ch1 defining marketing for the 21st century questions abendan

TOP 10 Learning Questions for

Chapter 1: Defining Marketing for the 21st

Century

Ria AbendanApril 2011

1. Marketing Management involves ________, __________ & _________ superior customer value.

A. Developing, influencing & communicating

B. Creating, influencing & communicatingC. Creating, communicating & deliveringD. Influencing, communicating &

deliveringE. None of the above

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What is Marketing?Marketing Management

•The art and science of:

• Choosing target markets

• Getting, keeping, and growing customers

• Creating, Communicating, and Delivering superior customer VALUE

CCD

VALUE

1. Marketing Management involves ________, __________ & _________ superior customer value.

A. Developing, influencing & communicating

B. Creating, influencing & communicatingC. Creating, communicating & deliveringD. Influencing, communicating &

deliveringE. None of the above

4

2. Promoting a visit to Star City is an example of marketing what?

A. A placeB. An experienceC. A propertyD. An organizationE. None of the above

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Examples

Experiences are marketed by orchestrating several goods and services

2. Promoting a visit to Star City is an example of marketing what?

A. A placeB. An experienceC. A propertyD. An organizationE. None of the above

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3. In a modern exchange economy, ______ markets buy resources from ______ markets, turn them to goods and services, and sell them to _______ markets.

A. Government, manufacturer, consumerB. Manufacturer, resource, intermediaryC. Resource, consumer, governmentD. Intermediary, resource, consumerE. None of the above

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There are five basic markets in a modern economy

Manufacturer Markets

ConsumerMarkets

IntermediaryMarkets

ResourceMarkets

GovernmentMarkets

Consumers sell labor to resource markets

Manufacturer Markets

ConsumerMarkets

ResourceMarkets

GovernmentMarkets

resources

money

Manufacturers buy resources…

Manufacturer Markets

ConsumerMarkets

ResourceMarkets

GovernmentMarkets

resourcesresources

money money

…turn them to goods & services and sell to intermediaries

Manufacturer Markets

ConsumerMarkets

ResourceMarkets

GovernmentMarkets

resourcesresources

goods and services

money

money money

Intermediaries sell finished goods to consumers

Manufacturer Markets

ConsumerMarkets

ResourceMarkets

GovernmentMarkets

resourcesresources

goods and services goods and services

money money

money money

The government collects tax revenues to buy goods

Manufacturer Markets

ConsumerMarkets

ResourceMarkets

GovernmentMarkets

resourcesresources

goods and services goods and services

money money

money money

taxes

taxes, goods

taxes, goods

taxes, goods

And uses these goods and services to provide public service

Manufacturer Markets

ConsumerMarkets

ResourceMarkets

GovernmentMarkets

resourcesresources

goods and services goods and services

money money

money money

taxes

taxes, goods

taxes, goods

taxes, goods

services

services, money

services, money

services, money

3. In a modern exchange economy, ______ markets buy resources from ______ markets, turn them to goods and services, and sell them to _______ markets.

A. Government, manufacturer, consumerB. Manufacturer, resource, intermediaryC. Resource, consumer, governmentD. Intermediary, resource, consumerE. None of the above

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4. Value is the sum of customers’ perceived _______ and _______.

A. Expectation and benefitB. Share of mind and equityC. Image and equityD. Equity and costE. Cost and benefit

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Value and Satisfaction are important concepts in Marketing

• Value = sum of customers’ perceived benefits and costs

• Combination of the customer value triad (QSP)

VALUE

QUALITY

SERVICE PRICE

4. Value is the sum of customers’ perceived _______ and _______.

A. Expectation and benefitB. Share of mind and equityC. Image and equityD. Equity and costE. Cost and benefit

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5. The following are examples of communication channels except:

A. Clear’s Black Valentines EventB. McDonald’s “BF/GF” TV adC. Sun Life door-to-door agentsD. P.Noy’s campaign postersE. None of the above

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Marketers may use different kinds of Marketing Channels

Communication Channels

radiotv

print

billboards

events

Examples:

Distribution Channelswholesalers

retailersdoor to door agents

Examples:

Marketers may use different kinds of Marketing Channels

Service Channels

Example:

banks

warehouses

Marketers may use different kinds of Marketing Channels

5. The following are examples of communication channels except:

A. Clear’s Black Valentines EventB. McDonald’s “BF/GF” TV adC. Sun Life door-to-door agentsD. P.Noy’s campaign postersE. None of the above

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6. If you would like an external hard drive included when you buy a laptop, this is an example of what type of need?

A. Stated NeedsB. Unstated NeedsC. Real NeedsD. Delight NeedsE. Secret Needs

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There are 5 Types of Consumer Needs

Stated Needs

Real Needs

Unstated Needs

Delight Needs

Secret Needs

“I want an inexpensive TV.”

Real Needs may underlie the Stated Needs

Stated Needs

Real Needs

Unstated Needs

Delight Needs

Secret Needs

“I want a TV whose maintenance cost, not initial price, is low (or

zero).”

Unstated needs are expected already by the customer

Stated Needs

Real Needs

UnstatedNeeds

Delight Needs

Secret Needs

“I want good service from the manufacturer.”

Delight Needs ask more of the expected output

Stated Needs

Real Needs

Unstated Needs

Delight Needs

Secret Needs

“I want it to come with a home theater system.”

Secret Needs may not easily be articulated by the customer

Stated Needs

Real Needs

Unstated Needs

Delight Needs

Secret Needs

“I want my friends to see me as a smart buyer.”

6. If you would like an external hard drive included when you buy a laptop, this is an example of what type of need?

A. Stated NeedsB. Unstated NeedsC. Real NeedsD. Delight NeedsE. Secret Needs

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7. _______ is a new marketing wherein industry boundaries are blurring as companies recognize new opportunities lie at the intersection of two or more industries.

A. Industry ConvergenceB. Consumer ResistanceC. Technology ConvergenceD. Retail TransformationE. None of the Above

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Companies are recognizing opportunities at the intersection of two or more industries

Convergence

• Blurring of industry boundaries

• Fueled by shift to digital technology

7. _______ is a new marketing wherein industry boundaries are blurring as companies recognize new opportunities lie at the intersection of two or more industries.

A. Industry ConvergenceB. Consumer ResistanceC. Technology ConvergenceD. Retail TransformationE. None of the Above

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8. Which is true about new consumer capabilities?

A. Consumers now have an amplified voice to influence public opinion.

B. Consumers now have greater access to information compared to before.

C. Consumers have gained a substantial increase in buying power.

D. All of the above.E. None of the above.

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New Consumer Capabilities

Substantial increase in buying power

Greater variety of available goods & services

Great amount of information

Greater ease in interacting and placing & receiving orders

Ability to compare notes on products & services

Amplified voice to influence public opinion

8. Which is true about new consumer capabilities?

A. Consumers now have an amplified voice to influence public opinion.

B. Consumers now have greater access to information compared to before.

C. Consumers have gained a substantial increase in buying power.

D. All of the above.E. None of the above.

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9. Which of the following is not a company orientation:

A. PeopleB. ProductC. MarketingD. ProductionE. Selling

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There are 4 Types of Company Orientations

Production

Marketing

Product

Selling

CompanyOrientations

Production Concept – customers want products that are available and inexpensive

Production

• Focus is on production efficiency, low cost and mass distribution

Product Concept – customers want products that offer the highest quality and performance

Product

• Focus is on quality, performance and continuous innovation

Selling Concept – consumers, if left alone, will not buy

Selling

• Focus is for company to sell what they make

• Applies mostly to unsought goods

• Example: cemetery plots

Marketing Concept – finding the right products for your customers

Marketing

• Focus is on finding the right products for customers through research

9. Which of the following is not a company orientation:

A. PeopleB. ProductC. MarketingD. ProductionE. Selling

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10. Which is NOT true about the 4Ps Marketing Mix?

A. Direct Marketing is under PromotionsB. Inventory is under ProductC. Volume discounts is under PriceD. Locations is under PlaceE. None of the above (all are correct)

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Marketing-Mix Tools: The Four Ps

http://pauldunay.com/wp-content/uploads/2010/01/4ps.png

• To Create, Communicate, and Deliver VALUE to consumers, marketers should devise marketing activities classified as “marketing mix” tools of four broad kinds – the Four Ps

Product involves variety, quality, design, features, brand name…

• The tangible object or intangible service that is produced or manufactured by a company

• Example:

• Beer products by San Miguel

Price involves list price, discounts, allowances, payment period, credit terms…

• The amount a customer pays for the product (wholesale / retail)

• Example:

Place involves channels, coverage, locations, inventory…

• Represents the location where a product can be purchased

• Examples for San Miguel products:

supermarkets sari-sari stores convenience stores

Promotion involves sales promotions, advertising, public relations, direct marketing…

• All communications that a marketer may use in the market place

• Examples:

events merchandisingtv commercials

10. Which is NOT true about the 4Ps Marketing Mix?

A. Direct Marketing is under PromotionsB. Inventory is under ProductC. Discounts is under PriceD. Locations is under PlaceE. None of the above (all are correct)

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TOP 10 Learning Questions for

Chapter 1: Defining Marketing for the 21st

Century

Ria AbendanApril 2011