Download CHAPTER 1 An Overview of Marketing

CHAPTER GUIDES and QUESTIONS
PART ONE
THE WORLD OF MARKETING
1
An Overview of Marketing
2
The Marketing Environment and Marketing Ethics
3
Developing a Global Vision
2
Chapter 1  An Overview of Marketing
CHAPTER 1
An Overview of Marketing
LEARNING OBJECTIVES
1
Define the term “marketing”
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual and organizational objectives.
2
Describe four marketing management philosophies
Four competing philosophies strongly influence the role of marketing and marketing activities within an organization.
These philosophies are commonly referred to as production, sales, marketing, and societal marketing orientations.
The production orientation focuses on internal efficiency to achieve lower prices for consumers. It assumes that price
is the critical variable in the purchase decision.
A sales orientation assumes that buyers resist purchasing items that are not essential and that consumers must be
persuaded to buy.
The marketing orientation is based on an understanding that a sale predominantly depends on the customer’s
decision to purchase a product and on the customer’s perception of the value of that product. Responsiveness to customer
wants is the central focus of the marketing orientation.
The societal marketing orientation holds that the firm should strive to satisfy customer needs and wants while
meeting organizational objectives and preserving or enhancing both the individual’s and society’s long-term best
interests.
3
Explain how firms implement the marketing concept
To implement the marketing concept successfully, management must embrace and endorse the concept and encourage its
spread throughout the organization. Changing from a production or sales orientation to a marketing orientation often
requires changes in authority and responsibility as well as front-line experience for management.
4
Describe the marketing process and identify the variables that make up the marketing
mix
Marketing managers are responsible for a variety of activities that together represent the marketing process. These
include: matching the role of marketing with the firm=s vision and mission, setting objectives, analyzing internal and
external information, developing strategy, planning a marketing mix, implementing strategy, designing performance
measures, and evaluating and adjusting strategy.
5
Describe several reasons for studying marketing
Marketing provides a delivery system for a standard of living, which is a monumental task in a society such as the United
States, where a typical family consumes 2.5 tons of food per year.
No matter what an individual’s area of concentration in business, the terminology and fundamentals of marketing are
important for communicating with others in the firm.
Between one-fourth and one-third of the entire civilian work force in the United States performs marketing activities.
Marketing offers career opportunities in areas such as professional selling, marketing research, advertising, retail buying,
distribution management, product management, product development, and wholesaling.
As a consumer of goods and services, everyone participates in the marketing process every day. By understanding
marketing, one can become a more sophisticated consumer.
Chapter 1  An Overview of Marketing
3
PRE-TEST
Answer the following questions to see how well you understand the material. Re-take it after you review to check
yourself.
1.
Marketing is defined as:
2.
What five conditions must be satisfied for any kind of exchange to take place?
3.
The four variables of the marketing mix are: _____________________________________________. Which is the
most important variable?
4.
Four marketing management philosophies are:
5.
List seven steps in the marketing process:
6.
Name four reasons for studying marketing:
4
Chapter 1  An Overview of Marketing
CHAPTER OUTLINE
1
Define the term “marketing”
I.
What Is Marketing?
A.
Marketing is not the same as selling or advertising.
B.
Marketing includes selling, advertising, making products available in stores, arranging displays,
maintaining inventories, and much more.
C.
Marketing is a philosophy or a management orientation that stresses the importance of customer
satisfaction, as well as the set of activities used to implement this philosophy.
D.
The American Marketing Association definition of marketing:
Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational
goals.
1.
The Concept of Exchange
The concept of exchange means that people give up something in order to receive something
that they would rather have.
The usual medium of exchange is money. Exchange can also be fostered through barter or
trade of items or services.
a.
Five conditions must be satisfied for an exchange to take place:
1.
2.
3.
4.
5.
There must be at least two parties.
Each party must have something the other party values.
Each party must be able to communicate with the other party and deliver
the goods or services sought by the other trading party.
Each party must be free to accept or reject the other’s offer.
Each party must want to deal with the other party.
Exchange may not take place even if all of these conditions exist, but these
conditions are necessary for exchange to be possible.
2
Describe four marketing management philosophies
II.
Marketing Management Philosophies
Four competing philosophies strongly influence an organization’s marketing activities. These philosophies are
commonly referred to as production, sales, marketing, and societal orientations.
A.
Production Orientation
The production orientation focuses on internal capabilities of the firm rather than on the desires and
needs of the marketplace. The firm is concerned with what it does best, based on its resources and
experience, rather than with what consumers want.
Chapter 1  An Overview of Marketing
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.
B.
Sales Orientation
A sales orientation assumes that more goods and services will be purchased if aggressive sales
techniques are used and that high sales result in high profits.
C.
The Marketing Concept and Market Orientation
1.
This philosophy, called the marketing concept, states that the social and economic
justification for an organization’s existence is the satisfaction of customer wants and needs
while meeting organizational objectives.
2.
The marketing concept involves:
a.
b.
c.
3.
Firms that adopt and implement the marketing concept are said to be market oriented.
Market orientation requires
a.
b.
c.
d.
Top management leadership
A customer focus
Competitor intelligence
Interfunctional coordination to meet customer wants and needs and deliver superior
values
Understanding your competitive arena and competitor’s strengths and weaknesses is a critical
component of market orientation.
Market-oriented companies are successful in getting all business functions together to deliver
customer value.
4.
5.
D.
Focusing on customer wants and needs so the organization can differentiate its
product(s) from competitors’ offerings
Integrating all the organization’s activities, including production, to satisfy these
wants and needs
Achieving long-term goals for the organization by satisfying customer wants and
needs legally and responsibly
Marketing Societal Orientation
1.
The philosophy called a marketing societal orientation states that an organization exists not
only to satisfy customer wants and needs and to meet organizational but also to preserve or
enhance individual’s and society’s long-term best interests.
This orientation extends the marketing concept to serve three bodies rather than two:
customers, the organization itself, and society as a whole.
2.
3
Explain how firms implement the marketing concept
III.
Considerations in Implementing Marketing Concept
A.
Customer Value
1.
2.
3.
Customer value is the ratio of benefits to the sacrifice necessary to obtain those benefits.
Creating customer value is a core business strategy of many successful firms.
Marketers interested in customer value
a.
b.
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Offer products that perform
Give consumers more than they expect
Chapter 1  An Overview of Marketing
c.
d.
e.
B.
Avoid unrealistic pricing
Give the buyer facts
Offer organization wide commitment in service and after-sales support
Customer Satisfaction
Customer satisfaction is the feeling that a product has met or exceeded the customer’s
expectations. The organizational culture focuses on delighting customers rather than on
selling products.
C.
Building Relationships
Relationship marketing is a strategy that entails forging long-term partnerships with
customers and contributing to their success.




1.
The Internet is an effective tool for generating relationships with customers.
Customers benefit from stable relationships with suppliers.
A sense of well-being occurs when one establishes an ongoing relationship with provider.
Most successful relationship marketing strategies depend upon: customer-oriented personnel,
effective training programs, employees with authority to make decisions and solve problems,
and teamwork.
Customer-Oriented Personnel
All employees in marketing-oriented firms must be customer-oriented for the customer
satisfaction goals to be met. Often one employee is the only contact a customer has with a
company.
2.
The Role of Training
Leading marketers recognize the role of employee training in customer service. In order to
have full participation and understanding of the marketing philosophy, companies such as
Walt Disney World, McDonald’s, and American Express train all their employees to become
customer-oriented.
3.
Empowerment
Empowerment is the practice of giving employees expanded authority to solve customer
problems as they arise. This technique improves customer service by improving
responsiveness.
4.
Teamwork
Teamwork entails collaborative efforts of people to accomplish common objectives.
4
IV.
Describe the marketing process and identify the variables that make up the marketing
mix
The Marketing Process
Marketing includes the following activities:
 Gathering, analyzing, and interpreting information about the environment (environmental scanning)
 Understanding the organization’s mission and vision, and the role marketing plays.
Chapter 1  An Overview of Marketing
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 Finding out what benefits people want the organization to deliver and what wants they want the organization to
satisfy (market opportunity analysis)
 Developing marketing strategy by deciding exactly which wants and whose wants the organization will try to
satisfy (target market strategy); setting marketing objectives; and by developing appropriate marketing
activities to satisfy the desires of selected target markets.
 Implementing the marketing strategy
 Periodically evaluating marketing efforts and making changes if needed.
A.
Environmental Scanning
Environmental Scanning is the collection of information about a variety of factors that have impact on the
firm’s operations. It helps the firm identify market opportunities and threats. Categories of uncontrollable
environmental factors are:
 Social forces
 Demographic forces
 Economic forces
 Technological forces
 Political and legal forces
 Competitive forces
B.
Organizational Mission
A critical success factor of any firm is a clear statement of the organizations purpose and mission. This
statement defines the boundaries of the firm’s objectives, strategies, and actions.
C.
Market Opportunity Analysis
Market opportunity analysis describes market segments of interest to the firm. It also estimates the size and
slaes potential of these segments and assesses key competition in the same segments.
D.
Marketing Strategy
Marketing strategy has these basic components:
1.
2.
E.
8
Selecting one or more target markets
Setting marketing objectives
Developing and maintaining a marketing mix
1.
Target market strategy. Three types of targeting strategy are most common:
a. Appeal to entire market with single marketing mix
b. Concentrate on a single market segment
c. Appeal to multiple marketing with multiple mixes
2.
Marketing objectives. Marketing objectives state what is to be accomplished through marketing
activities.
a. Characteristics
1) consistent with organizational objectives
2) measurable
3) bound by a timeframe in which they are to be accomplished
b. Benefits
1) can energize the firm’s personnel
2) can serve as standards of performance
3) in writing, they help sharpen and crystallize managers’ thinking
3.
Marketing mix. The marketing mix consists of four elements (the 4 P’s)
Chapter 1  An Overview of Marketing
a.
b.
c.
d.
Product – includes product itself AND its packaging, service, warranty, and brand/company image
Distribution (place) – all activities concerned with storing and transporting products
Promotion – personal selling, advertising, sales promotion and public relations
Price – what buyer must give up to obtain a product (most flexible element of the mix)
5
Describe several reasons for studying marketing
VI.
Why Study Marketing?
A.
Marketing Plays an Important Role in Society
Marketing provides a delivery system for a complex standard of living. The number of transactions
needed everyday in order to feed, clothe, and shelter a population the size of the one in the United
States is enormous and requires a sophisticated exchange mechanism.
B.
Marketing Is Important to Businesses
Marketing provides the following vital business activities
1.
2.
3.
4.
5.
C.
Marketing Offers Outstanding Career Opportunities
1.
2.
D.
Assessing the wants and satisfactions of present and potential customers
Designing and managing product offerings
Determining prices and pricing policies
Developing distribution strategies
Communicating with present and potential customers
Between one-fourth and one-third of the entire civilian work force in the United States
performs marketing activities.
Marketing offers career opportunities in areas such as professional selling, marketing
research, advertising, retail buying, distribution management, product management, product
development, and wholesaling.
Marketing Affects Your Life Every Day
1.
2.
As consumers of goods and services, we participate in the marketing process every day.
Almost 50 cents of every dollar consumers spend goes to pay marketing costs such as market
research, product research and development, packaging, transportation, storage, advertising,
and sales-force expenses.
Chapter 1  An Overview of Marketing
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VOCABULARY PRACTICE
Fill in the blank(s) with the appropriate term or phrase from the alphabetized list of chapter key terms.
customer satisfaction
customer value
empowerment
exchange
environmental scanning
evaluation
4P’s
marketing
marketing concept
1
1.
marketing mix
marketing objectives
marketing strategy
market opportunity analysis
marketing orientation
production orientation
relationship marketing
sales orientation
societal marketing concept
teamwork
Define the term “marketing”
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and
services to create ____________________ that satisfy individual and organizational objectives defines
_____________________________.
2
2.
Describe four marketing management philosophies
There are four alternative marketing management philosophies. The first focuses on the firm’s internal capabilities
rather than the needs and desires of the marketplace; this is the _____________________________. The second
philosophy is the _____________________________, which assumes that buyers resist purchasing nonessential
items, so aggressive sales techniques should be used to sell more products. The third philosophy, focuses on
customer needs and wants, is the _____________________________. Finally, a firm that decides to focus on the
long-term best interests of its customers and society has adopted the _____________________________.
3.
When a firm focuses on customer wants, integrates all firm activities to satisfy these wants, and achieves long-term
goals by satisfying these wants legally and responsibly, the firm is using the _____________________________.
3
4.
Explain how firms implement the marketing concept
Marketers who offer products that perform beyond customer expectations, avoid unrealistic pricing, give consumers
the facts and commit to after-sales support are in creasing _____________________________.
5.
When an organization focuses on meeting and exceeding the needs of customers’ rather than selling products, the
organization will likely achieve _____________________________.
6.
A strategy of forging long-term partnerships with customers, becoming part of the customer’s organization and
contribute to its success is called ___________________________.
7.
When people collaborate their efforts to accomplish common objectives, they are practicing
_____________________________.
8.
Marketing-oriented firms which give their employees expanded authority to solve customer problems immediately
are _____________________________ their workers.
10
Chapter 1  An Overview of Marketing
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9.
Describe the marketing process and identify the elements that make up the marketing
mix
A statement of what is to be accomplished with marketing activities is a(n) _____________________________.
10. The identification of market opportunities and threats to provide guidelines for the design of marketing strategy is
known as _____________________________. Forces identified with this process include social, demographic,
economic, technological, political/legal, and competitive forces.
11. The activities of selecting and describing one or more target markets and developing and maintaining a marketing
mix to satisfy these markets is known as a(n) _____________________________.
12. When marketers want to estimate the size and sales potential of market segments, as well as assess key competitors
in these market segments, they conduct a(n) _____________________________.
13. The unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying
exchanges with a target market is the _____________________________. These elements are also known as the
_____________________________.
14. The phase of the marketing process in which marketers gain the organizational compliance required to put
marketing strategies into action is termed _____________________________. The phase in which marketers gauge
the extent to which objectives have been achieved during a specified time period is the process of
_____________________________.
Check your answers to these questions before proceeding to the next section.
TRUE/FALSE QUESTIONS
Mark the statement T if it is true and F if it is false.
1
Define the term “marketing”
_____
1.
A marketing exchange cannot take place unless each party in the exchange has something that the other
party values.
_____
2.
The process of planning and executing the conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual and organizational needs is management.
2
Describe four marketing management philosophies
_____
3.
The owners of the Stayfast fasteners Company are pleased with their low unit costs and high production
volumes. Salespeople are unnecessary because buyers are always waiting for new tires to come off the
assembly line. Stayfast currently has a great sales orientation.
_____
4.
The president of EOB Putting Devices does not find it necessary to conduct much marketing research
because the telephone selling campaign has been such a successful marketing strategy. EOB has a
marketing orientation.
Chapter 1  An Overview of Marketing
11
_____
3
5.
The marketing manager for International Internet Inc proposes to senior management that the company
create Internet kiosks to be given to poor, isolated groups around the world. She argues that although
this will not likely be profitable anytime in the near future, it will provide needed access to information
for these people and exemplify the company’s long-term goals and societal marketing orientation.
Explain how firms implement the marketing concept
_____
6.
You are about to start manufacturing and selling ferret food. You have met with your board of directors
and discussed consumer benefits and sacrifices regarding the purchase of your food. Knowing the ratio
of benefits to sacrifices allows you to specify how much customer value you will achieve.
_____
7.
As the new marketing major hired by Antiquated Approaches Company, you suggest the company could
profit from repeat sales and referrals if you develop a strategy of forging long-term partnerships with
existing customers. You are proposing the company take a better sales orientation.
4
Describe the marketing process and identify the elements that make up the marketing
mix
_____
8.
The marketing mix variables are product, place, promotion, and price.
_____
9.
You have been hired to collect and analyze information about factors that may affect your new company.
You are also responsible for identifying market opportunities and threats. Your job can be summarized
as “environmental scanning.”
_____
10. Your school of business is engaged in describing and estimating the size and sales potential of market
segments (such as traditional students, executives, and the local community). In addition, the school is
assessing major competitors (such as other colleges and educational programs). Your school is
conducting a market opportunity analysis.
_____
11. A small, independent motion picture studio decides to use theaters to advertise a new artistic movie
release. This is an example of using “place” in the marketing mix.
5
_____
Describe reasons for studying marketing
12. The most important reason to study marketing is to make money.
Check your answers to these questions before proceeding to the next section.
12
Chapter 1  An Overview of Marketing
AGREE/DISAGREE QUESTIONS
For the following statements, indicate reasons why you may agree and disagree with the statement.
1.
The marketing orientation actually encompasses both the sales orientation and the production orientation.
Reason(s) to agree:
Reason(s) to disagree:
2.
Marketing is the job of everyone in a business organization, not just the marketing department.
Reason(s) to agree:
Reason(s) to disagree:
3.
Only students who are majoring in marketing should be required to take marketing courses.
Reason(s) to agree:
Reason(s) to disagree:
Chapter 1  An Overview of Marketing
13
MULTIPLE-CHOICE QUESTIONS
Select the response that best answers the question, and write the corresponding letter in the space provided.
1
Define the term “marketing”
_____
1.
Which of the following is true about marketing?
a. Marketing is a philosophy that stresses producer satisfaction.
b. Marketing is a product.
c. Marketing involves everyone in an organization.
d. Marketing is used for products only.
e. Marketing involves projects, profits, production, and distribution.
_____
2.
Go-Go International wants to sell their products in a country that does not have an internationally
accepted currency. One way Go-Go could overcome this problem would be to:
a. insist the country join the World Trade Organization
b. barter for a product from the country and then sell it in international markets.
c. encourage the country to adopt the U.S. dollar as their currency.
d. get the U.S. government to accept the country’s currency.
e. organize assistance so the country can improve its international credibility.
_____
3.
If you were in the marketing consulting business which of the following clients could you NOT serve?
a. The Boston Museum of Science, which needs to determine what exhibits should it offer visitors
b. The State of Mississippi, which needs to attract tourists
c. Dr. Susan Scott, an orthopedic surgeon wishing to open a practice in your home town
d. The World Gym, which needs to determine where to locate its next outlet for customers
e. All of the above could be served by a marketing consultant
_____
4.
You are concerned with managing the exchange between the Red Cross and its blood donors. Which of
the following costs would you have to be concerned about to create the ideal exchange?
a. The travel costs incurred by donors visiting the Red Cross blood donation sites.
b. The personal energy and time expended by the donor
c. Your opportunity costs lost by not engaging in some other activity
d. All of the above are marketing costs that would be of concern to someone managing the exchange
situation
e. None of the above are costs of exchange situations
2
Describe four marketing management philosophies
_____
5.
Florence Rock, the owner of Yesterday Products, Inc. is production-oriented. If you were in charge of
her marketing operations, which of the following statements might you use as a guiding principle if you
wish to meet Ms. Rock’s demand?
a. “I’m a customer and everyone is like me. I buy on price, therefore everyone does, as well.”
b. “We need to buy the fastest production equipment as possible to raise productivity and keep prices
at the lowest possible level.”
c. “We produce the best widgits in the market place.”
d. All of the above would be consistent with Mr. Stone’s demands.
e. None of the above would be consistent, because all reflect a sales orientation.
_____
6.
Peter’s company does an excellent and efficient job of churning thousands of Nit-Pickers off the
assembly line every day. One problem with this approach to marketing is the failure to consider whether
Nit-Pickers also meet the needs of the marketplace.
a. customer orientation
b. sales orientation
c. discount orientation
d. marketing orientation
e. production orientation
14
Chapter 1  An Overview of Marketing
_____
7.
Jacque Lewellyn’s company markets gourmet syrups. Jack knows that buyers may consider the product
nonessential, and he assumes that if he hires a team of aggressive, persuasive salespeople, buyers will
buy more of the polish. Jacque has a:
a. sales orientation
b. production orientation
c. promotion orientation
d. marketing orientation
e. customer orientation
_____
8.
Beth has noticed the lack of specialty recycling centers in her community, although local neighborhood
clubs have repeatedly asked the city to provide such centers. Beth has decided to become certified in
waste disposal and hopes to open a battery and motor oil recycling center next year. She hopes to
include the innovative service of home pickup and delivery of recyclables. This business philosophy
supports a(n) orientation.
a. production
b. sales
c. retail
d. marketing
e. enterprise
_____
9.
The American Banking Company tells its salespeople to try to sell credit cards to everyone they meet or
contact. In contrast, the Family Financial Company concentrates on credit designed for single parents.
Family Financial is:
a. missing out by not concentrating on the average customer
b. a company that would state that they are in the business of selling insurance
c. a selling-oriented company
d. recognizing that different customer groups have different needs and wants
e. aiming at a goal of profit through maximum sales volume
_____
10. Bob & Gary’s is a contemporary ice cream manufacturer that donates 10 percent of its earnings to the
local United Way organization. Bob & Gary’s has which type of orientation?
a. production
b. sales
c. promotion
d. marketing
e. societal marketing
4
Describe the marketing process and identify the elements that make up the marketing
mix
_____
11. Which of the following is NOT a part of the marketing process?
a. understanding the organization’s mission
b. developing performance appraisals for marketing personnel
c. designing performance measures
d. setting objectives
e. determining target markets
_____
12. As the marketing director for a new pharmaceutical that prevents baldness, you have been asked by the
CEO to provide marketing objectives for the next year. Your product is the second one of its type in the
market. Which of the following is the most appropriate objective?
a. To generate sales of $20 million during the first year of the launch.
b. To attain a market share of 100 percent in the first year.
c. To significantly increase the company’s sales.
d. To be number one in the market for baldness-prevention products.
e. To be known as the best product in the baldness-prevention market.
Chapter 1  An Overview of Marketing
15
_____
13. A power tool company conducted consumer research and describes its customers as being male, 28-55
years of age, married, 62 percent high school graduates, and earners of below-average income. This is
the group of consumers most likely to buy the tools and is referred to as the:
a. social responsibility group
b. exchangers
c. target market
d. advertisees
e. tool men
_____
14. John Porter is the new vice president of marketing and is designing the marketing mix for his company.
The starting point of Mr. Porter’s marketing mix strategy will be the:
a. analysis of what production equipment is available and owned by the company
b. design of the promotion campaign to be used for the product
c. study of the needs of his target market
d. development of the good or service to be sold
e. determination of the price to be charged for the good or service, enabling future revenues and
budgets to be estimated
_____
15. Barak Austin is thinking about opening a new hardware and home improvement store in a community
that research has shown needs more outlets. On which area of the marketing mix should he focus his
attention?
a. customer needs/wants
b. production
c. product
d. promotion
e. distribution
_____
16. Diana’s job is to decide whether her company’s advertising money will be spent on television, radio,
newspaper, or direct mail. To which of the four P’s do Diana’s duties relate?
a. publicity
b. price
c. promotion
d. place
e. product
_____
17. Albert must make a quick change to his marketing plan to boost sales, so he should change the
__________ element of the marketing mix?
a. product
b. place
c. price
d. promotion
e. publicity
_____
18. The marketing manager for Oil of Olan, a skin care product, is working with an advertising agency to
develop a new web site targeting teen-agers. Which of the following marketing mix variables best
describes this activity?
a. product
b. price
c. target market
d. distribution
e. promotion
_____
19. Becky’s Bolt Supply has set up a management committee that is arranging the delegation of authority
and responsibility for marketing strategies, determining a time frame for completion of tasks, and
overseeing resource allocation. The task of this committee is:
a. market planning
b. strategic analysis
c. alternative control
d. implementation
e. strategic planning
16
Chapter 1  An Overview of Marketing
5
Describe several reasons for studying marketing
_____
20. Jackie is a food science major at a state university and hopes to operate the family restaurant after
graduation. Jackie has been advised to take a marketing course in the school of business as an elective,
but she thinks this would be a waste of time. You are her friend and a marketing major. You advise that:
a. marketing is not relevant for a business like a family restaurant
b. Jackie declare a business minor because she needs a backup career
c. more nutrition and gourmet cooking classes will be most useful for Jackie
d. the main reason to take marketing is to teach Jackie how to advertise the restaurant
e. marketing knowledge will help Jackie to understand how she can satisfy consumers’ needs and
wants
_____
21. Paul owns a small laboratory that makes biotech products. His company is growing fast, and there are
many things he does not understand about his customers. Should Paul take a marketing course?
a. Yes, because marketing is synonymous with selling, and Paul will want to learn aggressive sales
techniques to continue the company’s growth
b. No, because he can hire an advertising firm and will not need further knowledge of marketing
c. No, because he has a high-tech business and will only be marketing to other tech people.
d. Yes, because the concept of marketing will help Paul to better serve and satisfy his customers
e. Yes, because marketing teaches businesses how to sell products that people don’t need
Check your answers to these questions before proceeding to the next section.
ESSAY QUESTIONS
1.
The concept of exchange is crucial to the definition of marketing. What are the five conditions that must be satisfied
for an exchange to take place? Can marketing occur even if an exchange does not take place?
Chapter 1  An Overview of Marketing
17
2.
Assume you are a marketing manager. Describe the marketing strategy for each of the four orientations of
marketing management philosophy.
3.
Briefly define the marketing process activities.
4.
Your roommate sees you spending extra time studying this book and says, “why all the effort? Marketing is just
sales and advertising.” How do you respond?
18
Chapter 1  An Overview of Marketing
Internet Exercise
Visit your college or university’s web site. Go to the home page and look at the choices, read some of the introductory
information targeted for prospective students. Using the production, sales, marketing, and societal marketing orientations
discussed in Chapter 1, evaluate your university’s orientation. Use examples from the web site to justify your opinion.
CHAPTER NOTES
Use this space to record notes on the topics you are having the most trouble understanding.
Chapter 1  An Overview of Marketing
19
W ORK SPACE
ANSWERS TO THE END-OF-CHAPTER DISCUSSION AND WRITING QUESTIONS
Use this space to work on the questions at the end of the chapter.
ANSWERS TO THE END-OF-CHAPTER CASE
Use this space to work on the questions at the end of the chapter.
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Chapter 1  An Overview of Marketing