Chap 001

Chapter 1
DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE

THROUGH MARKETING
Test Item Table
Majr Se!t"# $
the Chapter
Le%el $
Lear#"#&
Le%el 1'
De(#"t"#
)K#*s +as"!
Terms , -a!ts.
Le%el /'
C#!ept0al
)U#1ersta#1s
C#!epts ,
Pr"#!"ples.
Le%el 2'
Appl"!at"#
)Appl"es
Pr"#!"ples.
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Ne6t7
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1 2, 3 4
4hat Is
Mar<et"#&7
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6, 7, 10, 13, 14, 20
1>1
5, 8, 9, 18, 19, 21,
23, 1>?@ 1>1@ 1>/
11, 12, 15, 16, 17 ,
22
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D"s!%ers a#1
Sat"s(es
C#s0mer Nee1s
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25, 26, 30, 31, 32,
36, 37, 38, 39, 42,
43, 50, 51, 52, 53,
54, 64, 65, 1>2
24, 27, 28, 29, 33,
34, 35, 44, 45, 56,
57, 58, 59, 60, 61,
62, 63, 66, 68, 69,
1>2
40, 41, 46, 47, 48,
49, 55, 67,
1>A@ 1>9
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70, 71, 76, 83,
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72, 73, 74, 79, 80,
82, 84, 85, 86, 87,
88, 89, 90, 91
75, 77, 78, 81, 92,
1>>
H* Mar<et"#&
+e!ame S
Imprta#t
)pp8 1;:1=.
93, 95, 97, 98,
103, 104, 105,
108, 111, 113,
119, 125, 126,
134, 135, 138,
139, 142, 143,
144, 1>;@ 1>B@
1;1@ 1;2
94, 96, 99, 101,
102, 106, 107,
109, 110, 114,
115, 117, 118,
120, 121, 122,
124, 127, 128,
129, 130, 131,
132, 133, 136,
137, 140, 141,
145, 147, 148,
149, 150, 151,
152, 153, 1;1@
1;/
100, 112, 116,
123, 146, 1>=@
1;?
V"1e Case'
Rllerbla1e@ I#!8
)pp8 /?:/1.
159 154, 155, 156 157, 158
Note: Bold numbers indicate short essay uestions!
CHAPTER 1
DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE THROUGH
MARKETING
MULTIPLE CHOICE CUESTIONS
1:1 CHAPTER OPENING EDAMPLE' ROLLER+LADE DE-INITION
"hen #ary $or%ath too& o'er mar&etin( )or *ollerblade s&ates, her +rst tas&
%as re,ositionin(! -his means she had to:
a! chan(e consumers. ,erce,tions o) *ollerblade s&ates!
b! im,lement strate(ic mar&etin( ,lannin(!
c! de'elo, ne% ,roducts and ne% mar&ets )or *ollerblade s&ates!
d! s,onsor an e'ent that %ould create ,ublicity )or *ollerblade, /nc!
e! determine i) a mar&et e0isted )or *ollerblade s&ates!
A#s*er' a Pa&e' 6
Rat"#ale' *e,ositionin( the ,roduct means chan(in( the ima(e ,eo,le
ha'e in their minds about the ,roduct!
1:/ CHAPTER OPENING EDAMPLE' ROLLER+LADE CONCEPTUAL
/n the 1980s, mar&etin( director #ary $or%ath and *ollerblade succeeded in
,o,ulari1in( in2line s&atin(! -he ,rimary challen(e to *ollerblade, /nc! in the
late 1990s and into the ne0t century %ill be:
a! ,rotectin( itsel) )rom liability )or all the in2line s&atin( in3uries!
b! ta,,in( into the ,reschool se(ment o) the ,o,ulation!
c! (ettin( the a(in( ,o,ulation to try the s,ort!
d! dealin( %ith an increasin( number o) com,etitors!
e! settin( u, the 40treme 5ames 6om,etition t%ice a year!
A#s*er' d Pa&e' 6
Rat"#ale' *ollerblade, /nc! has o'er 30 s&ate com,etitors in addition to
com,etin( s,orts li&e s&ateboardin(, bi&in(, and sno%boardin(!
1:2 CHAPTER OPENING EDAMPLE' ROLLER+LADE CONCEPTUAL
"hich o) the )ollo%in( is a strate(y em,loyed by *ollerblade, /nc!7
a. a! 8ocus research and de'elo,ment acti'ities )or one mar&et se(ment
b. b! /ncrease mar&et share by ad'ertisin( on the /nternet
c. c! 9ro'ide bene+ts that are beyond %hat ,eo,le are e0,ectin( to ha'e
d. d! 6oncentrate mar&etin( o) most ,o,ular desi(ns only
e. e! #ar&et to %holesale or(ani1ations e0clusi'ely
A#s*er' c Pa&e' 7
Rat"#ale' :ccordin( to ;eremy <tonier, director o) ,roduct mar&etin(, one
o) *ollerblade.s strate(ies is to ,ro'ide bene+ts that are beyond %hat ,eo,le
are e0,ectin(!
1:A CHAPTER OPENING EDAMPLE' ROLLER+LADE APPLICATION
*ollerblade, /nc!=s strate(y chan(ed )rom the late 1980s to the late 1990s!
:,,lyin( this chan(e to other com,anies and their mar&etin( strate(ies
su((ests that or(ani1ations should:
a! +nd a %innin( strate(y and stic& %ith it!
b! search continuously )or %ays to ,ro'ide 'alue to customers!
c! chan(e strate(ies e'ery ten years to a'oid (ettin( com,lacent!
d! not ,ay too much attention to customers since they o)ten chan(e their
minds!
e! )ocus on the shareholder o) the com,any and the strate(y %ill )ollo%!
A#s*er' b Pa&e' 7
Rat"#ale' -he )uture o) a com,any relies on an in2de,th understandin( o)
the customer! /n order to sur'i'e, or(ani1ations must search continuously )or
%ays to ,ro'ide 'alue to their customers!
>ou are already a mar&etin( e0,ert because:
a! as a consumer, you ha'e been in'ol'ed already in mar&etin(!
b! mar&etin( is really only common sense!
c! as a colle(e student, you study mar&etin(!
d! there is really nothin( to learn about mar&etin(!
e! mar&etin( is innate &no%led(e that all are born %ith!
A#s*er' a Pa&e' 7
Rat"#ale' :s a consumer, you ha'e already been in'ol'ed in thousands o)
mar&etin( decisions?but mainly on the buyin(, not the mar&etin( side!
@@@@@@@@@@ is de'elo,in(, ,ricin(, ,romotin(, and distributin( (oods, ser'ices,
and ideas to satis)y the needs o) consumers!
a! 6reati'e ,lannin(
b! :d'ertisin(
c! <ellin(
d! #ar&etin(
e! 6onsumerism
A#s*er' d Pa&e' 8 Other L!at"#' %eb
Rat"#ale' Aey term de+nition?mar&etin(
#ar&etin( is de'elo,in(, ,ricin(, @@@@@@@@@@, and @@@@@@@@@@ (oods, ser'ices,
and ideas to satis)y the needs o) consumers!
a! ,romotin(, brandin(
b! brandin(, distributin(
c! ,romotin(, distributin(
d! brandin(, sellin(
e! ,romotin(, sellin(
A#s*er' c Pa&e' 8
Rat"#ale' Aey term de+nition?mar&etin(
"hich o) the )ollo%in( is true re(ardin( the mar&etin( ,rocess7
a! /ts e0chan(es satis)y consumers only!
b! /ts e0chan(es satis)y sellers only!
c! /ts e0chan(es satis)y both consumers and sellers!
d! /t is synonymous to ad'ertisin(!
e! /t is synonymous to ,ersonal sellin(!
A#s*er' c Pa&e' 8
Rat"#ale' -he mar&etin( ,rocess includes bene+cial e0chan(es )or those
%ho both buy and sell (oods, ser'ices, and ideas!
-o ser'e both buyers and sellers, mar&etin( see&s to disco'er the needs and
%ants o) ,ros,ecti'e customers and to:
a! chan(e them!
b! ta&e ad'anta(e o) them!
c! satis)y them!
d! mani,ulate them!
e! de+ne real and arti+cial buyin( situations!
A#s*er' c Pa&e' 8
Rat"#ale' <atis)yin( the ,ros,ecti'e customers. needs and %ants should
lead to a mar&etin( e0chan(e, thus ser'in( the interests o) both buyers and
sellers!
9ros,ecti'e customers include:
a! indi'iduals buyin( )or themsel'es!
b! indi'iduals buyin( )or their households!
c! or(ani1ations that buy )or their o%n use Bsuch as manu)acturersC!
d! or(ani1ations that buy )or resale Bsuch as %holesalers and retailersC!
e! all o) the abo'e!
A#s*er' e Pa&e' 8
Rat"#ale' 9ros,ecti'e customers include both indi'iduals buyin( )or
themsel'es and their households, and or(ani1ations that buy )or their o%n
use Bsuch as manu)acturersC or )or resale Bsuch as %holesalers and retailersC!
"hich o) the )ollo%in( re,resents a ,ros,ecti'e customer in the mar&etin(
,rocess7

a! :lan, a bachelor %ho %ants to buy a ne% com,uter
b! #ichelle, a homema&er and mother o) three sho,,in( )or (roceries
c! /B#, %hich ,urchases oDce su,,lies
d! Aro(er 8oods, %hich %or&s %ith many 'endors to stoc& the shel'es o)
their stores
e! :ll o) the abo'e
A#s*er' e Pa&e' 8 Other L!at"#' %eb
Rat"#ale' 9ros,ecti'e customers include both indi'iduals buyin( )or
themsel'es and their households, and or(ani1ations that buy )or their o%n
use Bsuch as manu)acturersC or )or resale Bsuch as %holesalers and retailersC!
9ros,ecti'e customers )or a %ater,roo) mar&er that can be erased as sim,ly
as i) it %ere a ,encil %ould include:
a! su,ermar&ets that create and ,ost hand2lettered si(ns %ee&ly!
b! students %ho are ma&in( si(ns )or a ba&e sale!
c! children %ho li&e to dra%!
d! deli'ery com,any em,loyees %ho mar& location 1ones on ,ac&a(es!
A#s*er' e Pa&e' 8
Rat"#ale' 9ros,ecti'e customers include anyone %ho could bene+t )rom
o%nin( a ,roduct!
#ar&etin( see&s to disco'er the needs and %ants o) ,ros,ecti'e customers
and satis)y them! 4ssential to this ,rocess is the idea o) e0chan(e! /n the
+eld o) mar&etin(, e0chan(e re)ers to the:
a! ,lace %here ,eo,le (o to do business!
b! ,lace %here ,eo,le return un%anted (oods!
c! trade o) thin(s o) 'alue bet%een buyer and seller so that each is better
oE!
d! ,rocess o) locatin( buyers and sellers!
e! acuisition o) somethin( o) 'alue!
A#s*er' c Pa&e' 8
Rat"#ale' Aey term de+nition?e0chan(e
@@@@@@@@@@ is a trade o) thin(s o) 'alue bet%een buyer and seller so that each
is better oE!
a! 40chan(e
b! Needs assessment
c! 6onsumerism
d! Ftility
e! 6ommerce
A#s*er' a Pa&e' 8
Rat"#ale' Aey term de+nition?e0chan(e
-he :merican *ed 6ross created a series o) ad'ertisements encoura(in(
'ie%ers to donate blood! :)ter 'ie%in( the ad'ertisement, :manda %ent to
the local *ed 6ross oDce and donated a ,int o) blood! :)ter%ards, :manda
returned home )eelin( satis+ed that she had ,er)ormed a (ood deed! "as
this a mar&etin( e0chan(e7
a! No, because the *ed 6ross is a non2,ro+t or(ani1ation!
b! >es, because the *ed 6ross ran an ad'ertisement!
c! >es, because the donated blood %as e0chan(ed )or a )eelin( o)
satis)action!
d! No, because no money %as e0chan(ed!
e! No, because the *ed 6ross did not ,ro'ide :manda %ith a ,roduct!
A#s*er' c Pa&e' 8
Rat"#ale' #ar&eters see& to disco'er and satis)y the needs and %ants o)
customers! -he &ey to achie'in( these ob3ecti'es is e0chan(e?the trade o)
thin(s o) 'alue bet%een buyer and seller so that each bene+ts )rom the
e0chan(e! /n this instance, :manda is the customer and the *ed 6ross is the
mar&eter! :n e0chan(e occurs: :manda e0chan(es her donated blood )or a
)eelin( o) satis)actionG the *ed 6ross recei'es the donated blood and
continues its readiness to ser'e the needs o) society in times o) disaster!
: church has ,ut ad'ertisements in its %ee&ly bulletins to encoura(e
members o) the church to ,artici,ate in the ser'ices by readin(! ;ac&
'olunteered and read durin( a ser'ice! $e )elt satis+ed and )elt he %as
contributin( to his church! "as this a mar&etin( e0chan(e7
a! No, because the church is a non2,ro+t or(ani1ation!
b! >es, because the church ran an ad'ertisement!
c! >es, because readin( at the ser'ice %as e0chan(ed )or a )eelin( o)
satis)action!
d! No, because no money %as e0chan(ed!
e! No, because the church did not ,ro'ide ;ac& %ith a ,roduct!
A#s*er' c Pa&e' 8
e0chan(e! /n this instance, ;ac& is the customer and the church is the
mar&eter! :n e0chan(e occurs: ;ac& e0chan(es his readin( at the ser'ice )or
a )eelin( o) satis)actionG the church recei'es a ,erson to read at the ser'ice
and continues its %ee&ly ser'ices!
Ni&e aired a series o) commercials ad'ertisin( their ne%est athletic shoe )or
%omen! Nicholas )ound the commercials hi(hly entertainin( and told his
)riends at %or& about them! "as this a mar&etin( e0chan(e7
a! >es, because ;oe did not do any com,arati'e sho,,in(!
b! No, because ;oe did not ,urchase shoes!
c! >es, because ;oe can buy shoes )or %omen in his household!
d! No, because the commercials %ere tar(etin( %omen and Nicholas is a
man!
e! >es, because the commercials %ere eEecti'e and created %ord2o)2mouth
ad'ertisin(!
A#s*er' b Pa&e' 8
e0chan(e! /n this instance, Nicholas sim,ly 'ie%ed a Ni&e commercial! No
e0chan(e occurs! Nicholas did not ,urchase shoes! -here)ore, neither he nor
Ni&e (ained anythin( o) 'alue!
Hr(ani1ations are com,rised o) 'arious de,artments! "ith %hich o) the
)ollo%in( does the mar&etin( de,artment interact7
a. a! 8inance
b. b! /n)ormation systems
c. c! #anu)acturin(
d. d! *esearch and de'elo,ment
e. e! :ll o) the abo'e
A#s*er' e Pa&e' 9G 8i(ure 123
Rat"#ale' :s illustrated in 8i(ure 123, mar&etin( de,artments %or& closely
%ith a net%or& o) de,artments %ithin an or(ani1ation to assess and satis)y
consumer needs!
"hich o) the )ollo%in( statements about mar&etin( de,artments is true7
a! /t is the res,onsibility o) the mar&etin( de,artment to )acilitate
relationshi,s %ith the or(ani1ation=s customers!
b! /t is the res,onsibility o) the mar&etin( de,artment to create ,artnershi,s
%ith the or(ani1ation=s su,,liers!
c! -he mar&etin( de,artment must %or& closely %ith a net%or& o) other
de,artments and em,loyees to hel, ,ro'ide the customer2satis)yin(
,roducts reuired )or the or(ani1ation to sur'i'e and ,ros,er!
d! -he mar&etin( de,artment is res,onsible )or establishin( alliances %ith
the or(ani1ation=s shareholders!
e! :ll o) the abo'e statements about mar&etin( de,artments are true!
A#s*er' e Pa&e' 9
Rat"#ale' :s 8i(ure 123 illustrates, the mar&etin( de,artment o) an
or(ani1ation is res,onsible )or )acilitatin( relationshi,s %ith the or(ani1ation=s
customers, shareholders, su,,liers, and other de,artments and em,loyees
%ithin the or(ani1ation!
-he @@@@@@@@@@ de,artment o) an or(ani1ation is res,onsible )or )acilitatin(
relationshi,s, %ith the or(ani1ation=s customers, its shareholders, its
su,,liers, and other or(ani1ations!
a! ,urchasin(
b! mar&etin(
c! human resources
d! accountin(
e! ad'ertisin(
A#s*er' b Pa&e' 9G 8i(ure 123
Rat"#ale' :s illustrated in 8i(ure 123, the mar&etin( de,artment %or&s
closely %ith other de,artments %ithin an or(ani1ation! /ts acti'ities also
)acilitate relationshi,s %ith the or(ani1ation.s shareholders, customers,
su,,liers, and other or(ani1ations!
"hich o) the )ollo%in( statements about mar&etin( acti'ities is true7
a! #ar&etin( is aEected by society and in return aEects society as a %hole
b! -he mar&etin( de,artment %or&s closely %ith other de,artments and
em,loyees to im,lement mar&etin( acti'ities!
c! #ar&etin( acti'ities ,ro'ide the customer2satis)yin( ,roducts reuired )or
the or(ani1ation to sur'i'e and ,ros,er!
d! 4n'ironmental )actors aEect mar&etin( acti'ities!
e! :ll o) the abo'e statements about mar&etin( acti'ities are true!
Rat"#ale' :s 8i(ure 123 illustrates, there are many ,eo,le, (rou,s, and
)orces that im,act and are im,acted by mar&etin( acti'ities!
"hich o) the )ollo%in( situations %ould im,act the mar&etin( strate(ies o)
:merican :irlines7
a! #a3or ,rice cuts o) air)ares oEered by other airlines
b! Ne% la%s re(ulatin( the si1e and %ei(ht o) carry2on ba((a(e
c! 6onsumers ,re)errin( hi(h uality coEee, such as <tarbuc&s
d! Fnem,loyment rates increasin( by 5I
e! :ll o) the abo'e situations %ould im,act their mar&etin( strate(ies
Rat"#ale' :s illustrated in 8i(ure 123, social, economic, technolo(ical,
com,etiti'e, and re(ulatory )orces im,act and are im,acted by mar&etin(
decisions!
-he )our outside (rou,s that e0ert im,ortant direct inJuences on an
or(ani1ation consist o):
a! 9oliticians, re(ulators, minority (rou,s, and consumer monitorin( (rou,s
b! 6om,etitors, industry trade associations, non2,ro+t or(ani1ations, and
(o'ernmental a(encies, such as the 49: and 8-6
c! <enior mana(ement, the le(al de,artment, the mar&etin( de,artment,
and other em,loyees o) the or(ani1ation
d! Hther or(ani1ations, su,,liers, shareholders Bo%nersC, and customers
e! H%ners, em,loyees, re(ulatory (rou,s, and com,etitors
A#s*er' d Pa&e' 9G 8i(ure 123
Rat"#ale' :s illustrated in 8i(ure 123, there are many ,eo,le, (rou,s, and
)orces that im,act and are im,acted by mar&etin( acti'ities includin( other
or(ani1ation, su,,liers, shareholders, and customers!
-he te0t e0,lains that the t%o central concerns o) mar&etin( are:
a! mar&et share and customer satis)action!
b! disco'erin( and satis)yin( consumer needs!
c! ,romotion and sales!
d! ma0imi1in( an or(ani1ation=s sales and ,roducts!
e! needs and %ants!
A#s*er' b Pa&e' 9
Rat"#ale' #ar&etin( see&s to B1C disco'er the needs o) ,ros,ecti'e
customers, and B2C satis)y those needs!
-he +rst tas& o) mar&etin( is to:
a! disco'er the needs o) consumers!
b! disco'er the needs o) com,etitors!
c! disco'er the needs o) sellers!
d! satis)y the needs o) re(ulators!
e! satis)y the needs o) %atchdo( (rou,s!
A#s*er' a Pa&e' 9
Rat"#ale' -he +rst ob3ecti'e in mar&etin( is disco'erin( the needs o)
,ros,ecti'e consumers! -his is also sho%n in 8i(ure 124 on ,a(e 11!
-he +rst tas& o) mar&etin( is to disco'er consumer:
a! di'ersity!
b! ability to ,ay!
c! ob3ecti'es!
d! needs!
e! syner(y!
A#s*er' d Pa&e' 9
Rat"#ale' -he +rst ob3ecti'e in mar&etin( is disco'erin( the needs o)
,ros,ecti'e consumers! -his is also sho%n in 8i(ure 124 on ,a(e 11!
"hat is the ,ercenta(e o) launches o) ne% consumable ,roducts that are
unsuccess)ul in the lon( run7
a! 45 K 55I
b! 50 K 75I
c! 64 K 90I
d! 80 K 94I
e! 99I
A#s*er' d Pa&e' 10
Rat"#ale' Ne% ,roduct e0,erts (enerally estimate that 80 K 94 ,ercent o)
the o'er 25,000 ne% consumable ,roducts introduced in the Fnited <tates
don.t succeed in the lon( run!
"hich o) the )ollo%in( %ould be (ood ad'ice )or a mar&eter %ho %as
,re,arin( to launch a ne% o'er2the2counter medication )or cold sores7
a! 5i'e the ,roduct a len(thy name that e0,lains all o) its bene+ts!
b! 5i'e the ,roduct a mysterious name that is unrelated to its bene+ts to
,ro'o&e curiosity!
c! <tudy ,ast ,roduct )ailures!
d! 6reate unusual ,ac&a(in( that has s,ecial shel'in( reuirements!
e! Lo all o) the abo'e!
A#s*er' c Pa&e' 10
Rat"#ale' : ne%2,roduct e0,ert ad'ises mar&eters %ho are launchin( ne%
,roducts to )ocus on %hat the customer bene+ts are and to learn )rom the
,ast!
"hen should a mar&eter ma&e a care)ul study o) ,roduct )ailures7

a! "hen ,re,arin( to launch a ne% ,roduct
b! :)ter a ne% ,roduct has )ailed to meet sales ,redictions
c! "hen re,ositionin( a %ell2&no%n brand
d! "hen loo&in( )or a ne% mar&et )or an e0istin( ,roduct
e! /n any or all o) the abo'e conditions
A#s*er' a Pa&e' 10
Rat"#ale' : ne%2,roduct e0,ert ad'ises mar&eters %ho are launchin( ne%
,roducts to )ocus on %hat the customer bene+ts are and to learn )rom the
,ast!
"hich o) the )ollo%in( statements best de+nes needs and %ants7
a! Needs occur %hen a ,erson )eels ,hysiolo(ically de,ri'ed o) somethin(,
and %ants are determined by a ,erson=s &no%led(e, culture, or
,ersonality!
b! "ants are a subset o) needs!
c! "ants occur %hen a ,erson )eels ,hysiolo(ically de,ri'ed o) somethin(,
and needs are determined by a ,erson=s &no%led(e, culture, or
,ersonality!
d! Needs aEect mar&etin(, but %ants do not!
e! By de+nition, %ants are more socially res,onsible than needs!
A#s*er' a Pa&e' 11
Rat"#ale' -e0t term de+nitions?needs and %ants! 4'en thou(h not
e'eryone=s needs are the same, needs occur %hen a ,erson )eels
,hysiolo(ically de,ri'ed o) somethin( such as clothes, )ood, or shelter! :
%ant is a )elt need that is sha,ed by a ,erson=s &no%led(e, culture, or
indi'idual ,ersonality!
:BnC @@@@@@@@@@ occurs %hen a ,erson )eels ,hysiolo(ically de,ri'ed o) basic
necessities!
a! need
b! %ant
c! e0chan(e
d! en'ironmental )actor
e! mar&et se(ment
A#s*er' a Pa&e' 11
Rat"#ale' -e0t term de+nition?need
:BnC @@@@@@@@@@ is a )elt need that is sha,ed by a ,erson.s &no%led(e, culture,
and ,ersonality!
a! need
b! %ant
c! e0chan(e
d! customer.s 'alue
e! mar&et se(ment
A#s*er' b Pa&e' 11
Rat"#ale' -e0t term de+nition?%ant
: tele'ision ad'ertisement sho%s se'eral teena(ers searchin( throu(h the
re)ri(erator )or somethin( to uench their thirst! -he re)ri(erator oEers the
youn(sters many alternati'es?so)t drin&s, )ruit drin&s, s,ort drin&s and
bottles o) <unny Leli(ht drin&! -he ad, %hich sho%s the teens ha,,ily
selectin( <unny Leli(ht o'er all the other ,roduct oEerin(s, a,,eals to the
consumers= @@@@@@@@@@ )or liuid and attem,ts to sha,e consumers= @@@@@@@@@@
)or the ad'ertised ,roduct!
a! %antsG needs
b! %antsG ,re)erences
c! ,re)erencesG needs
d! needsG %ants
e! needsG ,re)erences
Rat"#ale' : need occurs %hen a ,erson )eels ,hysiolo(ically de,ri'ed o) a
basic necessity Bi!e!, )ood, %ater, clothin(, and shelterC! : %ant is a )elt need
that is sha,ed by a ,erson=s &no%led(e, e0,erience, culture, or ,ersonality! :
need is necessaryG a %ant is a learned ,re)erence )or a s,eci+c item that
satis+es the consumer=s need!
:le0 is three2years old and has a 'ery limited number o) )oods that he %ill
eat! $is mother %ill o)ten +ll his ,late %ith one small hel,in( o) an item that
he really li&es and one small hel,in( o) an item he doesn=t li&e! -o (et more
macaroni and cheese, he must eat his (reen beans! /n mar&etin( terms, the
macaroni and cheese is an e0am,le o) a @@@@@@@@@@ because it is somethin(
he has learned to li&e!
a! desire
b! need
c! ,redilection
d! re%ard
e! %ant
Rat"#ale' : %ant is a )elt need that is sha,ed by a ,erson.s &no%led(e,
culture, and ,ersonality! :le0 has &no%led(e that he li&es macaroni and
cheese and doesn.t li&e (reen beans, so he wants the macaroni and cheese
rather than the (reen beans e'en thou(h both %ould +ll his need )or )ood!
-ens o) thousands o) colle(e students are (raduatin( %ith thousands o)
dollars in credit card debt! "hat ad'ice do credit counselors (i'e colle(e
students to hel, them mana(e their debt7
a! Buy a house and use an euity line o) credit to ,ay oE credit card
balances
b! Because colle(e students are youn(, they should +le )or ban&ru,tcy and
then %or& to rebuild their (ood credit
c! *educe the number o) credit cards they ha'e and ,ay cash
d! Borro% a(ainst student loans to ,ay oE hi(h interest credit cards
e! :,,ly only )or lo%2interest credit cards %ith no annual )ee
A#s*er' c Pa&e' 12
Rat"#ale' 8inancial counselors ha'e t%o bits o) ad'ice )or students: 1C
reduce the number o) credit cards and 2C ,ay cash, %hich )orces some hard
thin&in( that is a'oided by sim,ly brin(in( out a credit card!
-he term mar&et is best de+ned as:
a! ,eo,le %ith a need and a %ant )or a ,roduct!
b! or(ani1ations %ith the need and desire )or a ,roduct!
c! or(ani1ations %ith ,roducts %hich satis)y ,eo,le=s needs and %ants!
d! ,eo,le %ith both the desire and ability to buy a s,eci+c ,roduct!
e! ,eo,le %ith the desire and the need )or a ,roduct!
A#s*er' d Pa&e' 11
Rat"#ale' Aey term de+nition?mar&et
9otential consumers ma&e u, a mar&et! : mar&et consists o) ,eo,le %ith aBnC
@@@@@@@@@@ and @@@@@@@@@@ to buy a s,eci+c ,roduct!
a! needG %ant
b! desireG ability
c! needG desire
d! needG ability
e! abilityG authority
A#s*er' b Pa&e' 11
/n mar&etin(, the most common meanin( o) a mar&et is:
a! a store that sells (roceries!
b! any ,lace consumers can buy thin(s!
c! a ,articular line o) ,roducts or s,eci+c line o) merchandise )or sale!
d! a (rou, o) com,anies that ha'e (oods )or sale!
e! ,eo,le %ith both the desire and the ability to buy a s,eci+c ,roduct!
A#s*er' e Pa&e' 11
:ll mar&ets ultimately are com,osed o):
a! ,eo,le!
b! needs!
c! ,roducts!
d! abilities to buy!
e! desires!
A#s*er' a Pa&e' 11
-he mar&et )or cosmetic dentistry B%hich can cost M15,000 )or strai(htenin(
and %hitenin(C is:
a! children %ith croo&ed teeth!
b! all )ormer smo&ers!
c! any adult %ho has the time, the money, and the desire to under(o the
,rocedures!
d! anyone that has e'er had any ,lastic sur(ery!
e! adults %ho rely on ma&in( a (ood +rst im,ression )or 3ob success!
A#s*er' c Pa&e' 11
Rat"#ale' 9otential customers ma&e u, a mar&et, %hich is B1C ,eo,le B2C
%ith the desire, and B3C the ability to buy a s,eci+c ,roduct!
:n educational so)t%are com,any is de'elo,in( a ne% line o) com,uter
so)t%are to teach ,reschoolers letter and number reco(nition! "hat is the
mar&et )or this ne% ,roduct7
a! 9reschoolers
b! :dults
c! :dults %ith ,reschool2a(ed children
d! :dults %ho %ant to buy and ha'e the means to buy com,uter so)t%are )or
,reschoolers
e! :ll o) the abo'e are ,otential mar&ets )or the ne% ,roduct
A#s*er' c Pa&e' 11
Rat"#ale' : mar&et consists o) ,eo,le %ho ha'e the desire and ability to
buy a s,eci+c ,roduct!
Hne or more s,eci+c (rou,s o) ,otential consumers to%ard %hich an
or(ani1ation directs its mar&etin( ,ro(ram is a:
a! mass mar&et!
b! tan(ent mar&et!
c! mar&et a((re(ation!
d! tar(et mar&et!
e! ,romotional mar&et!
A#s*er' d Pa&e' 12
Rat"#ale' Aey term de+nition?tar(et mar&et
: tar(et mar&et is:
a! one or more s,eci+c (rou,s o) ,otential consumers to%ard %hich an
or(ani1ation directs its mar&etin( ,ro(ram!
b! the one s,eci+c (rou, o) ,otential consumers on %hich an or(ani1ation
concentrates its mar&etin( eEorts!
c! the distribution chain by %hich ,roducts reach consumers!
d! a means o) communication bet%een buyers and sellers!
e! the ability to reach ,otential consumers throu(h ad'ertisin(!
A#s*er' a Pa&e' 12
Rat"#ale' Aey term de+nition?tar(et mar&et
<ound and 6inema is a com,any that %ill turn an ordinary basement into a
home theater! /t ad'ertises in ,ublications that are mailed to homeo%ners in
subdi'isions in %hich the least e0,ensi'e home costs M475,000! -hese
homeo%ners are the @@@@@@@@@@ )or <ound and 6inema!
a! mass mar&et
b! tan(ent mar&et
c! mar&et a((re(ation
d! tar(et mar&et
e! ,romotional mar&et
A#s*er' d Pa&e' 12
Rat"#ale' : tar(et mar&et is a s,eci+c (rou, o) ,otential consumers
to%ard %hich an or(ani1ation directs its mar&etin( ,ro(ram!
-ele'ision sho%s li&e Touched by an Angel and Seventh Heaven are desi(ned
to a,,eal to )amilies that are concerned about maintainin( stron( moral
'alues! -his is the @@@@@@@@@@ )or these sho%s!
a! mass mar&et
b! tan(ent mar&et
c! mar&et a((re(ation
d! tar(et mar&et
e! ,romotional mar&et
A#s*er' d Pa&e' 12
Rat"#ale' : tar(et mar&et is a s,eci+c (rou, o) ,otential consumers
to%ard %hich an or(ani1ation directs its mar&etin( ,ro(ram!

"hich o) the )ollo%in( is the B4<- descri,tion o) the tar(et mar&et )or the
latest Lisney animated mo'ie7
a! 4'eryone %ho can aEord to buy a mo'ie tic&et
b! 4'eryone %ho li&es mo'ies
c! 9ro)essionals %ho are ,arents o) children bet%een the a(es o) 3 and 12
d! 9eo,le %ho collect #ic&ey #ouse memorabilia
e! 9eo,le %ho li'e near a mo'ie theater
A#s*er' c Pa&e' 12
Rat"#ale' :lternati'e 6 describes ,eo,le %ith the ability Bthey are
,ro)essionals, ,resumably %ith enou(h income to aEord mo'ie tic&etsC and
the desire Bto accom,any their childrenC to attend the Lisney mo'ie!
"hich o) the )ollo%in( (rou,s should be the N4:<- li&ely tar(et mar&et )or a
com,any ,roducin( canned )oods in sin(le ser'in( si1es7
a! <in(le adults
b! <chool &itchens
c! 6am,ers
d! <enior citi1ens
e! Oendin( machine o%ners
A#s*er' b Pa&e' 12
Rat"#ale' H) the ,ossible mar&ets listed abo'e sin(le ser'in( cans meet a
s,ecial need )or sin(les, cam,ers, senior citi1ens and 'endin( machines, the
need bein( small, com,act ser'in(s! <chool &itchens traditionally ser'e lar(e
uantities o) )ood so the small si1e, thou(h it could be used, %ould not satis)y
a s,eci+c need!
"hich o) the )ollo%in( (rou,s %ould be the most li&ely tar(et mar&et )or a
com,any manu)acturin( brie)cases7
a! 9olice oDcers
b! Na%yers
c! 6onstruction %or&ers
d! 9ostal %or&ers
e! $omema&ers
A#s*er' b Pa&e' 12
Rat"#ale' :ny o) the ,eo,le in the alternati'es could use a brie)case!
$o%e'er, as a (rou,, la%yers %ould include the (reatest number o) ,eo,le
%ith the (reatest re(ular need )or a brie)case!
: local uni'ersity oEers business courses )or a s,eci+c tar(et mar&et
com,osed o) ,eo,le %ho are currently %or&in( %ho %ant to ta&e re)resher
courses or %or& to%ard )urther de(rees! "hich o) the )ollo%in( %ould be the
most eEecti'e %ay to communicate %ith the tar(et mar&et, bearin( in mind
that communication must be both eEecti'e and economical7
a! 9ut announcements on cam,us bulletin boards
b! Listribute ,romotional materials durin( classes
c! :d'ertise on national tele'ision
d! :d'ertise on local to,240 radio sho%s
e! :d'ertise in the local ne%s,a,er
A#s*er' e Pa&e' 12
Rat"#ale' :lternati'es a, b, and d %ould miss the tar(et mar&et!
:lternati'e c %ould reach a lot o) ,eo,le, not in the tar(et mar&et and is too
costly! :lternati'e e is the most eEecti'e and economical o) the alternati'es!
: mar&etin( mana(er=s controllable )actors?,roduct, ,rice, ,romotion, and
,lace?are the com,any=s:
a! en'ironmental )actors!
b! mar&etin( ,ro(ram!
c! mar&etin( mi0 )actors!
d! mar&etin( conce,t!
e! )our utilities!
A#s*er' c Pa&e' 12 Other L!at"#' %eb
Rat"#ale' Aey term de+nition?mar&etin( mi0
-he )our 9s are commonly &no%n as:
a! the en'ironmental or uncontrollable )actors!
b! the en'ironmental or controllable )actors!
c! the mar&etin( mi0 or controllable )actors!
d! the mar&etin( mi0 or uncontrollable )actors!
e! ,roduct, ,rice, ,romotion, and ,rocess!
"hich o) the )ollo%in( %ould a mar&eter use as a synonym )or controllable
mar&etin( mi0 )actors7
a! the +'e e0ternal en'ironmental )orces
b! macromar&etin( )orces
c! the +'e 6s
d! the )our 9s
e! ,rice, ,roduct, ,roduction, and ,romotion
A#s*er' d Pa&e' 12
"hat are the )our 9s o) the mar&etin( mi07
a! 9roduct, ,rice, ,romotion, ,lace
b! 9roduct, ,rice, ,o,ularity, ,ro+t
c! 9roduct, ,rinci,le, ,romotion, ,roduction
d! 9rinci,le, ,roduction, ,romotion, ,ossibility
e! 9rinci,le, ,rice, ,roduction, ,lace
A#s*er' a Pa&e' 12
-he )our 9s o) the mar&etin( mi0 are:
a! ,ersonnel, ,riorities, ,lacement, and ,ro+ts!
b! ,romotion, ,roduct, ,ersonnel, and ,lace!
c! ,roduct, ,lace, distribution, and ad'ertisin(!
d! ,roduct, ,romotion, ,rice, and ,lace!
e! ,ro+tability, ,roducti'ity, ,ersonnel, and ,ac&a(in(!
A#s*er' d Pa&e' 12
;a&ubo%s&i 8arms 5ourmet Bread Base is the brand name )or a mi0 desi(ned
)or use in bread machines! -he mi0es are sold in 22,ound canisters )or
M14!99 ,lus ,osta(e! -he ,roducts are only a'ailable throu(h the mail!
9eo,le learn about the ,roduct throu(h %ord2o)2mouth and throu(h bread
machine demonstrations the com,any=s )ounder (i'es to (rou,s in the
"isconsin area, %here she li'es! -his is a descri,tion o) the com,any=s:
a! action ,lan!
b! mar&et se(mentation strate(y!
c! mission statement,
d! mar&etin( mi0!
e! tar(et mar&et!
A#s*er' d Pa&e' 12
Rat"#ale' -he bread mi0 is the ,roduct! -he ,lace is throu(h the mail!
-he ,rice is M14!99 ,lus ,osta(e! -he ,romotion is %ord2o)2mouth and ,ublic
demonstrations!
-he "hirl,ool 6or,oration creates home a,,liances to ma&e li)e easier and
more en3oyable )or ,eo,le! -his statement concerns the @@@@@@@@@@ element
o) the mar&etin( mi0!
a! ,roduct
b! ,rocess
c! ,rice
d! ,lace
e! ,romotion
A#s*er' a Pa&e' 12
Rat"#ale' : ,roduct is a (ood, ser'ice, or idea to satis)y customer needs!
$ome a,,liances are ,roducts!
"hich element o) the mar&etin( mi0 is demonstrated %hen a com,any
manu)actures a lo%2calorie chocolate chi, coo&ie7
a! ,roduct
b! ,rice
c! ,romotion
d! ,lace
e! ,roduction
A#s*er' a Pa&e' 12
Rat"#ale' : ,roduct is a (ood, ser'ice, or idea to satis)y customer needs,
so a coo&ie is an e0am,le o) a ,roduct!
-he o%ners o) Hld <chool Brand :uthentic :ntiue 8oods researched 6i'il
"ar2era coo&boo&s to come u, %ith reci,es )or the old2)ashioned ,roducts
they mar&et! 6oncern about the @@@@@@@@@@ element o) the mar&etin( mi0
%ould ma&e them ea(er to be )eatured in an u,comin( edition o) Taste of
Home ma(a1ine!
a! ,roduct
b! ,rice
c! ,romotion
d! ,lace
e! ,roduction
A#s*er' c Pa&e' 12
Rat"#ale' 9romotion is a means o) communication bet%een the seller and
buyer, such as a )eatured article in a ma(a1ine!
-he element o) the mar&etin( mi0 demonstrated %hen a com,any ,laces an
ad in the >ello% 9a(es is:
a! ,roduct!
b! ,rice!
c! ,romotion!
d! ,lace!
e! ,rocess!
A#s*er' c Pa&e' 12
buyer, such as >ello% 9a(es ad'ertisin(!
-he element o) the mar&etin( mi0 demonstrated %hen an art (allery
su((ests a M2!00 donation at the door is:
a! ,roduct!
b! ,rice!
c! ,romotion!
d! ,lace!
e! ,roduction!
A#s*er' b Pa&e' 12
Rat"#ale' 9rice is %hat is e0chan(ed )or the ,roduct, in this case a M2!00
donation )or access to an art (allery!
-o attend the %inter concert ,resented by the community chorus, e'ery
,erson had to donate one un%ra,,ed toy at the concert hall door! -his
statement is most closely related to the @@@@@@@@@@ element o) the mar&et
mi0!
a! ,roduct
b! ,rocess
c! ,rice
d! ,roduction
e! ,romotion
A#s*er' c Pa&e' 12
Rat"#ale' 9rice is %hat is e0chan(ed )or the ,roduct! -he toy donation %as
e0chan(ed )or the ,ri'ile(e o) listenin( to the music!
-he element o) the mar&etin( mi0 demonstrated %hen a ne%s,a,er carrier
thro%s a ,a,er on the )ront ,orch is:
a! ,roduct!
b! ,rice!
c! ,romotion!
d! ,lace!
e! ,rocess!
A#s*er' d Pa&e' 12
Rat"#ale' 9lace re)ers to the means o) (ettin( the ,roduct into the
consumer=s hands! /n this case, the ne%s,a,er carrier deli'ers the ,a,er to
the customer.s home!
-he ability to buy a soda )rom a 'endin( machine demonstrates %hich
element o) the mar&etin( mi07
a! ,roduct
b! ,rice
c! ,romotion
d! ,lace
e! ,rocess
A#s*er' d Pa&e' 12
consumer=s hands! /n this case, the consumer recei'es a can o) soda )rom a
'endin( machine!
8orces that are lar(ely beyond the control o) the mar&etin( de,artment and
its or(ani1ation are called:
a! the )our 9s!
b! the mar&etin( mi0!
c! controllable )actors!
d! en'ironmental )actors!
e! utilities!
A#s*er' d Pa&e' 12
Rat"#ale' Aey term de+nition?en'ironmental )actors
-he +'e ma3or en'ironmental )actors in mar&etin( are:
a! air, %ater, soil, mineral, and (as!
b! consumer, retailer, manu)acturer, or(ani1ation, and society as a %hole!
c! ,roduct, ,rice, ,romotion, ,lace, and ,rocess!
d! social, technolo(ical, economic, com,etiti'e, and re(ulatory!
e! natural resources, %eather, social a%areness, economic )actors, and
re(ulation!
A#s*er' d Pa&e' 12
Rat"#ale' Aey term de+nition?en'ironmental )actors
"hich o) the )ollo%in( statements describes an en'ironmental )actor7
a! <e'eral states ha'e le(islation reuirin( children under )our to use car
seats!
b! : car battery comes %ith a li)etime (uarantee!
c! :n automobile oEers a M500!00 rebate!
d! -u,,er%are has more than 200,000 inde,endent contractor dealers %ho
mar&et its entire ,roduct line!
e! : ma3or bottler oEers a 102cent re)und on returnable bottles!
A#s*er' a Pa&e' 12 Other L!at"#' %eb
Rat"#ale' :lternati'e : describes a re(ulatory en'ironmental )actor! /t
%ould ha'e a ,ositi'e eEect )or manu)acturers o) car seats! /t mi(ht ha'e
ne(ati'e BcostlyC eEect )or day care centers ,ro'idin( trans,ortation since
they %ould ha'e to ,urchase car seats )or all children in their care under the
a(e o) )our! :ll o) the other alternati'es are under the mar&eter.s control,
thus they are not en'ironmental )actors!
"hich o) the )ollo%in( en'ironmental )actors could ha'e caused -oyota to
decide to build a manu)acturin( ,lant in the Fnited <tates instead o)
continuin( to e0,ort their cars )rom ;a,an7
a! : (ro%in( trend in the Fnited <tates to PBuy :mericanP
b! -he success o) $onda in manu)acturin( :ccords in Hhio
c! : decline in the 'alue o) the F!<! dollar relati'e to the ;a,anese yen
d! /ncreased ,ressure )rom F!<! auto ma&ers on "ashin(ton )or more
restricti'e uotas on ;a,anese car im,orts
e! :ll o) the abo'e
A#s*er' e Pa&e' 12
Rat"#ale' -he identi+ed )actors re,resent uncontrollable, en'ironmental
)orces Bsocial, com,etiti'e, economic, and re(ulatory!C :lthou(h they are out
o) the control o) -oyota, they could inJuence its decision to build a ,lant in
the Fnited <tates!
6on(ressional le(islation restrictin( /nternet alcohol sales %ould aEect on2line
sellers such as Oirtual Oineyards! 8or Oirtual Oineyards, this le(islation %ould
be an e0am,le o) aBnC @@@@@@@@@@ )actor!
a! en'ironmental
b! ,romotional
c! ,rocess
d! ,rice
e! technolo(ical
A#s*er' a Pa&e' 12
Rat"#ale' 5o'ernment re(ulation is considered to be one o) the
uncontrollable or en'ironmental )actors that include social, technolo(ical,
economic, com,etiti'e, and re(ulatory )orces!
:)ter years o) resistance, the 9eo,le=s *e,ublic o) 6hina +nally allo%ed 6oca2
6ola to im,ort so)t drin&s into the country! -he im,ort restriction %as an
e0am,le o) %hat is called an uncontrollable, or @@@@@@@@@@ )actor because it
relates to )orces outside the mar&etin( com,any!

a! en'ironmental
b! technolo(ical
c! e,istemolo(ical
d! heuristic
e! syner(istic
A#s*er' a Pa&e' 12
Rat"#ale' 5o'ernment re(ulation is considered to be one o) the
uncontrollable or en'ironmental )actors that include social, technolo(ical,
economic, com,etiti'e, and re(ulatory )orces!
@@@@@@@@@@ is the uniue combination o) bene+ts recei'ed by tar(eted buyers
that includes uality, ,rice, con'enience, on2time deli'ery, and both be)ore2
sale and a)ter2sale ser'ice!

a! #ar&et ,otential
b! *elationshi, mar&etin(
c! 6ustomer 'alue
d! #ar&etin( mi0
e! 6ustomer relationshi, mana(ement
A#s*er' c Pa&e' 13
Rat"#ale' Aey term de+nition?customer 'alue
-he uniue combination o) bene+ts recei'ed by tar(eted buyers that includes
uality, ,rice, con'enience, on2time deli'ery, and both be)ore2sale and a)ter2
sale ser'ice is called:
a! tar(et mar&etin(!
b! bene+t se(mentation!
c! customer 'alue!
d! customer satis)action!
e! ,roduct dissonance!
A#s*er' c Pa&e' 13
Rat"#ale' Aey term de+nition?customer 'alue
6ustomer 'alue em,hasi1es:
a! con'enience!
b! ,rice!
c! uality!
d! ser'ice Bbe)ore2sale and a)ter2saleC!
A#s*er' e Pa&e' 13
Rat"#ale' 6ustomer 'alue is the uniue combination o) bene+ts recei'ed
by tar(eted buyers that includes uality, ,rice, con'enience, on2time
deli'ery, and both be)ore2sale and a)ter2sale ser'ice!
Best ,rice, best ,roduct, and best ser'ice are strate(ies desi(ned to create:

a! customer 'alue!
b! a di'erse mar&etin( mi0
c! a mar&etin( conce,t!
d! relationshi, mar&etin(!
e! ultimate consumers!
A#s*er' a Pa&e' 13
Rat"#ale' #any success)ul +rms ha'e chosen to deli'er outstandin(
customer 'alue %ith one o) three 'alue strate(ies?best ,rice, best ,roduct,
or best ser'ice!
-ar(et 6or,oration.s mission includes (i'in( its (uests the best ,roducts at
the best ,rice! -his statement re,resents the com,any.s strate(ies at
achie'in(:

a! utility!
b! a di'erse mar&etin( mi0
c! a societal mar&etin( conce,t!
d! customer 'alue!
e! ultimate consumers!
A#s*er' d Pa&e' 13
Rat"#ale' Best ,rice, best ,roduct, and best ser'ice are strate(ies
com,anies use to deli'er outstandin( customer 'alue! /n this case, -ar(et
6or,oration uses both best ,roduct and best ,rice to deli'er customer 'alue!
6ustomers o) <in(a,ore :ir ,raise the )ood that is ser'ed durin( Ji(ht, the
)riendliness o) the air ste%ards, and the com)ortable surroundin(s o) the
cabin! $o% could the mar&etin( de,artment o) <in(a,ore :ir eEecti'ely use
this in)ormation7
a! -hey could )ocus on the outstandin( ser'ice o) their airline as a means o)
deli'erin( customer 'alue!
b! -hey could ,ro'ide these customer comments as e0am,les o) their )our
9s!
c! -hey could use these comments to identi)y their tar(et mar&et!
d! -hey could use these comments to identi)y uncontrollable en'ironmental
)actors!
e! :ll o) the abo'e are eEecti'e strate(ies )or the mar&etin( de,artment!
A#s*er' a Pa&e' 13
Rat"#ale' Hutstandin( customer 'alue is deli'ered throu(h the
im,lementation o) one o) three 'alue strate(ies?best ,rice, best 'alue, or
best ser'ice! -he customer comments e0em,li)y the best ser'ice o)
<in(a,ore :ir! -here)ore, the mar&etin( de,artment could use these
comments as e0am,les o) best ser'ice %hen ,romotin( their customer 'alue!
@@@@@@@@@@ lin&s an or(ani1ation to its indi'idual customers, em,loyees,
su,,liers and other ,artners )or their mutual lon(2term bene+ts!
a! : mar&etin( chain
b! $olistic mar&etin(
c! <yner(istic mar&etin(
d! *elationshi, mar&etin(
e! -actical mar&etin(
A#s*er' d Pa&e' 14
Rat"#ale' Aey term de+nition?relationshi, mar&etin(
/n the non,ro+t %orld o) the ,er)ormin( arts, bo0 oDce technolo(y has
essentially remained the same since the 1980s! : com,any named /ntellite0
is tryin( to chan(e that! /ntellite0 is able to trac& e'ery transaction %ith
,atrons on one database?)rom tic&ets and )und2raisin( to 'olunteerin( and
(i)t sho, ,urchases! -his technolo(y %ill allo% arts (rou,s to de'elo,
detailed customer ,ro+les, %hich hel,s sym,honies, o,eras, and theaters
tailor their sales ,itches to indi'iduals! /n other %ords, /ntellite0 is (oin( to
allo% arts (rou,s to en(a(e in:
a! mar&et a((re(ation!
b! relationshi, mar&etin(!
c! industry reci,rocity!
d! customer aesthetics!
e! none o) the abo'e!
A#s*er' b Pa&e' 14
Rat"#ale' *elationshi, mar&etin( %ill lin& the or(ani1ation to its indi'idual
customers, em,loyees, su,,liers and other ,artners )or their mutual lon(2
term bene+ts! /n this case, /ntellite0.s database system creates a lin&
bet%een customers and the 'arious ,er)ormin( arts or(ani1ations!
: business tra'eler 3oined the <tar%ood 9re)erred 5uest 9ro(ram in order to
earn ,oints each time he stayed o'erni(ht in a "estin or <heraton hotel!
Hnce he accumulates enou(h ,oints, he can trade them in )or a )ree ni(ht=s
stay! :s a member o) this ,ro(ram, the tra'eler recei'es ,eriodic u,dates on
ne% hotels and learns o) %ays to earn additional ,oints! -his is an e0am,le
o):
a! relationshi, mar&etin(!
b! entro,y!
c! the 80Q20 ,rinci,le!
d! customer 'aluation!
e! a mar&etin( chain
A#s*er' a Pa&e' 14
Rat"#ale' *elationshi, mar&etin( lin&s the or(ani1ation to its indi'idual
customers, em,loyee, su,,liers and other ,artners )or their mutual lon(2term
bene+ts! /n this case, the <tar%ood 9re)erred 5uest 9ro(ram creates this lin&
%ith its customers by its ,oint system! -he hotels can trac& the tra'eler.s
stays and then ,ro'ide oEers tar(eted to the s,eci+c tra'eler.s ,re)erences!
"hich o) the )ollo%in( statements about relationshi, mar&etin( is true7
a! *elationshi, mar&etin( has a short2term )ocus on increasin( ,ro+ts!
b! *elationshi, mar&etin( is easy to im,lement!
c! /n an ideal settin(, relationshi, mar&etin( is a ,ersonal, on(oin(, lon(2
term relationshi,!
d! Oery )e% com,anies today are en(a(ed in relationshi, mar&etin(!
e! -he /nternet is an ideal )orum )or relationshi, mar&etin(!
A#s*er' c Pa&e' 14
Rat"#ale' Hne o) the characteristics o) relationshi, mar&etin( is its lon(2
term )ocus! *elationshi, mar&etin( is diDcult to im,lement! #any
com,anies use relationshi, mar&etin(! /t is diDcult to en(a(e in relationshi,
mar&etin( on the /nternet because it lac&s the ,ersonal touch!
"hich o) the )ollo%in( businesses is N4:<- li&ely to be able to en(a(e in
relationshi, mar&etin(7
a! : beach sho, that sells tourist mementos
b! : local restaurant that s,eciali1es in home2coo&in(
c! : con'enience store
d! : mo'ie theater
e! : 'eterinarian
Rat"#ale' :lternati'es B, 6, L, and 4 describe businesses that can count on
multi,le 'isits )rom its customers! /t is unli&ely that a tourist %ould ma&e
more than one or t%o 'isits to a sho, sellin( items )or the tourist mar&et,
thus it is unli&ely it %ould be en(a(in( in relationshi, mar&etin(!
#anu(istics and i2 -echnolo(ies, t%o to, 'endors o) su,,ly chain
mana(ement so)t%are, ha'e recently launched their o%n on2line tradin(
e0chan(e aimed at increasin( the ease %ith %hich their customers can
distribute o) ,roducts and ideas! Both these or(ani1ations ,ro'ide
e0ce,tional, on2(oin( ser'ice to their business customers! -hese t%o
or(ani1ations ho,e to bene+t )rom:
a! relationshi, mar&etin(!
b! entro,y!
c! the 80Q20 ,rinci,le!
d! customer 'aluation!
e! a mar&etin( chain
A#s*er' a Pa&e' 14
Rat"#ale' *elationshi, mar&etin( lin&s the or(ani1ation to its indi'idual
customers, em,loyee, su,,liers and other ,artners )or their mutual lon(2term
bene+ts! -he or(ani1ations B#anu(istics and i2 -echnolo(iesC are lin&in( to
their business customers by means o) their e0ce,tional and on2(oin( ser'ice!
"hich o) the )ollo%in( acts as a barrier to the de'elo,ment o) relationshi,
mar&etin(7
a! chan(es in the demo(ra,hic nature o) society
b! the e'er2increasin( usa(e o) the /nternet )or consumer ,urchases
c! the onset o) ne% cultural traditions
d! a ,o,ulation %ith a median a(e o) 50
e! recent terrorists= acti'ities
A#s*er' b Pa&e' 14 Other L!at"#' %eb
Rat"#ale' "ith today.s /nternet ,urchases, you %ill ,robably ha'e diDculty
achie'in( the same ,ersonal, tender2lo'in(Kcare connection that you once
had %ith your o%n s,ecial boo& or music store!
: @@@@@@@@@@ is a ,lan that inte(rates the mar&etin( mi0 to ,ro'ide a (ood,
ser'ice, or idea to ,ros,ecti'e buyers!
a! mar&etin( strate(y
b! mar&etin( ,ro(ram
c! macromar&etin( ,ro(ram
d! micromar&etin( ,ro(ram
e! sales ,romotion
A#s*er' b Pa&e' 14
Rat"#ale' Aey term de+nition?mar&etin( ,ro(ram
:)ter an assessment o) needs, a mar&etin( mana(er must translate ideas
)rom consumers into conce,ts )or ,roducts that a +rm may de'elo,! -he
result is called the:
a! mar&etin( strate(y!
c! macromar&etin( ,ro(ram!
d! micromar&etin( ,ro(ram!
e! mar&etin( conce,t!
A#s*er' b Pa&e' 14
Rat"#ale' /deas must be con'erted into a tan(ible mar&etin( ,ro(ram?a
,lan that inte(rates the mar&etin( mi0 to ,ro'ide (oods, ser'ices, or ideas to
,otential consumers %ho are the mar&et!
:)ter disco'erin( consumers= needs, mar&etin(=s ne0t tas& is to:
a! create a tar(et mar&et mission statement!
b! determine consumer demo(ra,hics!
c! translate in)ormation about consumer needs into ,roducts that satis)y
them!
d! desi(n ,roduct ,rototy,es!
e! de'elo, a 'alue strate(y!
A#s*er' c Pa&e' 14
Rat"#ale' :s 8i(ure 125 illustrates, a mar&etin( ,ro(ram is de+ned as a
,lan that inte(rates the mar&etin( mi0 to ,ro'ide a (ood, ser'ice, or idea to
,ros,ecti'e buyers that satis+es their needs!
*ollerblade.s lon(2run strate(y is )ocused on %hich three areas7
a! reducin( in2line s&ate ,roduction, )ocusin( on )our &ey tar(et mar&ets,
increasin( )ashion a,,arel ,roduction
b! en'ironmental )orces, technolo(ical syner(ies, increasin( their ,resence
in )ashion a,,arel
c! eliminatin( ma3or sources o) com,etition , reducin( in2line s&ate
,roduction, increasin( technolo(ical syner(ies, en'ironmental )orces
d! listenin( to consumers, )ocusin( on )our &ey se(ments, and usin( the
com,any.s stren(ths in technolo(y!
e! all o) the abo'e
A#s*er' d Pa&e' 15
Rat"#ale' <elections : and 6 are incorrect because *ollerblade has not
reduced their in2line s&ate ,roductionG selection B is incorrect because
*ollerblade has not increased their ,resence in )ashion a,,arelG because :, B,
and 6 are incorrect, 4 is also incorrect! -he te0t clearly states that
*ollerblade.s lon(2run strate(y is to )ocus on B1C listenin( to consumers to
stay ahead o) the trends, B2C )ocusin( its mar&etin( ,ro(ram on )our &ey
se(ments, and B3C usin( the com,any.s stren(ths in technolo(y!
By matchin( 'arious *ollerblade ,roducts to each o) )our &ey se(ments,
*ollerblade is buildin( a:
a! mar&etin( strate(y!
c! macromar&etin( ,ro(ram!
d! micromar&etin( ,ro(ram!
e! mar&etin( conce,t!
A#s*er' b Pa&e' 15
Rat"#ale' : mar&etin( ,ro(ram is a ,lan that inte(rates the mar&etin( mi0
to ,ro'ide a (ood, ser'ice, or idea to ,ros,ecti'e buyers! *ollerblade has
de'elo,ed se'eral s,eci+c s&ates B,roductsC to reach diEerent s,eci+c
,ros,ecti'e buyers as a ,art o) their mar&etin( ,ro(ram!
"hen *ollerblade %as sold to Benetton in 1995:
a! technolo(ical syner(ies %ere created that ,roduced ne% ,roduct
in'entions!
b! en'ironmental )orces, such as (o'ernmental re(ulations, %ere addressed!
c! a ma3or source o) com,etition %as eliminated!
d! in2line s&ate ,roduction %as reduced and )ashion a,,arel ,roduction
increased!
e! all o) the abo'e
A#s*er' a Pa&e' 16
Rat"#ale' "hen *ollerblade %as sold to Benetton, hu(e technolo(y
syner(ies %ere ,ro'ided! 40am,les o) e0,loitin( )uture technolo(y include
the in'ention o) 6ool#a0 )abric and :B-
R
Nite bra&in(!
"hat is the ,ricin( rationale )or *ollerblade.s #0 900 ,roduct7
a! <et ,ricin( belo% com,arati'e ,roducts o) com,etition
b! <et ,ricin( sli(htly abo'e com,arati'e ,roducts o) com,etition, )ocusin(
on deli'erin( the best ,roduct
c! <et ,rices hi(h and oEer ,romotional discounts
d! <et ,rices that ,ro'ide (enuine 'alue to the customer se(ment that is
tar(eted
e! <ur'ey tar(et mar&et )reuently and ad3ust ,rices accordin( to their
o,inions and ,erce,tions
A#s*er' d Pa&e' 16
Rat"#ale' :s 8i(ure 126 illustrates, *ollerblade set ,rices to ,ro'ide
(enuine 'alue )or the children and recreational se(ments!
*ollerblade=s decision to )eature its in2line s&ates in s,orts com,etition and
ma(a1ines is most closely related to %hich element o) the mar&etin( mi07
a! ,rocess
b! ,romotion
c! ,rice
d! ,lace
e! ,roduct
A#s*er' b Pa&e' 16G 8i(ure 126
buyer! 8i(ure 126 ,resents ,romotion strate(ies )or *ollerblade, /nc!
1:=1 A MARKETING PROGRAM -OR ROLLER+LADE CONCEPTUAL
*ollerblade chose to distribute the #0 900 throu(h s,ortin( (ood stores! -his
decision illustrates the @@@@@@@@@@ element o) the mar&etin( mi0!
a! ,rocess
b! ,romotion
c! ,rice
d! ,lace
e! ,roduct
Rat"#ale' 9lace re)ers to the means o) (ettin( a ,roduct to the consumer!
:s 8i(ure 126 illustrates, consumers can ,urchase the #0 900 at s,ortin(
(oods stores!
1:=/ A MARKETING PROGRAM -OR ROLLER+LADE APPLICATION
"hen *ollerblade=s mar&etin( de,artment desi(ns a strate(y to ma&e it easy
)or in2line s&ate buyers to buy in2line s&ates at a retail outlet that is
con'enient to them and %here they )eel com)ortable sho,,in(, it is
concerned %ith the @@@@@@@@@@ element o) the mar&etin( mi0!
a! ,rocess
b! ,romotion
c! ,rice
d! ,lace
e! ,roduct
consumer=s hands! 8i(ure 126 ,resents ,lace strate(ies )or *ollerblade, /nc!
-he @@@@@@@@@@ co'ers the early years o) the Fnited <tates u, until the 1920s,
%hen (oods %ere scarce and buyers %ere %illin( to acce,t 'irtually any
(oods that %ere a'ailable and ma&e do %ith them!
a! 5reat Le,ression era
b! ,roduction era
c! mar&etin( conce,t era
d! sales era
e! mar&et orientation era
A#s*er' b Pa&e' 17
Rat"#ale' -e0t term de+nition?,roduction era
/) you %anted a ne% ,air o) shoes durin( the 6i'il "ar, you traced the outline
o) your )oot on a ,iece o) ,a,er and (a'e it to a shoema&er! -here %as no
distinction bet%een ri(ht and le)t )oot because you %anted your shoes as
uic&ly as ,ossible and the shoema&er &ne% that you %ould buy them e'en
%ith an im,er)ect +t! -his is an e0am,le o) a transaction that %ould ha'e
occurred durin( the @@@@@@@@@@ era in F!<! business history!
a! ,roduction
b! sales
c! mar&etin( conce,t
d! societal mar&etin( conce,t
e! mar&et orientation
A#s*er' a Pa&e' 17
Rat"#ale' 5oods %ere scarce and buyers %ere %illin( to acce,t 'irtually
any (oods that %ere a'ailable and ma&e do %ith them durin( the ,roduction
era!
/n the @@@@@@@@@@, manu)acturers )ound they could ,roduce more (oods than
buyers could consume!
a! 5reat Le,ression era
b! ,roduction era
c! mar&etin( conce,t era
d! sales era
e! mar&et orientation era
A#s*er' d Pa&e' 17
Rat"#ale' -e0t term de+nition?sales era!
:lthou(h it %as thou(ht in the 19
th
century that ,roduction creates its o%n
demand, :merican com,anies be(an to ,roduce more (oods than their
re(ular buyers could consume! :t the same time, com,etition became more
si(ni+cant, and the ,roblems o) reachin( the mar&et became more com,le0!
/t %as )or these reasons the @@@@@@@@@@ era be(an!
a! ,roduct
b! ,roduction
c! sales
d! mar&etin( conce,t
A#s*er' c Pa&e' 17
Rat"#ale' /n the sales era, manu)acturers )ound they could ,roduce more
(oods than buyers could consume! 6om,etition (re% and +rms hired more
sales,eo,le to +nd ne% buyers!
-he ,eriod o) :merican business history %hen +rms could ,roduce more than
they could sell and the )ocus %as on hirin( more sales,eo,le to see& out ne%
mar&ets and customers %as the @@@@@@@@@@ era!
a! mar&etin( conce,t
b! ,roduction
c! sales
e! consumerism
Rat"#ale' -e0t term de+nition?sales era!
/n the 1960s, mar&etin( became the moti'atin( )orce amon( many :merican
+rms and the @@@@@@@@@@ era da%ned!

a! mar&etin( conce,t
b! ,roduction
c! sales
A#s*er' a Pa&e' 17
Rat"#ale' -e0t term de+nition?mar&etin( conce,t era!
"hich o) the )ollo%in( statements e0,lains the ,rimary reason F!<!
businesses mo'ed )rom the ,roduction era to the sales era7
a! -he ,o,ulation %as mo'in( a%ay )rom urban areas!
b! -here %ere too many customers to ser'e!
c! 6om,etition (re% as the ,roduction o) (oods increased!
d! :d'ertisin( %as becomin( a ma3or mar&etin( )orce!
e! -echnolo(y %as in a dormant sta(e!
A#s*er' c Pa&e' 17
Rat"#ale' 9roduction techniues im,ro'ed, and ca,acity increased! 8irms
be(an ,roducin( more (oods than their re(ular customers could consume!
6om,etition increased and the thrust %as to +nd ne% customers and mar&ets
to consume sur,lus (oods!
/ma(ine a con)ectionary com,any has introduced a ne% nutty candy bar
durin( the sales era o) F!<! business! "hich o) the )ollo%in( statements
reJects ho% you %ould e0,ect the com,any to react i) sales o) this ne%
candy bar %ere much lo%er than e0,ected7
a! "e=d better do some mar&et testin( to determine %hy ,eo,le are
dissatis+ed!
b! 9erha,s %e should ma&e candy bars %ith raisins!
c! Net=s ,ut more a((ressi'e sales,eo,le in the +eld!
d! Net=s )or(et the %hole thin(!
e! Lon=t %orry about itG %e=re the lar(est candy manu)acturer in the area!
<ooner or later they=ll (et hun(ry enou(h that they=ll come to us!
A#s*er' c Pa&e' 17
Rat"#ale' -he central notion o) the sales era %as that the uality and
,roduction o) the ,roduct %as +ne! /) sales %ere do%n, it %as the result o) a
saturated mar&et and all that had to be done %as to +nd a ne% (rou, o)
customers or a ne% mar&et %ithout alterin( the ,roduct itsel)?a tas&
assi(ned to the sales )orce!
"hich o) the )ollo%in( statements about the mar&etin( conce,t era is true7
a! Lurin( the mar&etin( conce,t era, com,anies tried to satis)y the needs o)
consumers %hile also achie'in( the or(ani1ation=s (oals!
b! Lurin( the mar&etin( conce,t era, com,anies tried to satis)y the %ants o)
the consumer at all costs!
c! Lurin( the mar&etin( conce,t era, com,anies belie'ed i) you ,roduced as
much as ,ossible, at the hi(hest uality le'el, )or the lo%est ,rice, the
,roduct %ill sell itsel)!
d! :ll F!<! +rms are no% o,eratin( %ith a mar&etin( conce,t era ,hiloso,hy!
e! -he mar&etin( conce,t era can actually trace its roots to early 5ree&
culture!
A#s*er' a Pa&e' 17
Rat"#ale' -he mar&etin( conce,t era is the ,resent ,eriod o) :merican
business history )or many +rms! /t is consumer oriented so or(ani1ations
stri'e to ,roduce ,roducts that meet consumer needs %hile achie'in(
or(ani1ational ob3ecti'es!
"hat term best describes the mar&etin( conce,t era7
a! ,roduction oriented
b! sales oriented
c! society oriented
d! consumer oriented
e! com,etition oriented
A#s*er' d Pa&e' 17
Rat"#ale' -he mar&etin( conce,t era is consumer oriented, so +rms try to
,roduce ,roducts that meet consumer needs %hile also tryin( to achie'e
or(ani1ational (oals!
-he :merican business ,eriod that attem,ts to satis)y consumer needs %hile
achie'in( or(ani1ational (oals is called the @@@@@@@@@@ era!
a! sales
b! ,roduction
e! consumerism
Rat"#ale' -e0t term de+nition?mar&etin( conce,t era!
"hich era o) F!<! business history does the )ollo%in( statement best
describe7 S"e are in the business o) satis)yin( needs and %ants o)
consumers %hile achie'in( our or(ani1ational (oals!T
a! -he ,roduction era
b! -he sales era
c! -he mar&etin( conce,t era
d! -he mar&etin( orientation era
e! -he societal mar&etin( era
A#s*er' c Pa&e' 17
Rat"#ale' -he mar&etin( conce,t era is mar&ed by the idea that an
or(ani1ation should stri'e to satis)y the needs o) consumers %hile also tryin(
to achie'e the or(ani1ation.s (oals!
-he (oal o) the @@@@@@@@@@ era is to inte(rate mar&etin( into all ,hases o) the
business ,rocess!
a! ,roduction
b! sales
d! industrial re'olution
e! micromar&etin(
A#s*er' c Pa&e' 17
Rat"#ale' 5eneral 4lectric launched the mar&etin( conce,t %hen its 1952
annual re,ort stated: S-he conce,t introduces mar&etin( at the be(innin(
rather than the end o) the ,roduction cycle and inte(rates mar&etin( into
each ,hase o) the business!T
/n the mo'ie, The Tin Men, t%o ri'al salesmen en(a(ed in a 'ariety o)
dishonest and unethical ,ractices in order to sell aluminum sidin( to
homeo%ners! -heir 3ob %as diDcult, in ,art, because the su,,ly o) aluminum
sidin( sur,assed the demand )or the ,roduct and com,etition %as intense!
-his situation is indicati'e o) the @@@@@@@@@@ era o) F!<! business history!
a! ,roduction!
b! sales
d! mar&et orientation
e! societal mar&etin(
A#s*er' b Pa&e' 17
Rat"#ale' Lurin( the sales era, or(ani1ations concentrated on sellin( the
,roducts they could most readily ,roduce rather than on de'elo,in( ,roducts
desi(ned to satis)y the needs o) customers!
/n the 1960s, 9illsbury de+ned its mission as, P"e are in the business o)
satis)yin( needs and %ants o) customers!P -his is a brie) statement o) %hat
has come to be &no%n as the:
a! hard2sell strate(y!
b! so)t2sell strate(y!
c! sellin( conce,t!
d! mar&etin( conce,t!
e! mar&etin( mi0!
A#s*er' d Pa&e' 17
Rat"#ale' 9illsbury is a ,rime e0am,le o) a com,any that ado,ted the
mar&etin( conce,t since it %as amon( the +rst to reali1e the 'alue o) the
idea! -he mar&etin( conce,t is the idea that an or(ani1ation should stri'e to
satis)y the needs o) consumers %hile tryin( to achie'e the or(ani1ation.s
(oals!
-he @@@@@@@@@@ is the idea that an or(ani1ation should stri'e to satis)y the
needs o) customers %hile also tryin( to achie'e the or(ani1ation=s (oals!
a! conce,t o) syner(y
b! mar&etin( conce,t
c! ,rinci,le o) consumerism
e! sellin( conce,t
Rat"#ale' Aey term de+nition?mar&etin( conce,t
-he mar&etin( conce,t has a )ocus on:
a! the com,etition!
b! en'ironmental )orces beyond the control o) the mar&etin( de,artment!
c! the 8our 9s!
d! sellin(!
e! the consumer!
A#s*er' e Pa&e' 17
Rat"#ale' -he mar&etin( conce,t is the idea that an or(ani1ation should
stri'e to satis)y the needs o) consumers %hile also tryin( to achie'e the
or(ani1ation.s (oals! /ts )ocus is on the consumer!
"hich com,any launched the mar&etin( conce,t %hen it stated that
mar&etin( should be introduced at the be(innin( o) the ,roduction cycle and
be included in each ,hase o) the business7
a! 5eneral 4lectric
b! 6rayola
c! Uero0
d! ;ohnson V ;ohnson
e! 9olaroid
A#s*er' a Pa&e' 17
Rat"#ale' 5eneral 4lectric launched the mar&etin( conce,t %hen its 1952
annual re,ort stated: S-he conce,t introduces mar&etin( at the be(innin(
rather than the end o) the ,roduction cycle and inte(rates mar&etin( into
each ,hase o) the business!T
:n or(ani1ation that )ocuses its eEorts on continuously collectin( in)ormation
about customers= needs, sharin( this in)ormation across de,artments, and
usin( it to create customer 'alue is said to:
a! stress the societal mar&etin( conce,t!
b! ha'e a )ocus on macromar&etin(!
c! ha'e a non,ro+t orientation!
d! ha'e a mar&et orientation!
e! be utili1in( consumerism!
A#s*er' d Pa&e' 17
Rat"#ale' Aey term de+nition?mar&et orientation
: com,any %ants to ha'e a mar&et orientation! "hich o) the )ollo%in(
strate(ies %ould hel, achie'e this (oal7
a! Le'elo, multi,le tar(et mar&ets and utili1e a )ull ran(e o) the mar&etin(
mi0!
b! 6reate inde,endent or(ani1ational silos, so each de,artment is
autonomous!
c! 8ocus mar&etin( strate(ies on ,ast successes!
d! 6ollect in)ormation about customer needs on a re(ular basis and share
this in)ormation throu(hout the or(ani1ation to create customer 'alue!
e! /ncrease the sales )orce to boost re'enue!
A#s*er' d Pa&e' 17
Rat"#ale' #ar&et orientation )ocuses its eEorts on B1C continuously
collectin( in)ormation about customers. needs and com,etitors. ca,abilities,
B2C sharin( this in)ormation across de,artments, and B3C usin( the
in)ormation to create customer 'alue!
@@@@@@@@@@ is the ,rocess o) identi)yin( ,ros,ecti'e buyers, understandin(
them intimately, and de'elo,in( )a'orable lon(2term ,erce,tions o) the
or(ani1ation and its oEerin(s so that buyers %ill choose it in the mar&et,lace!
a! *elationshi, mar&etin(
b! : customer2oriented mar&etin( mi0
c! #ar&et orientatin(
d! -ar(et mar&etin(
e! 6ustomer relationshi, mana(ement
Rat"#ale' -e0t term de+nition?customer relationshi, mar&etin(
6ustomer relationshi, mana(ement reuires:
a! de,artment mana(ers to com,ete )or or(ani1ational resources!
b! the commitment o) mana(ers and em,loyees throu(hout the
or(ani1ation!
c! continual com,etiti'e sur'eillance!
d! satis)yin( the needs o) the or(ani1ation, as %ell as the consumer!
e! social res,onsibility!
A#s*er' b Pa&e' 17
Rat"#ale' -he customer relationshi, mana(ement ,rocess reuires the
in'ol'ement and commitment o) mana(ers and em,loyees o) the
or(ani1ation!
4'ery day, buyers )rom lar(e utility com,anies and sellers )rom ener(y
com,anies 'isit an online e0chan(e dealin( in %holesale electricity and (as
to ne(otiate ,rices )or the ener(y that heats and li(hts many homes and
businesses! -he e0chan(e &no%s there are com,etitors 'yin( )or its
customers so it relies hea'ily on the commitment o) mana(ers and
em,loyees to build and retain stron(, one2on2one relationshi,s %ith each
customer! -he e0chan(e uses @@@@@@@@@@ to &no% its customer and to %in
their alle(iance!
a! a Je0ible mar&etin( system
b! a database %arehouse
c! customer relationshi, mana(ement
d! com,etiti'e intelli(ence
e! a customer2oriented mar&etin( mi0
A#s*er' c Pa&e' 17
Rat"#ale' 6ustomer relationshi, mana(ement is the ,rocess o) identi)yin(
,ros,ecti'e buyers, understandin( them intimately, and de'elo,in( )a'orable
lon(2term ,erce,tions o) the or(ani1ation and its oEerin(s so buyers %ill
choose it in the mar&et,lace! -he online e0chan(e technolo(y ,ro'ides a
means o) de'elo,in( relationshi,s %ith customers!
Fnited "ay o) 5reater -oronto BF"5-C, li&e many charities, has tremendous
amounts o) data )rom its donors! Noc&ed u, in its com,uter and ,a,er +les
are records o) millions o) com,anies, (rou,s, and indi'iduals that ha'e
donated in ,ast years! :lso li&e most ,hilanthro,ic or(ani1ations, F"5- %as
ha'in( a rou(h time usin( that in)ormation eDciently! /t could blan&et ,ast
donors and non2donors %ith (eneric mailin(s, but it could not oEer its non2
donors anythin( that %ould con'ince them to donate to it instead o) other
charities! "hich o) the )ollo%in( tools %ould be most use)ul )or the non,ro+t
or(ani1ation to use7
a! a Je0ible mar&etin( system
b! a database %arehouse
c! customer relationshi, mana(ement
d! com,etiti'e intelli(ence
e! a customer2oriented mar&etin( mi0
A#s*er' c Pa&e' 17
Rat"#ale' 6ustomer relationshi, mana(ement is the ,rocess o) identi)yin(
,ros,ecti'e buyers, understandin( them intimately, and de'elo,in( )a'orable
lon(2term ,erce,tions o) the or(ani1ation and its oEerin(s so buyers %ill
choose it in the mar&et,lace! 4'en non,ro+t or(ani1ations, such as F"5-,
can bene+t )rom customer relationshi, mar&etin(!
6ustomer relationshi, mana(ement B6*#C is most closely related to the
@@@@@@@@@@era in F!<! business history!
a! ,roduction!
b! sales
d! non,ro+t orientation
e! societal mar&etin(
A#s*er' c Pa&e' 17
Rat"#ale' Both the mar&etin( conce,t and 6*# stri'e to satis)y consumer
needs %hile achie'in( the or(ani1ation.s (oals!
:s or(ani1ations ha'e chan(ed their orientation, society=s e0,ectations o)
mar&eters ha'e also chan(ed! -oday, the em,hasis o) mar&etin( ,ractice has
shi)ted )rom em,hasi1in( @@@@@@@@@@ to consumers= interests!
a! social res,onsibilities
b! (o'ernment re(ulation
c! ,roducers= interests
d! su,,liers= interests
e! com,etiti'e acti'ity
Rat"#ale' Hr(ani1ations are increasin(ly encoura(ed to consider the social
and en'ironmental conseuences o) their actions )or e'eryone!
<ocial res,onsibility is:
a! the moral ,rinci,les and 'alues that (o'ern the actions and decisions o)
an entire (rou,!
b! the idea that indi'iduals and or(ani1ations are accountable to a lar(er
society!
c! acti'ely tryin( to understand customer needs and satis)yin( them as %ell
as the +rm=s (oals!
d! see&in( (reater inJuence about the uality o) ,roducts and the amount o)
in)ormation recei'ed )rom sellers!
e! the 'ie% that an or(ani1ation should disco'er and satis)y the needs o) its
consumers in a %ay that also ,ro'ides )or society=s %ell2bein(!
A#s*er' b Pa&e' 17
Rat"#ale' "hile many ethical issues in'ol'e only the buyer and seller,
others in'ol'e society as a %hole! <ocial res,onsibility is the idea that
or(ani1ations are accountable to the lar(er society!
"hich o) the )ollo%in( most directly e0,lains %hy ,harmaceutical (iant 9+1er
oEered lo%2income senior citi1ens many o) its most %idely used ,rescri,tions
)or M15 each a month7
a! the ,ro+t moti'e
b! the social res,onsibility conce,t
c! its internal en'ironment
d! its re(ulatory en'ironment
e! cor,orate do%nsi1in(
A#s*er' b Pa&e' 17
Rat"#ale' <ocial res,onsibility is the idea that or(ani1ations are a ,art o) a
lar(er society and are accountable to society )or their actions!
"hen 4astman Aoda& 6om,any concerns itsel) %ith dis,osal o) its +lm
,ac&a(es in national ,ar&s by ,romotin( the slo(an P-a&e only ,icturesG lea'e
only )oot,rints,P it is actin( in accordance %ith:
a! the ,ro+t moti'e!
b! the social res,onsibility conce,t!
c! its internal en'ironment!
d! its re(ulatory en'ironment!
e! cor,orate do%nsi1in(!
Rat"#ale' <ocial res,onsibility is the idea that or(ani1ations are a ,art o) a
lar(er society and are accountable to society )or their actions! /n this case,
4astman Aoda& ,romotes the ,rotection o) natural ,ar&s!
/n the ,ast, Bur(er Ain(, "endy=s, and #cLonald=s used to mar&et their
bur(ers in non2biode(radable <tyro)oam containers! /n res,onse to calls )rom
the ,ublic to use more en'ironmentally2)riendly materials, most )ast )ood
mar&eters use ,a,er containers )or their bur(ers! /ndeed, many such
containers are made )rom recycled materials! -his is an e0am,le o):
a! macromar&etin( by the )ast )ood chains!
b! socially res,onsible mar&etin(!
c! re'erse mar&etin(!
d! consumer ad'ocacy!
e! re,ositionin( by the )ast )ood chains!
A#s*er' b Pa&e' 17
Rat"#ale' #ar&etin( or(ani1ations e0ist in a lar(er society! :s such, the
mar&etin( or(ani1ation=s acti'ities and decisions should ta&e into
consideration the %ell2bein( o) society at lar(e, as demonstrated by the use
o) recycled materials in )ast2)ood ,ac&a(in(!
3# inno'ators de'elo,ed <cotchbrite Ne'er *ust "ool <oa, 9ads )rom
recycled ,lastic bottles! -hese soa, ,ads are more e0,ensi'e than
com,etitors B<!H!<! and BrilloC but also su,erior to them because <cotchbrite
Ne'er *ust "ool <oa, 9ads don=t rust or scratch! -his solution:
a! is en'ironmentally )riendly, socially res,onsible, and com,etiti'e!
b! oEsets the cost o) im,ro'in( en'ironmental im,act!
c! increases consumer 'alue!
d! is ethical and socially res,onsible!
e! is accurately described by all o) the abo'e!
Rat"#ale' "ith its inno'ati'e ,roduct 3# both oEsets the costs o) recyclin(
and increases consumer 'alue! -hus, consumers ha'e been %illin( to ,ay a
,remium!
#any en'ironmentally )riendly ,roducts ha'e been costly to ,roduce, and
consumers ha'e not been %illin( to ,ay a ,remium )or them! :s a result,
com,anies o)ten uestion i) they can be both @@@@@@@@@@ and com,etiti'e!
a! technolo(ically ad'anced
b! +scally res,onsible
c! socially res,onsible
d! com,liant %ith demand
e! customer )riendly
A#s*er' c Pa&e' 17
Rat"#ale' <ocial res,onsibility is the idea that or(ani1ations are
accountable to a lar(er society! -he %ell2bein( o) society at lar(e should also
be reco(ni1ed in an or(ani1ation.s mar&etin( decisions, such as ma&in(
en'ironmentally )riendly ,roducts!
-he societal mar&etin( conce,t is:
a! the moral ,rinci,les and 'alues that (o'ern the actions and decisions o)
an entire (rou,!
b! the idea that or(ani1ations are a ,art o) a lar(er society and are
accountable to society )or their actions!
c! acti'ely tryin( to understand customer needs and satis)yin( them as %ell
as the +rm=s (oals!
d! see&in( (reater inJuence about the uality o) ,roducts and the amount o)
in)ormation recei'ed )rom sellers!
e! the 'ie% that an or(ani1ation should disco'er and satis)y the needs o) its
consumers in a %ay that also ,ro'ides )or society=s %ell2bein(!
A#s*er' e Pa&e' 17
Rat"#ale' Aey term de+nition?societal mar&etin( conce,t
-he 'ie%, %hich holds that an or(ani1ation should assess and satis)y the
needs o) customers in a %ay that also ,ro'ides )or society=s %ell bein( is:
a! the societal mar&etin( conce,t
b! the mar&etin( conce,t!
c! consumerism!
d! a sense o) en'ironmental res,onsibility!
e! ca,italism!
A#s*er' a Pa&e' 17
Rat"#ale' Aey term de+nition?societal mar&etin( conce,t
:ccordin( to the societal mar&etin( conce,t, %ho or %hat should
disco'er and satis)y the needs o) the consumers in a %ay that also
,ro'ides )or society.s %ell2bein(7
a! the or(ani1ation itsel)
b! the indi'idual consumers
c! re(ulatory bodies li&e the 8ederal -rade 6ommission
d! mar&etin( researchers
e! com,etiti'e )orces
Rat"#ale' -he societal mar&etin( conce,t holds that the or(ani1ation itsel)
should disco'er and satis)y the needs o) its consumers %hile also ,ro'idin(
)or society=s %ell bein(! -here is an admitted ,roblem %ith ado,tin( this
orientationG or(ani1ations 'oluntarily choosin( actions that they see as (ood
)or consumers and society! #ar&etin( researchers may su((est concerns
about society, but they do not ma&e the +nal decision about %hat to do!
"hich o) the )ollo%in( (rou,s %ould utili1e mar&etin(7
a! ,ro)essionals such as doctors or la%yers
b! ma3or cor,orations
c! non,ro+t or(ani1ations
d! ,oliticians
e! all o) the abo'e
A#s*er' e Pa&e' 18
Rat"#ale' 4'ery or(ani1ation mar&ets %hether it handles (oods, ser'ices,
or ideas! #ar&etin( im,lies an e0chan(e e'en i) the e0chan(e is neither
,hysical nor monetary!
"hat &inds o) or(ani1ations en(a(e in mar&etin(7
a! only those that can aEord national ad'ertisin(
b! 'ery lar(e and established non,ro+t or(ani1ations
c! e0clusi'ely 8ortune 1000 com,anies
d! e'ery or(ani1ation mar&ets
e! 'irtually no or(ani1ations
A#s*er' d Pa&e' 18
Rat"#ale' 4'ery or(ani1ation mar&ets, because in some %ay it is im,ortant
)or it to encoura(e ,eo,le either to en(a(e in e0chan(es %ith it, or ,erha,s
3ust to thin& or beha'e in a ,articular %ay?as in the case o) many non2,ro+ts
such as the :merican 6ancer <ociety or (o'ernment a(encies such as the
F!<! Le,artment o) -rans,ortation!
"hich o) the )ollo%in( is an e0am,le o) a (ood7
a! :n airline Ji(ht
b! : ne% dinin( room set
c! : blood donation to the :merican *ed 6ross
d! 9artici,ation in the #ulti,le <clerosis "al&
e! :ll o) the abo'e are e0am,les o) (oods
A#s*er' b Pa&e' 18
Rat"#ale' 5oods are ,hysical ob3ects, such as )urniture, tooth,aste, or
cameras!
"hich o) the )ollo%in( is an e0am,le o) a ser'ice7
a! : ne% mini 'an
b! : donation to a church
c! "earin( a ribbon )or Breast 6ancer :%areness
d! 9ro)essional landsca,in( o) a )ront yard
e! :ll o) the abo'e are e0am,les o) ser'ices
A#s*er' d Pa&e' 18
Rat"#ale' <er'ices are intan(ible items, such as yard %or& and
landsca,in(, airline tri,s, and +nancial ad'ice!
"hich o) the )ollo%in( is an e0am,le o) an idea7
a! : ,olitical cam,ai(n
b! Ne% &itchen a,,liances
c! /ncome ta0 return ,re,aration
d! 6ar %ash
e! :ll o) the abo'e are e0am,les o) ideas
A#s*er' a Pa&e' 18
Rat"#ale' /deas are intan(ibles in'ol'in( thou(hts about actions or causes,
such as 'otin( )or a ,olitical candidate or donatin( to a s,eci+c cause!
"hich o) the )ollo%in( is somethin( that is mar&eted7
a! 5oods, such as cereal and cars
b! <er'ices, such as haircuts and oil chan(es
c! /deas, such as the messa(e )rom #others :(ainst Lrun& Lri'ers
d! /deas, such as donatin( to a charitable or(ani1ation
e! :ll o) the abo'e are mar&eted!
A#s*er' e Pa&e' 18
Rat"#ale' 5oods, ser'ices, and ideas are all mar&eted!
-he indi'iduals %ho use the (oods and ser'ices ,urchased )or a household
are collecti'ely re)erred to as:
a! or(ani1ational buyers!
b! household buyers!
c! ultimate consumers!
d! non,ro)essional buyers!
e! )amily members!
A#s*er' c Pa&e' 18
Rat"#ale' Aey term de+nition?ultimate consumers
"hat is the mar&etin( term )or indi'iduals %ho use (oods and ser'ices
,urchased )or a household?%hether they are 80 years or 8 months old7
a! situational buyers
b! ,rimary buyers
c! ultimate consumers
d! ,urchasin( a(ents
e! buyin( (rou,s
A#s*er' c Pa&e' 18
Rat"#ale' Aey term de+nition?ultimate consumers
"hich o) the )ollo%in( is an e0am,le o) an ultimate consumer7
a! : %oman buyin( a ne% car
b! : ,reschooler eatin( ,eanut butter
c! : retired steel%or&er ta&in( a cruise
d! : doctor buyin( a ,iano
e! :ll o) the abo'e
A#s*er' e Pa&e' 18
Rat"#ale' :n ultimate consumer is the ,erson %ho uses the (oods or
ser'ices ,urchased )or the household! :ny o) the ,eo,le amon( the ans%ers
abo'e, re(ardless o) a(e or ,ro)ession, could use the ,roducts or ser'ices
listed!
"hich o) the )ollo%in( is an e0am,le o) an ultimate consumer7
a! : ne%s,a,er re,orter %ho buys a ,lane tic&et to "ashin(ton, L!6! to
co'er the ,residential inau(uration
b! : school teacher %ho bou(ht a tic&et to the 2002 "inter Hlym,ics
o,enin( ceremonies in <alt Na&e 6ity
c! :n oDce rece,tionist %ho rene%s the ma(a1ines that are )ound in the
oDce %aitin( room
d! : retailer %ho buys ,oster board to ma&e si(ns )or an u,comin( store sale
e! : landsca,in( +rm em,loyee %ho buys a ne% %heelbarro% to use to haul
mulch at a ne% 3ob site
A#s*er' b Pa&e' 18
Rat"#ale' :n ultimate consumer is the ,erson %ho uses the (oods or
ser'ices ,urchased themsel'es! Hnly :lternati'e B describes an indi'idual
%ho %ill not be usin( his or her ,urchase in a 3ob2related tas&!
Fnits such as manu)acturers, retailers, or (o'ernment a(encies that buy
(oods and ser'ices )or their o%n use or )or resale are collecti'ely re)erred to
as:
a! intermediate buyers!
b! ,urchasin( a(ents!
c! or(ani1ational buyers!
d! ,ro)essional buyers= or(ani1ations!
e! manu)acturin( a(ents!
A#s*er' c Pa&e' 18
Rat"#ale' Aey term de+nition?or(ani1ational buyers
Hr(ani1ational buyers are most accurately described as:

a! buyers o) hi(h cost items!
b! buyers o) household items!
c! manu)acturers, retailers, or (o'ernment a(encies that buy (oods and
ser'ices )or their o%n use or )or resale!
d! any indi'idual or (rou, ma&in( a ,urchase %orth o'er M100,000!
e! any man, %oman, or child %ho uses (oods ,urchased )or a household!
A#s*er' c Pa&e' 18
Rat"#ale' Aey term de+nition?or(ani1ational buyers
"hich o) the )ollo%in( is the best e0am,le o) an or(ani1ational buyer7

a! : mother buyin( mil& )or her youn( son
b! : com,uter ,ro(rammer buyin( the latest (ame )or his 9laystation
c! : baseball ,layer buyin( a t2ball set )or his dau(hter
d! : botanist buyin( a rose bush )or his home (arden
e! : store o%ner buyin( hand2,ainted slate si(ns to sell in her store
A#s*er' e Pa&e' 18
Rat"#ale' Hr(ani1ational buyers are manu)acturers, retailers, or
(o'ernment a(encies buyin( )or their o%n use or resale! Hnly :lternati'e 4
describes an indi'idual %ho %ill not use his or her ,urchases )or ,ersonal use!
"hich o) the )ollo%in( bene+ts )rom eEecti'e mar&etin(7

a! /B#, %hich ,urchases a lar(e 'olume o) oDce su,,lies
b! ;uan, %ho li&es to sho, around )or the best ,rice in electronic eui,ment
c! -he ,eo,le o) the Fnited <tates, %ho can choose )rom a lar(e selection o)
retailers
d! #cLonalds, %hich must constantly ma&e menu and ,rice chan(es to &ee,
u, %ith its com,etition
e! :ll o) the abo'e bene+t )rom eEecti'e mar&etin(
A#s*er' e Pa&e' 18
Rat"#ale' /n our )ree2enter,rise society there are three s,eci+c (rou,s that
bene+t )rom eEecti'e mar&etin(: consumers %ho buy, or(ani1ations that
sell, and society as a %hole!
-he bene+ts or customer 'alue recei'ed by users o) a ,roduct is called:
a! consumerism!
b! entro,y!
c! utility!
d! autonomy!
e! syner(y!
A#s*er' c Pa&e' 19
Rat"#ale' Aey term de+nition?utility
#ar&etin( creates @@@@@@@@@@, the bene+ts or customer 'alue recei'ed by
users o) the ,roduct!
a! utility
b! consumerism
c! relationshi, mana(ement
d! social res,onsibility
e! syner(y
A#s*er' a Pa&e' 19
-he )our utilities created by mar&etin( are:
a! ,roduct, ,rice, ,romotion, and ,lace!
b! )orm, ,lace, ,roduct, and uality!
c! mono,oly, mono,olistic com,etition, ,ure com,etition, and oli(o,oly!
d! )orm, ,lace, time, and ,ossession!
e! (as, oil, electricity, and %ater!
A#s*er' d Pa&e' 19
"hich o) the )ollo%in( statements is an e0am,le o) )orm utility7
a! : ne% motor oil container comes eui,,ed %ith a dis,osable ,ourin(
s,out!
b! <tam, 'endin( machines are located in dru( stores!
c! : ser'ice station has a 242hour ice machine a'ailable )or use e'en %hen
the station is closed!
d! : %aterbed com,any oEers si02month +nancin(, same as cash!
e! : (ourmet sho, oEers a home deli'ery ser'ice!
A#s*er' a Pa&e' 19
Rat"#ale' 8orm utility is the ,roduction o) the (ood or ser'ice! -he
dis,osable s,out is a ,articular (ood that chan(es the ori(inal ,roduct
,ac&a(e Ba closed canC ,roducin( one that can be o,ened and the contents
easily ,oured!
:t Laimler6hrysler the name P#ercedes2Ben1P is considered a synonym )or
the ,roduction o) hi(h2uality and inno'ati'e 'ehicles! -he #ercedes2Ben1
ima(e o) e0cellence reJects a concern %ith @@@@@@@@@@ utility!
a! time
b! ,lace
c! ,ossession
d! mar&et
e! )orm
A#s*er' e Pa&e' 19
Rat"#ale' 8orm utility is the ,roduction o) the (ood or ser'ice!
Laimler6hrysler ,roduces their #ercedes2Ben1 as a hi(h2end (ood!
-he ,rocess o) ta&in( %ool oE shee, and usin( it to ma&e ,aint rollers sho%s
ho% manu)acturin( can create @@@@@@@@@@ utility!
a! time
b! ,lace
c! ,ossession
d! mar&et
e! )orm
A#s*er' e Pa&e' 19
Rat"#ale' 8orm utility is the ,roduction o) the (ood or ser'ice! -he
,roduction o) the ,aint roller constitutes )orm utility!
Oendin( machines in dormitories create @@@@@@@@@@ utilities!
a! time and ,lace
b! )orm and ,lace
c! ,ossession utility only
d! time and )orm
e! )orm and ,ossession
A#s*er' a Pa&e' 19
Rat"#ale' 9lace utility is ha'in( an oEerin( a'ailable %here consumers
need it! -ime utility is ha'in( an oEerin( a'ailable %hen consumers need it!
Oendin( machines (i'e students li'in( in dormitories )ood and drin& %hen
and %here they need it!
"hich o) the )ollo%in( statements is an e0am,le o) ,lace utility7
s,out!
b! <tam, 'endin( machines are located in ,ost oDce lobbies!
c! : ser'ice station sells both re(ular (asoline and diesel )uel!
e! Lis,osable dia,ers come eui,,ed %ith resealable tabs!
A#s*er' b Pa&e' 19
Rat"#ale' 9lace utility is ha'in( an oEerin( a'ailable %here consumers
need it! -he stam,s are a'ailable %here they %ould be used, %here letters
%ould be mailed!
"hich o) the )ollo%in( statements is an e0am,le o) time utility7
s,out!
b! <u,ermar&ets are addin( restaurants!
c! : ser'ice station has a 242hour ice machine a'ailable )or use e'en %hen
the station is closed!
e! Lis,osable dia,ers come eui,,ed %ith resealable tabs!
A#s*er' c Pa&e' 19
Rat"#ale' -ime utility means ha'in( a (ood or ser'ice a'ailable %hen it is
needed! -he ice machine allo%s consumers access it %hether their need )or
ice occurs at si0 in the mornin( or si0 in the e'enin(!
"hich o) the )ollo%in( statements is an e0am,le o) ,ossession utility7

s,out!
b! -he local dairy oEers deli'ery to the customer=s doorste,!
c! Lis,osable dia,ers come eui,,ed %ith resealable tabs!
d! : (ourmet )ood store carries a line o) ready2made salads!
e! : %aterbed com,any oEers si02month +nancin(, same as cash!
A#s*er' e Pa&e' 19
Rat"#ale' 9ossession utility is the 'alue o) ma&in( an item easy to
,urchase throu(h the ,ro'ision o) credit cards or +nancial arran(ements! By
allo%in( the customer to buy the %aterbed %ith +nancin(, the %aterbed
com,any is ,ro'idin( ,ossession utility!
8e% consumers ,ay cash %hen they ,urchase a home! -o do so %ould
reuire the a'era(e consumer to sa'e money )or many, many years! /nstead,
most consumers ta&e out a ban& mort(a(e on their home?and ma&e
monthly ,ayments until the house is ,aid oE! By oEerin( home mort(a(es,
ban&s enable consumers to buy homes much sooner than they other%ise
could! /n essence, the ban& is a mar&eter ,ro'idin( @@@@@@@@@@ utility!
a! )orm
b! time
c! ,rice
d! ,ossession
e! ,lace
,urchase throu(h the ,ro'ision o) credit cards or +nancial arran(ements! :
mort(a(e allo%s a ,erson to ,urchase a home o) their o%n usin( +nancial
arran(ements!
*obert could not aEord to buy his ,rinci,les o) mar&etin( te0t this semester i)
the boo&store did not acce,t credit cards! "ith his credit card, he %as able to
ha'e the boo& )or his +rst mar&etin( class! -he credit card created @@@@@@@@@@
utility )or *obert!
a! )orm
b! time
c! ,rice
d! ,ossession
e! ,lace
A#s*er' d Pa&e' 19
,urchase throu(h the ,ro'ision o) credit cards or +nancial arran(ements! -he
credit card allo%ed *obert to ,urchase his te0t boo& to use )or class!
#ary $or%ath described *ollerblade.s bi((est mar&etin( challen(e in 1986 as
creatin( aBnC@@@@@@@@@@ )or their ,roduct!
a! a%areness, e0citement, and demand
b! customer base
c! ad'ertisin( cam,ai(n
d! mar&et e0,ansion
e! sa)e desi(n
A#s*er' a Pa&e' 20
Rat"#ale' "hen *ollerblade hit the mar&et in 1986, they %ere introducin(
a ne% s,ort and a ne% industry that most ,eo,le did not &no% about! #ary
$or%ath described the bi((est challen(e to *ollerblade as creatin( an
a%areness, e0citement, demand, and need )or the s,ort and the *ollerblade
,roduct!
1:199VIDEO CASE' ROLLER+LADE@ INC8 CONCEPTUAL
"ho are *ollerblade.s com,etitors7
a! #a3or brands, such as Ni&e
b! "inter s,orts eui,ment com,anies, such as A2
c! Hutdoor recreation eui,ment manu)acturers, such as <olomon
d! :ll o) the abo'e
e! None o) the abo'e, *ollerblade.s com,etitors strictly ma&e and sell in2line
s&ates
A#s*er' d Pa&e' /?
Rat"#ale' La'e <amuels describes e0am,les o) diEerent sources o)
com,etition )or *ollerblade, includin( Ni&e, A2, and <olomon!
1:19>VIDEO CASE' ROLLER+LADE@ INC8 CONCEPTUAL
:ccordin( to La'e <amuels, <enior Lirector o) <,orts /nno'ation at
*ollerblade /nc!, %hat are the &eys to stayin( ahead o) the com,etition7
a! 6om,etiti'e ,ricin( and strate(ic ,lacement
b! -echnolo(y, ,roduct, and commitment to ,ro'idin( the best uality and
s&atin( e0,eriences ,ossible
c! Li'erse methods o) ,romotion
d! 5lobal mar&et e0,ansion
e! :ll o) the abo'e
A#s*er' b Pa&e' 20
Rat"#ale' -hese areas are the &eys to *ollerblade stayin( ahead o) the
com,etition!
1:19;VIDEO CASE' ROLLER+LADE@ INC8 APPLICATION
"hich o) the )ollo%in( mar&etin( actions could *ollerblade, /nc! ta&e in the
)uture to e0,and its sales7
a! /ncrease their ad'ertisin( bud(et
b! Fse Nordica.s e0,erience in 4uro,e to mar&et its current line o) in2line
s&ates in 4uro,e
c! 6ontinue to de)end its S*ollerbladeT trademar& to retain its ima(e as the
industry leader
d! :ll o) the abo'e!
e! None o) the abo'e!
A#s*er' d Pa&e' 20
Rat"#ale' 4ach o) the +rst three res,onse o,tions could lead to (reater
sales o) *ollerblade in2line s&ates in today.s com,etiti'e en'ironment!
1:19BVIDEO CASE' ROLLER+LADE@ INC8 APPLICATION
*ollerblade, /nc!, )aces a distinctly diEerent mar&etin( tas& in e0,andin( sales
today as o,,osed to its situation in 1986! "hich strate(y belo% is most
a,,ro,riate )or today.s en'ironment7
a! 6a,turin( the a%areness o) s&iers to (et them to try *ollerblade in2line
s&ates!
b! Le'elo,in( a series o) ne% models tar(eted at the s,ecial needs o)
s,eci+c mar&et se(ments o) in2line s&ates!
c! 5i'in( a%ay )ree s&ates to s,ortin( (oods stores in the #id%est to allo%
,eo,le %ho ha'e ne'er heard o) in2line s&atin( to try them!
d! ;oinin( %ith its com,etitors to do a <u,er Bo%l hal)2time sho% to ,romote
the s,ort o) in2line s&atin(!
e! -ar(etin( educational ad'ertisements at traditional SuadT roller s&aters
to (et them to try in2line s&ates!
A#s*er' b Pa&e' 20
Rat"#ale' :ll the choices e0ce,t b may ha'e been a,,ro,riate in 1986 to
educate the mar&et about in2line s&ates! $o%e'er, in today.s en'ironment,
*ollerblade, /nc!, must +nd %ays to ta&e sales )rom more than 30 com,etitors
?the ,ur,ose o) ans%er b!
1:19=VIDEO CASE' ROLLER+LADE@ INC8 DE-INITION
"hich s&atin( se(ments does *ollerblade, /nc! currently choose to tar(et7
a! a((ressi'e, +tness, recreational, children se(ments
b! ice hoc&ey ,layers, a((ressi'e, +tness, recreational se(ments
c! uad s&aters, +tness, recreational, children se(ments
d! ice hoc&ey ,layers, uad s&aters, +tness, recreational se(ments
e! uad s&aters, +tness, recreational, children se(ments
Rat"#ale' :lternati'e SaT contains the se(ments )or %hich *ollerblade, /nc!
has de'elo,ed a mar&etin( ,lan!
CHAPTER 1
DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE THROUGH
MARKETING
SHORT ESSAE CUESTIONS
1:1>?: +EING A MARKETING EDPERT
CONCEPTUAL
"hy are you, as a student, already some%hat o) an e0,ert in mar&etin(
be)ore ta&in( this course7
A#s*er'
<tudents are, in a sense, mar&etin( e0,erts because they do many mar&etin(
acti'ities e'ery day! -hey &no% many mar&etin( terms, conce,ts, and
,rinci,les! 40,eriences in sho,,in( )or ,roducts?and maybe e'en in sellin(
them?(i'es students (reat insi(hts into the %orld o) mar&etin(!
Pa&e' 728
1:1>1MARKETING DE-INITION F CONCEPTUAL
"hat is mar&etin(7 /s it the same thin( as ad'ertisin(7 "hy or %hy not7
A#s*er'
#ar&etin( is the ,rocess o) ,lannin( an e0ecutin( the conce,tion, ,ricin(,
,romotion, and distribution o) ideas, (oods, and ser'ices to create e0chan(es
that satis)y indi'idual and or(ani1ational ob3ecti'es! #ar&etin( is a much
broader acti'ity than ad'ertisin( or ,ersonal sellin(! /t stresses the
im,ortance o) bene+cial e0chan(es that satis)y the ob3ecti'es o) both those
%ho buy and those %ho sell!
Pa&e' 8
1:1>/DIVERSE -ACTORS IN-LUENCING MARKETING CONCEPTUAL
/n addition to consumers, %hat other ,eo,le, (rou,s, and )orces interact to
aEect mar&etin( acti'ities and results7
A#s*er'
:s sho%n in 8i(ure 123, )oremost is the or(ani1ation that is doin( the
mar&etin(, includin( its mission, ob3ecti'es and (oals, to, mana(ement,
mar&etin( de,artment, other de,artments, and em,loyees! /n addition to
customers there are shareholders or o%ners o) com,anies, re,resentati'es o)
(rou,s ser'ed, in the case o) non,ro+t or(ani1ations, and su,,liers!
4n'ironmental )orces include social, economic, technolo(ical, com,etiti'e,
and re(ulatory! :nd, lastly, society as a %hole must be ta&en into account
%ith res,ect to mar&etin( ,lans and acti'ities! -he or(ani1ation must stri&e
an acce,table balance amon( all these inJuences!
Pa&e' 9
1:1>2CONSUMER NEEDS AND 4ANTS DE-INITION F CONCEPTUAL
Le+ne needs and %ants! 9ro'ide an e0am,le o) each!
A#s*er'
: need occurs %hen a ,erson )eels ,hysiolo(ically de,ri'ed o) basic
necessities li&e )ood, clothin(, and shelter! : %ant is a )elt need that is
sha,ed by a ,erson=s &no%led(e, culture, and ,ersonality! <tudent e0am,les
%ill 'ary, but should reJect the correct de+nition o) each term! 8or e0am,le,
a need is )ood %hen a ,erson is hun(ry! : %ant is a s,eci+c )ood choice, such
as a cheesebur(er!
Pa&e' 11
1:1>ATARGET MARKET APPLICATION
Lescribe three diEerent tar(et mar&ets )or three diEerent ,roducts or
ser'ices you, your )riends, or )amily ha'e recently ,urchased or used!
A#s*er'
: tar(et mar&et is a s,eci+c (rou, o) ,otential consumers to%ard %hich an
or(ani1ation directs its mar&etin( ,ro(ram! /n res,onse to this uestion,
students mi(ht de+ne the tar(et mar&et )or a local baseball team as ,eo,le
%ho li'e in the area, some%hat s&e%ed to%ard males, ,erha,s, and hea'ily
25 to 65 years o) a(e! -his uestion oEers a (ood o,,ortunity )or class
discussion o) the more interestin( e0am,les and obser'ations o) students!
Pa&e' 12
1:1>9MARKETING MIDFTARGET MARKETING FCRM APPLICATION
/ma(ine you ha'e the sole mar&etin( ri(hts to a ne% herbal sham,oo that
sto,s hair loss and actually causes ne% hair (ro%th! >ou ,lan to sell your
,roduct on an /nternet site, %hich you %ill ad'ertise on late ni(ht tele'ision!
>ou are also ho,in( to obtain )ree ,ublicity in men=s )ashion ma(a1ines! >ou
are ,lannin( on sellin( a 162ounce bottle )or M24!99 ,lus M7!99 shi,,in( and
handlin(!
A. B:C Fsin( the in)ormation ,ro'ided, identi)y each element o) your
mar&etin( mi0!
B. BBC /denti)y the tar(et mar&et )or your sham,oo!
C. B6C $o% can you use relationshi, mana(ement to increase sales7
A#s*er'
A. B:C -he sham,oo is the ,roduct element! -he /nternet is the ,lace
element! -he ads on late ni(ht tele'ision and the ,ublicity are the
,romotion elements! -he ,rice element is the M24!99 ,rice ,lus the
M7!99 )or shi,,in( and handlin(!
B. BBC -he tar(et mar&et is ob'iously men and %omen %ith hair loss!
Better students %ill note that not e'eryone %ill be able to aEord the
,roduct and that the tar(et mar&et should also include some &ind o) an
income base!
C. B6C <ince you are sellin( on the /nternet, you could use relationshi,
mar&etin( by sendin( monthly e2mail in)ormation concernin(
in)ormation about issues o) interest to your tar(et mar&et! >ou could
also oEer a )ree 11
th
bottle o) sham,oo a)ter a consumer buys 10
bottles o'er a ,eriod o) time! <tudents, o) course, may come u, %ith
other eually 'iable ideas!
Pa&e' 12
1:1>>CUSTOMER VALUE DE-INITION F APPLICATION
"hat is customer 'alue7 9ro'ide an e0am,le o) a com,any %ith %hich you
ha'e done business and describe ho% it has created customer 'alue )or you!
A#s*er'
6ustomer 'alue is the uniue combination o) bene+ts recei'ed by tar(eted
buyers that includes uality, ,rice, con'enience, on2time deli'ery, and both
be)ore2sales and a)ter2sale ser'ice! #any +rms attem,t to ,ut a dollar +(ure
on customer 'alue! #any success)ul +rms use one o) three strate(ies %hen
deli'erin( outstandin( customer 'alue: best ,rice, best ,roduct, or best
ser'ice! <tudent e0am,les should reJect one or more elements o) customer
'alue andQor one or more o) the three strate(ies to deli'er customer 'alue!
8or e0am,le, a student may say that they ,ercei'e outstandin( customer
'alue )rom <outh%est :irlines! -he airline ,ro'ides the best ,rices, com,ared
to the other airlines! :dditionally, they ,ro'ide e0ce,tional ser'ice as
demonstrated by the )riendly and eDcient reser'ation a(ents and Ji(ht
attendants!
Pa&e' 13
1:1>;MARKETING CONCEPT DE-INITION
"hat is the mar&etin( conce,t7
A#s*er'
-he mar&etin( conce,t is the idea that an or(ani1ation should stri'e to satis)y
the needs o) consumers, %hile also tryin( to achie'e the or(ani1ation=s (oals!
Pa&e' 17
1:1>BEVOLUTION O- THE MARKET ORIENTATION DE-INITION
"hat does it mean %hen an or(ani1ation has a mar&et orientation7
A#s*er'
:n or(ani1ation that has a mar&et orientation )ocuses its eEorts on three
ma3or acti'ities! 8irst, it continuously collects in)ormation about customers.
needs and com,etitors. ca,abilities! <econd, it shares this in)ormation across
de,artments! :nd third, is uses this in)ormation to create customer 'alue!
Pa&e' 17
1:1>=CUSTOMER RELATIONSHIP MANAGEMENT APPLICATION
:round -han&s(i'in(, &ios& stores a,,ear in many malls! -y,ically the &ios&s
sell (i)t bo0es o) cheese, 3e%elry, and other items ,eo,le thin& are
a,,ro,riate seasonal (i)ts! /n ;anuary these &ios& retailers 'anish! /s it
,ossible )or such a &ios& retailer to use customer relationshi, mana(ement7
40,lain your ans%er!
A#s*er'
5enerally, students %ill say no based on the de+nition o) 6*#! -he te0t
de+nes 6*# as the ,rocess o) identi)yin( ,ros,ecti'e buyers, understandin(
them intimately, and de'elo,in( )a'orable lon(2term ,erce,tions o) the
or(ani1ation and its oEerin(s so buyers %ill choose them in the mar&et,lace!
$o%e'er, this idea is based on the idea that the &ios&s are not there lon(
enou(h to establish a lon(2term relationshi,! $o%e'er, 'ery insi(ht)ul
students may see an o,,ortunity )or these retailers B%ho return year a)ter
yearC to de'elo, lon(2term multi2year relationshi,s! Latabases %ould allo%
direct mail noti+cations that the ,ri1ed (i)ts are a(ain a'ailable!
Pa&e' 17
1:1;?ULTIMATE CONSUMERSFORGANIGATIONAL +UEERS
APPLICATION
6aterers ,ro'ide meals )or a 'ariety o) clients! BrieJy describe an e0am,le o)
a catered meal )or an ultimate consumer and an e0am,le o) a catered meal
)or an or(ani1ational buyer!
A#s*er'
<tudents. e0am,les %ill diEer, but each e0am,le should be descri,ti'e o) the
de+nition! Fltimate consumers are ,eo,le %ho use the (oods and ser'ices
,urchased )or a household! Hne e0am,le mi(ht be a %eddin( rece,tion or a
%eddin( rehearsal dinner! Hr(ani1ational buyers are units that buy (oods )or
their o%n use or resale! :n e0am,le %ould be an a%ards banuet )or a
com,any=s leadin( sales,erson!
Pa&e' 18
1:1;14HO +ENE-ITS -ROM MARKETING7 CONCEPTUAL
/n our )ree2enter,rise society, %hat three s,eci+c (rou,s bene+t )rom
eEecti'e mar&etin(7 $o% does each bene+t )rom eEecti'e mar&etin(!
A#s*er'
-he three s,eci+c (rou,s that bene+t )rom eEecti'e mar&etin( are:
1. B1C consumers %ho buy Bthey can obtain the best ,roduct at the
lo%est ,riceC
2. B2C or(ani1ations that sell Brecei'e re%ards, ,ro+ts, (ro%th, etc!C
3. B3C society as a %hole Bthrou(h enhanced com,etition, and a hi(her
standard o) li'in( )or its citi1ensC!
Pa&e' 18
1:1;/MARKETING +ENE-ITS CONCEPTUAL
"ho bene+ts )rom mar&etin( in our society, and ho%7
A#s*er'
Oirtually e'eryone bene+ts )rom mar&etin( in our society: consumers %ho
buy, or(ani1ations that sell, and society as a %hole! -rue com,etition
bet%een ,roducts and ser'ices in the mar&et,lace ensures %e as consumers
can obtain the best (oods and ser'ices a'ailable at the lo%est ,rice!
9ro'idin( the ma0imum number o) choices leads to the consumer satis)action
and uality o) li)e %e ha'e come to e0,ect )rom our economic system! B:n
e0tended ans%er could relate to utilities o) )orm, ,lace, time, and ,ossession!
-his uestion can be used to ,rom,t stimulatin( class discussion!C
Pa&e' 18
1:1;2UTILITIES CREATED +E MARKETINGDE-INITION
"hat is utility7 40,lain the )our utilities created by mar&etin(!
A#s*er'
#ar&etin( creates utility, the bene+ts or customer 'alue recei'ed by users o)
a ,roduct! -he )our utilities include: )orm, ,lace, time, and ,ossession! -he
,roduction o) (oods or ser'ices constitutes )orm utility! 9lace utility means
ha'in( the oEerin( a'ailable %here consumers need it! -ime utility means
ha'in( it a'ailable, %hen needed! 9ossession utility is the 'alue o) ma&in( an
item easy to ,urchase throu(h the ,ro'ision o) credit cards or +nancial
arran(ements!
Pa&e' 19

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Chapter 1

DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE

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