Chapter 1—An Overview of Marketing

146 questions (19 true/false, 108 multiple choice, 19 essay)

TRUE/FALSE

	1.	Marketing is defined as producing, promoting, and selling products.

ANS:	F	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Def	
Marketing means more than just producing, promoting, and selling products. It is a philosophy that stresses customer relationships as well as benefiting the organization and its stakeholders.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	2.	According to the American Marketing Association, marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

ANS:	T	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	3.	An exchange cannot take place unless each party in the exchange has something that the other party values.

ANS:	T	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Comp
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	4.	Sara Lee Industries spent considerable money and time developing a crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production-oriented company.

ANS:	T	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: App
TOP:	AACSB Analytic; TB&E Model Research	

	5.	World Championship Wrestling (WCW), a one-time competitor of the World Wrestling Federation (now known as World Wrestling Entertainment), failed primarily because it set up its matches according to what its wrestlers wanted to do rather than what its fans wanted to see.  Obviously, WCW had a market orientation.

ANS:	F	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: App	
A production orientation would be a more appropriate description for a firm that does not research consumer needs and wants but rather focuses on the internal capabilities of the firm.
TOP:	AASCB Analytic; TB&E Model Strategy	

	6.	The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers’ wants and needs while meeting organizational objectives.

ANS:	T	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Customer
	7.	The societal marketing concept considers society's long-term best interests along with the satisfaction of customers' wants and needs.

ANS:	T	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	8.	Both production and sales orientations are focused inward on the organization's needs.

ANS:	T	PTS:	1	REF:	9	OBJ:	01-3 	TYPE: Comp
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	9.	Customer value is the relationship between company profits and company costs.

ANS:	F	PTS:	1	REF:	10	OBJ:	01-3 	TYPE: Def	
Customer value is the relationship between benefits and the sacrifice necessary to obtain those benefits.
TOP:	AACSB Reflective Thinking; TB&E Model Pricing

	10.	Firms try to achieve customer satisfaction and value by ensuring customer expectations are met or exceeded.

ANS:	T	PTS:	1	REF:	10	OBJ:	01-3 	TYPE: Comp
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	11.	3D Systems is a company that uses computers to generate new product prototypes. It has generated loyal business clients by providing the best customer support in the industry. The company also provides direct sales consultations that gives its salespeople intimate knowledge about what exactly its customers want. This partnership between 3D Systems and its customers entails relationship marketing.

ANS:	T	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: App
TOP:	AACSB Analytic; TB&E Model Product	

	12.	Only a firm's salespeople need to be customer-oriented.

ANS:	F	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: Comp	
All employees need to be customer-oriented because in the customer's eyes, the employee (regardless of the position held in the organization) is the firm and may be the only firm representative the customer ever sees.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	13.	Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.
ANS:	T	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: App
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	14.	In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was black. Ford's management assumed anyone buying a car would accept the color black, so it made products affordable by offering only one variety in large quantities. Ford is an example of a market-oriented firm.

ANS:	F	PTS:	1	REF:	13-14	OBJ:	01-3 	TYPE: App	
By offering one variety of color, not offering choices in quantity, and not segmenting the market, Ford exemplified a production-oriented firm.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	15.	The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers.

ANS:	T	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: Comp
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	16.	While most marketing organizations rely on various forms of promotion to succeed, sales-oriented organizations make the most effective use of their entire marketing mix.

ANS:	F	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: Comp	
Sales-oriented firms usually rely more heavily on promotion alone than do market-oriented firms.
TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Model Product

	17.	Salespeople who work for market-oriented organizations are generally perceived by their customers to be order takers.

ANS:	F	PTS:	1	REF:	15	OBJ:	01-3 	TYPE: Comp	
Salespeople who work for market-oriented organizations are generally perceived by their customers to be problem solvers.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	18.	Marketing is a job that should be handled by marketers. People in management, accounting, and finance should focus on their own specialties.

ANS:	F	PTS:	1	REF:	16-17	OBJ:	01-4 	TYPE: Comp	
People in all business areas, regardless of specialization or responsibility, should be familiar with the fundamentals of marketing.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	19.	Approximately 30 percent of the U.S. civilian work force performs marketing activities.

ANS:	T	PTS:	1	REF:	16	OBJ:	01-4 	TYPE: Def	
Between one-fourth and one-third of the U.S. civilian work force performs marketing activities.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

MULTIPLE CHOICE

	1.	The term marketing refers to:
a.	new product concepts and improvements	
b.	Selling	
c.	advertising and promotion activities	
d.	a philosophy that stresses customer satisfaction	
e.	planning sales campaigns	

ANS:	D	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	2.	A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of:
a.	a control system	
b.	marketing	
c.	accounting	
d.	production	
e.	human resources	

ANS:	B	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Comp	
This description contains three of the four main activities included in the marketing function. Many students may mistakenly believe that marketing is only concerned with promotion.
TOP:	AACSB Reflective Thinking; TB&E Model Pricing; TB&E Model Product; TB&E Model Distribution

	3.	_____ is a set of activities used to implement a management orientation that stresses customer satisfaction.
a.	Planning strategy	
b.	Customer management	
c.	Marketing	
d.	A control system	
e.	Reciprocity	

ANS:	C	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Product

	4.	The American Marketing Association's definition of marketing:
a.	is limited to promotional activities	
b.	focuses on the value of empowerment, teamwork, and customer value	
c.	shows how marketing benefits  the marketer	
d.	relies on the synergy created by exchange	
e.	includes the processes marketers used to establish  and maintain relationships with customers 	

ANS:	E	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Def	
According to the American Marketing Association, marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
TOP:	AACSB Reflective Thinking; TB&E Model Product

	5.	_____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in order to receive something that they would rather have.
a.	Exchange	
b.	Synergy	
c.	Transformation	
d.	Leveraging	
e.	Reciprocity	

ANS:	A	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Product

	6.	In order for exchange to occur:
a.	a complex societal system must be involved	
b.	organized marketing activities must also take place	
c.	a profit-oriented organization must be involved in the process	
d.	money or other legal tender is required	
e.	each party must have something the other party considers to be valuable	

ANS:	E	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Comp	
Exchange involves the trade of items of value, but does not necessarily involve formal organizations, profit, or money/legal tender.
TOP:	AACSB Reflective Thinking; TB&E Model Product

	7.	A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally harvested.  In places like Indonesia as much as 80 percent of timber available for sale was illegally cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot?
a.	There are more than two parties involved.	
b.	Each party has something of value to bring to the exchange.	
c.	One party is free to accept the exchange offer.	
d.	Each party believes it is appropriate to deal with the other party.	
e.	Nobody sees the exchange as producing value.	

ANS:	D	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: App	
For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange. If The Home Depot believes the timber was illegally gotten, then it will not want to deal with the loggers.
TOP:	AACSB Ethics; TB&E Model Product	

	8.	Domino's Pizza is offering racing fans a chance to earn points toward NASCAR-branded merchandise via the NASCAR RacePoints loyalty program.  Consumers who buy $20 worth of Domino's Pizza will receive 100 NASCAR RacePoints. Consumers save their box receipt and mail in their points slip. NASCAR RacePoints will be credited to members' accounts.  Racing fans can rack up points to earn NASCAR merchandise, including apparel and hats or one-of-a-kind experiences, such as driving a real racecar.  A(n) _____ will occur when a NASCAR fan trades in his or her points for a mug autographed by a favorite driver.
a.	synergy	
b.	sublimation	
c.	exchange	
d.	entropy	
e.	reciprocity	

ANS:	C	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: App	
For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange.  Furthermore, each party must have something that is of value to the other party.  In this case, the value for Domino’s is customer loyalty.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	9.	Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.
a.	exchange	
b.	product	
c.	production	
d.	sales	
e.	environmental	

ANS:	C	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: App	
The logging companies do not focus on the needs and desires of the marketplace.
TOP:	AACSB Ethics; TB&E Model Product	

	10.	For an exchange to take place:
a.	there must be at least two parties involved	
b.	money must be used in the transaction	
c.	each party must feel obligated to accept the offer	
d.	at least one party must have something of value that the other party desires	
e.	neither party must communicate with the other	

ANS:	A	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	11.	The concept of exchange is important to marketing because:
a.	if all the conditions for an exchange are in place, then the exchange will be completed	
b.	exchange provides money to marketers	
c.	marketing activities help to create exchange	
d.	marketing activities are a requirement for exchange to take place	
e.	money is the only medium of exchange for business marketers	

ANS:	C 	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: Comp	
Marketing activities help the exchange to take place, but marketing can occur without an exchange.
TOP:	AACSB Reflective Thinking; TB&E Model Product

	12.	Andi Littleton has inherited a Featherlite brand horse trailer from her recently deceased grandfather. A preliminary investigation has shown many people would be interested in owning a Featherlite brand horse trailer. She is considering placing an advertisement in a newspaper targeted to horse owners in the Cheyenne, Wyoming area. She has been told similar horse trailers are selling for about $14,000. Of the following, what condition is necessary for an exchange to occur between Littleton and a buyer?
a.	Her trailer should carry a low price.	
b.	The trailer should be on display somewhere that people will see it.	
c.	She needs to practice negotiating.	
d.	She needs to promote the trailer in trade magazines.	
e.	Littleton and her buyer must be able to walk away from the deal if desired.	

ANS:	E	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: App	
For an exchange to take place, each party must have something the other values; the parties must be able to communicate; each party must believe that it is appropriate to deal with the other; and each party must be free to accept or reject the exchange offer.
TOP:	AACSB Analytic: TB&E Model Product; TB&E Model Customer

	13.	To increase interest in rodeos, the local chapter of the National Rodeo Cowboys Association (NRCA) is offering free roping lessons to students in the sixth and seventh grades.  An exchange will take place because:
a.	students and their parents can decide for themselves if the lessons have any value	
b.	the NRCA does not have to communicate directly with  participants in the free lessons	
c.	the desirability of the exchange is questionable	
d.	both the NRCA and the students taking the lessons will trade something of value	
e.	students who learn to rope will have to give nothing of value in return	

ANS:	D	PTS:	1	REF:	6	OBJ:	01-1 	TYPE: App	
If the course has no value, then an exchange cannot occur. Without communication, the exchange of knowledge for time and energy cannot occur. In an exchange, each participant has something of value to the other. For an exchange to occur, each party must believe it is desirable.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	14.	Which of the following is NOT a marketing management philosophy?
a.	sales orientation	
b.	societal marketing orientation	
c.	market orientation	
d.	profitability orientation	
e.	production orientation	

ANS:	D	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	15.	Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
a.	sales	
b.	production	
c.	market	
d.	customer	
e.	customer-benefit	

ANS:	B	PTS:	1	REF:	7	OBJ:	01-2	 TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Product

	16.	A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation.
a.	marketplace	
b.	sales	
c.	market	
d.	exchange	
e.	production	

ANS:	E	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Strategy: TB&E Model Product

	17.	Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out the heat. Little market research was done, but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color than the current models on the market. This scenario suggests PPG most likely has a(n) _____ orientation.
a.	exchange	
b.	production	
c.	sales	
d.	promotion	
e.	customer	

ANS:	B	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: App	
The questions they apparently asked before developing their windshield were "What can we do best?" and "What can we make with the equipment we already own?" This is a production orientation.
TOP:	AACSB Reflective Thinking; TB&E Model Research

	18.	A town of 50,000 has two maternity hospitals.  A billboard for one of the hospitals reads, “We have the most modern delivery rooms,” and indicates a _____ orientation.  A billboard for the other hospital reads, “We love babies,” and indicates a _____ orientation.
a.	sales; production	
b.	product; customer	
c.	market; sales	
d.	customer; production	
e.	production; market	

ANS:	E	PTS:	1	REF:	7-8	OBJ:	01-2 	TYPE: App	
The first hospital is answering the production question, “What do we do best?”  The second hospital is showing its concern for its customers.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy; TB&E Model Promotion

	19.	A firm with a production orientation is most likely to survive if:
a.	there are many small competitors in the marketplace	
b.	demand for the product it produces exceeds supply	
c.	the needs of the marketplace are constantly shifting	
d.	supply for the product it produces exceeds demand	
e.	any of the above conditions exist	

ANS:	B	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: Comp	
The production orientation can survive in the short term under a variety of conditions; however, if market needs change, long-term survival is difficult.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	20.	A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.
a.	customer	
b.	exchange	
c.	product	
d.	market	
e.	production	

ANS:	E	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: Comp	
The production orientation forces a company to build whatever it builds best, that is, whatever it has the experience and expertise in doing.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	21.	Mimi Couturier is a design company that specializes in formalwear for women. The company is known for challenging fashion mores. The company's fashion designers use computer-assisted design software to create what it thinks women should wear. The company regularly hires industry experts to examine its factories to find waste and inefficiencies that can be eliminated. The company has  expanded the number of products it offers for sale many times. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its work force. To avoid this occurrence in the future, Mimi Couturier should:
a.	hire more retail efficiency experts to trace down any production problems	
b.	increase its sales force to find more potential customers for the firm	
c.	have someone study its target market to see what needs and wants should be met by Mimi Couturier	
d.	cut prices so that its prices will be at least 10 percent below those of its competitors	
e.	design more sophisticated products that use the latest computer-aided techniques	

ANS:	C	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: App	
Mimi Couturier has been production-oriented. It should develop a market orientation, which means the firm will produce only those items needed by its target market.
TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Model Product

	22.	The _____ orientation assumes people will buy more if aggressive selling techniques are used.
a.	market	
b.	sales	
c.	customer	
d.	production	
e.	exchange	

ANS:	B	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: Def	
The sales orientation assumes aggressive selling is what is needed to increase demand.
TOP:	AACSB Reflective Thinking; TB&E Model Pricing

	23.	A _____ orientation assumes marketing means selling things and collecting money. It also assumes people will buy more goods and services if aggressive marketing techniques are used.
a.	sales	
b.	production	
c.	market	
d.	customer	
e.	marketplace	

ANS:	A	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	24.	Colorado Silversmith creates and markets silver and turquoise jewelry, which it sells to retailers in the western states. The company’s management believes its retail customers will stock more jewelry if its salespeople use aggressive marketing techniques. In other words, the company has a _____ orientation.
a.	promotion	
b.	production	
c.	sales	
d.	market	
e.	customer	

ANS:	C	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: Def	
Only the sales orientation assumes aggressive sales techniques will sell more product, regardless of customer desires and needs.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	25.	If a company uses a sales orientation, consumer complaints would most likely result in:
a.	a modification of the sales presentation	
b.	product reinvention	
c.	continuous market research	
d.	philanthropy	
e.	attempts to cut production costs	

ANS:	A		PTS:	1		REF:	7	OBJ:	01-2 	TYPE: Comp	
The sales orientation relies on aggressive sales techniques to fuel business.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	26.	Fujifilm Computer Products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25 percent.  It has instructed its sales force to aggressively distribute and promote its printers. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Fujifilm appears to have a _____ orientation.
a.	market	
b.	production	
c.	sales	
d.	customer	
e.	marketplace	

ANS:	C	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: App	
A sales orientation is based on the belief that people will buy more goods and services if aggressive sales techniques are used.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy: TB&E Model Product

	27.	Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants. This philosophy is at the heart of an _____ orientation.
a.	sales	
b.	market	
c.	retail	
d.	production	
e.	exchange	

ANS:	B	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: App	
A market-oriented philosophy is based on the consumer's wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	28.	As it evolves from a credit-card company to one with greater emphasis on electronic payments, Visa is launching its first major re-branding campaign in 20 years. The company's new promotional slogan is "Life Takes Visa."  Through the use of this slogan, Visa shows how much it wants to become an integral part of its customers' every day lives.  Visa is using a _____ orientation.
a.	transactional	
b.	sales	
c.	product	
d.	societal	
e.	market	

ANS:	E	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: App	
A market-oriented philosophy is based on consumers’ wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary.
TOP:	AACSB Reflective Thinking; TB&E Model Promotion

	29.	Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:
a.	price is the most important variable for customers	
b.	sales depend predominantly on an aggressive sales force	
c.	what the customer thinks he or she is buying is what is important	
d.	a company has to apply scientific management techniques to survive	
e.	selling and marketing are essentially the same thing	

ANS:	C	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Comp	
The perceived product and perceived value are what the customer is buying, and the marketing concept and market orientation have endeavored to understand those perceptions.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	30.	A company that has a market orientation and adheres to the marketing concept does NOT:
a.	integrate all the activities of the firm to satisfy customer wants	
b.	focus on consumer needs and wants	
c.	differentiate the firm's products from its competitor's products	
d.	fuel sales growth through the application of aggressive sales techniques	
e.	concentrate on long-term goal achievement (such as profits and growth) for the firm	

ANS:	D	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Comp	
Aggressive sales techniques are part of the sales orientation and are not needed if a company is meeting needs and wants of its customers.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy: TB&E Model Product

	31.	The statement, "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.
a.	production	
b.	market	
c.	retail	
d.	sales	
e.	enterprise	

ANS:	B	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Comp	
Understanding the competitive arena and competitors' strengths and weaknesses is a critical component of market orientation.
TOP:	AACSB Reflective Thinking; TB&E Model Product

	32.	Minor League Baseball (MiLB) suffers from sluggish attendance.  To attract more fans to MiLB games, owners often resort to gimmicks--free hot dogs nights, events designed to get into the Guinness Book of Records, and celebrity visits.  Since baseball fans are seldom asked what would make them want to attend more games, this suggests most MiLB teams do not have an_____ orientation.
a.	sales	
b.	empowerment	
c.	community	
d.	societal	
e.	market	

ANS:	E	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: App	
The marketing concept and a market-oriented philosophy is based on the consumer's wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary.
TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Model Product

	33.	An expert in library science stated in Library Journal, “It should be fairly clear that librarians do not market and that they never have marketed." He concludes, "What librarians need to tell people is not how wonderful our public libraries are but rather how wonderful they could be."  The library science expert is saying that libraries:
a.	should focus on satisfying the needs of their customers	
b.	have not implemented the production concept	
c.	need to adopt a sales orientation	
d.	do not use empowerment	
e.	have a customer orientation	

ANS:	A	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: App	
The marketing concept is based on satisfying the consumer's wants and needs.
TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Model Product

	34.	The manufacturer of Omega brand watches has a market orientation and adheres to the marketing concept. Which of the following describes the first action the company would most likely take if it learned its customers were dissatisfied with its watches?  
a.	hire more salespeople	
b.	decrease its organizational overhead	
c.	increase its advertising to underserved markets	
d.	increase the number of jewelry stores that carry Omega watches	
e.	conduct research to determine if its customers' needs have changed	

ANS:	E	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Comp	
A marketing concept and market-oriented philosophy are based on the consumer's wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	35.	Rose is a telephone order taker for Brylane, a catalog retailer of furnishings for bedrooms and baths. A customer called and asked if the sea green in a bedspread she had purchased matched the green in a lamp offered in the newest Brylane catalog. Rose got the potential customer's phone number, went out to the warehouse, located the items, determined they did not match, and called the potential customer to tell her that information. Rose’s actions illustrate a(n) _____ orientation.
a.	societal	
b.	market	
c.	sales	
d.	production	
e.	one-to-one	

ANS:	B	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: App	
A market-oriented philosophy is based on the consumer's wants and needs, and the dealer satisfied these needs by providing excellent customer service, which resulted in further business. Building a relationship with this customer was an important key.
TOP:	AASCB Analytic; TB&E Model Customer	

	36.	The marketing concept involves:
a.	focusing on customers' wants so that the organization can distinguish its product (or products) from the competitors' products	
b.	satisfying management's needs and wants with the idea of maximizing profits in the short run	
c.	selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are used	
d.	selling as much as possible under the assumption consumers will buy more at lower prices	
e.	focusing on production in order to increase product quality and lower prices	

ANS:	A	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	37.	The marketing concept includes a goal orientation to remind managers that:
a.	achieving long-term organizational goals is as important as satisfying customers	
b.	customers must be satisfied no matter what the long-term effect on the firm	
c.	the only reason for any business to exist is to make a profit	
d.	the objective is to find a target market that differs from that of the competition	
e.	functional integration of all departments is useful but not essential	

ANS:	A	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Comp	
The goal orientation refers to the company's goals, such as profit, growth, service, and survival.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	38.	The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:
a.	producing a good or service at the lowest possible cost	
b.	improving the general standard of living	
c.	constantly increasing sales volumes	
d.	applying scientific management techniques to improve efficiency	
e.	simultaneously meeting organization objectives	

ANS:	E	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: Comp	
The marketing concept holds that the needs and wants of both the customer and the firm be served.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	39.	After hearing his company criticized for aggressive selling, the CEO of a company that manufactures products used to care for horses has determined that his company needs to adhere to the marketing concept and implement a market-oriented strategy.  Which of the following is the first action the company should take in order to achieve this goal?
a.	reorganize the company and make marketing its most important department	
b.	hire new salespeople to find new customers for its horse care products	
c.	expand the advertising budget to make potential customers more aware of its products and how they benefit horses	
d.	create cross-functional  teams and instruct them to focus on creating greater customer value	
e.	hire a new product development manager and establish a marketing research department	

ANS:	D	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: App	
Market-oriented companies are successful in getting all business functions working together to deliver customer value.
TOP:	AACSB Reflective Thinking; TB&E Model Marketing Plan	

	40.	An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.
a.	sales orientation	
b.	market orientation	
c.	ethical business mission	
d.	focused target market strategy	
e.	societal orientation	

ANS:	E	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: Def
TOP:	AACSB Diversity; TB&E Model Customer	
	41.	Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." By focusing on customers' wants, the chocolate company exhibits an_____ orientation.
a.	exchange	
b.	product	
c.	production	
d.	sales	
e.	market	

ANS:	E	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: App	
Torres understands that a sale occurs because a customer makes a decision to buy.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	42.	Most companies become sensitized to community issues after they've done enough damage to draw the locals' anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding what projects to improve the local environment will be implemented. This annual community-wide meeting indicates Dofasco has a _____ orientation.
a.	societal marketing	
b.	sales	
c.	reciprocal exchange	
d.	production	
e.	product	

ANS:	A	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: App	
Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.
TOP:	AACSB Diversity; TB&E Model Customer	

	43.	Kinko's copy shops use the equivalent of 10.5 square miles of forest to produce all of the paper needed by the corporation annually. While the company is committed to making a profit, it is also committed to preserving the environment. In 1997, Kinko's wrote an environmental vision in which it committed the company to conserving natural resources. With this 1997 environmental vision, Kinko's adopted a _____ orientation.
a.	societal marketing	
b.	sales	
c.	reciprocal exchange	
d.	production	
e.	product	

ANS:	A	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: App	
Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.
TOP:	AACSB Ethics: TB&E Model Strategy	

	44.	Procter & Gamble decided to address the fact that Hispanic women are more likely to die from breast cancer because they're reluctant to get mammograms or discuss screening.  So P&G brought screening to the supermarket, parking mobile mammography vehicles in grocery store parking lots in Texas and inviting shoppers in for free x-rays. Tie-ins with local hospitals assured that women with suspicious films got follow-up care.  P&G adopted a _____ orientation to achieve this goal.
a.	promotional	
b.	societal marketing	
c.	customer	
d.	marketing	
e.	product	

ANS:	B	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: App	
Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.
TOP:	AACSB Diversity; TB&E Model Customer; TB&E Model Promotion

	45.	Which of the following statements about the societal orientation is true?
a.	Companies that protect the environment by using all-natural materials in their products are showing a societal marketing orientation.	
b.	Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers.	
c.	The societal marketing concept is an important refinement of the market concept.	
d.	Organizations have both a social and economic justification for their existence.	
e.	All of these statements about the societal orientation are true.	

ANS:	E	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: Comp
TOP:	AACSB Reflective Thinking; TB&E Model Research; TB&E Customer

	46.	Due to consumer concerns about skin cancer and other negative outcomes associated with sun exposure, the trend in sun-care products throughout most of the 1990s was in favor of higher SPF sunscreens. This seems to be changing now, at least for some target segments. In response to the latest trends of teenagers using baby oil, Crisco, and even motor oil to enhance tanning effects, Coppertone and Hawaiian Tropic have introduced new low-UV-protection products. While giving customers what they want indicates a _____ orientation, creating a potential problem (an increase in skin cancer) shows a potential absence of a _____ orientation.
a.	production; sales	
b.	sales; market	
c.	societal marketing; production	
d.	market; societal marketing	
e.	business; market	

ANS:	D	PTS:	1	REF:	8-9	OBJ:	01-2 TYPE: App	
Selling low SPF products to satisfy the needs and wants of the teenage market is a market orientation, while other suntan companies may be concerned with other market segments and society's long-term interests (societal orientation).
TOP:	AACSB Reflective Thinking; TB&E Model Customer: TB&E Model Ethics

	47.	For many years, Procter & Gamble (P&G) viewed its Ivory soap as just plain old soap--and not as a cleansing product that could provide other benefits as well. When it came to Ivory soap, P&G focused on how well it made the soap and not on what customers wanted from a bar of soap. It had a _____ orientation.
a.	sales	
b.	production	
c.	market	
d.	product	
e.	customer	

ANS:	B	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: APP	
The production orientation forces a company to build whatever it builds best, that is, whatever it has the experience and expertise in doing.
TOP:	AACSB Reflective Thinking; TB&E Model Distribution

	48.	Organizations that sell products that are often unsought (such as life insurance and retirement plans) may find themselves adopting a _____ orientation because the companies are marketing products that most people do not want.
a.	sales	
b.	production	
c.	marketing	
d.	product	
e.	customer	

ANS:	A	PTS:	1	REF:	7	OBJ:	01-2 	TYPE: APP	
Aggressive selling is sometimes used by companies that sell products their customers do not want to buy.
TOP:	AACSB Reflective Thinking; TB&E Model Promotion

	49.	For years, the slogan used in all the advertising done by British Airways has been "Putting people first." In this short phrase, British Airways has captured the idea of:
a.	the 80/20 rule	
b.	Maslow's hierarchy of needs	
c.	the marketing concept	
d.	the sales orientation philosophy	
e.	the societal concept	

ANS:	C	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: APP	
The marketing concept justifies a company's existence by its ability to satisfy customers.
TOP:	AACSB Reflective Thinking; TB&E Model Promotion

	50.	When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials totaling almost $70. One his way to checkout, an employee asked him what was he trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble. This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n) _____ orientation.
a.	sales	
b.	market	
c.	product	
d.	exchange	
e.	production	

ANS:	B	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: APP	
The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.
TOP:	AACSB Analytic: TB&E Model Communication; TB&E Model Customer

	51.	World Wrestling Entertainment (formerly the World Wrestling Federation) is very focused on what its fans want in terms of product licensing and more importantly in terms of plot lines and character development. All of the company's activities are integrated so that no employee ever loses sight of the company's desire to satisfy its fans. World Wrestling Entertainment has a _____ orientation.
a.	sales	
b.	market	
c.	product	
d.	societal	
e.	production	

ANS:	B	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: APP	
The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.
TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Model Product

	52.	A company that wants to implement a market orientation would need to:
a.	do research on its customers, competitors, and markets	
b.	determine how to deliver superior customer value	
c.	establish and maintain mutually satisfying relationships with customers	
d.	implement actions that provide value to customers	
e.	do all of the activities listed	

ANS:	E	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: COMP
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	53.	Levi Strauss has developed the Naturals line of jeans that do not use any chemical dyes to color the pants. Consumers like the look of the jeans, and Levi's use of all-natural dyes is good for the environment. The production of the Naturals line would be consistent with a _____ orientation.
a.	societal marketing	
b.	supplier	
c.	sales	
d.	production	
e.	philanthropic	

ANS:	A	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: APP	
Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.
TOP:	AACSB Ethics: TB&E Model Strategy	

	54.	There is a quandary facing the timber industry.  There is no effective way to prove the legality of wood from places like Indonesia, where as much as 80 percent is cut illegally. Retailers like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. To prove an interest in preserving rain forests, two Indonesian logging companies have developed a bar coding system, which proves the timber was legally acquired. This focus on customers' needs indicates a _____ orientation.
a.	market	
b.	supplier	
c.	sales	
d.	production	
e.	philanthropic	

ANS:	A	PTS:	1	REF:	8	OBJ:	01-2 	TYPE: APP	
The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.
TOP:	AACSB Ethics; TB&E Model Product; TB&E Model Customer	

	55.	Shoppers at an Ingles supermarket can request Smart Partner cards. Before their purchases are rung up at the checkout, customers give the cards to the checkout person who swipes the cards. Then a percentage of the amount of money each shopper spent is given to a school the customer has chosen. The more money customers spend, the larger the donation to local educational institutions. By instituting the Smart Partner program to help local schools, Ingles has shown a _____ orientation.
a.	societal marketing	
b.	supplier	
c.	sales	
d.	production	
e.	philanthropic	

ANS:	A	PTS:	1	REF:	9	OBJ:	01-2 	TYPE: APP	
Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.
TOP:	AACSB Ethics; TB&E Model Customer	

	56.	Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices. Unfortunately, the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide. Human rights organization have asked jewelers to buy diamonds that are "conflict-free," that is from South Africa, Australia, or Canada. LeeBrant is one retail jewelry store that sells only diamonds that are certified to be from these countries. One could say that LeeBrant has a _____ orientation while those that are not willing to sell the higher priced non-conflict diamonds have more of a _____ orientation.
a.	production; sales	
b.	sales; market	
c.	societal marketing; market	
d.	production; societal marketing	
e.	sales; production	

ANS:	C	PTS:	1	REF:	8-9	OBJ:	01-2 	TYPE: App	
LeeBrant has a societal marketing orientation because it is not only trying to satisfy customers' wants but also trying to enhance society's long-term best interests. The other jewelers that continue to sell diamonds purchased from the rebels are more interested in satisfying their customers desire for lower prices than in serving society.
TOP:	AACSB Ethics; TB&E Model Product	

	57.	_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.
a.	Management-employee synergy	
b.	Organizational entropy	
c.	Managerial reciprocity	
d.	Empowerment	
e.	Delegation	

ANS:	D	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: DEF
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	58.	Market-oriented firms  primarily focus their efforts upon:
a.	improving the technological skills and competitive advantages of the firm	
b.	satisfying the organization's needs for low overhead	
c.	achieving the company’s societal responsibilities inexpensively	
d.	distributing goods and services	
e.	satisfying the wants and needs of their customers	

ANS:	E	PTS:	1	REF:	9	OBJ:	01-3 	TYPE: Comp	
Market-oriented firms are focused outward toward their customers.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	59.	Which of the following statements about a typical sales-oriented business is true?
a.	The company develops its products to meet the needs of specific groups of people.	
b.	The primary goal of the company is profit through customer satisfaction.	
c.	The company invests the majority of its resources in promoting its products and services.	
d.	The company is in business to satisfy customers' wants and needs and deliver superior value.	
e.	All of these statements about a typical sales-oriented business are true.	

ANS:	C	PTS:	1	REF:	9 and 15	OBJ:	01-3 	TYPE: Comp	
See Review Learning Outcome 3.
TOP:	AACSB Analytic; TB&E Model Customer	

	60.	_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
a.	Opportunity cost	
b.	Marketing utility	
c.	Market quality	
d.	Satisfaction percentage	
e.	Customer value	

ANS:	E	PTS:	1	REF:	10	OBJ:	01-3 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	61.	Marketers interested in offering customer value can:
a.	offer products that perform	
b.	give the consumer facts	
c.	offer organization-wide commitment to service and after-the-sale support	
d.	avoid unrealistic pricing	
e.	do all of these	

ANS:	E	PTS:	1	REF:	10	OBJ:	01-3	 TYPE: Comp
TOP:	AACSB Reflective Thinking; TB&E Model Pricing; TB&E Model Product; TB&E Model Customer

	62.	An expert in library science stated in Library Journal, "What librarians need to tell people is not how wonderful our public libraries are but rather how wonderful they could be."  The library science expert is saying that libraries need to:
a.	be concerned with creating customer value	
b.	assess what services are most convenient for libraries to offer	
c.	determine where their talents and abilities lie	
d.	concentrate on what they can do best	
e.	think in terms of their books rather than in terms of library patrons	

ANS:	A	PTS:	1	REF:	10-11	OBJ:	01-3 	TYPE: App	
The value customers perceive they can receive is determined by how well the service satisfies its customers’ needs.  Alternatives b, c, d, and e describe characteristics of a production-oriented company.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	63.	A retail casket outlet that wishes to offer customer value should:
a.	use aggressive marketing techniques to sell pre-burial plans	
b.	charge $300 for a pine casket instead of the inflated price of $1,000 charged by many funeral homes	
c.	tell customers funeral homes like having competition	
d.	require that all purchases be made with cash or money order	
e.	provide customers with only a few choices and a minimum of information on caskets 	

ANS:	B	PTS:	1	REF:	10	OBJ:	01-3 	TYPE: App	
A business interested in offering customer value should give customers more than they expect--and most would certainly expect delivery and some kind of credit plan. This business should also give buyers the facts. No business likes competition.
TOP:	AACSB Ethics; TB&E Model Customer	

	64.	When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.
a.	a value line	
b.	a quality rift	
c.	planning excellence	
d.	customer satisfaction	
e.	expectation satisfaction	

ANS:	D	PTS:	1	REF:	10-11	OBJ:	01-3 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Pricing; TB&E Model Product; TB&E Model Customer

	65.	Domino's Pizza is offering racing fans a chance to earn points toward NASCAR-branded merchandise via the NASCAR RacePoints loyalty program.  Consumers who buy $20 worth of Domino's Pizza will receive 100 NASCAR RacePoints. Consumers save their box receipt and mail in their points slip. NASCAR RacePoints will be credited to members' accounts.  Racing fans can rack up points to earn NASCAR merchandise, including apparel and hats or one-of-a-kind experiences, such as driving a real racecar.  Domino’s is engaging in:
a.	transactional marketing	
b.	sports distribution	
c.	relationship marketing	
d.	one-to-one marketing	
e.	customer transformation	

ANS:	C	PTS:	1	REF:	 11	OBJ:	01-3 	TYPE: App	
Relationship marketing is a strategy that entails forging long-term partnerships with customers.

TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Model Promotion

	66.	_____ is a strategy that entails forging long-term partnerships with customers.
a.	Commitment selling	
b.	Relationship marketing	
c.	Transactional marketing	
d.	Market engineering	
e.	Organization-customer synergy	

ANS:	B	PTS:	1	REF:	11	OBJ:	01-3	 TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	67.	Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage. After flying a certain number of miles or flying a specified number of times, the frequent-flyer program participant earns a free flight or some other award such as free lodging. Airlines that use frequent-flyer programs are practicing:
a.	commitment selling	
b.	transaction marketing	
c.	transformational marketing	
d.	marketing engineering	
e.	relationship marketing	

ANS:	E	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: App	
The strategy that entails forging long-term partnerships with customers is called relationship marketing.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	68.	Shoppers at an Ingles supermarket can request Smart Partner cards. Before their purchases are rung up at the checkout, customers give the cards to the checkout person who swipes the cards. Then a percentage of the amount of money each shopper spent is given to a school the customer has chosen. The more money customers spend, the larger the donation to local educational institutions. Ingles uses the Smart Partner cards as a part of its:
a.	commitment selling	
b.	transaction marketing	
c.	retailer-customer synergy	
d.	marketing engineering	
e.	relationship marketing	

ANS:	E	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: App	
The strategy that entails forging long-term partnerships with customers is called relationship marketing.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	69.	Greenberg Smoked Turkey, Inc., is a nationwide mail-order business that operates without any advertising. It does not accept credit cards and has no toll-free number for customers to call. The company that is hopelessly old-fashioned is also a very profitably company with thousands of devoutly loyal customers--some of whom have ordered Greenberg smoked turkeys every year for the last fifty years. Greenberg more than likely uses _____ to maintain these long-term ties to its customers.
a.	reactive marketing	
b.	synergistic management	
c.	relationship marketing	
d.	a sales orientation	
e.	management empowerment	

ANS:	C	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: App	
Relationship management is a strategy that entails forging long-term partnerships with customers.
TOP:	AACSB Analytic: TB&E Model Customer	

	70.	Many companies are jazzing up plant tours and making store visits more exciting to increase customer loyalty. For example, at the Crayola Factory, kids watch how crayons are made and then play with their favorite colors in a 20,000 square-foot discovery center. Employees circulate to ensure visitors have a wonderful time.  _____ plays a key roll in Crayola’s implementation of the marketing concept. 
a.	Customer-oriented personnel	
b.	A sales orientation	
c.	A societal marketing orientation	
d.	Reciprocal exchange	
e.	Customer outreach	

ANS:	A	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: App	
Customer-oriented personnel strengthen the positive image of an organization.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	71.	Which of the following measures would be the best indicator of whether your organization's personnel have a customer orientation?
a.	Ask each employee's boss if that person is customer-oriented.	
b.	Assess each employee's impact on the profitability of the firm.	
c.	Survey customers on how oriented the organization's personnel are to customer needs and desires.	
d.	Assess how well each employee has contributed to the marketing success of the firm by examining every financial statement created by the organization.	
e.	Test employees on their knowledge of customer service techniques.	

ANS:	C	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: Comp	
The key to assessing how customer-oriented a firm's personnel are is to ask the customer. Only the customer can provide this type of information.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	72.	Taxi companies in many large metropolitan areas are requiring  newly licensed taxi drivers to undergo a two-day training seminar during which they learn basic etiquette and acquire a familiarity with common landmarks and street names. The purpose of this training is to:
a.	improve customer service	
b.	give higher education benefits to employees	
c.	promote the company image by increasing public awareness	
d.	reduce the need of empowerment	
e.	increase employment levels	

ANS:	A	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: App	\
Leading marketers recognize the role of employee training in customer service.
TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Marketing Plan

	73.	Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:
a.	training	
b.	deregulation	
c.	empowerment	
d.	commissioning	
e.	mediating	

ANS:	C	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: Def
TOP:	AACSB Communication; TB&E Model Customer	

	74.	The management at Canadian Pacific (CP) Hotels has authorized its hotels' staffs to provide whatever amenity--such as a special magazine or a hypoallergenic pillow--their frequent stayers request as quickly as possible. CP management uses _____ to provide customer value.
a.	training	
b.	deregulation	
c.	empowerment	
d.	commissioning	
e.	mediating	

ANS:	C	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: App	
CP management gave employees expanded authority to solve customer problems on the spot.
TOP:	AACSB Reflective Thinking; TB&E Model Product

	75.	As part of instituting an empowerment program, a marketing director should:
a.	hire thirty new college graduates who have the latest training in marketing management techniques	
b.	create a customer-service department and place a key staff person in charge of the department	
c.	train the company's staff to judge the quality of the products the firm produces	
d.	allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors	
e.	conduct a survey of the company's marketing staff to learn about employee morale	

ANS:	D	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: App	
Empowerment refers to firms that give employees expanded authority to solve customer problems on the spot without having to get management's permission first.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	76.	_____ is the collaborative efforts of people to achieve common objectives.
a.	Effort training	
b.	Teamwork	
c.	Empowerment	
d.	OJT training	
e.	Mediation	

ANS:	B	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: Def
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	77.	Dofasco, Inc. is a Canadian steel manufacturer. According to its CEO, "People can make a phenomenal difference if you stop telling them to come to work, put their brains in a box, and do whatever the supervisor says. We let our employees work in teams." This quote implies that by using teamwork, Dofasco:
a.	operates successfully using a production orientation	
b.	provides its customer with a high level of satisfaction	
c.	has a high employee turnover rate	
d.	does not deliver superior customer service	
e.	has a sales orientation	

ANS:	B	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: App	
Teamwork is one way a company with a market orientation creates customer satisfaction.
TOP:	AACSB Analytic: TB&E Model Customer	

	78.	Dofasco, Inc. is a Canadian steel manufacturer. According to its CEO, "People can make a phenomenal difference if you stop telling them to come to work, put their brains in a box, and do whatever the supervisor says. We let our employees work in teams." Teamwork would benefit Dofasco by:
a.	enhancing employee performance	
b.	doing away with the need for empowerment	
c.	creating managerial entropy	
d.	refining the definition of customer value	
e.	doing all of these	

ANS:	A	PTS:	1	REF:	12	OBJ:	01-3 	TYPE: App	
Enhanced employee performance leads to improved customer satisfaction.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	79.	Redefining the business mission of a mattress manufacturer as "a good night's sleep," rather than stating the mission as "the manufacture of high-quality mattresses," will:
a.	not stimulate an awareness of changes in consumer desires	
b.	be too broad a statement to be of any real use in serving customers	
c.	stifle creativity in discovering opportunities to serve customers	
d.	help ensure the firm retains its focus on consumers and does not become preoccupied with its products and internal needs	
e.	ensure the core products will be retained	

ANS:	D	PTS:	1	REF:	12-13	OBJ:	01-3 	TYPE: App	
The broader business mission of "a good night sleep" will stimulate innovation and creativity because not all sleep aids are mattresses. It will lead the company to further growth.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	80.	One of the reasons given for the decline of the passenger rail industry in the United States is that the industry defined its mission as trains and not as transportation sources. The railroad industry failed to:
a.	define its mission in terms of the benefits its customers seek	
b.	ignore the marketing concept of serving customer needs and wants	
c.	realize "customers only want what they know"	
d.	have a sales orientation	
e.	empower the consumer	

ANS:	A	PTS:	1	REF:	12-13	OBJ:	01-3 	TYPE: App	
A market-oriented firm defines its business in terms of the benefits its customers seek. Because of the limited way the railroad industry defined its business, it missed an opportunity to define itself in terms of the benefits customers were seeking.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	81.	When light bulbs were first introduced, manufacturers offered one size for all light fixtures. Today you can buy light bulbs in different shapes, different wattages, and different colors. They also differ as to how much electricity they use and how many hours of illumination they will provide before failing. Light bulb manufacturers:
a.	miss sales by not concentrating on the average customer	
b.	recognize different customer groups have different needs and wants	
c.	are sales-oriented companies	
d.	are companies that would state they are in the business of selling bulbs	
e.	are aiming at a goal of profit through maximum sales volume	

ANS:	B	PTS:	1	REF:	13-14	OBJ:	01-3 	TYPE: App	
One way to implement the marketing concept is to concentrate on the needs of specific groups of customers.
TOP:	AACSB Reflective Thinking; TB&E Model Product

	82.	One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve profitability through sales volume, it would probably be:
a.	promotion-oriented	
b.	price-oriented	
c.	sales-oriented	
d.	production-oriented	
e.	retail-oriented	

ANS:	C	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: Comp
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	83.	Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." The primary goal of Jacques Torres Chocolate is to:
a.	convince potential customers to buy	
b.	achieve profitability through sales volume	
c.	make a profit while providing customer satisfaction	
d.	reduce reliance on empowerment	
e.	build exchange relationships with its stakeholders	

ANS:	C	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: App	
Jacques Torres Chocolate is an embodiment of the marketing concept.
TOP:	AACSB Reflective Thinking; TB&E Model Customer; TB&E Model Product

	84.	Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." What marketing tools does the organization use to achieve its goals?
a.	advertising and personal selling only	
b.	production, promotion, and pricing	
c.	the marketing mix	
d.	aggressive promotion	
e.	intensive personal selling	

ANS:	C	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: App	
Jacques Torres Chocolate has a market orientation. A company with a market orientation has to make customer-related decisions in all four areas of the marketing mix.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	85.	FujiFilm Computer Products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25 percent, and has instructed its sales force to aggressively distribute and promote the product. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Apparently FujiFilm:
a.	has an outward organizational focus on its customers wants and preferences	
b.	seeks its goals primarily through the use of intensive promotion	
c.	directs its products to specific groups of people	
d.	is in the business of satisfying customers	
e.	profits through customer satisfaction	

ANS:	B	PTS:	1	REF:	14-15	OBJ:	01-3 	TYPE: App	
FujiFilm definitely has a sales orientation. See Review Learning Outcome 3 for a diagram showing the differences between a market orientation and a sales orientation.
TOP:	AACSB Reflective Thinking; TB&E Model Promotion

	86.	Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." Apparently Jacques Torres Chocolate:
a.	directs its chocolates to the "average customer"	
b.	seeks its goals primarily through the use of intensive promotion	
c.	is in the business of selling chocolate	
d.	profits through customer satisfaction	
e.	has an inward focus on the organization's needs	

ANS:	D	PTS:	1	REF:	14-15	OBJ:	01-3 	TYPE: App	
Jacques Torres Chocolate has a market orientation. See Review Learning Objective 3 for a diagram showing the differences between a market orientation and a sales orientation.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	87.	_____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.
a.	Price	
b.	Promotion	
c.	Product design	
d.	Place (distribution)	
e.	Production	

ANS:	B	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: DEF	
A sales-oriented organization seeks to generate sales volume based upon intensive promotional activities.
TOP:	AACSB Reflective Thinking; TB&E Model Promotion

	88.	For a market-oriented organization, the primary tool used to achieve its goals is:
a.	a blend of product, place, promotion, and pricing decisions	
b.	price	
c.	product design	
d.	place (distribution)	
e.	promotion	

ANS:	A	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: App	
A market-oriented organization seeks to generate sales volume based on serving customer needs and wants, utilizing all of the elements of the marketing mix to do so.
TOP:	AACSB Reflective Thinking; TB&E Model Distribution; TB&E Model Pricing; TB&E Model Product; TB&E Model Promotion

	89.	The manufacturer of Maine Kitchen Art bowls, spoons, and cutting boards knows marketing can make his company a success. He wants to rely solely on promotion as the technique for attracting customers. He advertises extensively in cooking magazines, offers coupons, and provides retailers who carry his product with attractive displays. From this information, you know that Maine Kitchen Art has a _____ orientation.
a.	market	
b.	societal	
c.	production	
d.	sales	
e.	product	

ANS:	D	PTS:	1	REF:	14	OBJ:	01-3 	TYPE: App	
A sales-oriented organization views promotions as the primary tool used to achieve its goals.
TOP:	AACSB Reflective Thinking; TB&E Model Promotion

	90.	The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of the express-delivery market. Which of the following statements describes this situation?
a.	The USPS is perceived as offering greater customer value.	
b.	FedEx is perceived as offering greater customer value.	
c.	FedEx and the USPS offer the same customer value.	
d.	Customer value is not an issue in deciding which express-delivery service to use.	
e.	The USPS should lower its prices even further to increase market share.	

ANS:	B	PTS:	1	REF:	10	OBJ:	01-3 	TYPE: APP	
Customer value is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	91.	Rose is a telephone order taker for Brylane, a catalog retailer of furnishings for bedrooms and baths. When a customer called and asked if the sea green in a bedspread she had purchased matched the green in a lamp offered in the newest Brylane catalog, Rose got the potential customer's phone number, went out to the warehouse, located the items, determined they did not match, and called the potential customer to tell her that information. The most likely result of Rose's efforts was:
a.	management empowerment	
b.	retailer-customer synergy	
c.	customer satisfaction	
d.	transactional marketing	
e.	disintermediation	

ANS:	C	PTS:	1	REF:	10	OBJ:	01-3 	TYPE: APP	
When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, customer satisfaction is created.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	92.	Xerox emphasizes _____ by replacing at its own expense any dissatisfied customer's equipment within a period of three years after purchase.
a.	management empowerment	
b.	management-customer synergy	
c.	customer satisfaction	
d.	transactional marketing	
e.	direct selling	

ANS:	C	PTS:	1	REF:	10	OBJ:	01-3 	TYPE: APP	
When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, customer satisfaction is created.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	93.	Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on cars. The device beams signals to dealers who can remotely diagnose or spot trouble. The device allows car dealerships to maintain a closer bond with their customers by offering maintenance before a problem leaves customers with an inoperable or possibly dangerous car. With the device, dealers can better engage in:
a.	management empowerment	
b.	management-customer synergy	
c.	relationship marketing	
d.	transactional marketing	
e.	direct selling	

ANS:	C	PTS:	1	REF:	11	OBJ:	01-3 	TYPE: APP	
Relationship management is a strategy that entails forging long-term partnerships with customers.
TOP:	AACSB Analytic; TB&E Model Customer	

	94.	What is the fundamental objective of most businesses?
a.	employee empowerment, teamwork, and relationship marketing	
b.	satisfied stakeholders	
c.	low costs and high quality	
d.	customer loyalty and retention	
e.	survival, profits, and growth	

ANS:	E	PTS:	1	REF:	16	OBJ:	01-4 	TYPE: COMP	
The use of marketing allows businesses to achieve this objective.
TOP:	AACSB Analytic: TB&E Model Strategy	

	95.	Which if the following is NOT a good reason to study marketing?
a.	Marketing teaches businesses how to sell products that people do not need.	
b.	Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services.	
c.	Marketing is a key function in business.	
d.	Marketing offers outstanding career opportunities.	
e.	Marketing affects your day-to-day life as a consumer.	

ANS:	A	PTS:	1	REF:	16-17	OBJ:	01-4 	TYPE: Comp	
That marketing enables companies to sell even bad and worthless goods is a myth.
TOP:	AACSB Analytic: TB&E Model Strategy	

	96.	Which of the following statements contains one good reason for studying marketing?
a.	Marketing teaches businesses how to sell products that people do not need.		
b.	Marketing deals with transactions--not relationships.	
c.	Marketing has little impact on your day-to-day life.	
d.	Marketing offers outstanding career opportunities.	
e.	The study of marketing helps you to better understand why the job market is shrinking.	

ANS:	D	PTS:	1	REF:	16-17	OBJ:	01-4 	TYPE: COMP	
Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services. Marketing affects your day-to-day life as a consumer.
TOP:	AACSB Analytic; TB&E Model Strategy	

	97.	Wilson is an agriculture and dairy science major at a state university. After graduation, he hopes to modernize and expand his family's dairy farm in a scientific and efficient manner. His adviser at school has suggested he take a marketing course in the school of business as an elective. Wilson thinks this is an absurd idea. You are his friend and a marketing major. You advise:
a.	marketing knowledge will help Wilson to understand that he must satisfy wholesalers, retailers, and consumers	
b.	Wilson declare a finance major because he needs a backup career	
c.	more biology and agriculture classes will be most useful for Wilson	
d.	the main reason to take marketing is to teach Wilson how to advertise milk	
e.	marketing is not relevant for a business like a family dairy farm	

ANS:	A	PTS:	1	REF:	16	OBJ:	01-4 	TYPE: App	
Marketing is an important conceptual base that will help Wilson to assess the needs and wants of his various business contacts and customers. Marketing is a key component of every business.
TOP:	AACSB Communication; TB&E Model Strategy; TB&E Model Creativity

	98.	Jamie owns a small moving company in New York City. She has decided to take a few night school business courses because her company is growing fast and there are many things she does not understand. Should Jamie enroll in a marketing course?
a.	Yes, because marketing is synonymous with selling, and Jamie will want to learn aggressive sales techniques to continue the growth of the company.	
b.	Yes, because the concept of marketing will help Jamie to better satisfy her customers.	
c.	No, because marketing is a minor function in business.	
d.	No, because Jamie can hire an ad agency and will not need firsthand marketing knowledge.	
e.	Yes, because marketing helps businesses sell products that people don't need.	

ANS:	B	PTS:	1	REF:	16	OBJ:	01-4 	TYPE: App	
The marketing concept stresses the commitment to satisfying customer needs and wants with an entire range of marketing tools, not just selling or advertising.
TOP:	AACSB Communication; AACSB Analytic; TB&E Model Customer; TB&E Model Creativity

Chrysler Minivans

In 1995, the Chrysler Corporation launched the first complete remake of its minivan category since the firm invented the vehicle category in 1984. The minivans were designed with more curves on the outside and more space on the inside. One of Chrysler's goals for remaking the minivan was to broaden the minivan's appeal beyond the traditional buyer base of practical families. Advertising showed minivans being used to cart everything from senior citizens to canoes. "A minivan is for any time, any place, everyone," was one of the promotional slogans used. To reach other customer groups, Chrysler developed a sports version and a short-wheel-base version of the upscale Town and Country model for sophisticated buyers. Chrysler hoped the $2.6 billion vehicle development cost would pay off as the market expanded. However, competitors also began to offer a wider range of sophisticated models, and competition has become fierce.

	99.	Refer to Chrysler Minivans. When Chrysler first launched the minivan, the company offered only one version and was focused on generating sales volume through intensive advertising. This approach suggests the company had a _____ orientation.
a.	sales	
b.	market	
c.	production	
d.	societal	
e.	promotional	

ANS:	A	PTS:	1	REF:	7	OBJ:	01-2	
Sales-oriented organizations seek to generate sales volume based on intensive advertising, while market-oriented organizations recognize that promotion is only one of four basic marketing tools.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	100.	Refer to Chrysler Minivans. The minivans were developed through an extensive investment in research and development to completely redesign the minivans and provide customers with new and updated features. This effort is designed to better meet consumers’ wants and needs, and suggests the company has adopted a _____ orientation.
a.	societal	
b.	sales	
c.	production	
d.	market	
e.	retail	

ANS:	D	PTS:	1	REF:	8	OBJ:	01-2	
A market-oriented philosophy is based on consumers’ wants and needs.
TOP:	AACSB Analytic; TB&E Model Research; TB&E Model Customer

	101.	Refer to Chrysler Minivans. By introducing sporty, value-priced, and upscale minivans, Chrysler hoped to forge a long-term relationship with customers as they replace their older minivan. Chrysler engaged in:
a.	empowerment	
b.	customer valuation	
c.	relationship marketing	
d.	outward focus management	
e.	primary goal making	

ANS:	C	PTS:	1	REF:	11	OBJ:	01-3	
Relationship marketing seeks to forge long-term partnerships with customers.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	102.	Refer to Chrysler Minivans. Chrysler set up a team of special customer-service representatives who assist minivan buyers and who are authorized to solve problems immediately. This employees were given:
a.	authority training	
b.	customer value giving	
c.	cross-utilization	
d.	teamwork	
e.	empowerment	

ANS:	E	PTS:	1	REF:	12	OBJ:	01-3	
Delegation of authority to employees is empowerment.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	103.	Refer to Chrysler Minivans. In an established organization like Chrysler, recognizing minivan buyer needs and wants and switching to a customer-driven corporate culture probably required:
a.	teamwork	
b.	establishing long-term relationships with customers	
c.	an emphasis on creating customer value	
d.	the implementation effective training programs	
e.	all of these	

ANS:	E	PTS:	1	REF:	11-12	OBJ:	01-3
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

Circuses

As recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers. An advance man arrived about two weeks before the circus actually arrived, covered the community with posters, and gave out free tickets to schoolchildren. If the advance man had done a good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's Greatest Show on Earth began performing in 4,000-seat arenas. Attendance, however, has stagnated in recent years. People have stopped going to the circus because they miss the circus tent and the close intimate atmosphere it created. The newest thing in circuses is a return to the tent atmosphere with an emphasis on the types of entertainment that were popular years ago. Antique circus wagons, calliope music, and cotton candy are replacing the exotic animals and the prima donna performers. To satisfy the needs of this new audience, the tent circus now sells lattes and wine.

	104.	Refer to Circuses. The aggressive promotions used by advance men indicate that two decades ago the circuses probably had a _____ orientation.
a.	sales	
b.	market	
c.	production	
d.	societal	
e.	product	

ANS:	A	PTS:	1	REF:	7	OBJ:	01-2	
Sales-oriented organizations achieve their sales goals primarily through intensive promotion.
TOP:	AACSB Reflective Thinking; TB&E Model Research

	105.	Refer to Circuses. Now circuses are trying to satisfy customers' needs and wants and to profit through customer satisfaction. They have adopted a _____ orientation.
a.	societal	
b.	selling	
c.	production	
d.	market	
e.	retail	

ANS:	D	PTS:	1	REF:	8	OBJ:	01-2	
A market-oriented philosophy is based on consumers’ wants and needs
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	106.	Refer to Circuses. To exhibit a societal marketing orientation, circuses could:
a.	rely on publicity and avoid any promotions	
b.	empower their employees to satisfy customer wants	
c.	donate a percentage of their profits to local educational institutions	
d.	use relationship marketing	
e.	emphasize customer value	

ANS:	C	PTS:	1	REF:	9	OBJ:	01-2	
The philosophy called the societal marketing orientation states that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	107.	Refer to Circuses. One of the tent venues is called Barnum's Kaleidoscape, and it is in a permanent location with the hopes that people who see the show will want to return and see it again as well as bring their friends and relatives to the production. Which of the following techniques would most likely advance this strategy of referrals and repeat business?
a.	relationship marketing	
b.	empowerment	
c.	a sales orientation	
d.	authority to delegate	
e.	transactional marketing	

ANS:	A	PTS:	1	REF:	11	OBJ:	01-3	
Relationship marketing is a strategy that entails forging long-term partnerships with customers.
TOP:	AACSB Reflective Thinking; TB&E Model Customer

	108.	Refer to Circuses. The circus's goal of redesigning the circus experience is being completed through the coordination of many marketing activities, such as value pricing, a product that includes exciting performances, tent venue locations, and promotion. These activities make up the _____ for the circuses.
a.	opportunity analysis	
b.	value of marketing	
c.	marketing environment	
d.	target market	
e.	marketing mix	

ANS:	E	PTS:	1	REF:	14	OBJ:	01-3	
Marketing mix elements include product, place, promotion, and price.
TOP:	AACSB Reflective Thinking; TB&E Model Distribution; TB&E Model Pricing; TB&E Model Promotion

ESSAY

	1.	Explain how marketing is both a philosophy and a set of activities.

ANS:	
The first facet of marketing is its philosophy. This philosophy is an attitude, perspective, or management orientation that stresses the importance of customer satisfaction.

The second facet of marketing is the set of activities used to implement this philosophy. These activities include (but are not limited to) planning, pricing, promotion, distribution, selling, advertising, and inventory management.

PTS:	1	REF:	6	OBJ:	01-1	
TOP:	AACSB Analytic: TB&E Model Strategy	

	2.	The American Marketing Association (AMA) has formulated a definition of marketing that encompasses the two perspectives of marketing: the philosophy and the activities. What is the AMA definition of marketing?

ANS:	
"Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders."

PTS:	1	REF:	6	OBJ:	01-1	
TOP:	AACSB Analytic; TB&E Model Strategy	

	3.	Exchange is the key concept in the definition of marketing. What is the concept of exchange? What are the five conditions of exchange that must be satisfied for exchange to occur?

ANS:	
The concept of exchange simply means that people give up something in order to receive something that they would rather have. Money, goods, or services may be the medium of exchange. The five conditions of exchange are:

1.	There must be at least two parties.	
2.	Each party has something that might be of value to the other party.	
3.	Each party is capable of communication and delivery.	
4.	Each party is free to accept or reject the exchange offer.	
5.	Each party believes it is appropriate or desirable to deal with the other party.	

PTS:	1	REF:	6	OBJ:	01-1	
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	4.	There are five conditions that must be satisfied for an exchange to take place. However, even if all of these conditions are met, exchange may not necessarily take place. Give an example of a situation in which all conditions are met, but exchange does not take place. Can marketing occur, even if an exchange does not take place? Why or why not?

ANS:	
Many selling situations satisfy all five conditions for exchange, but unless a purchase or trade actually takes place, exchange does not occur. The five conditions are necessary but not sufficient for final exchange. The text provides the example of advertising a used auto in the classified ads.

Marketing can occur even if an exchange does not take place. Many of the activities of marketing (product development, planning, promotion, pricing, distribution, and so on) can take place without a final exchange.

PTS:	1	REF:	6	OBJ:	01-1	
TOP:	AACSB Analytic; AACSB Reflective Thinking; TB&E Model Strategy

	5.	What is the marketing concept? According to the marketing concept, what determines if a sale will actually occur?

ANS:	
The marketing concept is a simple and intuitively appealing philosophy. It states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives. It is based on an understanding that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product.

PTS:	1	REF:	8	OBJ:	01-2	
TOP:	AACSB Analytic: TB&E Model Strategy	

	6.	Four competing philosophies strongly influence the role of marketing and marketing activities within an organization. Name and briefly describe each of these four philosophies.

ANS:	
PRODUCTION ORIENTATION. This orientation focuses firms on their internal production capabilities rather than the desires and needs of the marketplace.

SALES ORIENTATION. This orientation assumes that buyers will purchase more of any item if aggressive selling techniques are used. Again, this orientation does not address the needs and wants of the marketplace.

MARKET ORIENTATION. This orientation is the foundation of contemporary marketing philosophy. It recognizes that a sale is dependent on the customer's decision to purchase a product and provides increased responsiveness to customer needs and wants. To market-oriented firms, marketing means building relationships with customers.

SOCIETAL ORIENTATION. This orientation refines the marketing orientation by stating that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting the organization's objectives and preserving or enhancing both individuals' and society's long-term best interests.

PTS:	1	REF:	7-9	OBJ:	01-2	
TOP:	AACSB Analytic; AACSB Ethics; TB&E Model Product; TB&E Model Pricing; TB&E Model Promotion

	7.	If a firm has a production orientation, what types of questions does management ask after assessing its resources? How would these questions differ for a service organization?

ANS:	
With a production orientation, management focuses on the internal capabilities of the firm. Management might ask: "What can we do best?", "What can engineering design?", and/or "What is economical and easy to produce with our equipment?" Managers of a service organization might ask, "What services are most convenient for the firm to offer?" and/or "Where do our talents lie?"

PTS:	1	REF:	7	OBJ:	01-2	
TOP:	AACSB Analytic; TB&E Model Product	

	8.	An entrepreneur has set up a company to manufacture and market GPS systems for hunters. He has decided a sales orientation would best suit his new company. What are important considerations for this firm when it adopts this orientation? What are potential pitfalls of this orientation the owner needs to understand?

ANS:	
The most important component for a sales orientation is an aggressive sales force. The sales force can push intermediaries to carry products, or push consumers to purchase. For the entrepreneur in question, this is important, as hunters rarely buy GPS equipment directly from the manufacturer.  Instead, GPS equipment is offered through specialty resellers.  An aggressive sales force could help the entrepreneur sell his product in more outlets.  However, despite a high-quality sales force, even aggressive salespeople cannot convince people to buy goods and services that are neither wanted nor needed.

PTS:	1	REF:	7-8	OBJ:	01-2	
TOP:	AACSB Analytic; AACSB Reflective Thinking; TB&E Model Strategy

	9.	A market-oriented organization may choose NOT to deliver the benefits sought by customers because these benefits are not in the best interests of the individual or society. This is termed the societal orientation. What does this concept mean in terms of organizational justification? List three current issues where the societal orientation concept may need to be applied.

ANS:	
The societal orientation refines the market orientation by stating that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting the organization's objectives and preserving or enhancing both the individual's and society's long-term best interests.

Societal issues could include environmental protection, smoking in public places, promotion of high-sugar content foods to children, seat belt laws, alcohol marketing, gun sales, and purchasing drugs that have not been approved by the Federal Drug Administration, and others.

PTS:	1	REF:	9	OBJ:	01-2	
TOP:	AACSB Reflective Thinking; AACSB Ethics; TB&E Model Customer

	10.	Describe a real company that has a societal marketing orientation.

ANS:	
Students' answers to this question will vary depending upon what commercials, advertisements, and publicity they have been exposed to. All should select a company that exists not only to satisfy customers' wants and needs and to meet organizational objectives but also to preserve or enhance individuals' or society's long-term best interests.

PTS:	1	REF:	9	OBJ:	01-2	
TOP:	AACSB Analytic: TB&E Model Strategy	

	11.	What is the philosophy of the marketing concept and market orientation? What three key areas are involved in the implementation of the marketing concept and a market orientation?

ANS:	
The philosophy of the marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives. Market orientation requires top management leadership, a customer focus, competitive intelligence, and interfunctional coordination to meet customer wants and needs and deliver superior value. It also entails establishing and maintaining mutually rewarding relationships with customers.

The marketing concept and market orientation involve:

·	focusing on consumer wants so the organization can distinguish its product(s) from competitors' offerings	
·	integrating all the organization's activities, including production, to satisfy these wants	
·	achieving long-term organization goals by satisfying customer wants and needs legally and responsibly	

PTS:	1	REF:	8	OBJ:	01-2	
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	12.	What is customer value? How can marketers make sure customers perceive their companies/products as sources of value?

ANS:	
Customer value is the relationship between benefits and the sacrifice necessary to obtain those benefits. Marketers who want to be perceived by their customers as offering value can (1) offer products that perform as they are expected to, (2) earn trust, (3) avoid unrealistic pricing, and (4) give the buyer facts.

PTS:	1	REF:	10	OBJ:	01-3	
TOP:	AACSB Analytic: TB&E Model Customer	

	13.	Discuss the differences between sales and market orientations using the following five characteristics as guidelines: (1) organization's focus, (2) business the organization is in, (3) people to whom the product is directed, (4) the organization's primary goal, and (5) tools used to achieve that goal.

ANS:	
ORGANIZATION'S FOCUS. With a sales orientation, the firm's focus is inward upon the firm's own needs. With a market orientation, the focus is outward on the wants and preferences of customers. In particular, market-oriented firms create customer value, maintain customer satisfaction, and build long-term relationships.

BUSINESS. A firm with a sales orientation is in the business of selling goods and services. A firm with a market orientation is in the business of satisfying consumer wants and needs.
CUSTOMERS. A sales orientation directs the firm's output at everybody, while a market orientation directs goods toward specific groups of people.

PRIMARY GOAL. The primary goal of a firm with a sales orientation is to make profit through maximizing sales volume. The primary goal of a firm with a market orientation is to seek profit through customer satisfaction.

TOOLS FOR GOAL ACHIEVEMENT. A sales orientation seeks to achieve goals primarily through intensive promotion. A market orientation achieves goals through coordinated use of a set of marketing activities.
See Review Learning Outcome 3.

PTS:	1	REF:	15	OBJ:	01-3	
TOP:	AACSB Analytic: TB&E Model Strategy; TB&E Model Product	

	14.	Is the following statement true? "A production orientation is always harmful to relationship marketing." Explain your answer.

ANS:	
A company with a production orientation concentrates on what it can do best--its internal capabilities. Sometimes what the company produces is exactly what the customer wants. It is possible for a company to engage in relationship marketing (a strategy that entails forging long-term partnerships with customers) and still have a production orientation.

PTS:	1	REF:	7, 11	OBJ:	01-2 | 3	
TOP:	AACSB Analytic: TB&E Model Product	

	15.	Defining the company's business in terms of the benefits customers seek, instead of in terms of goods and services, has three important advantages. List them.

ANS:	
(1) It ensures that the firm keeps focusing on customers and avoids becoming preoccupied with goods, services, or the organization's internal needs. (2) It encourages innovation and creativity by reminding people there are many different ways to satisfy customer wants. (3) It stimulates an awareness of changes in customer desires and preferences so product offerings are more likely to remain relevant.

PTS:	1	REF:	13	OBJ:	01-3	
TOP:	AACSB Analytic; TB&E Model Product; TB&E Model Customer

	16.	There are several important reasons to study marketing. Name three of these reasons.

ANS:	

1.	Marketing plays an important role in society	
2.	Marketing is important to businesses	
3.	Marketing offers outstanding career opportunities	
4.	Marketing affects your life every day	

PTS:	1	REF:	15-17	OBJ:	01-4	
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

	17.	How is marketing important to business?

ANS:	
Marketing contributes directly to the achievement of business objectives, including survival, profits, and growth. Marketing is concerned with assessing the wants and satisfactions of customers, designing and managing product offerings, determining prices, developing distribution strategies, and communicating with customers. These activities are vital to business organizations. A fundamental understanding of marketing is important to all businesspeople so that an organization can operate cohesively.

PTS:	1	REF:	16	OBJ:	01-4	
TOP:	AACSB Reflective Thinking; TB&E Model Strategy

18.	What types of marketing careers are available? What is the current percentage of marketing employees in the U.S. 
civilian work force?  What is the future forecast for marketing employment?

ANS:	
One-fourth to one-third of the U.S. civilian work force performs marketing activities in areas such as professional selling, research, advertising, retail buying, distribution management, product management and development, and wholesaling. Marketing career opportunities exist in both business and nonbusiness organizations.

Demand for marketing-educated personnel is growing. Marketing employment is projected to grow at a faster rate than that of all jobs. Additionally, marketing is now the fastest route to the top in today's corporate world.

PTS:	1	REF:	16	OBJ:	01-4	
TOP:	AACSB Reflective Thinking; TB&E Model Strategy; TB&E Model Research; TB&E Model Creativity

	19.	How does marketing affect your everyday life? How will the study of marketing enable you to be a better consumer?

ANS:	
Every person participates in the marketing process as a consumer of goods and services. Approximately 50 cents of each dollar spent pays for marketing costs. By developing an understanding of marketing, one can better understand the buying process, negotiate more effectively with sellers, and demand corrective action when products do not meet performance standards.

PTS:	1	REF:	16-17	OBJ:	01-4	
TOP:	AACSB Reflective Thinking; TB&E Model Strategy; TB&E Model Customer; TB&E Model Research