Exam 1: An Overview of Strategic Marketing

A target market is always defined by demographics.

Netflix has one of the highest customer loyalty ratings in the entertainment industry with approximately 74% of current subscribers continuing to renew their subscription with Netflix on a month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Netflix for their entertainment. Netflix offers three different payment options or plans for customers-the basic plan at $7.99 per month, standard plan at $8.99 per month, or a premium plan at $11.99 per month. Thus, subscribers who renew on a monthly basis would pay between $95.88 and $143.88 per year to continue their Netflix service. If 74% of subscribers continue their service on an annual basis, Netflix is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to the Premium plan for five years and generated over $700 in revenue to Netflix. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Netflix?

According to the marketing concept, an organization should try to

Services are provided by applying human and mechanical efforts to people or objects to provide intangible benefits to the customer.

Which of the following statements about marketing environment forces is correct?

Ruth owns a company that sells snowboards. During the winter, she sells so many snowboards that she constantly has to restock. However, Ruth always seems to have dozens of snowboards left in inventory once spring hits and demand falls rapidly. To try and sell these excess snowboards, Ruth offers steep discounts on her products, invests heavily in advertising to make consumers aware of the discounts, and instructs her in-store salespeople to use strong persuasion tactics to convince them to purchase the remaining snowboards. During this period of time, what type of orientation is Ruth embracing?

You work in the marketing department of a company that sells computers directly to customers. Recently, your CEO decided he wants to expand and begin selling through popular retailers. You have been given the task of identifying retailers that reach a significant portion of the target market but that also fit with the quality of your company's brand. Once these retailers are selected, you are to work with these retailers to negotiate shelf placement. Your job deals mainly with which marketing attribute?

Panera Bread made the announcement that it was getting rid of food additives. Which of the following most likely influenced Panera Bread's decision?

Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships.

The marketing concept is best defined as

Which of the following best describes the acceptance of the marketing concept by American organizations?

The majority of the heads of marketing for most multinational corporations would likely describe marketing as a very complex discipline. They will give a long list of variables and factors that impact a company's marketing success. Most of these variables and factors are part of what is called the marketing environment. The U.S. unemployment rate would fall under which set of forces in the marketing environment?

During the market orientation, businesspeople realized that products, which by this time could be made relatively efficiently, would have to be promoted through much personal selling and advertising.

Scenario 1.3 A recent meeting of the Council of Supply Chain Management Professionals featured an executive from Dell, which is known for its ability to customize computers to customers' needs as well as their ability to provide quality products at economical prices through their retail channel. The executive discussed the capabilities of their firm regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, Dell began forging relationships with retailers such as Walmart to provide a limited number of computer models in the retailers' stores. In order to fulfill the orders to Walmart, Dell was required to make changes in their production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, Dell was able to shift from a focus on air transportation to over-the-road trucking, which enabled them to cut costs in some areas. As Dell shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer, they also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Walmart who require their vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. Dell's ability to modify their business model by forging relationships with retailers such as Walmart as well as customer insights has helped the company achieve its revenue and profitability goals. Refer to Scenario 1.3. Based on the information provided regarding Dell, which orientation would best describe their approach to marketing?

Why is marketing important to businesses and to the economy?

Which one of the following statements by a company president best reflects the marketing concept?

Describe the three different types of products.

A physical product you can touch is a(n)

To satisfy customers' objectives as well as its own, a company must coordinate all its activities.

Changes in the marketing environment always hurt marketing efforts.