Marketing Test Bank. All 17 Chapters Included With Well Explained Answers. (A Very Useful Study Guide)

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Marketing Test Bank. All 17 Chapters Included With Well Explained Answers. (A Very Useful Study Guide) 1. Suppose you are a marketing manager at Procter & Gamble for a new, all- purpose cleaning p... roduct. List four marketing mix variables and describe the decisions and activities associated with each. Correct Answer: Marketers consider activities such as product, pricing, distribution, and promotions as the marketing mix because they decide what type of each element to use and in what amounts. The product variable of the marketing mix deals with researching customers’ needs and wants and designing a product that satisfies them. A product can be a good, a service, or an idea. The product variable also involves creating or modifying brand names and packaging and may include decisions regarding warranty and repair services. In dealing with the distribution variable, a marketing manager makes products available in the quantities desired to as many target­market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. The promotion variable relates to activities used to inform individuals or groups about the organization and its products. Promotion can aim to increase public awareness of the organization and of new or existing products. The price variable relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices. Price is a critical component of the marketing mix because customers are concerned about the value obtained in an exchange. Price is often used as a competitive tool, and intense price competition sometimes leads to price wars. 2. Describe several activities encompassed by the distribution variable. Correct Answer: When considering the distribution variable, a marketing manager makes products available in the quantities desired to as many target­market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. A marketing manager also may select and motivate intermediaries (wholesalers and retailers), establish and maintain inventory control procedures, and develop and manage transportation and storage systems. The advent of the Internet and electronic commerce also has dramatically influenced the distribution variable. Companies now can make their products available throughout the world without maintaining facilities in each country. 3. Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships. Correct Answer: The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit. The customer expects to gain a reward or benefit greater than the costs incurred in a marketing transaction. The marketer expects to gain something of value in return, generally the price charged for the product. To fulfill these expectations, the marketer must deliver on promises made. Over time, this interaction results in relationships between the two parties. 4. What is meant by the term relationship marketing? How does relationship marketing affect the customer? Correct Answer: Relationship marketing refers to “long­term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges.” Relationship marketing continually deepens the buyer’s trust in the company, and as the customer’s confidence grows, this, in turn, increases the firm’s understanding of the customer’s needs. Buyers and marketers can thus enter into a close relationship in which both participate in the creation of value. 5. What are the three ways that marketing environment forces affect a marketer's ability to create satisfying exchange relationships? Correct Answer: The marketing environment forces affect a marketer’s ability to facilitate value driven marketing exchanges in three general ways. First, they influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. Second, marketing environment forces help to determine whether and how a marketing manager can perform certain marketing activities. Third, environmental forces may affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix. 6. What is meant by the term marketing concept, and what departments of a company does it affect? Correct Answer: Marketing concept refers to a management philosophy guiding an organization’s overall activities Departments such as production, finance, accounting, human resources, and marketing must work together to establish the marketing concept. The overall objectives of a business might relate to increasing profits, market share, sales, or a combination of all three. The marketing concept stresses that an organization can best achieve these objectives by being customer oriented. 7. What does it mean for a company to be marketing-oriented? What are the most important factors involved in being marketing-oriented? Correct Answer: A market orientation requires the organization wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization wide responsiveness to it. Market orientation is linked to new product innovation by developing a strategic focus to explore and develop new products to serve target markets. Top management, marketing managers, non­marketing managers (those in production, finance, human resources, and so on), and customers are all important in developing and carrying out a market orientation. Trust, openness, honoring promises, respect, collaboration, and recognizing the market as the raison d’etre are six values required by organizations striving to become more market oriented. Unless marketing managers provide continuous customer­focused leadership with minimal interdepartmental conflict, achieving a market orientation will be difficult. Non­marketing managers must communicate with marketing managers to share information important to understanding the customer. Finally, a market orientation involves being responsive to ever­changing customer needs and wants. 8. Define the term value, and explain how people determine a product's value. Correct Answer: Value is defined as a customer’s subjective assessment of benefits relative to costs in determining the worth of a product (customer value = customer benefits – customer costs). Consumers develop a concept of value through the integration of their perceptions of product quality and financial sacrifice. 9. Why is marketing important to businesses and to the economy? Correct Answer: Businesses must engage in marketing to survive and grow, and marketing activities are needed to reach customers and provide products. Financial resources generated from sales are necessary for the operations of a firm and to provide financial returns to investors. Innovation in operations and products drive business success and customer loyalty. Marketing activities help to produce the profits that are essential to the survival of individual businesses. Without profits, businesses would find it difficult, if not impossible, to buy more raw materials, hire more employees, attract more capital, and create additional products that, in turn, make more profits. Therefore, marketing helps create a successful economy and contributes to the well­being of society. 10. Explain why a knowledge of marketing is beneficial for all students. Correct Answer: Studying marketing allows us to understand the importance of marketing to customers, organizations, and our economy. Thus, we can analyze marketing efforts that need improvement and how to attain that goal. As a consumer becomes more aware it is possible to improve purchasing decisions. Understanding marketing enables people to evaluate corrective measures (such as laws, regulations, and industry guidelines) that could stop unfair, damaging, or unethical marketing practices. [Show More]

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