Exam 1: Marketing: The Art and Science of Satisfying Customers

Define marketing myopia, and describe how a company can overcome a myopic view.Give an example of a company before and after changing its view.

What is the major difference between the sales era and marketing era?

The expanded concept of marketing assumes the marketing effort will proceed in a socially responsible manner and the needs of society will be addressed before the needs of the shareholders.

How many not-for-profit organizations are there in Canada?

The Canadian Armed Forces sending military personnel out to make a public appearance at the Grey Cup is an example of organization marketing.

Melissa is managing the campaign of her friend for the presidency of the student council.What type of marketing is Melissa's effort an example of?

Interactive promotions put customers in control because they can easily obtain tips on product usage and answers to customer service questions; they can also tell the company what they like or dislike about a product and move on to another area of the Web.

What function is Future Shop performing when it sells a person a new television or DVD player?

Mobile marketing is a term used to describe marketing messages sent via wireless technology.

The buying function of marketing involves advertising, personal selling, and sales promotion in the attempt to match products and services to consumer needs.

When determining product costs, marketing expenses will amount to approximately one-half of the total cost of the product.

The existence of the World Trade Organization, the passage of the North American Free Trade Agreement, and the creation of the euro are examples of protectionism on the part of nations concerned with increased globalization of the marketplace.

"Lifetime value of a customer" is the measure of the revenues and intangible benefits that a customer brings to an organization over an average lifetime.

The Gap's sponsorship of the "Product Red" campaign to combat AIDS in Africa is an example of a for-profit organization linking its products to a social objective in cause marketing.

Relationship marketing classifies its customers in terms of the strength of the organization-to-customer relationship.The following customer relationship ladder outlines the type of relationships and the degree of commitment: customer < regular purchaser < loyal supporter < advocate.

Define relationship marketing and provide an example.

What is an advocate? What are the steps in converting a new customer into an advocate?

In today's competitive environment, attracting new customers is important, but maintaining loyal customers is even more critical.

Relationship marketing broadens the scope of external marketing relationships to include suppliers, customers, and referral sources.

Freedom to focus on altruistic goals, rather than profitability alone, allows not-for-profit organizations flexibility to operate successfully without the use of recognized marketing principles.