Chapter 1An Overview of Marketing

Chapter 1An Overview of MarketingSCENARIOSCircuses

As recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers. An advance man arrived about two weeks before the circus actually arrived, covered the community with posters, and gave out free tickets to school children. If the advance man had done a good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's Greatest Show on Earth began performing in 4,000-seat arenas. Attendance, however, has stagnated in recent years. People have stopped going to the circus because they miss the circus tent and the close intimate atmosphere it created. The newest thing in circuses is a return to the tent atmosphere with an emphasis on the types of entertainment that was popular years ago. Antique circus wagons, calliope music, cotton candy are replacing the exotic animals and the Prima Donna performers. To satisfy the needs of this new audience, the tent circus does sell lattes and wine.

1.Refer to Circuses. The aggressive promotions used by advance men indicate that the circuses two decades ago probably had a _____ orientation.

a.sales

b.market

c.production

d.societal

e.product

REF:p. 5OBJ:2

2. Refer to Circuses. Now circuses are trying to satisfy customers' needs and wants and to profit through customer satisfaction. They have adopted a _____ orientation.

a.societal

b.selling

c.production

d.market

e.retail

REF:p. 6OBJ:2

3.Refer to Circuses. To exhibit a societal marketing orientation, circuses could:

a.rely on publicity and avoid any promotions

b.empower their employees to satisfy customer wants

c.donate a percentage of their profits to local educational institutions

d.use relationship marketing

e.emphasize customer value

REF:p. 7OBJ:2

4.Refer to Circuses. One of the tent venues is called Barnum's Kaleidoscape, and it is in a permanent location with the hopes that people who see the show will want to return and see it again as well as bring their friends and relatives to the production. Which of the following techniques would most likely advance this strategy of referrals and repeat business?

a.relationship marketing

b.empowerment

c.a sales orientation

d.authority to delegate

e.transactional marketing

REF:p. 10OBJ:3. 5.Refer to Circuses. The circuses' goal of redesigning the circus experience is being completed through the coordination of many marketing activities, such as value pricing, a product that includes exciting performances, tent venue locations, and promotion. These activities make up the _____ for the circuses.

a.opportunity analysis

b.value of marketing

c.marketing environment

d.target market

e.marketing mix

REF:p. 14OBJ:4The Delta Faucet Company

Masco is the name of a company that is well-recognized in the construction industry. It produces cabinetry, furniture, lighting, and plumbing fixtures for the upper-end homeowner and builder. One of the divisions of Masco is the Delta Faucet Company, which is the leader in the faucet industry. Delta Faucet was founded in 1955. Over the decades, it has developed a legacy based on well-crafted, high-quality products. Since the 1970s, Delta has focused its energies on building loyalty with the builder marketplace. Research in 2002 showed that while builders respect the Delta faucet for its quality, durability, and dependability, household consumers were not enamored with Delta products. Due to the number of new magazines and television programs devoted to home style, homeowners wanted faucets that were chic and stylish. This was not the image of the Delta Faucet. To change its image, Delta Faucet began a marketing program in which it committed itself to developing new products to appeal to homeowners. It adopted a new slogan, Beautifully Engineered.

6.Refer to Delta Faucet. By showing a willingness to adapt to meet new demands, Delta Faucet exhibited a__________orientation.

a.product

b.sales

c.market

d.societal marketing

e.sustainability

REF:p. 6OBJ:2

7. Refer to Delta Faucet. The marketing program, which Delta designed to develop new products to appeal to homeowners, is evidence of a change in:

a.target market strategy

b.mission statement

c.intermediaries

d.promotion strategy

e.sustainability

REF:p. 13OBJ:4

8.Refer to Delta Faucet. Deltas decision to make more stylish faucets represents a change in the _____ element of its marketing mix.

a.product

b.promotion

c.place

d.production

e.distribution

REF:p. 14OBJ:4

8.Refer to Delta Faucet. Deltas development of a new slogan represents a change in the _____ element of its marketing mix.

a.product

b.promotion

c.place

d.production

e.distribution

REF:p. 15OBJ:4Dateline NBC and GM

In their desire to boost ratings, television news programs have done just about anything. One famous example is the Dateline NBC segment about General Motor's 1973-1987 pickup trucks, which was entitled "Waiting to Explode?" The 15-minute segment contained a short, dramatic portion that featured two side-impact tests which NBC had run to purportedly demonstrate what could happen when the GM pickup trucks are struck in the side. GM sued NBC alleging defamation and damage to its reputation. GM argued that the Dateline segment was an unscientific demonstration, was inappropriate, and does not support the position that GM's trucks are defective. NBC admitted that the crash was rigged and apologized to GM and the Dateline viewers.

10.Refer to Dateline NBC and GM. NBC executives have to be concerned with the long-range welfare of the network and its relationships to viewers. This concern is called:

a.consumerism

b.corporate social responsibility

c.ethical dilemma

d.conventional morality

e.environmental consideration

REF:p. 16OBJ:5

11.Refer to Dateline NBC and GM. By admitting its error and providing a formal apology, NBC achieved which level of the pyramid of corporate social responsibility?

a.philanthropic

b.legal

c.economic

d.moral

e.ethical

REF:p. 18OBJ:5

12.Refer to Dateline NBC and GM. NBC felt that it had an obligation to its viewers to warn them about the possible defects in GM pickup trucks. NBC is operating on a level of:

a.conventional morality

b.social responsibility

c.preconventional morality

d.postconventional morality

e.consumerism

REF:p. 19OBJ:6

13.Refer to Dateline NBC and GM. When people tune in to a television news show, they expect to be told the truth about events covered on the news. The moral principles or values that should generally govern the conduct of the news media are called:

a.ethics

b.legal standards

c.manners

d.governances

e.social responsibility

REF:p. 18OBJ:6

14.Refer to Dateline NBC and GM. NBC apologized and concluded that "unscientific demonstrations should have no place in hard news stories at NBC. That's our new policy." This new policy should be incorporated into NBC's:

a.legal standards

b.code of ethics

c.manners

d.governances

e.consumerism

REF:p. 20OBJ:6BUSINESS DIVISIONBU270 Principles of MarketingChapter 1 An Overview of Marketing

1