerce. 5ssentially/ the "ot3coms remove" many of the tra"itional interme"iaries that #rought goo"s an" services to consumers #y encouraging consumers to "eal "irectly with the "ot3coms via the Bnternet. +rick3an"3click #usinesses eventually #rought some of the interme"iaries #ack through a process calle" reinterme"iation. &age% 1; 'ifficulty% 6e"ium $$)*+% Ase of B? 1:1. ?he Bnternet has given to"ays companies a new set of capa#ilities. $mong those capa#ilities is the a#ility to operate a new information channel. 'escri#e how information can #e use" #y the marketer in this new channel. *uggeste" $nswer% )ompanies can operate a powerful new information an" sales channel/ the Bnternet/ with augmente" geographical reach to inform an" promote their #usinesses an" pro"ucts worl"wi"e. +y esta#lishing one or more We# sites/ a company can list its pro"ucts an" services/ its history/ its #usiness philosophy/ its Ho# opportunities/ an" other information of interest to visitors. !or a""itional information/ see chapter section. &age% 14 'ifficulty% 6e"ium $$)*+% Ase of B? B9 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all 1:2. $rthur 1ones has "eci"e" to #uil" his manufacturing #usiness 8lawn mowers9 aroun" the pro"uction concept. Bf this approach is taken/ what will #e 6r. 1ones primary areas of concentration as he #uil"s his #usiness *uggeste" $nswer% ?his orientation hol"s that consumers will prefer pro"ucts that are wi"ely availa#le an" inexpensive. 6anagers of pro"uction3oriente" #usinesses concentrate on high pro"uction efficiency/ low costs/ an" mass "istri#ution. ?his approach is also use" when a company wants to expan" the market. *tu"ents may use these facts as they "esign their answer. &age% 1< 'ifficulty% 6e"ium $$)*+% $nalytic *kills 1:,. Bllustrate the "ifferences #etween a reactive market orientation an" a proactive marketing orientation. Iive an example of a company that uses a proactive marketing orientation *uggeste" $nswer% Bn a reactive market orientation a company might #e content to keep up with un"erstan"ing an" meeting customers expresse" nee"s. Bn a proactive market orientation a company such as 6otorola might prefer to make a practice of researching an" imagining latent nee"s through a pro#e3an"3learn process. *tu"ents answers may vary #ut the #asic concepts of reaction an" proactivity shoul" #e clear in answers. &age% 19 'ifficulty% 6e"ium $$)*+% $nalytic *kills 1::. ?he ultimate outcome of relationship marketing is the #uil"ing of a uni=ue company asset calle" a marketing network. What woul" #e the parts of a marketing network for a motorcycle company such as (arley3'avi"son *uggeste" $nswer% $ marketing network consists of the company an" its supporting stakehol"ers. ?hese stakehol"ers 8in (arley3'avi"sons case9 might #e customers/ employees/ suppliers/ "istri#utors/ retailers/ repair services/ a" agencies/ lo##y groups/ an" motorcycle support clu#s. ?he operating principle is simple% +uil" an effective network of relationships with key stakehol"ers/ an" profits will follow. &age% 22 'ifficulty% 6e"ium $$)*+% $nalytic *kills 1:7. Ein"a 5vans has #een given the task of "eveloping the pro"uct portion of her companys marketing mix. Eist the components that will likely #e inclu"e" in this element of the marketing mix. *uggeste" $nswer% &ro"uct variety/ =uality/ "esign/ features/ #ran" names/ packaging/ siCes/ services/ warranties/ an" returns are the key elements of the pro"uct portion of the marketing mix. ?o see a more complete "iagram of the four &s process/ see !igure 1.7. B5 Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all &age% 2, 'ifficulty% 6e"ium $$)*+% $nalytic *kills 1:;. 'iscuss how companies can use the Bnternet to #uil" their #ran"s. Iive an example of a company that has "one so. *uggeste" $nswer% Dnline marketing activities can #e use" to #uil" #ran"s #y increasing consumer exposure to the #ran" an" creating an interactive experience #etween the customer an" the #ran"/ giving consumers access not only to company3create" information #ut also consumer3generate" content. !or example/ )arnival )onnections/ an online cruise3#ooking site/ ma"e it easy for cruise fans to compare notes on cruise "estinations an" on#oar" entertainment. &ages% 2,G2: 'ifficulty% 6e"ium $$)*+% >eflective ?hinking 1:4. 'efine internal marketing an" its role in the company. Dutline how various "epartments within the company outsi"e marketing can "emonstrate a customer focus. *uggeste" $nswer% Bnternal marketing must take place on two levels. $t one level/ the various marketing functions must work together. $t the secon" level/ other "epartments must em#race marketing an" think customer. *tu"ents may use ?a#le 1.1 to furnish various examples of customer3 centric focus outsi"e the marketing "epartment. &ages% 2:G27 'ifficulty% (ar" $$)*+% >eflective ?hinking 1:<. $ccor"ing to information provi"e" in the chapter/ 6c'onal"s has #een involve" in a variety of corporate social initiatives. Iive an example of how 6c'onal"s might initiate cause3relate" marketing/ an" "efine what cause3relate" marketing is. *uggeste" $nswer% )ause3relate" marketing is "onating a percentage of revenues to a specific cause #ase" on revenue occurring "uring the announce" perio" of support. ?he example use" in the chapter note" 6c'onal"s earmarking of J1 for >onal" 6c'onal" )hil"rens )harities from the sale of every +ig 6ac an" piCCa sol" on 6c(appy 'ay. *tu"ents may create a""itional examples #ut each shoul" meet the parameters set a#ove. &age% 24 'ifficulty% 6e"ium $$)*+% $nalytic *kills 1:9. Kou have #een given the assignment of Hustifying cause3relate" marketing to your #oar" of "irectors. What woul" #e your primary argument in favor of such a proposal *uggeste" $nswer% )ompanies see cause3relate" marketing as an opportunity to enhance their corporate reputation/ raise #ran" awareness/ increase customer loyalty/ #uil" sales/ an" increase press B< Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all coverage. ?hey #elieve customers will increasingly look for signs of goo" corporate citiCenship that go #eyon" supplying rational an" emotional #enefits. &age% 24 'ifficulty% (ar" $$)*+% 5thical >easoning 17-. Kour firm is in the process of moving from focusing on a financial scorecar" as the #asis for running an" evaluating your organiCation to a marketing scorecar" approach. What is a marketing scorecar" approach an" what might #e some of its components *uggeste" $nswer% ?op management is going #eyon" sales revenue alone to examine the marketing scorecar". ?o"ay/ the shift to the marketing scorecar" attempts to interpret what is happening to market share/ customer loss rate/ customer satisfaction/ pro"uct =uality/ an" other measures. 6anagers know changes in marketing in"icators pre"ict changes in financial results. &ages% 2;G24 'ifficulty% (ar" $$)*+% >eflective ?hinking B= Copyright 6 2712 .earson ,%u!ation, $n!' .u"lishing as .renti!e 8all