Exam 1: An Overview of 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.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?

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.The chief operating officer's statement regarding sales and advertising illustrates which marketing management philosophy embraced by this company?

The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:

Marketing is defined as producing,promoting,and selling products.

Explain how marketing affects consumers' everyday life.How will the study of marketing enable you to be a better consumer?

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.

An entrepreneur has set up a company to manufacture and market GPS systems for hunters.He has decided a sales orientation would best suit his new company.What are important considerations for this firm when it adopts this orientation? What are potential pitfalls of this orientation the owner needs to understand?

A company that wants to implement a market orientation would need to:

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.For more than 30 years,Starbucks held the orientation of "If we build it,they will come." This philosophy is most in line with a _____ orientation.

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.

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.

A company adhering to the marketing concept will likely take which of the following steps if it learned that its customers were dissatisfied with its product?

After hearing his company criticized for its failure to respond to consumer needs,the CEO of a bank realized that his company needs to adhere to the marketing concept and implement a market-oriented strategy.Which of the following actions would be the best approach to achieving this goal?

Kellogg's is offering free DVDs to consumers who collect five official Collection certificates from the back panels of specially marked packages of Kellogg's cereals and then mail them with the official order form.Within 90 days,these consumers will receive the movie of their choice.A(n)_____ will occur when a movie fan mails in his or her certificates for a movie.

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?

List the three advantages of defining the company's business in terms of the benefits customers seek instead of in terms of goods and services.

The owner 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 and provides retailers who carry his product with attractive displays.From this information,you know that Maine Kitchen Art has a _____ orientation.

At the Lands' End Web site,a customer can chat online with customer service representatives while shopping.This live help allows the customer to have questions answered before placing an order.This focus on meeting customer needs illustrates a(n)_____ orientation.

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

Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.