Exam 1: An Overview of Marketing

Which of the following is the customer's evaluation of a good or service in terms of whether that good or service has met his or her needs and expectations?

A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally harvested.In places like Indonesia as much as 80 percent of timber available for sale was illegally cut.Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests.Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot?

A firm that adopts a(n)_____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.

If a company uses a sales orientation,consumer complaints would most likely result in:

Which marketing management philosophy focuses on the question,"What can we make or do best?"

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

Starbucks Loyalty Rewards The First Starbucks opened in 1970 in Seattle Washington. The demand for its coffee grew and Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30 year history, Starbucks has never given out coupons for its coffee. Starbucks had only to make its coffee and customers came. Recently consumer quality perception of the Starbucks brand has started to fall. Starbucks started a consumer-response blog to learn more about what consumers expect from Starbucks. One of the most requests was for a customer rewards program. In response Starbucks has started the Starbuckscard rewards which offers free refills on brewed coffee, free beverage with whole bean purchase, beverage customization and free Wi-Fi. Starbucks also put coupons in a national newspaper for those consumers who love coupons and created a new brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping with these improvements will restore customers' loyalty and confidence. -Refer to Starbucks.The fact that management realized that coffee drinkers had different needs whether be using coupons,wanting a milder brew of coffee or free Wi-Fi shows that Starbucks is now using a _____ oriented approach.

A market-oriented firm defines its business in terms of:

_____ is a strategy that focuses on keeping and improving relationships with current customers.

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.One of the tent venues is called Barnum's Kaleidoscope,and it is in a permanent location with the hopes that people who see the show will want to return and see it again as well as bring their friends and relatives to the production.Which of the following techniques would most likely advance this strategy of referrals and repeat business?

Colorado Silversmith creates and markets silver and turquoise jewelry,which it sells to retailers in the western United States.The company's management believes its retail customers will stock more jewelry if its salespeople use aggressive marketing techniques,so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its jewelry.In other words,the company has a _____ orientation.

A company that sets its goals and strategies based on what its current equipment can produce,what products engineering can design,and what the company itself can do best,has a(n)_____ orientation.

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.A guest's suitcase was lost while in the care of hotel employees,and that guest needed his suit for an important business meeting. The desk clerk took the guest to a local mall to purchase clothing and shoes totaling $850. The fact that Ritz-Carlton employees have the authority to solve customers' problems quickly illustrates that these employees are given:

The _____ orientation assumes people will buy more if aggressive selling techniques are used.

Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices.Unfortunately,the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide.Human rights organization have asked jewelers to buy diamonds that are "conflict-free," that is from South Africa,Australia,or Canada.LeeBrant is one retail jewelry store that sells only diamonds that are certified to be from these countries.LeeBrant is exhibiting which marketing management orientation?

All of the following are basic marketing mix decisions EXCEPT:

Consider the following statement: "Relationship marketing is not possible in a firm embracing a production orientation." Do you agree or disagree with this statement? Explain your answer.

Starbucks Loyalty Rewards The First Starbucks opened in 1970 in Seattle Washington. The demand for its coffee grew and Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30 year history, Starbucks has never given out coupons for its coffee. Starbucks had only to make its coffee and customers came. Recently consumer quality perception of the Starbucks brand has started to fall. Starbucks started a consumer-response blog to learn more about what consumers expect from Starbucks. One of the most requests was for a customer rewards program. In response Starbucks has started the Starbuckscard rewards which offers free refills on brewed coffee, free beverage with whole bean purchase, beverage customization and free Wi-Fi. Starbucks also put coupons in a national newspaper for those consumers who love coupons and created a new brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping with these improvements will restore customers' loyalty and confidence. -Refer to Starbucks.Which of the four conditions did NOT exist in the minds of the Starbucks consumer,resulting in declining sales?

Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products.

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