Exam 1: An Overview of Marketing

There are several important reasons to study marketing.Name three of these reasons.

Market-oriented firms primarily focus their efforts upon:

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 needed 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 common requests was for a customer rewards program. In response, Starbucks started My Starbucks 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 that these improvements will restore customers' loyalty and confidence. -Refer to Starbucks.The fact that management realized that coffee drinkers had different needs,whether it be using coupons,wanting a milder brew of coffee,or using free Wi-Fi,shows that Starbucks is now using a _____-oriented approach.

As part of instituting an empowerment program,a marketing director should:

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?

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 needed 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 common requests was for a customer rewards program. In response, Starbucks started My Starbucks 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 that these improvements will restore customers' loyalty and confidence. -Refer to Starbucks.Starbucks customers wanted more value from their coffee.Starbucks management responded to customers through the Starbucks card rewards program.Which element of value was Starbucks management working to increase?

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

Discuss the elements needed to implement successful relationship marketing strategies.

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products.The typical Indonesian logging company has a(n)_____ orientation.

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

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." Employees participate 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. But it doesn't stop with employees. 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: "If we really do our job, we really don't need sales anymore. Satisfied guests are your advertising." -Refer to Ritz-Carlton Hotels.Ritz-Carlton embodies an organization-wide commitment to service and support so that customers attain benefits relative to the price they pay for this service.Which element of an organization's focus is this commitment satisfying?

_____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.

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." Employees participate 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. But it doesn't stop with employees. 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: "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:

Fujifilm Computer Products has improved the efficiency and productivity of its plant,which manufactures printing technology.For the new fiscal year,the company projects a production increase of 25 percent and has instructed its sales force to aggressively distribute and promote the product.The CEO is sure the market will absorb more product if the sales force is determined and assertive.Apparently Fujifilm:

If a firm has a production orientation,what types of questions does management ask after assessing its resources?

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

Circuses As recently as 20 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, 300 to 600 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 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.The circus's goal of redesigning the circus experience is being completed through the coordination of many marketing activities,such as value pricing,a product that includes exciting performances,tent venue locations,and promotion.These activities make up the _____ for the circuses.

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

What is customer value? What are the six ways marketers can make sure customers perceive their companies/products as sources of value?

All of the following are basic marketing mix decisions EXCEPT: