CHAPTER 1

MARKETING IN A CHANGING WORLD:

CREATING CUSTOMER VALUE AND SATISFACTION
MULTIPLE CHOICE QUESTIONS
1. Todays successful companies at all levels have one thing in common. The common
theme can best be described as one where the companies are:
a. oriented around public service.
b. strongly customer focused and heavily committed to marketing.
c. moving toward globalization and socialization.
d. more interested in governmental regulation and control than ever before.
Answer: (b D!""!#$%&': (1 P()e: *
2. According to ernie !arcus" cofounder of #ome $epot" the #oly %rail of business
is:
a. the bottom line.
b. promotion" promotion" and more promotion.
c. an almost blind" passionate commitment to taking care of customers.
d. meet every competitive threat with strength" commitment" and the courage to win.
Answer: (# D!""!#$%&': (+ P()e: *
&. 'reating (((((((((((((((((( is at the very heart of modern marketing thinking
and practice.
a. profit ma)imization
b. increased stock value
c. award winning products
d. customer value and satisfaction
Answer: (, D!""!#$%&': (+ P()e: *
*. The twofold goal of marketing is to attract new customers by promising superior
value and:
a. win advertising and industry awards for e)cellence.
b. to keep and grow current customers by delivering satisfaction.
c. enhance shareholder value.
d. pay as few ta)es as possible.
Answer: (b D!""!#$%&': (1 P()e: *
1
+. ,al-!art has become the worlds largest retailer by delivering on its promise"
.Always low prices/always.0 This would be an e)ample of the marketing
philosophy that says:
a. .Take care of your customers" and market share and profits will follow.0
b. .uy cheap" sell cheap.0
c. .Always take discounts and pass some of them on to consumers.0
d. .$istribution is the secret to all con1uests in marketing.0
Answer: (( D!""!#$%&': (+ P()e: *
2. Today" marketing must be understood in a new sense that can be characterized as:
a. .telling and selling.0
b. .management of youth demand.0
c. .get there first with the most.0
d. .satisfying customer needs.0
Answer: (, D!""!#$%&': (+ P()e: -
3. ((((((((((((((((( is a social and managerial process by which individuals and
groups obtain what they need and want through creating and e)changing products and
value with others.
a. !anagement
b. !arketing
c. 4conometrics
d. $emand
Answer: (b D!""!#$%&': (1 P()e: -
5. The most basic concept underlying marketing is that of:
a. products and services.
b. human needs.
c. barter.
d. transactions.
Answer: (b D!""!#$%&': (. P()e: -
6. (((((((((((( are states of felt deprivation.
a. $emands
b. ,ants
c. 7eeds
d. 'ore transactions
Answer: (# D!""!#$%&': (1 P()e: -
2
18. asic needs" such as those for food" clothing" and safety" refer to:
a. physical needs.
b. social needs.
c. individual needs.
d. physical wants.
Answer: (( D!""!#$%&': (+ P()e: -
11. (((((((((( are shaped by ones society and are described in terms of ob9ects.
a. 7eeds
b. ,ants
c. $emands
d. Transactions
Answer: (b D!""!#$%&': (1 P()e: -
12. ,hen backed by buying power" wants become:
a. needs.
b. relationships.
c. ob9ect relationships.
d. demands.
Answer: (, D!""!#$%&': (+ P()e: -
1&. :n outstanding companies" people at all levels" including top management":
a. work more than eight hours a day.
b. are constantly inventing new products.
c. are addicted to time management.
d. stay close to customers.
Answer: (, D!""!#$%&': (+ P()e: /
1*. Anything that can be offered to a market for attention" ac1uisition" use" or
consumption that might satisfy a want or need is called a:
a. demand.
b. basic staple.
c. product.
d. service.
Answer: (# D!""!#$%&': (+ P()e: 0
&
1+. A ((((((((((((((( is any activity or benefit offered for sale that is essentially
intangible and does not result in the ownership of anything.
a. demand
b. basic staple
c. product
d. service
Answer: (, D!""!#$%&': (1 P()e: 0
12. :f a company is guilty of .marketing myopia"0 then it is:
a. in danger of having dangerous cost overruns because it is trying to please too many
diverse customer groups.
b. so taken with its products that it focuses only on e)isting wants and loses sight
of underlying consumer needs.
c. guilty of pre9udice toward certain customer groups.
d. falling into the trap of .copying0 rather than .inventing0 products.
Answer: (b D!""!#$%&': (. P()e: 1
13. The difference between the values the customer gains from owning and using a
product and the costs of obtaining the product is called ((((((((((((((.
a. customer 1uality
b. customer satisfaction
c. customer value
d. perceptual relationships
Answer: (# D!""!#$%&': (. P()e: 1
15. 'ustomers often do not 9udge product values and costs accurately or ob9ectively.
:nstead" they act on (((((((((((((((((((.
a. customer satisfaction
b. customer 1uality
c. needs
d. perceived value
Answer: (, D!""!#$%&': (+ P()e: 12
16. ((((((((((((((((( depend;s< on a products perceived performance in delivering
value relative to a buyers e)pectations.
a. 'ustomer satisfaction
b. 'ustomer 1uality
c. 'ustomer value
d. 'ustomer needs
Answer: (( D!""!#$%&': (. P()e: 12
*
28. ,ith respect to customer satisfaction" smart companies aim to:
a. give the customer anything and everything they want.
b. make customers addicted to their products and services.
c. delight customers by promising only what they can deliver" then delivering more
than they promise.
d. always save the customers money" time" and other resources.
Answer: (# D!""!#$%&': (+ P()e: 12
21. An approach in which all the companys people are involved in constantly improving
the 1uality of products" services" and business processes is called:
a. 'igna 1888.
b. total 1uality management.
c. total relationship opportunity.
d. e)change management.
Answer: (b D!""!#$%&': (+ P()e: 11

22. !arketing occurs when people decide to satisfy needs and wants through ((((((((.
a. selling
b. e)change
c. transaction
d. relationships
Answer: (b D!""!#$%&': (+ P()e: 1+
2&. A;n< (((((((((((((( consists of a trade of values between parties.
a. sale
b. e)change
c. transaction
d. market

Answer: (# D!""!#$%&': (. P()e: 1+
2*. Trading your old calculator for tickets to a %arth rooks concert would be what kind
of transaction=
a. monetary transaction
b. barter transaction
c. market transaction
d. customer transaction
Answer: (b D!""!#$%&': (1 P()e: 1+
+
2+. Transaction marketing is part of the larger idea of (((((((((((((((((.
a. customer returns and allowances
b. trade discounts
c. relationship marketing
d. promotional stimulation marketing
Answer: (# D!""!#$%&': (. P()e: 1+
22. A ((((((((((((((( consists of the company and all its supporting stakeholders.
a. demand channel
b. marketing network
c. communication triad
d. product flow process
Answer: (b D!""!#$%&': (. P()e: 1+
23. As '4>s and other managers have reviewed business functions" they have found
that" ultimately" ((((((((((( is the art of attracting" keeping" and growing
profitable customers.
a. marketing
b. finance
c. electronic commerce
d. demand management
Answer: (( D!""!#$%&': (+ P()e: 1*
25. :n a contemporary sense" a market is thought to be:
a. wherever a marketer sells products.
b. the people who may buy the product.
c. the set of actual and potential buyers of a product.
d. the s1uare in the middle of the city where trade occurs.
Answer: (# D!""!#$%&': (+ P()e: 1*
26. The main actors in a modern marketing system would include all of the following
4?'4@T: ;Aelect the B4AAT B:C4BD.<
a. suppliers.
b. marketing intermediaries.
c. the end user.
d. advertising agencies.
Answer: (, D!""!#$%&': (+ P()e: 1-3 F!)$re 14+
2
&8. The analysis" planning" implementation" and control of programs designed to create"
build" and maintain beneficial e)changes with target buyers for the purpose of
achieving organizational ob9ectives is called (((((((((((((((((((.
a. relationship marketing
b. demand management
c. marketing
d. marketing management
Answer: (, D!""!#$%&': (+ P()e: 1-
&1. :f the %olden %ate ridge becomes consistently overcrowded with an unsafe level of
traffic" the 'alifornia Transit Authority in Aan Erancisco might have to undertake a
((((((((((((((( campaign to reduce traffic levels during high demand periods of
the day or week.
a. public relations
b. regulation program
c. demarketing
d. sales
Answer: (# D!""!#$%&': (+ P()e: 1/
&2. The aim of demarketing is to:
a. destroy demand.
b. increase demand.
c. initiate demand.
d. reduce or shift demand.
Answer: (, D!""!#$%&': (1 P()e: 1/
&&. :n the past" marketers followed a ((((((((((((((( approach to gaining customers.
This meant that growing markets supplied endless new consumer candidates and the
company did not have to worry about older customers who might become dissatisfied
and leave the companys marketing offerings.
a. .first in" first out0
b. .treadmill0
c. .funnel0
d. .leaky bucket0
Answer: (, D!""!#$%&': (+ P()e: 1/
3
&*. Taco ell has found that the lifetime value of a Taco ell customer is about
F12"888. Atudy has shown that the key to customer retention is:
a. offer the lowest prices.
b. constantly advertise.
c. offer superior customer value and satisfaction.
d. offer a variety of products.
Answer: (# D!""!#$%&': (+ P()e: 10
&+. Gim Coch" founder of Aamuel Adams beer" was often seen talking to bartenders and
bar customers to encourage consumption of his brewerys products. This would be
an illustration of which of the following marketing practice stages=
a. intrepreneurial marketing
b. entrepreneurial marketing
c. formulated marketing
d. demand-based marketing
Answer: (b D!""!#$%&': (+ P()e: 10
&2. Gohn otros feels the heat of competition on his new :nternet-based home delivery
pizza business. Hather than 9ust advertising" Gohn is encouraging his managers to get
out of their offices and meet the public on their own ground. :n fact" otros makes it
a practice to give at least one public speech per week. This would be an illustration of
which of the following marketing practice stages=
a. intrepreneurial marketing
b. entrepreneurial marketing
c. formulated marketing
d. demand-based marketing
Answer: (( D!""!#$%&': (. P()e: 10
&3. >ver time" marketing management has offered five distinct concepts under which
organizations conduct their marketing activities. ,hich of the following $>4A 7>T
belong on the correct list of these concepts=
a. econometric concept
b. production concept
c. product concept
d. marketing concept
Answer: (( D!""!#$%&': (+ P()e: 15
5
&5. The ((((((((((((((( holds that consumers will favor products that are available
and highly affordable ;therefore" management should work on improving production
and distribution efficiency<.
a. product concept
b. production concept
c. production cost e)pansion concept
d. marketing concept
Answer: (b D!""!#$%&': (+ P()e: 15
&6. The ((((((((((((((((( holds that consumers will favor products that offer the
most 1uality" performance" and innovative features. Thus" an organization should
devote energy to making continuous product improvements.
a. marketing concept
b. production concept
c. selling concept
d. product concept
Answer: (, D!""!#$%&': (. P()e: +2
*8. :f a manufacturer was following the product concept" their operating philosophy
would rely on which of the following phrases=
a. .uild a better mousetrap" and the world will beat a path to your door.0
b. .Bocation" location" location.0
c. .,atch your costs at all cost.0
d. .The consumer is king.0
Answer: (( D!""!#$%&': (. P()e: +2
*1. ,hich philosophy of business is typically practiced when marketing unsought
goods=
a. the marketing concept
b. the product concept
c. the production concept
d. the selling concept
Answer: (, D!""!#$%&': (. P()e: +2
*2. ,hen faced with overcapacity" most firms practice (((((((((((((((((.
a. the marketing concept
b. the product concept.
c. the production concept
d. the selling concept
Answer: (, D!""!#$%&': (+ P()e: +2
6
*&. ((((((((((((((((((((((( holds that achieving organizational goals depends on
determining the needs and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than competitors do.
a. The marketing concept
b. The product concept
c. The selling concept
d. The societal marketing concept
Answer: (( D!""!#$%&': (+ P()e: +2
**. All of the following organizational philosophy phrases are associated with the
marketing concept 4?'4@T: ;@ick the phrase that $>4A 7>T fit.<
a. .,e make it happen for you.0
b. .To fly" to serve.0
c. .:f it aint broke" dont fi) it.0
d. .Bet us e)ceed your e)pectations.0
Answer: (# D!""!#$%&': (1 P()e: +2
*+. The (((((((((((((((( 1uestions whether the pure marketing concept is ade1uate
in an age of environmental problems" resource shortages" rapid population growth"
worldwide economic problems" and neglected social services.
a. service concept
b. societal marketing concept
c. product concept
d. not-for-profit concept
Answer: (b D!""!#$%&': (+ P()e: ++
*2. :n an e)ample discussed in your te)t" Gohnson I Gohnsons recall of their Tylenol
product following the discovery that several bottles of Tylenol had been laced with
cyanide is consistent with which business philosophy=
a. the marketing concept
b. the product concept
c. the selling concept
d. the societal marketing concept
Answer: (, D!""!#$%&': (+ P()e: +.
*3. The ma9or marketing developments as we enter the new millennium can be summed
up in a single theme:
a. innovation.
b. the :nternet.
c. virtuality.
d. connectedness.
18
Answer: (, D!""!#$%&': (+ P()e: +-

*5. The ma9or force behind the new connectedness in marketing is:
a. technology.
b. globalization.
c. social consciousness.
d. privatization.
Answer: (( D!""!#$%&': (1 P()e: +-
*6. ((((((((((((((( is the vast and burgeoning global web of computer
networks which links computer users of all types around the world.
a. !icronet
b. The :nternet
c. The $efense $epartment security
d. The telecommunication system
Answer: (b D!""!#$%&': (1 P()e: +/
+8. The connecting technologies of the computer" information" communication" and
transportation connect three primary areas. ,hich of the following ,>JB$ 7>T
be among those areas= ;Aelect the one that $>4A 7>T fit.<
a. 'onnections with 'ustomers
b. 'onnections with %overnment
c. 'onnections with !arketing @artners
d. 'onnections with the ,orld Around Js
Answer: (b D!""!#$%&': (1 P()e: +03 F!)$re 14-
+1. Jnder which of the following marketing connections would .connecting through
strategic alliances0 most likely fall=
a. 'onnections with 'ustomers
b. 'onnections with %overnment
c. 'onnections with !arketing @artners
d. 'onnections with the ,orld Around Js
Answer: (# D!""!#$%&': (+ P()e: +03 F!)$re 14-
11
+2. :f the Jnited Atates/and the world/has become a .salad bowl0 of diverse ethnic"
cultural" social" and locational groups" then one could say that:
a. consumer groups have blended to the e)tent that a marketer can not tell one
consumer from another.
b. one-to-one marketing no longer works.
c. profitable customers are rapidly becoming a thing of the past.
d. because consumers are maintaining their diversity" they are forming themselves
into consumer communities.
Answer: (, D!""!#$%&': (. P()e: +0
+&. ,ith respect to connecting with customers" which of the following is most likely
the current trend=
a. A focus on finding new customers.
b. A focus on removing customers.
c. A focus on current customer retention.
d. A focus on .share of market.0
Answer: (# D!""!#$%&': (. P()e: .2
+*. The best illustration of direct marketing listed below would be:
a. shoppers at Bands 4nd can build a .virtual model0 with their own hair color and
use the model to aid in reviewing products for potential purchase.
b. Eord !otor 'ompany now designs all models of their popular pickups in at
least 12 colors.
c. most banks now sell automobile insurance.
d. ,al-!art has a policy of 4$B@ ;everyday low pricing< as a strategic weapon.
Answer: (( D!""!#$%&': (. P()e: .2
++. A ((((((((((( for personal computers consists of suppliers of computer chips
and other components" the computer manufacturer" and the distributors" retailers"
and others who sell the computers to businesses and final customers.
a. mi) network
b. supply chain
c. relationship channel
d. strategic alliance
Answer: (b D!""!#$%&': (+ P()e: .1
12
+2. $ell 'omputer recently ran advertisements telling how it partners with !icrosoft
and :ntel to provide customized e-business solutions. This would be an e)ample of
which of the following=
a. mi) network
b. supply management
c. relationship channel
d. strategic alliance
Answer: (, D!""!#$%&': (. P()e: .+
+3. ,hich of the following phrases would best describe the current attitude about
connections with the world around us=
a. .Bet the buyer beware.0
b. .America Eirst.0
c. .Think Bocally" Act %lobally.0
d. .>utsource 4verything.0
Answer: (# D!""!#$%&': (+ P()e: ..
+5. :f a university or college posts antismoking and antidrinking materials at strategic
locations" takes out ads in the university or college newspaper" and enlists the aid
of campus groups to aid with these social problems" this would be an e)ample of
which of the following=
a. a social marketing campaign
b. an ethical marketing campaign
c. a relationship marketing campaign
d. a sales promotional marketing campaign
Answer: (( D!""!#$%&': (1 P()e: .-
+6. ,ith respect to connections with customers" be sales and product centered" serve any
customer" and make standardized products would be e)amples of which form of
thinking=
a. the new marketing thinking
b. the old marketing thinking
c. global marketing
d. relationship marketing thinking
Answer: (b D!""!#$%&': (+ P()e: ./3 T(b%e 141
1&
28. !arketing locally and globally" conducting e-commerce in marketspaces" and
28 assuming social and environmental responsibility would be e)amples of which form
of thinking=
a. the new marketing thinking
b. the old marketing thinking
c. global marketing
d. relationship marketing thinking
Answer: (( D!""!#$%&': (+ P()e: ./3 T(b%e 141
TRUE6FALSE QUESTIONS
21. Aelling is the delivery of customer satisfaction at a profit.
Answer: (F(%se D!""!#$%&': (+ P()e: *
22. The twofold goal of marketing is to attract new customers by promising superior
value and to keep and grow current customers by delivering satisfaction.
Answer: (Tr$e D!""!#$%&': (+ P()e: *
2&. !arketing is really only selling and advertising.
Answer: (F(%se D!""!#$%&': (+ P()e: -
2*. Aelling is a social and managerial process by which individuals and groups obtain
what they need and want through creating and e)changing products and values
with others.
Answer: (F(%se D!""!#$%&': (+ P()e: -
2+. The first of the core marketing concepts that should be e)plored by the marketer
wishing to do business is needs" wants" and demands.
Answer: (Tr$e D!""!#$%&': (+ P()e: -3 /3 F!)$re 141
22. A want is a state of felt deprivation.
Answer: (F(%se D!""!#$%&': (+ P()e: -
23. #uman wants that are backed by buying power are called demands.
Answer: (Tr$e D!""!#$%&': (1 P()e: -
1*
25. :n outstanding companies" people at all levels/including top management/stay
close to customers.
Answer: (Tr$e D!""!#$%&': (1 P()e: /
26. A demand is anything that can be offered to a market to satisfy a need or want.
Answer: (F(%se D!""!#$%&': (+ P()e: 0
38. The concept of a product is limited to physical ob9ects.
Answer: (F(%se D!""!#$%&': (1 P()e: 0
31. !arketing myopia occurs when sellers are so taken with their products that they
focus only on e)isting wants and lose sight of underlying customer needs.
Answer: (Tr$e D!""!#$%&': (. P()e: 1
32. The difference between the values the customer gains from owning and using a
product and the costs of obtaining the product is called customer satisfaction.
Answer: (F(%se D!""!#$%&': (. P()e: 1
3&. >ne party gives ? to another party and gets D in return. This would be an e)ample
of a transaction.
Answer: (Tr$e D!""!#$%&': (1 P()e: 1+
3*. The concepts of e)change and relationships lead to the concept of demarketing.
Answer: (F(%se D!""!#$%&': (. P()e: 1*3 1/
3+. !arketing to reduce demand temporarily or permanently is called demarketing.
Answer: (Tr$e D!""!#$%&': (+ P()e: 1/
32. :f a company used F18 million on television advertising" a sales force of 288 people"
and had a marketing department to coordinate and further marketing efforts" the
company would be employing the marketing practice of interpreneurial marketing.
Answer: (F(%se D!""!#$%&': (. P()e: 10
33. The primary concept used in selling unsought goods such as encyclopedias or
insurance is the product concept.
Answer: (F(%se D!""!#$%&': (+ P()e: +2
1+
35. The selling concept takes an .inside-out0 perspective toward the e)change process.
Answer: (Tr$e D!""!#$%&': (+ P()e: +1
36. The production concept 1uestions whether the pure marketing concept is ade1uate
in an age of environmental problems" resource shortages" rapid population growth"
worldwide economic problems" and neglected social services.
Answer: (F(%se D!""!#$%&': (+ P()e: ++
58. 'onnecting more selectively" connecting for life" and connecting directly are all
characteristics connections with customers.
Answer: (Tr$e D!""!#$%&': (+ P()e: +03 F!)$re 14-
51. Ceeping old customers would be a part of the old marketing thinking as applied to
connections with customers.
Answer: (F(%se D!""!#$%&': (+ P()e: ./3 T(b%e 141
52. !arketing locally and globally would be part of the new marketing thinking as
applied to connections with the world around us.
Answer: (Tr$e D!""!#$%&': (1 P()e: ./3 T(b%e 141
ESSA7 QUESTIONS
5&. $efine marketing and discuss its role in the economy.
Answer:
!arketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and e)changing products and values with
others. 4conomic roles include: meeting needs" wants" and demands ;of a variety of
types<K creating productsK creating value and satisfactionK aiding in the facilitation of
e)changes" transactions" and mutually beneficial relationshipsK developing marketsK
meeting social needs of consumersK increasing consumer choice" and providing fair
profits for business organizations.
D!""!#$%&': (+ P()e: *3 -3 F!)$re 141 (n, (ss8#!(&e, &e9&
5*. Bist and briefly discuss the core marketing concepts. All of these concepts are
important to understanding the definition of marketing.
12
Answer:
The core marketing concepts can be seen in Eigure 1-1. They are listed as: a< needs"
wants" and demandsK b< products" services" and e)periencesK c< value" satisfaction" and
1ualityK d< e)change" transactions" and relationshipsK and e< markets. These key concepts
are linked and form the basis by which marketing is understood and practiced.
D!""!#$%&': (+ P()e: -41*3 F!)$re 141 (n, (ss8#!(&e, &e9&
5+. Bist and briefly discuss three ways 7ike has demonstrated that they care about their
customers.
Answer:
7ike seems to care as much about its customers lives as their bodies. ,ays that the
company demonstrates that it cares are:
;a< :t doesnt 9ust promote sales" it promotes sports for the benefit of all.
;b< 7ike invests in a wide range of lesser-known sports" even though they provide less
lucrative marketing opportunities.
;c< 7ike is focusing on innovations ;especially those demanded by the consumers<.
;d< 7ike is developing new product lines ;especially those demanded by the consumers<.
;e< The company is creating sub-brands that often focus outside traditional 7ike
boundaries ;such as hiking shoes and gear<.
;f< 7ike is de-emphasizing the swoosh ;the emphasis is on 1uality and consumer fit
rather than bigness and advertising muscle<.
;g< 7ike is entering new markets aggressively ;especially overseas<.
All of these moves were prompted by suggestions and recommendations from consumers.
D!""!#$%&': (+ P()e: 53 123 M(r:e&!n) (& W8r: 141
52. $efine and describe the marketing management concept.
Answer:
!arketing management is the analysis" planning" implementation" and control of
programs designed to create" build" and maintain beneficial e)changes with target buyers
for the purpose of achieving organizational ob9ectives. As shown in the discussion
provided in the chapter" marketing management seeks to manage demand efficiently and
effectively so as to help consumers obtain value in their transactions with the company.
y doing this correctly" the company earns a profit for its labors. !arketing management
recognizes that customers have a lifetime value and seek to maintain the customer
relationship as an important organizational ob9ective.
D!""!#$%&': (+ P()e: 1-
13
53. !arketing practice often passes through three stages. Bist and briefly describe each
of these stages.
Answer:
The stages may be listed as:
1<. 4ntrepreneurial marketing/most companies are started by individuals who live by
their wits. They visualize an opportunity and knock on every door to gain attention.
2<. Eormulated marketing/as small companies achieve success" they inevitably move
toward more formulated marketing. They use television advertising" sales forces" and
marketing departments to achieve their goals and ob9ectives.
&<. :ntrepreneurial marketing/many large and mature companies get stuck in
formulated marketing" pouring over the latest reports and doing research to fine-tune
their efforts. These companies sometimes lose their marketing creativity and passion.
They now need to re-establish within their companies the entrepreneurial spirit and
actions that made them successful in the first place.
D!""!#$%&': (+ P()e: 10
55. 'arefully list and then compare the five marketing management philosophies. e
sure to indicate the key components of each philosophy.
Answer:
a<. @roduction 'oncept: 'onsumers favor products that are available and highly
affordable. !anagement should focus on improving production and distribution
efficiency. The production concept is still useful in two types of situations: ;1< when the
demand for a product e)ceeds the supply ;management should look for ways to increase
production< and ;2< when the products cost is too high ;improved productivity is needed
to bring it down<.
b<. @roduct 'oncept: 'onsumers favor products that offer the most value" performance"
and innovative features. Therefore" the organization should devote its energy to making
continuous product improvements. This concept can lead to marketing myopia if not
watched.
c<. Aelling 'oncept: 'onsumers will not normally buy enough products on their own"
therefore" the organization must undertake a large-scale selling and promotion effort.
!ost firms practice this concept when they have overcapacity.
d<. !arketing 'oncept: $elivering the needs and wants more efficiently than the
competition. This is an .outside-in0 perspective as opposed to the selling concepts
.inside-out0 perspective.
e<. Aocietal !arketing 'oncept: The company determines customer needs and wants
and societys best interest. 'onflicts in this concept are usually between short-run wants
versus long-term gains in welfare.
D!""!#$%&': (. P()e: 154+.
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56. The new connected millennium has brought about changes for the marketing
function. Jsing connecting technologies ;computer" information" communication" and
transportation<" marketers are seeking to connect in three ways. Bist and describe these
three connections.
Answer:
The three connections are listed as:
1<. 'onnections with 'ustomers/considerations are connecting more selectively"
connecting for life" and connecting directly.
2<. 'onnections with !arketing @artners/considerations are connecting with other
company departments" connecting with suppliers and distributors" and connecting
through strategic alliances.
&<. 'onnections with the ,orld Around Js/considerations are global connections"
connections with values and responsibilities" and broadened connections.
D!""!#$%&': (. P()e: +/4.-3 F!)$re 14-
68. !arketing connections are in transition. 'ompare and contrast the old marketing
thinking versus the new marketing thinking using the connection forms suggested in the
chapter.
Answer:
Atudents should apply connections with customers" connections with marketing partners"
and connections with the world around us to the old marketing thinking and the new
marketing thinking. The comparisons and contrasts are shown in Table 1-1. Atudents
should not be re1uired to list all of these comparisons and contrasts. #owever" they
should be re1uired to demonstrate the differences between the two forms of thinking and
what the ramifications of these two paths might be for marketing in the future.
D!""!#$%&': (. P()e: ./3 T(b%e 141
APPLICATION QUESTION
61. Dou have 9ust been hired by lue Elash ,ater 'orporation to administer a
relationship marketing program for the company. The company manufactures and
distributes a purity-guaranteed" non-carbonated" bottled drinking water product to grocery
and convenience stores in the southwestern Jnited Atates. The companys desire is to
build strong economic and social ties to customers by promising and consistently
delivering high-1uality products" good service" and fair prices. :n order to do this" lue
Elash wants you to build a marketing network for them. ,rite down your ideas on what a
marketing network is" how it might relate to the concept of relationship marketing" and
designate the components of a what you perceive to be a marketing network for lue
Elash ,ater 'orporation.
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Answer:
Atudents should be allowed to be creative with this 1uestion. This 1uestion should not be
attempted unless the students have been e)posed to the concepts of relationship
marketing and a marketing network. :f they have" the 1uestions answers should be
somewhat similar to the information indicated below.
According to the te)t" beyond creating short-term transactions" marketers need to build
long-term relationships with valued customers" distributors" dealers" and suppliers.
Today" companies want to build a uni1ue company asset called a marketing network. A
marketing network consists of the company and all its supporting stakeholders. These
would be the customers" employees" suppliers" distributors" retailers" ad agencies" and
others with whom it has built mutually profitable business relationships. Tools that the
marketer might use to develop stronger bonds with consumers might be to add or increase
financial benefits" social benefits" structural ties" and make sure that all customers are
profitable customers. The idea behind relationship marketing through a marketing
network is that if a company builds a good network of relationships with key
stakeholders" profits will follow for all.
Atudents should describe customers ;for the bottled water market<" consider how
dedicated employees might aid in the formation of relationships" consider where the
company gets its purified water ;suppliers<" how it distributes the water" the retailers
;outlets< that carry the product" and the ad agencies that have designed themes for the
water ;how could the lue Elash name be used<. Atructure can be given to this
arrangement at the discretion of the instructor. The ob9ective is to get the student familiar
with the components of a relationship marketing effort and the stakeholders of a
marketing network.
D!""!#$%&': (+ P()e: 1+ (n, (ss8#!(&e, &e9&
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