Exam 1: An Overview of Marketing

Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product?

Market-oriented firms primarily focus their efforts upon:

Marketing is important to business,so marketing should be part of the job of everyone in the organization,not just those in marketing.

Which marketing management philosophy focuses on the question,"What do customers want and need?"

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

A sales-oriented firm defines its business (or mission)in terms of:

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

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

Ritz-Carlton Hotels Cesar Ritz, the founder of the original Ritz-Carlton, Boston, was known as the "king of hoteliers and the hotelier to kings." Today, there are more than 70 Ritz-Carlton hotels spanning 24 countries with 38,000 employees. These are not typical employees, though. They are described as "Ladies and Gentlemen serving Ladies and Gentlemen." Each employee participates in an intensive orientation program and recertification programs throughout their careers with the company, and many are allowed $2,000 to fix a guest's problem on the spot without managerial approval. So renowned is the Ritz way of doing business that the company offers a Leadership Center for executives and managers of other companies to learn and implement the Ritz way of customer service. It doesn't stop with employees, though. Ritz-Carlton hotels recently launched "Give Back Getaways" in 2008 that allow guests to volunteer in locales where they are vacationing. The hotel also offers "Vow to Help Others" which is a program that donates a portion of a wedding couple's reception costs to those in need. The chief operating officer's words sum up Ritz-Carlton's philosophy best when he stated, "If we really do our job, we really don't need sales anymore. Satisfied guests are your advertising." -Refer to Ritz-Carlton Hotels. Customer-oriented personnel,effective training programs,employees with authority to make decisions and solve problems,and teamwork all work together at Ritz-Carlton to implement which type of strategy?

The way to achieve customer satisfaction and value is to offer the lowest price.

The U.S.Postal Service (USPS)argues that its express service is comparable to what is offered by FedEx and that its prices are much lower.Yet,FedEx dominates with more than a 45 percent share of the express-delivery market.Which of the following statements describes this situation?

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

Marketers interested in offering customer value can:

_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.

A company that has a market orientation and adheres to the marketing concept does NOT:

For an exchange to take place:

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

One of the reasons given for the decline of the passenger rail industry in the United States is that the industry defined its mission as trains and not as transportation sources.The railroad industry failed to:

Ritz-Carlton Hotels Cesar Ritz, the founder of the original Ritz-Carlton, Boston, was known as the "king of hoteliers and the hotelier to kings." Today, there are more than 70 Ritz-Carlton hotels spanning 24 countries with 38,000 employees. These are not typical employees, though. They are described as "Ladies and Gentlemen serving Ladies and Gentlemen." Each employee participates in an intensive orientation program and recertification programs throughout their careers with the company, and many are allowed $2,000 to fix a guest's problem on the spot without managerial approval. So renowned is the Ritz way of doing business that the company offers a Leadership Center for executives and managers of other companies to learn and implement the Ritz way of customer service. It doesn't stop with employees, though. Ritz-Carlton hotels recently launched "Give Back Getaways" in 2008 that allow guests to volunteer in locales where they are vacationing. The hotel also offers "Vow to Help Others" which is a program that donates a portion of a wedding couple's reception costs to those in need. The chief operating officer's words sum up Ritz-Carlton's philosophy best when he stated, "If we really do our job, we really don't need sales anymore. Satisfied guests are your advertising." -Refer to Ritz-Carlton Hotels.The chief operating officer's statement regarding sales and advertising illustrates which marketing management philosophy embraced by this company?

Personnel in sales-oriented firms tend to be "outward looking," focusing on selling what the market wants.