BUSPROG

1. Identify and describe the four major types of utility. Which one is influenced indirectly by marketing efforts? ANSWER: Form utility is created by converting production inputs into finished products. Place utility is created by making a product available at a location desired by customers. Time utility is created by making a product available when customers wish to purchase it. Possession utility is created by transferring title, or ownership, of a product to a buyer. Marketing efforts may influence form utility indirectly because the data gathered as part of marketing research are frequently used to determine the size, shape, and features of a product. POINTS: 1 DIFFICULTY: Moderate REFERENCES: pp. 300-301 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Utility: The Value Added by Marketing KEYWORDS: Bloom's: Knowledge 2. What does it mean for a firm to have a strong production orientation? How does this differ from the marketing concept? ANSWER: A strong production orientation refers to a business with emphasis on increased output and production efficiency. It differs from the marketing concept in that a production orientation does not focus on marketing. The opposite is actually true, in that marketing is limited to taking orders and distributing finished goods. POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 302 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: The Marketing Concept KEYWORDS: Bloom's: Comprehension 3. Your firm would like to implement the marketing concept. What information will you need? Since the acquisition of information costs money, justify your need for this information. ANSWER: Your firm must obtain information about its present and potential customers and determine not only what customers’ needs are but also how well these needs are being satisfied by products currently in the market. You must ascertain how its products might be improved and what opinions customers have about the firm and its marketing efforts. This information is needed to pinpoint the specific needs and potential customers toward which it will direct its marketing activities and resources. This focus allows for a cost savings and potential for increased revenue in the long run. POINTS: 1 DIFFICULTY: Challenging REFERENCES: p. 303 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-3 NATIONAL STANDARDS: United States - AACSB: Reflective Thinking TOPICS: The Marketing Concept KEYWORDS: Bloom's: Application 4. Why would relationship marketing be valuable to a company? Why would it be valuable to a customer? ANSWER: Relationship marketing can help a business understand customers’ needs and strive to increase value to buyers over time. From the customers’ side, trust in the company grows with relationship marketing and value in relation to the product or service grows. POINTS: 1 DIFFICULTY: Moderate REFERENCES: pp. 298-299 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: The Marketing Concept KEYWORDS: Bloom's: Comprehension 5. What is a market? ANSWER: A market is a group of individuals or organizations, or both, that need products or services in a given category and that have the ability, willingness, and authority to purchase such products. Markets are typically categorized as consumer markets or business-to-business markets. POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 303 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Markets and Their Classification KEYWORDS: Bloom's: Knowledge 6. Describe the two broad targeting approaches in business, and give an example of each. ANSWER: The undifferentiated approach is when a company designs a single marketing mix and directs it at the entire market. Staple items like salt and sugar fall in this category. The market segmentation approach is when the firm directs its attention and marketing to a particular portion, or segment, of the total market. Categorizing boats as sailboats, fishing boats, or speedboats is an example. POINTS: 1 DIFFICULTY: Moderate REFERENCES: pp. 304; 306 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Developing Marketing Strategies KEYWORDS: Bloom's: Comprehension 7. What four main elements does the marketing mix contain? ANSWER: Every marketing mix contains the following: Product, which includes product design, brand name, packaging, and warranties Price, which is concerned with both base prices and discounts of various kinds Distribution, which involves not only transportation and storage but also the selection of intermediaries Promotion, which focuses on providing information to target markets POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 308 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Developing Marketing Strategies KEYWORDS: Bloom's: Knowledge 8. What are the major forces in the marketing environment? ANSWER: The economic forces affect economic conditions and customers’ ability and willingness to buy. Sociocultural forces are influences in a society and its culture that result in changes in beliefs and lifestyles. Political forces are the influences that arise through the actions of elected and appointed officials. Competitive forces are the actions of competitors that influence the process of implementing marketing plans. Legal and regulatory forces are the laws that protect consumers, competition, and control marketing. Technological forces are the technological changes that can create new marketing opportunities or cause products to possibly become obsolete. POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 309 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Marketing Strategy and the Marketing Environment KEYWORDS: Bloom's: Knowledge 9. Describe the purpose of an executive summary, environmental analysis, and SWOT analysis, the first three components of a marketing plan. ANSWER: The executive summary is a one- to two-page synopsis of the entire marketing plan. The environmental analysis includes information about the company’s current situation with respect to the marketing environment. The SWOT analysis is an assessment of the organization’s strengths, weaknesses, opportunities, and threats. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 310 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-7 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Developing a Marketing Plan KEYWORDS: Bloom's: Comprehension 10. What is a company sales forecast? Why is it important to the sales department as well as to the people who handle raw materials inventory, finished-goods inventory, hiring, and advertising? ANSWER: A sales forecast is an estimate of the amount of a product or service that an organization expects to sell during a certain period of time based on a specified level of marketing effort. Various managers rely on a sales forecast when purchasing raw materials, scheduling production, securing financial resources, considering plant and equipment purchases, hiring personnel, and planning inventory levels. POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 310 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Market Measurement and Sales Forecasting KEYWORDS: Bloom's: Knowledge 11. Explain the difference between marketing research and marketing information systems. ANSWER: A marketing information system is a system for managing marketing information that is gathered continually from internal and external sources; whereas marketing research is the process of systematically gathering, recording, and analyzing data concerning marketing issues. It could be said that marketing research would be stored as part of the marketing information system. POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 311 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Marketing Information KEYWORDS: Bloom's: Comprehension 12. What are the major steps in the consumer buying decision process? Describe the factors that are believed to affect this process. ANSWER: Consumers go through recognizing the problem, searching for information, evaluating alternatives, purchasing, and evaluating the purchase after it’s been made. There are often situational, psychological, and social influences that factor into the consumer buying decision process. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 315 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-10 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Types of Buying Behavior KEYWORDS: Bloom's: Knowledge 13. Is the business buyer or the individual consumer more likely to know more about the product being purchased? Support your answer. ANSWER: Business buyers are usually better informed than consumers about products. Business buying often occurs through description, inspection, sampling, or negotiation-- processes often not provided to consumers. Business transactions are often more complicated and orders tend to be larger, therefore accurate information is considered more important. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 316 LEARNING OBJECTIVES: FOBU.PRIDE.15.11-10 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Types of Buying Behavior KEYWORDS: Bloom's: Knowledge