103 Test Bank for Marketing Management 1st Edition
by Marshall Multiple
Marshall True - False Questions
Customer orientation and market orientation are opposing
concepts. Customer-oriented firms look at customers
as individuals and market-oriented firms look at the
market as a whole.
1.
2.

True
False

Little m marketing refers to tactics and programs the firm
uses to reach its stakeholders.
1.
2.

True
False

Sustainability refers to practices of socially responsible
firms that incorporate doing well by doing good.
1.
2.

True
False

The American Marketing Association defines marketing as
"the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large".
1.
2.

True
False

Don Peppers and Martha Rogers popularized the term oneto-one marketing,
1.
2.

True
False

Of all the business fields, marketing is most visible to people
outside the organization.
1.
2.

True
False


It is important that everyone in the organization understand
the concept of customer orientation. After all, every
employee has an internal customer.
1.
2.


True
False

Firms today are beginning to understand the importance of
marketing metrics to assess marketing performance.
1.
2.

True
False

Gen Yers tends to value relationships with marketers like
State Farm Insurance in exactly the same way their
parents do.
1.
2.

True
False

Firms today have learned to be open about products and
services with consumers who have endless sources of
information, including blogs, chat rooms and
independent Web sites.
1.
2.

True
False


Direct-to-consumer marketing by pharmaceutical companies
and the vast amount of health information available to
patients on Web sites enable them to self-diagnose
and self-prescribe and saves the physician time.
1.
2.

True
False

Fred Wiersema's book The New Market Leaders states that
marketers will continue to more power than customers
in both B2B and B2C markets.
1.
2.

True
False

A firm with a production orientation assumes that "if you
build it, they will come".
1.
2.

True
False


Even with great marketing, vast numbers of potential

customers have never heard of some products or
services.
1.
2.

True
False

Big M marketing refers to the strategic, long-term, firm-level
commitment to investing in marketing.
1.
2.

True
False

Marketing is relevant only to people in the organization that
work directly in the marketing department.
1.
2.

True
False

Dell Computers employs one-to-one marketing by allowing a
customer essentially to customize the product features
that he or she desires.
1.
2.


True
False


Multiple Choice Questions - Page 1
Customers may visit the Land's End clothing web site and
order a pair of jeans that will be made especially for
them. Land's End has adopted a ___________
approach.
1.
2.
3.
4.
5.

A. Market orientation
B. Mass customization orientation
C. Differentiation orientation
D. Product orientation
E. Relationship orientation

The marketing concept was introduced ______________.
1.
2.
3.
4.
5.

A. After the Civil War
B. After World War I

C. After the Great Depression
D. In the 1950s
E. In the 1960s

AMA's first official definition reflected its roots in ______.
1.
2.
3.
4.
5.

A. Advertising of all kinds of products
B. Sales of consumer packaged goods
C. Production in factories
D. Distribution of agricultural products
E. Public relations and publicity

Entrepreneurs and Fortune 500 firms alike should recognize
that marketing efforts _____________.
1.
2.
3.
4.
5.

A. Need to instill basic marketing orientation in the entire organization including
engineering, finance, and administrative staffs
B. Include telling other people in the firm need to know what the marketing
department is doing but others have no marketing responsibility
C. Should be the job for the "marketing department". Other departments should

only be concerned with their core activities like manufacturing or finance
D. Should include training only people who interact with customers to have a
marketing focus
E. None of the above


Fernandez Brothers, Inc. provides accounting services to
small businesses. Before and after tax season, the
partners meet with each client company. It sends a
monthly newsletter to update clients with tax changes.
The firm's business practices revolve around putting
the customer at the center when developing services
and practices. Smith Brothers has adopted a
____approach.
1.
2.
3.
4.
5.

A. Market orientation
B. Mass customization orientation
C. Differentiation orientation
D. Relationship orientation
E. Product orientation

Creating value focuses on _____________________.
1.
2.
3.

4.
5.

A. Product development
B. Branding and positioning
C. Attention to service
D. Pricing
E. All of the above

AMA's current official definition of marketing reflects the
view towards marketing activities as ______.
1.
2.

A. Focused on strategy
B. Focused on tactics like using electronic commerce and new media like You
Tube
3. C. Focused on relationships with suppliers and customers
4. D. Focused on value, through creating, communicating, delivering and exchanging
offering that create value
5. E. A and D

It took Nike ____ years to replace the greenhouse gas in the
heels of Nike Air shoes.
1.
2.
3.
4.
5.


A. 3
B. 6
C. 10
D. 14
E. 18

AMA's current official definition of marketing was released in
______.
1.
2.

A. 1965
B. 1985


3.
4.

C. 2000
D. 2007

After a recent 141-day strike, members of the union members
in California went back to work at area grocery stores.
The union negotiated raises, better healthcare
benefits, and a one-tier pay scale. The role of the union
may best be described as a ________.
1.
2.
3.
4.

5.

A. Governmental body
B. Stakeholder
C. Vendor
D. Internal customer
E. Management group

The _____________ aspect of a firm is generally the most
visible to people outside the organization.
1.
2.
3.
4.
5.

A. Financial management
B. Accounting
C. Marketing
D. Information technology
E. Operations management

Marketing misnomers occur because many people think of
marketing as __________.
1.
2.
3.
4.
5.


A. Pushy salespeople
B. Advertising and celebrity spokespersons
C. The firm's department of advertising
D. Overstated product claims
E. All of the above

Henry Ford is well known to business students for creating
the assembly line that enabled mass production of the
Model T. This is an example of _____________.
1.
2.
3.
4.
5.

A. Production orientation
B. Selling orientation
C. Marketing orientation
D. Buzz marketing orientation
E. Business orientation

Peter Drucker, the father of modern management, believed
that marketing _____________.
1.
2.
3.

A. Should be a separate function within the business
B. That it is the business as seen from an internal point of view
C. That it is the business as seen from the customer's point of view



4.
5.

D. That is so basic that it is a central dimension of the entire business
E. Should improve the quality of life for society

AMA's second official definition of marketing reflected the
view of that time towards marketing activities as
______.
1.
2.
3.
4.
5.

A. Advertising
B. Production
C. 4 Ps
D. Selling
E. Distribution

AMA's first official definition of marketing was released in
______.
1.
2.
3.
4.


A. 1925
B. 1948
C. 1967
D. 1985

Communicating and delivering value focuses on
_____________________.
1.
2.
3.
4.
5.

A. Supply chain management
B. Branding and positioning
C. retailing
D. integrated marketing communication
E. A, B, and D

Don Peppers and Martha Rogers promote the idea of
____________.
1.
2.
3.
4.
5.

A. Market orientation
B. Mass customization orientation
C. Differentiation orientation

D. One-to-one marketing orientation
E. Relationship orientation

Making a change in any of the marketing mix elements will
_______________.
1.
2.
3.
4.
5.

A. Leave the other elements unchanged
B. Possibly have an impact on another element
C. Have a domino effect on the other elements
D. Require the firm to introduce new products
E. Require an increase in promotion

High pressure selling _____________.
1.

A. Is practiced today by many companies


2.
3.
4.
5.

B. Has a marketing orientation
C. Sparked laws to protect consumers

D. A and C
E. None of the above

When you tell someone you are a marketing major in college,
he or she may think you want a career in
________________.
1.
2.
3.
4.
5.

A. Management
B. Information technology
C. Sales
D. Customer service
E. Financial planning

Great marketing starts with ______________________.
1.
2.
3.
4.
5.

A. Listening to customers
B. Designing a great product
C. Offering the lowest price
D. Word-of-mouth endorsements
E. Selling a product where customers can easily find it


Nike Air shoes were discovered to have a greenhouse gas in
the heel air pocket. The company did not change the
design _______________.
1.
2.
3.
4.
5.

A. Until some environmental groups found out and complained
B. Since it did not have to change under the law
C. Because engineers were working on more profitable designs
D. Until it spent millions of dollars and many years to get a good new design
E. A and D

The marketing concept was first articulated in writing in the
Annual Report of ______________.
1.
2.
3.
4.
5.

A. Ford Motor Company
B. AT&T
C. RCA
D. General Motors
E. General Electric


Value may be defined as the ratio of bundled benefits
received to the cost incurred by the customer to
receive those benefits. ____________ is not thought of
as one of the costs.
1.
2.

A. Monetary cost
B. Time to shop


3.
4.
5.

C. Skill or expertise
D. Poor service quality
E. Customer satisfaction

The stereotypical automobile dealership uses tactics like
high pressure and bargaining to get customers to buy.
This is an example of _____________.
1.
2.
3.
4.
5.

A. Production orientation
B. Selling orientation

C. Marketing orientation
D. Buzz marketing orientation
E. Business orientation

Last year, a professional golfer made $100,000,000 dollars
from celebrity endorsements. This illustrates why
many people think of marketing as primarily about
______________.
1.
2.
3.
4.
5.

A. Adding costs to products
B. Overstating claims
C. Advertising
D. Pushy salespeople
E. Celebrities sponsor the best products

Bryan gets reduced fees for his daughter's piano lessons by
maintaining her teacher's web site. Bryan is practicing
the central tenet of marketing called ____________.
1.
2.
3.
4.
5.

A. Value

B. Exchange
C. Growth
D. Sustainability
E. Barter

Companies that conduct research using focus groups,
consumer surveys, and in-person interviews most
likely have a ____________.
1.
2.
3.
4.
5.

A. Production orientation
B. Selling orientation
C. Marketing orientation
D. Buzz marketing orientation
E. Business orientation


Creating, communicating, delivering and exchanging
offerings that have value may be thought of as
___________________.
1.
2.
3.
4.
5.


A. The marketing mix or 4 Ps
B. The firm's strategic plan
C. Sales orientation
D. Production orientation
E. Exchange

Companies that promote sustainability practices like
Starbucks, that has a stringent recycling program, or
General Electric, that makes compact fluorescent light
bulbs (CFLs), are practicing ______________.
1.
2.
3.
4.
5.

A. Green marketing
B. Public relations
C. Publicity
D. Shotgun marketing
E. One-to-one marketing

Peter Drucker, the father of modern management, stated that
the only purpose of an organization is _____________.
1.
2.
3.
4.
5.


A. To create products
B. To make products affordable and accessible to the majority of the public
C. To improve the quality of life for all people
D. To create a customer
E. To respect the environment

AMA's second official definition of marketing was released in
______.
1.
2.
3.
4.

A. 1925
B. 1948
C. 1967
D. 1985

The Clean-O company makes an all-purpose cleaner for the
hospital and nursing home market that is guaranteed
to kill 99% of staphylococcus germs, a major concern
for medical facilities. The company is not interested in
pursuing the consumer market. Clean-O has adopted a
___________.
1.
2.

A. Market orientation
B. Mass customization orientation



3.
4.
5.

C. Differentiation orientation
D. Relationship orientation
E. Product orientation

__________ is not a marketing function.
1.
2.
3.
4.
5.

A. Research
B. Advertising
C. Brand development
D. Public relations
E. Research and development

70 Free Test Bank for Marketing Management 1st
Edition by Marshall Multiple Choice Questions Page 2
The long-term objective of strategic marketing is
____________.
1.
2.
3.
4.

5.

A. Customer satisfaction at all costs
B. Profitability through building a customer-oriented organization
C. Understanding where the company with be in 10, 20, 30 years
D. Getting ahead while doing well in society
E. Studying the competition

XYZ department store advertises the "biggest sale of the
year" every weekend and offers extra bargains to early
bird customers. ABC department store advertises
seasonal sales and employees send handwritten notes
to customers who spend more than a certain amount
of money. This implies that
_______________________.
1.
2.
3.

A. XYZ is short-term oriented and ABC is long-term oriented
B. XYZ is focused on selling and ABC is focused on relationship building
C. Both firms are trying to achieve the same goal of profitability so tactics do not
matter.
4. D. XYZ must be more successful since it advertises every week
5. E. Both a and b


Sheila and Barbara are billing department managers in a call
center. Senior management has given employees only
a limited amount of time to spend with each customer

who phones. Sheila and Barbara want to make
strategic marketing changes. They must have the
support of ____________ in order to succeed.
1.
2.
3.
4.
5.

A. The sales force
B. Top management
C. Top management and middle management
D. Frontline personnel
E. Everyone in the organization

Kraft Foods planned to introduce more than 80 new products
in 2008. This illustrates Fred Wiersema's new market
reality of ____________________.
1.
2.
3.
4.
5.

A. Competitors proliferate
B. All secrets are open secrets
C. Innovation is universal
D. Information overwhelms and depreciates
E. Easy growth makes hard times


State Farm Insurance offers products through a network of
16,000 independent agents. Assume that the company
wants to launch a marketing campaign towards college
students. Which marketing tactic would you
recommend?
1.
2.
3.
4.
5.

A. TV advertising during the evening news
B. Sponsoring National Public Radio during morning drive time
C. Setting up a My Space contest to win gas money
D. Sponsorship of a Rolling Stones concert tour
E. Direct mail

The concept of engaging in a learning relationship with
customers and directing the firm's resources to
making each product or service to feel tailored is
known as ____.
1.
2.
3.
4.
5.

A. Market orientation
B. Product orientation
C. Differentiation orientation

D. One-to-one marketing orientation
E. Relationship orientation


Generational shifts impact marketing in terms of human
resources. Older and younger generations may have
_________________.
1.
2.
3.
4.
5.

A. Different attitudes towards work life versus family life
B. Expectations about job satisfaction and rewards
C. Preferred modes of learning and working
D. All of the above
E. None of the above

Today many CEOs and shareholders expect to measure
results of marketing efforts because ___________.
1.
2.
3.
4.
5.

A. Marketing metrics today are designed to assign specific results to specific
marketing programs
B. They are unrealistic in believing that all marketing is measurable

C. It is easy to do
D. All of the above
E. A and C

In a series of chatty podcasts called "Talking About the
Benjamins", Michael Patrick Duffy, CEO of a credit
union, offered tips on money management to increase
membership. Most likely these talks were aimed at
___________.
1.
2.
3.
4.
5.
6.

A. Tweens
B. Gen X
C. Gen Y
D. Silent Generation
E. Young Boomers
F. Older Boomers

In 2008, Verizon announced its intentions to purchase Alltel
Wireless. This illustrates Fred Wiersema's new market
reality of ____________________.
1.
2.
3.
4.

5.

A. Competitors proliferate
B. All secrets are open secrets
C. Innovation is universal
D. Information overwhelms and depreciates
E. Easy growth makes hard times

_______________ is an example a market-driving firm.
1.
2.
3.

A. Apple
B. Microsoft
C. Disney


4.
5.

D. None of the above
E. A, B, and C

The wristwatch industry was surprised when consumers
began telling time by looking at their cell phones. This
trend is identified by Wiersema's new market reality of
_____________________.
1.
2.

3.
4.
5.

A. Increase in demand
B. Customers have less time than ever
C. Information overwhelms and depreciates
D. All secrets are open secrets
E. Competitors proliferate

Relationship-oriented firms are _______________;
1.
2.

A. Driven by meeting this quarter's financial projections
B. Seeking the most profitable customers who are highly satisfied with the firm's
offering
3. C. Constantly investing in new customers and hope they become long-term
4. D. Often scrambling to replace lost customers
5. E. Trying to retain all customers

Southwest Air was the only airline in the U.S. that did not
lose money in the year following the 9/11 terrorist
attacks on the United States in 2001. This decision
most likely reflects the company's _____________.
1.
2.
3.
4.
5.


A. Advertising budget
B. Marketing (Big M)
C. Marketing (little m)
D. Relationship orientation
E. Sales orientation

Customer Relationship Management is designed to
__________.
1.
2.
3.
4.
5.

A. Assign a sales representative to a particular customer
B. Allow software to manage marketing
C. Facilitate higher levels of customer satisfaction
D. Identify the most profitable customers
E. C and D

Jim got over 21 million hits when he visited a search engine
to find out how to build his own web site. This trend is
identified by Wiersema's new market reality of
_____________________.
1.

A. Easy growth makes hard times



2.
3.
4.
5.

B. Customers have less time than ever
C. Information overwhelms and depreciates
D. All secrets are open secrets
E. Competitors proliferate

There are about ___________ of new packaged goods
products introduced each year.
1.
2.
3.
4.
5.

A. 10,000
B. 25,000
C. 50,000
D. 100,000
E. over 500,000

Jack wants to get his new computer from the most famous
mass customization marketer. He should purchase
from __________.
1.
2.
3.

4.
5.

A. Compaq
B. Hewlett–Packard
C. Apple
D. Dell
E. Gateway

In order for Marketing (Big M) to succeed, it must be
championed by __________.
1.
2.
3.
4.
5.

A. The sales force
B. Top management
C. Top management and middle management
D. Frontline personnel
E. Everyone in the organization

__________ is not one of the new market realities identified
by Fred Wiersema.
1.
2.
3.
4.
5.


A. Increase in demand
B. Customers have less time than ever
C. Information overwhelms and depreciates
D. All secrets are open secrets
E. Competitors proliferate

Starbucks does not use advertising to promote its stores.
This decision most likely reflects the company's
_____________.
1.
2.
3.
4.

A. Advertising budget
B. Marketing (Big M)
C. Marketing (little m)
D. Relationship orientation


5.

E. Sales orientation

The purpose of marketing metrics is to ____________ key
benchmarks for improvement just as financial metrics
guide the financial management of the firm.
1.
2.

3.
4.
5.

A. identify
B. track
C. evaluate
D. provide
E. all of the above

The Internet has made it easy for customers to access
information, disinformation, post their opinions and
read other people's opinions. From a marketer's point
of view, this has caused _______.
1.
2.
3.
4.
5.

A. A shift to product glut and customer shortage
B. A shift in generational values and preferences
C. A shift in power from marketers to consumers
D. A shift to demanding return on marketing investment
E. A shift to Marketing (Big M) and marketing (little m)

Many companies today pay their advertising agencies based
on how much sales or market share increase after a
particular advertising campaign is executed. This most
likely occurs because _____________.

1.
2.

A. Marketing is viewed internally as an investment
B. There has been an increased demand for marketing accountability by CEOs
and shareholders
3. C. Effective planning requires metrics
4. D. If it can't be measured, it can't be managed
5. E. All of the above

The average American eats out ___ times a week.
1.
2.
3.
4.
5.

A. 3
B. 5
C. 7
D. 8
E. 12

The average consumer is exposed to about ___________
paid commercial messages every day.
1.
2.
3.

A. 500—1,000

B. 1,000—2,000
C. 600—3,000


4.
5.

D. 2,000—4,000
E. over 4,000

All internal organizational practices should be aligned
around ____.
1.
2.
3.
4.
5.

A. The billing system
B. Management
C. Manufacturing
D. The customer
E. Information technology

Customer orientation must be understood by
_____________.
1.
2.
3.
4.

5.

A. The sales force
B. Top management
C. Top management and middle management
D. Frontline personnel
E. Everyone in the organization

When Chili's, TGI Friday's , Outback Steakhouse and other
fast-casual restaurants began offering curbside
delivery for call-in customers, the trend seemed
unnoticed by the ‘fast-food' chains like McDonalds.
This illustrates Fred Wiersema's new market reality of
____________________.
1.
2.
3.
4.
5.

A. Competitors proliferate
B. All secrets are open secrets
C. Innovation is universal
D. Information overwhelms and depreciates
E. Easy growth makes hard times

Walk into almost any grocery store today and the first thing
you may see is ready-to-eat meals. This trend is
identified by Wiersema's new market reality of
_____________________.

1.
2.
3.
4.
5.

A. Increase in demand
B. Customers have less time than ever
C. Information overwhelms and depreciates
D. All secrets are open secrets
E. Competitors proliferate

_____________ is not part of the marketing mix.
1.
2.

A. Product
B. Distribution


3.
4.
5.

C. Promotion
D. Price
E. Manufacturing

(Little m) marketing includes ____________.
1.

2.
3.
4.
5.

A. Marketing strategy
B. Advertising
C. Brand image
D. A and C
E. B and C

Strategic marketing refers to __________________.
1.
2.
3.
4.
5.

A. The firm's commitment to long-term growth through internal focus on production
and customer satisfaction
B. Working with competitors, when appropriate, and with suppliers
C. Understanding the market, competitors, and other external forces, and focus on
internal capabilities to plan for the future
D. Making a non-wavering commitment on which customers to serve
E. The study of promotion, distribution, delivery, and production

High tech media options like cell phones and the internet
have had a huge impact the ________ aspect of
marketing
1.

2.
3.
4.
5.

A. Product
B. Promotion
C. Price
D. Distribution
E. Research

Marketing today is ____________.
1.
2.
3.

A. Essentially the same as 20 years ago
B. Not impacted by the rest of the world
C. Seeks to add value by understanding the past of marketing and change drivers
for the future
4. D. So confusing no one understands it
5. E. Accountable only to shareholders and management


Free Text Questions
Which two brands do you think do a good job of connecting
emotionally to the consumer? Support your answer
with examples of what the firm has done to make that
emotional appeal to the consumer. Can you defend
your claims with tactics in addition to advertising?

Answer Given

Example: ● iPod had great advertising from Day 1 with the dancing silhouettes. I
want to be cool and have as much fun as the people listening in the ads! iPhones
led the way in user-friendly technology convergence. Apple has an image of being
a rebel, cooler, and anti-establishment. Look at the ads for Apple computer and
Microsoft. MS is painted as a stodgy conservative company and the products don't
work as well as Apple's do. Apple goes to great length to keep products top-secret
until they are released. In fact, the press gives the company so much free publicity
that people line up hours before retailers open to say they got and iPod or iPhone
on the first day.

Define societal marketing and give an example of a firm that
practices it.
Answer Given

Societal marketing refers to marketing that views society at large as a stakeholder.
One example in the forefront today is many firms' emphasis on green marketing.
These firms are committed to communicating sustainability practices to the public.
One example is GE's ‘Imagineering' advertising.

Give an example of an industry or firm that has transformed
environmentally harmful products to environmentally
friendly products.
Answer Given

The air conditioning industry stopped using the hazardous product Freon and
began to use Puron, a refrigerant that reduces chlorine emissions and the
depletion of the ozone layer.


Identify marketing stakeholders.
Answer Given

Any person inside or outside the firm with whom marketing interacts, impacts, and
is impacted by. This includes all internal stakeholders—like finance, accounting,
production, etc. and external stakeholders—customers, shareholders, vendors,
governmental bodies, and labor unions.

What does "everyone in the firm owns marketing" mean?
Answer Given


It means that anyone in the company may interact with customers, suppliers, and
other stakeholders. All employees represent the brand and need to be trained to
think about their interactions this way.

Give an example of a brand to which you have an emotional
attachment. What has the firm done to create that
emotional appeal?
Answer Given

Answers with vary depending on the student. Examples are as follows: Coors
Light beer is a brand that students seem to like because of the funny advertising
campaign on TV. Budweiser is another brand that has created tug-at-theheartstrings ads like the one where the dog trains the Clydesdale so that he can
make the team!

How does the American Marketing Association define
marketing?
Answer Given


Marketing the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.

What conditions existed after World War II that caused the
marketing concept to emerge? What marked the
transition from the selling concept to the marketing
concept?
Answer Given

● Pent-up demand for consumer goods and services after the war; ● Euphoric
focus on family and a desperate need to regain a normalcy of day-to-day life after
years of war (which, of course, ultimately produced the Baby Boomer generation);
● Opening up of production capacity dominated for years by war production; ●
Advent of readily available mainframe computing capability, and especially the
associated statistical analytic techniques that allowed for more sophisticated
market research. In the 1950s, these forces, combined with growing frustration
with high pressure selling sparked a shift in the focus of American business.

Long-term oriented firms need to be aware of change drivers
that most likely will have a significant impact on the
future of marketing and business in general. What
areas of shift do you recommend these firms study?
Answer Given

● Shift to product glut and customer shortage; ● Shift in information power from
marketer to customer; ● Shift in generational values and preferences; ● Shift to
demanding return on marketing investment; ● Shift to Marketing (“Big M”) and
marketing (“little m”)



State Farm Insurance offers products through a network of
16,000 independent agents. Assume that the company
wants to launch a marketing campaign towards college
students. What does State Farm need to know about
the way Gen X communicates? What marketing tactics
would you recommend and why?
Answer Given

SF should recognize that a generational shift in values and preferences has
occurred. Gen X is much less likely to value the personal relationships their
parents and grandparents have with their insurance agents. Gen X is much more
receptive to electronic commerce. SF should make it easy to apply for coverage
and pay bills online. The company may try to reach college students through My
Space or Facebook or hiring a text messaging marketing firm.

How has the Internet empowered customers? Give an
example.
Answer Given

The Internet has provided people all over the world with information at their
fingertips. Pricing has become more transparent, the availability of products has
increased, and anyone can share an opinion of a product, service, person,
government, or idea. For example, Amazon.com allows customers to rate
products.

Firms such as General Electric and Starbucks try to practice
the concept of "doing well by doing good". What does
this mean? What are some of the challenges faced by
a firm that wants to create products that fit this

concept?
Answer Given

● Some industries have more trouble than others in creating environmentally
responsible products (Freon vs. Air Nike shoes); ● minimize environmental waste

Bedtime Mattress Company is sales-driven. The company
has high levels of employee turnover, frequent sales,
and is short-term oriented. What do you believe
management should know about Big M Marketing and
little m marketing?
Answer Given

Big M is strategic marketing, which means a long-term, firm-level commitment to
investing in marketing – supported at the highest organization level – for purpose
of enhancing organizational performance. Little m serves the firm and its


stakeholders at a functional or operational level – hence marketing (little m) might
be thought of as tactical marketing. Marketing (little m) takes place at the
functional or operational level of a firm.

Paul and Bryce are writing a business plan to submit to a
bank to ask for a loan to start a French restaurant. Paul
has worked in finance for five years and Bryce is a
chef. Unfortunately, neither has much experience in
marketing and they think that marketing equals
advertising. They have asked you to explain the
marketing concept as it is viewed today. What do you
say?

Answer Given

The 2007 AMA definition: ● Focuses on the more strategic aspects of marketing,
which positions marketing as a core contributor to overall firm success; ●
Recognizes marketing as an activity, set of institutions, and processes – that is,
marketing is not just a "department" in an organization; ● Shifts the areas of
central focus of marketing to value – creating, communicating, delivering, and
exchanging offerings of value to various stakeholders

Discuss the difference in being market-driven and marketdriving. Give examples of each.
Answer Given

A firm that is market-driven seeks to understand current customer needs and
wants and finds ways to fulfill them. Southwest Airline is a good example of a firm
that understands passengers want to spend little time in the gate area, get on and
off a plane as quickly as possible, and obtain luggage without delays. A marketdriving firm seeks to fulfill needs that the consumer does not realize exist or are
possible. Apple changed the way consumers look at telecommunication when it
introduced the iPhone. It created a new market.

How can a firm create marketing-driving strategies? Give an
example.
Answer Given

Apple uncovered needs that consumers did not know they had. When Apple
launched the iPhone, many non-Apple computer users lined up to get the phone
and paid a premium price for a device that made it easy to use a phone, camera,
the Internet, and created a new market.