Chapter 1 - Customer-Driven Strategic Marketing
1. List four marketing mix variables and describe each one of them.
ANSWER: Marketers consider activities such as product, pricing, distribution, and promotions
as the marketing mix because they decide what type of each element to use and in
what amounts.
The product variable of the marketing mix deals with researching customers’ needs
and wants and designing a product that satisfies them. A product can be a good, a
service, or an idea. The product variable also involves creating or modifying brand
names and packaging and may include decisions regarding warranty and repair
services.
In dealing with the distribution variable, a marketing manager makes products
available in the quantities desired to as many target-market customers as possible,
keeping total inventory, transportation, and storage costs as low as possible.
The promotion variable relates to activities used to inform individuals or groups
about the organization and its products. Promotion can aim to increase public
awareness of the organization and of new or existing products.
The price variable relates to decisions and actions associated with establishing
pricing objectives and policies and determining product prices. Price is a critical
component of the marketing mix because customers are concerned about the value
obtained in an exchange. Price is often used as a competitive tool, and intense price
competition sometimes leads to price wars.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
2. Describe the three different types of products with suitable examples.
ANSWER: A product can be a good, a service, or an idea. A good is a physical entity you can
touch. A branded pair of spectacles or a branded pair of jeans is an example of a
good. A service is the application of human and mechanical efforts to people or
objects to provide intangible benefits to customers. Air travel, education, and child
day care are examples of services. Ideas include concepts, philosophies, images,
and issues. For instance, a marriage counselor, for a fee, gives spouses ideas to help
improve their relationship.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: Product
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1 - Customer-Driven Strategic Marketing
3. Describe several activities encompassed by the distribution variable.
ANSWER: When considering the distribution variable, a marketing manager makes products
available in the quantities desired to as many target-market customers as possible,
keeping total inventory, transportation, and storage costs as low as possible. A
marketing manager also may select and motivate intermediaries (wholesalers and
retailers), establish and maintain inventory control procedures, and develop and
manage transportation and storage systems. The advent of the Internet and
electronic commerce also has dramatically influenced the distribution variable.
Companies now can make their products available throughout the world without
maintaining facilities in each country.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: Distribution
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
4. Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships.
ANSWER: The essence of marketing is to develop satisfying exchanges from which both
customers and marketers benefit. The customer expects to gain a reward or benefit
greater than the costs incurred in a marketing transaction. The marketer expects to
gain something of value in return, generally the price charged for the product. To
fulfill these expectations, the marketer must deliver on promises made. Over time,
this interaction results in relationships between the two parties.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Comprehension
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1 - Customer-Driven Strategic Marketing
5. What are the three ways that marketing environment forces affect a marketer's ability to create satisfying
exchange relationships?
ANSWER: The marketing environment forces affect a marketer’s ability to facilitate value
driven marketing exchanges in three general ways. First, they influence customers
by affecting their lifestyles, standards of living, and preferences and needs for
products. . Second, marketing environment forces help to determine whether and
how a marketing manager can perform certain marketing activities. Third,
environmental forces may affect a marketing manager’s decisions and actions by
influencing buyers’ reactions to the firm’s marketing mix.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
6. Define the term target market.
ANSWER: Organizations generally focus their marketing efforts on a specific group of
customers called a target market. A target market is the group of customers toward
which a company directs a set of marketing efforts.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
7. Define the term value. Explain how people determine a product's value.
ANSWER: Value is defined as a customer’s subjective assessment of benefits relative to costs
in determining the worth of a product (customer value = customer benefits –
customer costs). Consumers develop a concept of value through the integration of
their perceptions of product quality and financial sacrifice.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1 - Customer-Driven Strategic Marketing
8. Discuss the evolution of the marketing concept through the various types of orientation.
ANSWER: The marketing concept may seem like an obvious approach to running a business.
However, businesspeople have not always believed that the best way to make sales
and profits is to satisfy customers. The first type of orientation is known as
production orientation. In production orientation, with new technology and new
ways of using labor, products poured into the marketplace, where demand for
manufactured goods was strong.
According to the sales orientation, businesses viewed sales as the major means of
increasing profits, and this period came to have a sales orientation. Businesspeople
believed that the most important marketing activities were personal selling,
advertising, and distribution. Market orientation requires the “organization wide
generation of market intelligence pertaining to current and future customer needs,
dissemination of the intelligence across departments, and organization wide
responsiveness to it.” Market orientation is linked to newproduct innovation by
developing a strategic focus to explore and develop new products to serve target
markets.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Understanding the Marketing Concept
KEYWORDS: Bloom's: Knowledge
9. What is meant by the term” marketing concept”?
ANSWER: Marketing concept refers to a management philosophy guiding an organization’s
overall activities Departments such as production, finance, accounting, human
resources, and marketing must work together to establish the marketing concept.
The overall objectives of a business might relate to increasing profits, market share,
sales, or a combination of all three. The marketing concept stresses that an
organization can best achieve these objectives by being customer oriented.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Understanding the Marketing Concept
KEYWORDS: Bloom's: Knowledge
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1. List four marketing mix variables and describe each one of them.
ANSWER: Marketers consider activities such as product, pricing, distribution, and promotions
as the marketing mix because they decide what type of each element to use and in
what amounts.
The product variable of the marketing mix deals with researching customers’ needs
and wants and designing a product that satisfies them. A product can be a good, a
service, or an idea. The product variable also involves creating or modifying brand
names and packaging and may include decisions regarding warranty and repair
services.
In dealing with the distribution variable, a marketing manager makes products
available in the quantities desired to as many target-market customers as possible,
keeping total inventory, transportation, and storage costs as low as possible.
The promotion variable relates to activities used to inform individuals or groups
about the organization and its products. Promotion can aim to increase public
awareness of the organization and of new or existing products.
The price variable relates to decisions and actions associated with establishing
pricing objectives and policies and determining product prices. Price is a critical
component of the marketing mix because customers are concerned about the value
obtained in an exchange. Price is often used as a competitive tool, and intense price
competition sometimes leads to price wars.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
2. Describe the three different types of products with suitable examples.
ANSWER: A product can be a good, a service, or an idea. A good is a physical entity you can
touch. A branded pair of spectacles or a branded pair of jeans is an example of a
good. A service is the application of human and mechanical efforts to people or
objects to provide intangible benefits to customers. Air travel, education, and child
day care are examples of services. Ideas include concepts, philosophies, images,
and issues. For instance, a marriage counselor, for a fee, gives spouses ideas to help
improve their relationship.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: Product
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
Powered by Cognero Page 1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1 - Customer-Driven Strategic Marketing
3. Describe several activities encompassed by the distribution variable.
ANSWER: When considering the distribution variable, a marketing manager makes products
available in the quantities desired to as many target-market customers as possible,
keeping total inventory, transportation, and storage costs as low as possible. A
marketing manager also may select and motivate intermediaries (wholesalers and
retailers), establish and maintain inventory control procedures, and develop and
manage transportation and storage systems. The advent of the Internet and
electronic commerce also has dramatically influenced the distribution variable.
Companies now can make their products available throughout the world without
maintaining facilities in each country.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: Distribution
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
4. Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships.
ANSWER: The essence of marketing is to develop satisfying exchanges from which both
customers and marketers benefit. The customer expects to gain a reward or benefit
greater than the costs incurred in a marketing transaction. The marketer expects to
gain something of value in return, generally the price charged for the product. To
fulfill these expectations, the marketer must deliver on promises made. Over time,
this interaction results in relationships between the two parties.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Comprehension
Powered by Cognero Page 2
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1 - Customer-Driven Strategic Marketing
5. What are the three ways that marketing environment forces affect a marketer's ability to create satisfying
exchange relationships?
ANSWER: The marketing environment forces affect a marketer’s ability to facilitate value
driven marketing exchanges in three general ways. First, they influence customers
by affecting their lifestyles, standards of living, and preferences and needs for
products. . Second, marketing environment forces help to determine whether and
how a marketing manager can perform certain marketing activities. Third,
environmental forces may affect a marketing manager’s decisions and actions by
influencing buyers’ reactions to the firm’s marketing mix.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
6. Define the term target market.
ANSWER: Organizations generally focus their marketing efforts on a specific group of
customers called a target market. A target market is the group of customers toward
which a company directs a set of marketing efforts.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
7. Define the term value. Explain how people determine a product's value.
ANSWER: Value is defined as a customer’s subjective assessment of benefits relative to costs
in determining the worth of a product (customer value = customer benefits –
customer costs). Consumers develop a concept of value through the integration of
their perceptions of product quality and financial sacrifice.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Defining Marketing
KEYWORDS: Bloom's: Knowledge
Powered by Cognero Page 3
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1 - Customer-Driven Strategic Marketing
8. Discuss the evolution of the marketing concept through the various types of orientation.
ANSWER: The marketing concept may seem like an obvious approach to running a business.
However, businesspeople have not always believed that the best way to make sales
and profits is to satisfy customers. The first type of orientation is known as
production orientation. In production orientation, with new technology and new
ways of using labor, products poured into the marketplace, where demand for
manufactured goods was strong.
According to the sales orientation, businesses viewed sales as the major means of
increasing profits, and this period came to have a sales orientation. Businesspeople
believed that the most important marketing activities were personal selling,
advertising, and distribution. Market orientation requires the “organization wide
generation of market intelligence pertaining to current and future customer needs,
dissemination of the intelligence across departments, and organization wide
responsiveness to it.” Market orientation is linked to newproduct innovation by
developing a strategic focus to explore and develop new products to serve target
markets.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Understanding the Marketing Concept
KEYWORDS: Bloom's: Knowledge
9. What is meant by the term” marketing concept”?
ANSWER: Marketing concept refers to a management philosophy guiding an organization’s
overall activities Departments such as production, finance, accounting, human
resources, and marketing must work together to establish the marketing concept.
The overall objectives of a business might relate to increasing profits, market share,
sales, or a combination of all three. The marketing concept stresses that an
organization can best achieve these objectives by being customer oriented.
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: FOM.PRID.15.01.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
CORPORATE STANDARDS: DISC: International Perspective
TOPICS: A-Head: Understanding the Marketing Concept
KEYWORDS: Bloom's: Knowledge
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
