MMM CO Essay Example | Topics and Well Written Essays - 750 words

MMM CO - Essay Example trust on the organization, increase the performance efficiency, grab the maximum market share and what strategies a company would implement to approach the customers. Internal drivers comprise of situations where the company is influenced to manage its profitability and retain its customers by applying various internal strategies. The internal drivers within an organization are centered to deliver: According to Michael Porter’s book, ‘Competitive Advantage: Creating and Sustaining Superior Performance† published in 1985, the concept of Value Chain was first coined (Michael Porter). According to this concept, value chain comprise of the entire primary and the secondary activities within an organization that would help the firm to strengthen its position in the market as well as to improve its product or service efficiency within the market. At this stage, it is important for MMM & Co. to focus on all the activities of the organization that are related with the receiving and storing of the raw materials especially those products which are used by the company to produce the end products. The better the inbound logistic system of the company would be, the better would be quality of the products and the raw materials. MMM & Co. needs to focus its attention on the operations within the company that initiate from the manufacturing of the products which involves the receiving of the raw materials and end on the final production. Throughout the operations, the company is in dire need to maintain the flow of the operations smooth as well as, to maintain the control on all the steps. Outbound logistics play a key role in getting the finish products to the customers. It revolves around the handling and shipping of the products from one place to another. The smooth flow of outbound logistics plays a crucial role in determining the profitability of the company. MMM & co. needs to focus its attention on this activity. Marketing and sales stand as the corner stone to

Essay Example | Topics and Well Written Essays - 1000 words - 26

Essay Example Also, when Gregor has turned into a bug, we find the family to be self-sacrificing as well. Even though it distresses her to do so, Gergor’s sister feels a sense of duty to him, and she makes sure he is fed. When at first he cannot eat his favorite meal, his sister does everything that she can in order to find food that he will eat. She loves him, and out of a sense of duty she tries to feed him and keep him alive, even though he no longer resembles the person that he used o be in any way, shape, or form. The family has to sacrifice some of their own food money so that Gregor can eat, and this shows that they love him, even though they can’t stand to look at him. In Robert Frost’s â€Å"Home Burial,† we see two different conceptions of love through the act of mourning. In the poem, a married couple’s child has died, and the grave is on their property. The husband and wife have very different ways of coping with the loss of the child. The wife, Amy, stands at the window and stares at the grave. She is in a constant state of sorrow, and she can barely do anything because she has been so greatly affected. Because of her love for her child, she has grown distant from her husband, who is grieving in a different way. She doesn’t understand this, as she says â€Å"If you had any feelings, you who dug/ With your own hand—How could you?—his little grave† (72-73). To her the only appropriate way to grieve is to show it constantly, to be living it at all times. The husband is still obviously grieving for his child, but he can’t seem to show her that he is. He still loves his child and is in mourni ng, but he doesn’t do so in the same manner as his wife does: â€Å"You—oh, you think the talk is all; I must go—/Somewhere out of this house. How can I make you—â€Å" (112-113). He doesn’t talk about it the way that she does, or

Medical Device Regulations in the European Union

Medical Device Regulations in the European Union INTRODUCTION TO MEDICAL DEVICE REGULATIONS IN THE EUROPEAN UNION: A Medical Device under the jurisdiction of the European Union is defined as â€Å"an instrument, apparatus, appliance, material or other article, whether used alone or in combination, together with any software necessary for its proper application, which a) is intended by the manufacturer to be used for human beings for the purpose of i. diagnosis, prevention, monitoring, treatment or alleviation of disease, ii. diagnosis, monitoring, treatment, alleviation of or compensation for an injury or handicap, iii. investigation, replacement or modification of the anatomy or of a physiological process, or iv. control of conception; and b) does not achieve its principal intended action in or on the human body by pharmacological, immunological or metabolic means†.1 The clinical investigation and the subsequent introduction of a medical device in the European market is primarily regulated and governed by the MHRA (Medicines and Healthcare products Regulatory Agency) with the assistance of competent regulatory institutions called the Notified Bodies. â€Å"A Notified Body is a certification organization which the national authority (the Competent Authority) of a Member State designates to carry out one or more of the conformity assessment procedures described in the annexes of the Directives.†3 The MHRA regulates with the help of two sets of medical device regulations viz. the Statutory Instruments 2002 No.618 (Consolidated legislation) and 2003 No.1697. These legislations employ the three device directives issued by the competent authority into the european law. The directives help the manufacture in better understanding of the manufacturing and the requirments for inroduction into the market of the devices. These directives are: Directive 90/385/EEC: Active Implantable Medical Devices directive Directive 93/42/EEC: Medical Devices directive Directive 98/79/EC: In vitro Diagnostic Medical Device directive Directive 90/385/EEC: Active Implantable Medical Devices directive: This directive encompasses medical devices that are active(i.e powered) and implanted(i.e left in the human body). These include pacemakers, implantable defibrillators, implantable infusion pumps, cochlear implants and implantable neuromuscular stimulators etc. Regulations realizing the Directive came entirely into force in the United Kingdom on January 01 1995. Directive 93/42/EEC: Medical Devices directive: This directive covers an extensive array of devices from uncomplicated bandages to orthopaedic implants and high-end radiology apparatus. Regulations realizing the Directive came entirely into force in the United Kingdom on June 13 1998. Directive 98/79/EC: In vitro Diagnostic Medical Device directive: â€Å"This Directive covers any medical device, reagent, reagent product, kit, instrument, apparatus or system which is intended to be used for the invitro examination of substances derived from the human body, such as blood grouping reagents, pregnancy testing and Hepatitis B test kits. Regulations implementing the Directive came into force in the UK on 7th June 2000 with a transitional period until 7th December 2003. There is no clinical investigation system for in-vitro diagnostic medical devices. Performance evaluations of in vitro diagnostic devices that are performed outside the manufacturers premises should be notified to the UK Competent Authority in accordance with the Medical Devices Regulations 2002: Section 44.†2 The rationale backing these directives is to permit easy movement of the medical devices throughout the European Union whilst upholding high standards of device safety and up-to-the-mark quality. Classification of medical devices: Devices are classified purely based on risk associated with their use. Ranging from low risk to high risk, they are Class I, IIa, IIb and III. A classic example of a class III medical device is a cochlear implant, which is both active and implantable and thus comes under the purview of Directive 90/385/EEC: Active Implantable Medical Devices directive. Let us discuss in detail the regulatory requirments specified as per the MHRA to bring an active implantable cochlear implant into the market designated bt the European Union as the EFTA(European Free Trade Area). â€Å"Examples of AIMDs include: implantable cardiac pacemakers implantable defibrillators leads, electrodes, adaptors for 1) and 2) implantable nerve stimulators bladder stimulators sphincter stimulators diaphragm stimulators cochlear implants implantable active drug administration device catheters, sensors for 9) implantable active monitoring devices programmers, software, transmitters.†4 Cochlear Implants: â€Å"Cochlear implants are electronic hearing prostheses that bypass the damaged hearing components by providing electrical stimulation directly to the auditory nerve fibres in the cochlea. The electrical stimulation is interpreted by the brain as sound. Cochlear implants consist of an external microphone, speech processor and transmitter coil, and an internal stimulator (implanted under the skin just behind the ear) attached to a stimulation electrode which passes into the cochlea. A variation of the cochlear implant is the auditory brainstem implant where electrodes are implanted directly into the auditory area of the brainstem. This can be used in patients who do not have a functional auditory nerve.†5 The regulatory process of bringing a cochlear implant in the European market: It is mandated by law that the manufacturer who intends to bring the device into the EFTA abides by the Essential Requirments stated in the Directive 90/385/EEC: Active Implantable Medical Devices directive and demonstrate the compliance of the device with the safety and efficacy standards set forth in the directive. There are essentially two ways to do it viz. â€Å"either a compilation of the relevant scientific literature currently available on the intended purpose of the device and the techniques employed, together with, if appropriate, a written report containing a critical evaluation of the compilation; or the results and conclusions of a specifically designed clinical investigation†2 Product launch on the basis of evaluation and review of scientific literature can be considered as acceptable if equivalence can be scientifically demonstrated with a device existant in the market and routinely used in clinical practice. Equivalence has to be demonstrated w.r.t technology, critical performance, design, principles of operation, biological safety, population involved, conditions of use and clinical purpose. However, unless satisfactory evidence can be collected by means of scientific literature review, the use of a well-planned clinical trial/investigation should be considered as the best way to attest permissible levels of safety and efficacy. In case of scientific review or pre-clinical assessment, the following fees apply: Class I, IIa, or IIb other than implantable or long-term invasive:  £3,000 (Re-notification incase of objection by MHRA  £2,100). Class IIb implantable or long-term invasive, Class III, and active implantable:  £4,100 (Re-notification incase of objection by MHRA  £2,700). Applications for a proposed clinical investigation of the medical device should be made by filling the forms PCA1 and PCA2 along with the necessary information required by the clauses in the forms. Applications should be labeled clearly as â€Å"documentation only†. The use of English language is mandatory. Documentation should be clear and legible and remain so after reproduction. Electronic applications should be discussed with the MHRA. The manufacturer, for scrutiny by the MHRA should make a total of eight full submission copies available. The charges for the scrutiny of applications are laid out in the Medical Devices Regulations 2002: section 56. They are as follows: â€Å"Fees for Group A (low risk) devices are  £2,700 (initial application) or  £1,800 (resubmission). Increasing to  £3,000 and  £2,100 on 1st April 2008. Fees for Group B (high-risk) devices are  £3,800 (initial application) or  £2,400 (resubmission). Increasing to  £4,100 and  £2,700 on 1 st April 2008.†2 Applications should be forwarded to: Mrs Daniella Smolenska, Medicines Healthcare products Regulatory Agency (MHRA), European and Regulatory Affairs, Market Towers, 1 Nine Elms Lane, London, SW8 5NQ, Tel: 020 7084 3363, Email [emailprotected]. Approval from the MREC (Multi-centre Research Ethics Committee)/LREC (Local Research Ethics Committee) can be obtained along with the notification to the Competent Authority. However, a clinical investigation can begin only after approval has been obtained from the MREC/LREC and the Competent Authority has not raised an objection to the investigation within the 60 days time constraint period; or approval has been obtained from both the authoritative bodies. General Requirements: A well-defined clinical plan whose methodology and ethical considerations conforms to the standards set forth in the Medical Devices Regulations 2002: section 16 and section 29, the Active Implantable Medical Devices Directive, Annexes 6 and 7, and the Medical Devices Directive, Annexes VIII and X. Supplementary standards are set forth in Standard BS EN ISO 14155-1; 2002, â€Å"Clinical Investigation of Medical Devices for Human Subjects-part 1: General Requirements†, and BS EN ISO 14155-2:2002, â€Å"Clinical Investigation of Medical Devices for Human Subjects-part 2: Clinical Plan†. The CA should be notified incase of differences in the EU and non-EU protocols and the reasons for the same. â€Å"All applications must contain a statement (Active Implantable Medical Devices Directive: Annex 6,2.2; Medical Devices Directive: Annex VIII, 2.2): that the device in question conforms to the Essential Requirements except with regard to those aspects of the device that are to be investigated and that in respect of those aspects, every precaution has been taken to protect the health and safety of the patient. By signing this statement, the manufacturer is declaring that the device meets all of the relevant Essential Requirements, other than those subject to the investigation. Manufacturers must therefore ensure that at the time a notification is made to the Competent Authority, they have all documentation required to demonstrate conformity with the relevant Essential Requirements available for submission to the Competent Authority when requested.†2 Device information like name, model, materials used and sterilization standards etc must be provided as set forth in the directive. Pertinent information about the clinical investigation plan, investigation parameters and design, data collection and analysis methods etc. should be made available to the CA. It is strongly advised that Class III devices follow a well-designed post-marketing plan under the Medical Devices Vigilance. Extra care should be taken when labeling devices meant for clinical investigations. â€Å"All devices intended for clinical investigation must bear the wording exclusively for clinical investigation (Medical Devices Directive: annex 1, para 13.3(H) and the Active Implantable Medical Devices Directive: annex 1, 14.1).†2 Reporting of adverse incidents: â€Å"A serious adverse incident is one which: led to a death led to a serious deterioration in the health of the patient, user or others and includes: a life threatening illness or injury a permanent impairment to a body structure or function a condition requiring hospitalisation or increased length of existing hospitalisation a condition requiring otherwise unnecessary medical or surgical intervention and which might have led to death or serious deterioration in health had suitable action or intervention not taken place. This includes a malfunction of the device such that it has to be monitored more closely or temporarily or permanently taken out of service led to foetal distress, foetal death or a congenital abnormality or birth defect might have led to any of the above†2 All such incidents should be recorded and reported to the CA as set forth in the Regulation 16(10)(a) of the Medical Devices Regulations 2002 (SI 618) and Annex X of the Medical Devices Directive 93/42. Final written report: A report in conjunction with the Medical Devices Directive (Medical Devices Regulations 2002: Section 16(10) and Section 29(9)) should be submitted to the CA for devices undergoing investigation for a CE marking. However, Class III devices need to be highly regulated, before, after and during the clinical investigation. Owing to the high risks associated with their use, some say the risk can be quantified only as social and not scientific. â€Å"Risks, rather than being inherent within these implant devices, may be seen as socially derived, in processes of negotiation and conflict such as those in the case of hip and breast implants†¦.most recently, in the wake of the controversies surrounding breast implants and the 3M Capital hip, attention has been drawn to the uneven performance of notified bodies in the EU, which approve new products. This has led to the setting up of a new European Notified Bodies Operations Group (NEBOG) and calls by the MDA for all implants to be reclassified as high risk, Class III. A review of the operation of EU EMDD is also about to begin (MDA, 2001b). It thus appears that increased political scrutiny is being focused on this sector.†6 BIBLIOGRAPHY: THE MEDICAL DEVICES REGULATIONS: IMPLICATIONS ON HEALTHCARE AND OTHER RELATED ESTABLISHMENTS, BULLETIN No. 18, COMPETENT AUTHORITY (UK), Amended January 2006 EC MEDICAL DEVICES DIRECTIVES GUIDANCE FOR MANUFACTURERS ON CLINICAL INVESTIGATIONS TO BE CARRIED OUT IN THE UK, COMPETENT AUTHORITY (UK), Updated November 2007 THE NOTIFIED BODY, BULLETIN No. 6, COMPETENT AUTHORITY(UK), Amended January 2006 http://www.mhra.gov.uk/Howweregulate/Devices/ActiveImplantableMedicalDevicesDirective/index.htm, Last Date Accessed: April 08 2008 http://www.mhra.gov.uk/Safetyinformation/Generalsafetyinformationandadvice/Product-specificinformationandadvice/Cochlearimplants/index.htm, Last Date Accessed: April 08 2008 Kent, Julie and Faulkner, Alex (2002) Regulating human implant technologies in Europeunderstanding the new era in medical device regulation, Health, Risk Society, 4:2, 189 209 Medical Device Development: From Prototype to Regulatory Approval, Aaron V. Kaplan, Donald S. Baim, John J. Smith, David A. Feigal, Michael Simons, David Jefferys, Thomas J. Fogarty, Richard E. Kuntz and Martin B. Leon, 2004;109;3068-3072 Circulation, DOI: 10.1161/01.CIR.0000134695.65733.64,Circulation is published by the American Heart Association. 7272 Greenville Avenue, Dallas, TX, 72514, Copyright 2004 American Heart Association. All rights reserved. Print ISSN: 0009-7322. Online, ISSN: 1524-4539.

The Cast of Amontillado Essay -- Essays Papers

The Cast of Amontillado Edgar Allen Poe, born on January 19, 1809, is one of the greatest American writers of all time. â€Å"The story of Edgar Allen Poe’s life remains one of the most disputed and slandered in the pages of American biography, despite conscious attempts to revise the story and rehabilitate the life. Decadence and immorality, in the form of alcoholism, opium addiction, and his relationships with women, and prolific production, as a journalist, editor, poet, reviewer, critic, and fiction writer, have been emphasized as characterizing his brief life† (Lent 3). Poe’s many writings were greatly affected by his problems in life and his experiences. One such short story is â€Å"The Cask of Amontillado.† The main character, Montresor, who is vengeful, intelligent, and fakes sincerity, causes the death of Fortunato. â€Å"The Cask of Amontillado† starts out with Montresor, the narrator, saying, â€Å"The thousand injuries of Fortunato I had borne as I best could; but when he ventured upon insult, I vowed revenge.† Simply by reading the first sentence of the story, it is easy to see that Montresor is vengeful and plans to get â€Å"revenge† on Fortunato. Montresor also has a coat of arms which is, â€Å"A huge human foot d’or, in a field azure; the foot crushes a serpent rampant whose fangs are imbedded in the heel,† with a motto of, â€Å"Nemo me impune lacessit,† which stands for no one attacks me with impunity. The coat of arms and the family motto both suggest retribution. The ar...

Spontaneous Recovery: Reflections of a Smoker

Definition: Spontaneous Recovery is the tendency of a learned behavior to recover from the extinction after a rest period. (Schacter, Gilbert, Wegner 2009). In order to better understand this definition I had to do more reading on the basic principles of learning and behaviorism. The definition for learning is some experience that results in a relatively permanent change in the state in the learner. (Schacter, Gilbert, Wegner 2009) In order for one to have a spontaneous recovery you must first have learned the habit, such as smoking. Next is the habitation, which is a general process in which repeated or prolonged exposure to a stimulus results in a gradual reduction in responding (Schacter, Gilbert, Wegner 2009) This would be the learned smokers getting use to the taste of nicotine, the smell of the smoke and ultimately the mood or mental state associated with the effects of the cigarette. I have been a smoker since I was about fourteen years old. At first I began smoking due to peer pressure. I was not truly addicted till the year 2003 when everyone I worked with would gather and smoke after out shift to relax and reflect on our night. In 2008 I quit smoking with the use of the medication called Chantix with complete success. Unfortunately, I picked it up again when I had a roommate move who smoked. Now even though I hadn’t smoked in over a year the craving came back, which was the spontaneous recovery. I hadn’t smoked In over a year and found myself under stress and quickly went back to the habit (habituation) of smoking again and have been doing so for the last year. Now, I find myself with another prescription for Chantix but I know that unless I control my urges after I quit. I will forever have the learned behaviorism of a smoker and must always remember that spontaneous recovery will be right around the corner if I allow myself to fall back into the habit of smoking.

Managing Profitable Customer Relationship

Chapter 1 Marketing: Managing Profitable Customer Relationships GENERAL CONTENT: Multiple-Choice Questions 1. Central to any definition of marketing is _____. a. demand management b. transactions c. customer relationships d. making a sale e. making a profit (Answer: c; p. 5; Easy) 2. All of the following are accurate descriptions of modern marketing today, except which one? a. Marketing is creation of value for customers. b. Marketing is customer satisfaction at a profit. c. Selling and advertising are synonymous with marketing. d. Marketing involves building and managing profitable customer relationships. e. None of the above statements is true. (Answer: c; p. 5; Easy)3. Like NASCAR, successful companies recognize a crucial dimension of an outstanding marketing company to be _____. a. a strong customer focus b. a relentless pursuit of customer needs c. customer relationships built by everyone in the organization d. all of the above e. none of the above (Answer: d; p. 5; Moderate)4. _____ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation. a. Selling b. Advertising c. Barter d. Marketing e. None of the above is correct. Answer: d; p. 5; Challenging)5. Society and culture sh ape the basic form of human needs called _____. a. needs b. wants c. demands d. value e. an exchange (Answer: b; p. 6; Moderate)6. When backed by buying power, wants become _____. a. social needs b. demands c. physical needs d. self-esteem needs e. exchanges (Answer: b; p. 6; Easy)7. The fundamental reason America’s most admired firms, including Southwest Airlines and Harley-Davidson, conduct extensive research is to _____. a. maximize profits b. increase market share c. increase sales d. understand customers’ needs, wants, and demands e. undermine competitors Answer: d; p. 6; Moderate)8. _____ refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs. a. Selling myopia b. Marketing c. Selling d. Marketing myopia e. Share of customer (Answer: d; p. 7; Moderate)9. American brand icons, including Harley-Davidson, Coca-Cola, and Nike, create deep brand meanings for consumers and do not suffer from _____. a. short-term losses b. long-term losses c. competitive threats d. marketing myopia e. planning problems (Answer: d; p. 7; Moderate)10. _____ are key building blocks for developing and managing customer relationships. a.Consumer expectations and customer satisfaction b. Customer choices and product offers c. Product performance and customer value d. Customer value and customer satisfaction e. Strategic plans (Answer: d; p. 8; Challenging)11. NASCAR’s primary obsession is to deliver a special _____ to every customer. a. assortment of products b. book store c. experience d. set of recommendations e. car (Answer: c; p. 7; Moderate)12. All of the following phrases reflect the marketing concept, except which one? a. We don’t have a Marketing Department, we have a Customer Department. b. We make it happen for you. c. We stay close to customers. d. Putting profits ahead of customer needs is critical to the health of the firm. e. Customers are important. (Answer: d; p. 11; Easy)13. An example of a(n) _____ is when a customer pays Circuit City $250 and receives a television set in return. a. exchange b. transaction c. market d. segment e. scam (Answer: b; p. 9; Easy)14. _____ is the set of actual and potential buyers of a product. a. A market b. An audience c. A group d. A segment e. An exchange (Answer: a; p. 8; Moderate)15. Which of the following phrases reflects the marketing concept? a. The supplier is king. b. Marketing should be viewed as hunting and not gardening. . This is what I make, won’t you please buy it? d. This is what I want, won’t you please make it? e. None of the above. (Answer: d; p. 11; Challenging)16. The art and science of choosing target markets and building profitable relationships with them is called _____. a. marketing management b. positioning c. segmentation d. selling e. managing the marketing effort (Answer: a; p. 9; Moderate)17. _____ is(are) the set of benefits a company promises to deliver its consumers to satisfy their needs. a. A money-back guarantee b. Low prices c. Good customer service d. A value proposition e. An attribute (Answer: d; p. 9; Moderate)18. All of the following phrases reflect a firm’s value proposition, except which one? a. Altoids is positioned as â€Å"the curiously strong mint. † b. Porsche promises driving performance and excitement. c. Cheer laundry detergent promises powerful cleaning at all temperatures. d. All of the above are correct. e. None of the above is correct. (Answer: d; p. 9; Moderate)19. The _____ is a useful philosophy in situations when the product’s cost is too high and marketers look for ways to bring it down. a. selling concept b. product concept c. production concept d. marketing concept e. A and D (Answer: c; p. 10; Challenging)20. Henry Ford’s philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the _____. a. product concept b. marketing concept c. marke ting mix d. production concept e. selling concept (Answer: d; p. 10; Moderate)21. To avoid traffic gridlock in large metro areas, _____ is undertaken to encourage commuters to carpool and use mass transit. a. target marketing b. market segmentation c. demarketing d. marketing e. the production concept (Answer: c; p. 9; Challenging)22. Selecting which segments to serve is called _____. a. market segmentation b. positioning c. customization . target marketing e. managing the marketing effort (Answer: d; p. 9; Moderate)23. When Wal-Mart profitably targets buyers who value savings, it is an example of _____. a. convenience b. value pricing c. market segmentation d. target marketing e. value packing (Answer: d; p. 9; Easy)24. All of the following phrases reflect the definition of target marketing, except which one? a. Disney targets persons in all stages of the life cycle. b. Porsche profitably targets affluent professionals. c. Dollar Stores profitably target families with modest means. d. The Book of the Month Club customizes offers based on a member’s previous selections. . Charlie Cheese Pizza Factory targets children. (Answer: a; p. 9; Moderate)25. â€Å"Build a better mousetrap and the world will beat a path to your door† reflects the _____. a. production concept b. marketing concept c. selling concept d. product concept e. target marketing (Answer: d; p. 10; Challenging)26. Which operating philosophy is practiced by the American Red Cross to solicit blood donations? a. The marketing concept. b. The product concept. c. The production concept. d. The selling concept. e. None of the above. (Answer: d; p. 10; Challenging)27. Firms follow the _____ when they face overcapacity. a. product concept b. elling concept c. production concept d. marketing concept e. A and C (Answer: b; p. 10; Challenging)28. Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of tra nsportation. This reflects the _____. a. product concept b. production concept c. selling concept d. marketing concept e. none of the above (Answer: a; p. 10; Moderate)29. According to the authors of your text, _____ is viewed not as â€Å"hunting,† but as â€Å"gardening. † That is, a firm has to find the right products for its customers. a. selling b. production c. marketing d. retailing e. dvertising (Answer: c; p. 11; Moderate)30. The _____ starts with the factory, focusing on the company’s existing products; it calls for heavy selling and promotion to obtain profitable sales. a. marketing concept b. production concept c. product concept d. selling concept e. company advertising (Answer: d; p. 10; Moderate)31. According to the authors of your text, fast-food restaurants offer tasty and convenient food at affordable prices; they contribute to a national obesity epidemic that harms consumer health and causes environmental problems in the long run. This stateme nt reflects that they often overlook the _____ business philosophy. . marketing concept b. product concept c. production concept d. societal marketing concept e. new-idea (Answer: d; p. 11; Moderate)32. The set of marketing tools a firm uses to implement its marketing strategy is called the _____. a. promotion mix b. product mix c. marketing mix d. TQM e. marketing effort (Answer: c; p. 13; Moderate)33. _____ is defined as the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. a. Customer relationship management b. Customer satisfaction c. TQM d. Customer perceived value e. Marketing myopia (Answer: d; p. 4; Easy)34. Building, keeping, and growing profitable value-laden relationships with all customers of a company is called _____. a. customer lifetime value b. customer perceived value c. customer relationship management d. database marketing e. societal marketing (Answer: c; p. 14; Ea sy)35. Delivering superior customer value and customer satisfaction are the two keys to building lasting _____. a. customer satisfaction b. customer databases c. market share d. customer relationships e. profits (Answer: d; p. 14; Moderate)36. All of the statements below reflect the definition of customer-perceived value, except which one? . Alex brought home his Lexus for $45,000; he luxuriated in the handling and smell of the leather interior. b. FedEx offers reliable package delivery at a reasonable price. c. The benefits of undergraduate tuition at state schools are judged to be reasonable and fair in comparison to competing private schools. d. The benefits of diet soft drinks are judged to be reasonable and fair in comparison to other types of soft drinks. e. All of the above are correct. (Answer: e; p. 14; Moderate)37. FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs o f using the service, they are acting upon _____. a. loyalty b. relationship marketing c. perceived customer value d. social relationships e. a societal marketing campaign (Answer: c; p. 14; Challenging)38. Airlines offer frequent flier marketing programs to build value and satisfaction into the customer relationship. Using this approach, airlines add _____ to the customer relationship. a. social benefits b. structural benefits c. financial benefits d. excitement e. add-ons (Answer: c; p. 15; Challenging)39.Many banks are leading the way in using customer profitability analysis to weed out losing customers and target winning ones for pampering. This is called _____. a. customer relationship management b. positioning c. database marketing d. selective relationship management e. prospecting (Answer: d; p. 16; Challenging)40. Through _____, many companies today are strengthening their connections to partners all along the channel, from raw materials to components to final products that are carried to final buyers. a. supply chain management b. direct marketing c. partnership relationship marketing d. customized marketing e. deviated marketing Answer: a; p. 19; Easy)41. Pooling resources with other firms in order to succeed beyond managing the supply chain illustrates the _____ partnership. a. management contracting b. licensing c. supply chain management d. strategic alliance e. exporting (Answer: d; p. 19; Challenging)42. Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he/she remains in the area. This is an illustration of _____. a. share of customer b. market share c. profitability d. customer lifetime value . market share maintenance (Answer: d; p. 20; Challenging)43. Amazon. com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon. com capture a greater _____. a. market share b. customer lifetime value c. share of customer d. profitability e. customer base (Answer: c; p. 21; Challenging)44. _____ is the total combined customer lifetime values of all the company’s customers. . Share of customer b. Customer lifetime value c. Customer equity d. Profitability e. Share of market (Answer: c; p. 21; Challenging)45. Current sales and market share reflect a firm’s past performance while _____ reflects the future. a. customer lifetime value b. share of customer c. profitability d. customer equity e. growth rate (Answer: d; p. 21; Moderate)46. Banks classify customers into one of four relationship groups, according to their potential profitability and projected loyalty. JPMorgan Chase Bank wishes to examine its database and identif y customers who are profitable but not loyal. According to the authors of the text, it plans to use promotional blitzes to attract the group called _____. a. barnacles b. true friends c. strangers d. butterflies e. fools (Answer: d; p. 23; Challenging)47. The ultimate aim of customer relationship management is to produce _____. a. customer equity b. market share c. sales volume d. a reliable database e. profits (Answer: a; p. 21; Moderate)48. Which of the following statements about how the Internet is impacting lives everywhere is most accurate? a. Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike. . The Internet is still in its infancy with few consumers buying products/services online. c. The Internet allows anytime, anywhere connections to information, entertainment, and communication. d. If consumer e-commerce looks promising, business-to-business e-commerce is just plain declining. e. A and B (Answer: c; p. 26; Easy)49. The rapid pace of _____ has allowed companies to greatly expand their geographical market coverage, purchasing, and manufacturing. a. technology b. change c. travel d. globalization e. none of the above (Answer: d; p. 26; Moderate)50. Perhaps the most dramatic new technology today is _____. a. Microsoft Windows XP b. AOL c. the Internet d. all of the above e. none of the above (Answer: c; p. 26; Easy)51. Ben & Jerry’s challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to include concern for individual and community welfare in their day-to-day decisions. Actions by companies to do well by doing good reflects _____. a. ethics b. social responsibility c. profit marketing d. marketing e. myopia (Answer: b; p. 28; Moderate)52. When a church targets different demographic groups to increase attendance, it is an example of _____. a. for-profit marketing b. ot-for-profit marketing c. mindless marketing d. ethics in marketing e. societal marketing (Answer: b; p. 28; Moderate)53. The goal of customer relationship management is to produce _____. a. revenues b. profits c. customer equity d. a database of customers e. all of the above (Answer: c; p. 21; Moderate)54. To create customer value and build strong customer relationships, marketers know they cannot go it alone. Hence, in order to succeed in the long run, they practice _____. a. partner relationship management b. database marketing c. designing attractive websites d. customer equity e. all of the above (Answer: a; p. 19; Challenging)55. The success of a firm hinges upon the performance of the entire _____. a. marketing department’s effort b. supply chain c. product mix offerings d. organizational structure e. industry (Answer: b; p. 19; Moderate)56. The authors of your text classify customers into one of four relationship groups, according to their profitability and projected loyalty. _____ characterize the group with the highest pro fit potential and strong loyalty. a. Barnacles b. Strangers c. Butterflies d. True believers e. Best friends (Answer: d; p. 23; Easy)57. _____ is the act of obtaining a desired object from someone by offering something in return. . A transaction b. Exchanging c. Bribing d. Valuing e. Donating (Answer: b; p. 8; Easy)58. In the case of excess demand, _____ may be required to reduce the number of customers or to shift demand temporarily or permanently. a. marketing b. demarketing c. value marketing d. surplusing e. all of the above (Answer: b; p. 9; Easy)59. The _____ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. a. product b. production c. selling d. equity e. marketing (Answer: e; p. 11; Easy)60.The _____ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer’s and society’s wel l being. a. marketing b. selling c. product d. societal marketing e. equity (Answer: d; p. 11; Easy)61. The _____ of a Taco Bell customer exceeds $12,000. a. market share b. CRM c. customer lifetime value d. share of stomach e. salary (Answer: c; p. 21; Moderate)62. For which of the following reasons are marketers everywhere using the Internet? a. To build closer relationships. b. To access new marketspaces. c. To attract new customers. d. To show off their technological skills. . A, B, and C (Answer: e; p. 26; Easy)63. You have learned at work that today’s successful companies at all levels have one thing in common: they are strongly customer focused and heavily committed to _____. a. obtaining the best CEOs b. increasing wealth to stockholders c. marketing d. employee motivation e. earning profits (Answer: c; p. 5; Moderate)64. The twofold goal of marketing is to attract new customers by promising superior value and to _____. a. keep and grow current customers by delivering satisfaction b. keep and grow current customers by delivering competitive pricing c. eep and grow current customers by delivering friendly service d. keep and grow current customers by delivering vast product assortment e. all of the above (Answer: a; p. 5; Moderate)65. You have learned from experience as well as from this course that the most basic concept underlying marketing is that of _____. a. selling and advertising b. customer satisfaction c. retaining customers d. human needs e. fulfilling consumer wants (Answer: d; p. 6; Easy)66. As a new assistant marketing manager trainee, you learn in an orientation meeting that _____ are the form human needs take as they are shaped by culture and individual personality. . wants b. demands c. self-concepts d. desires e. icons (Answer: a; p. 6; Easy)67. What do companies call a set of benefits that they promise to consumers to satisfy their needs? a. marketing offer b. value proposition c. demand satisfaction d. need proposition e. evoke d set (Answer: b; p. 9; Moderate)68. Most firms practice the selling concept when they face _____. a. a crisis b. a recession c. fierce competition d. overcapacity e. marketing myopia (Answer: d; p. 10; Moderate)69. Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization.His perspective of having a customer department uses a(n) _____ perspective. a. outside-in b. external c. inside-out d. modern e. traditional (Answer: a; p. 11; Challenging)70. Customer-driven marketing usually works well when _____ and when customers _____. a. a clear need exists; are easy to identify b. customers know what they want; can afford it c. a firm can deliver the goods desired; are thoroughly researched d. a clear need exists; know what they want e. a want exists; cannot afford it (Answer: d; p. 11; Challenging)71. The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer _____. . short-run costs and profits b. short-ru n ethics c. long-run welfare d. health e. value propositions (Answer: c; p. 12; Moderate)72. _____ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. a. Heuristics b. Net profit c. Customer lifetime value d. Relationship marketing e. Market share (Answer: c; p. 20; Moderate)73. Customers buy from stores and firms that offer the highest _____. a. value for the dollar b. customer perceived value c. level of customer satisfaction . company image e. A and C (Answer: b; p. 14; Challenging)74. Is the following statement true? Clearly, the more loyal the firm’s customers, the higher the firm’s customer equity. a. No. b. Yes. c. Maybe. d. Cannot tell accurately. e. Only if the value proposition is understood. (Answer: b; p. 21; Easy)75. Many not-for-profit organizations are facing huge operating deficits that they must cove r by more aggressive _____. a. volunteer service b. customer service c. advertising d. donor marketing e. social marketing campaigns (Answer: d; p. 29; Moderate) True/False76. Selling is managing profitable customer relationships. Answer: False; p. 5; Moderate)77. Product, price, place, and promotion make up the elements of a firm’s marketing mix. (Answer: True; p. 13; Easy)78. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. (Answer: True; p. 5; Challenging)79. Human needs are shaped by culture and individual personality. (Answer: False; p. 6; Moderate)80. When backed by buying power, wants become demands. (Answer: True; p. 6; Moderate)81. When backed by buying power, needs become demands. (Answer: False; p. 6; Moderate)82. Marketing offers are limited to physical products. (Answer: False; p. 7; Moderate)83. Marketing offers include products, services, information, or expe riences offered to a market to satisfy a need or want. (Answer: False; p. 7; Moderate)84. When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia. (Answer: False; p. 7; Challenging)85. An exchange is the core concept of marketing, whereas a transaction is marketing’s unit of measurement. (Answer: True; p. 8; Moderate)86. Marketers of products, services, and ideas only practice marketing, whereas buyers do not. Answer: False; p. 8; Moderate)87. Who is our target market and what’s our value proposition are two important questions underlying marketing strategy. (Answer: True; p. 9; Moderate)88. Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only. (Answer: False; p. 9; Challenging)89. Demarketing is a marketing philosophy focused upon product differentiation and positioning. (Answer: False; p. 9; Moderate)90. The production concept and product concept are t wo philosophies that can both lead to marketing myopia. (Answer: True; p. 10; Challenging)91. When railroad companies thought that users wanted trains rather than transportation and overlooked the growing challenge of other modes of transportation they were following the selling concept. (Answer: False; p. 10; Moderate)92. Most firms follow the production concept when they face overcapacity. (Answer: False; p. 10; Challenging)93. The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society’s interest. (Answer: True; p. 12; Moderate)94. Customer Relationship Management (CRM) is nothing more than a customer data management activity. (Answer: False; p. 14; Moderate)95. Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships. (Answer: True; p. 14; Moderate)96. Customer value is defined as the customer’s evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. (Answer: True; p. 14; Moderate)97. Customer-perceived value depends on the product’s perceived performance relative to a buyer’s expectations. (Answer: False; p. 14; Moderate)98. The simplest definition of modern marketing is managing profitable customer relationships. (Answer: True; p. 5; Easy)99.The difference between human needs and wants is that needs are states of felt deprivation. (Answer: True; p. 6; Easy)100. Smart marketers look beyond the attributes of the products and services they sell. They create brand experiences for consumers. (Answer: True; p. 7; Moderate)101. Marketing management is interested in serving all customers in every way to remain competitive in today’s markets. (Answer: False; p. 9; Moderate)102. At times it becomes necessary to reduce demand for some products and services. When the government tries to reduce smoking of tobacco products, it ad ds more tax to the products and is practicing demarketing. Answer: True; p. 9; Easy)103. Amy’s law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept. (Answer: False; p. 10; Moderate)104. The selling concept holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort. (Answer: True; p. 10; Easy)105. The major difference between customer-driving marketing and customer-driven marketing is that the former considers only existing needs. Answer: False; p. 11; Easy) Essay106. Explain the five marketplace concepts. The core marketplace concepts are: needs, wants, and demands; marketing offers; value and satisfaction; exchanges, transactions, and relationships; and markets. Addressing customer needs and want is at the very heart of the marketing concept. The four el ements of the marketing mix help firms meet the challenges of value creation, customer satisfaction, and to establish meaningful and profitable relationships. (p. 6; Moderate)107. Explain how marketers create brand experiences beyond selling products/services. Strategic thinking underlies creating meaningful and purposeful experiences and relationships for customers. In creating brand experiences, marketers have successfully demonstrated that to differentiate their offer from their competitors, they have to connect with their customers at various levels. (p. 7; Moderate)108. Compare the selling and marketing concepts under which organizations carry out their marketing strategies. List the key components of each philosophy. The selling concept reflects an inside-out philosophy and the marketing concept takes an outside-in perspective. The selling concept is practiced when firms face overcapacity. When consumers do not buy enough products on their own, companies coerce them into buyin g more by undertaking a large-scale selling and promotion effort. The marketing concept, on the other hand, is a three-pronged philosophy based upon: satisfaction of customer needs and wants, integration of resources both within and outside the firm,, and profit maximization. (p. 10; Easy)109. What is the societal marketing concept? Explain. According to this concept, firms today and in the future will survive if they take underlying consumer needs and society’s well being into account over the long term. In setting their marketing strategies, marketers today need to balance company profits, consumer wants, and society’s interests. From day one, when marketing decisions are made, firms need to put people and society before profits. (p. 11; Easy)110. One of the major developments in marketing can be summed up on one buzzword: relationships. Define customer relationship management and its associated strategies for building long-term relationships. Customer Relationship M anagement (CRM) is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.Companies develop customer relationships with target markets at multiple levels. The most basic form of a relationship for mass-marketed products/services is through a Web site, sales promotion offer, or a 1-800 customer-response number. At the other end of the spectrum, companies like Amazon. com create full partnerships with key customers. Other marketers work closely with retailers, for example. Some marketers use tools such as financial benefits like rewards based on frequency of purchase. Other tools include social benefits, like offering key customers the opportunity to network and create communities.Another approach adds structural ties to the aforementioned financial and social benefits. Hence, to retain current customers and remain profitable, companies today are going beyond transactional marketing to customer relationship mana gement. The key is to create and sustain relationships for the long term. (p. 14; Moderate)111. The aim of customer relationship management is to create not just customer satisfaction, but customer delight. Explain. Customer satisfaction cannot be taken for granted. Because brand loyalty is dependent upon strong customer satisfaction, companies strive to retain current customers.Losing a customer once might mean losing the customer for life. Firms like Taco Bell and Home Depot, for example, look at a stream of purchases a customer is likely to make over his/her lifetime. Therefore each sale is critical to the long-term success of a relationship. Because the ultimate aim of customer lifetime value is to create share of customer, firms today create customer delight by over delivering and creating emotional relationships with key customers. (p. 15; Moderate)112. Define customer equity. Customer equity is the sum of the lifetime values of all the company’s customers. Customer equ ity is dependent upon customer loyalty by a firm’s profitable customers. Because customer equity is a reflection of a company’s future, companies must manage it carefully. (p. 21; Easy)113. Explain how the Internet has transformed the way in which we do business today. The Internet links individuals and businesses of all types to each other. â€Å"Bricks and Mortar† companies of the past are now â€Å"clicks and mortar† companies today. Manufacturing firms today are linked to their suppliers and customers to build closer relationships. The Internet allows firms access to exciting new marketspaces. The Internet has spawned an entirely new breed of â€Å"click only† companies—the so-called â€Å"dot-coms. † The post-Internet frenzy of the late 1990s has introduced companies that are both savvy and face promising futures. (p. 26; Easy)114. Describe the impact of globalization on marketing today. Marketers everywhere have been surrounded by global competition for over two decades now. Regional trade agreements, such as NAFTA, have transformed competition and economic cooperation today. Geographical and cultural distances, in addition, have shrunk with the advent of technology, the Internet and new product introduction. Domestic firms in countries such as India have had to contend and compete with U. S. multinational firms for market share, revenues, and profits. Firms worldwide are sourcing their products from different corners of the globe. (p. 26; Moderate)115. Analyze the major challenges facing marketers heading into the new â€Å"connected† millennium. Marketers must connect faster and better with customers. The latest technologies must be used to ensure delivery of time-based competition. Web sites and e-commerce must be fine-tuned to connect with more carefully selected customers.Many companies are connecting directly with customers to customize their mix of products and services. Partnership relations hip and supply chain management must be built with strategic alliances to make those domestic and global challenges. (p. 28; Moderate)APPLICATION CONTENT: Multiple-Choice Questions116. Shawn McCork has an interesting job. He is involved in getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. What is Shawn’s job? a. General manager. b. Supervisor. c. Marketing manager. d. Sales manager. e. Top manager. (Answer: c; p. ; Challenging)117. The marketing manager at Sunshine Car Washes is holding a training session for new employees. She stresses that perhaps the most important concept of modern marketing is _____. a. customer relationship management b. e-mail advertising c. a quality Web site d. properly trained sales people e. low prices (Answer: a; p. 9; Moderate)118. Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg’s want now has become a _____. a. need b. necessity c. demand d. satisfier e. none of the above (Answer: c; p. 7; Easy)119. After surveying all 3,500 customers by e-mail, Best Value Stores learned that its customers favor high quality, performance, and innovative features. Best Value’s customers were surveyed about _____. a. product concept b. production concept c. customer satisfaction d. marketing concept e. promotion concept (Answer: a; p. 10; Challenging)120. Jolene’s firm believes that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort. Jolene’s firm is practicing the _____. a. production concept b. marketing concept c. selling concept d. relationship concept . social advertising campaign (Answer: c; p. 10; Easy)121. Jonathan Nash works in sales for a telemarketing firm. His firm uses the selling concept, which take a(n) _____ approach. a. outside-in b. myopic c. inside-out d. marketing concept e. customer servi ce (Answer: c; p. 11; Easy)122. Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands customer needs even better than customers themselves do and creates products and services that will meet existing and latent needs, now and in the future. Marie’s firm practices _____ marketing. a. customer-driven b. customer-driving c. elationship d. donor e. none of the above (Answer: b; p. 11; Challenging)123. You find yourself in a new job. Your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Your manager is concerned with which one of the following? a. Database management. b. Web site hits. c. Relationship management. d. Donor marketing. e. Customer relationship management. (Answer: e; p. 14; Moderate)124. Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operat or who knows that the key to this goal is to match _____ with _____. a. customer expectations; competitive prices b. company performance; competition c. customer expectations; company performance d. company performance; unique products e. relationship building; promotional tools (Answer: c; p. 14; Moderate)125. You have just read a report that alarms you. According to the American Customer Satisfaction Index, which of the following conditions exists relative to overall customer satisfaction with U. S. manufacturing and service industries? a. It has increased slightly. b. It has increased very much. c. It has remained steady. d. It has decreased slightly. e. It has decreased dramatically. (Answer: d; p. 20; Easy)126. Shania works hard with her Internet customers to create an emotional relationship for her customers with the products and services that she and her staff sell. She and her staff have created _____ by going beyond the expected. a. customer delight b. customer satisfaction c. customer equity d. customer value e. customer loyalty (Answer: a; p. 14; Challenging)127. Karrie Romanov wants to capture the full essence of customer relationship management. Which of the following will Karrie take into consideration? a. Own the customers for life. b. Capture their lifetime value. c. Building overall customer equity. d. All of the above. e. None of the above. (Answer: d; p. 14; Moderate)128. Some firms find themselves in markets with many low-margin customers. As assistant marketing director, what type of relationship would you develop with these customers? a. Full partnerships. b. Basic relationships. c. Relationship marketing. d. Key customer marketing. e. Lifetime value. (Answer: b; p. 15; Moderate)129. You have just read a report in a leading business magazine. It stated that the major marketing developments as we enter the new millennium can be summed up in what single theme? a. Relationship marketing. b. Connecting. c. Partnering. d. Networking. e. Custom er equity. (Answer: b; p. 23; Challenging)130. You have just been told by your supervisor at work that a new economy has emerged. What is the technology behind this new force? a. The Internet. b. Web sites. c. Voice mail. d. Cell phones. e. Simultaneous engineering. (Answer: a; p. 26; Easy)131. Pete Sanchez has just realized something that he needs to tell his marketing manager at work. Pete knows that today few firms still practice rue _____. a. production orientation b. sales orientation c. mass marketing d. quality orientation e. marketing segmenting (Answer: c; p. 16; Moderate)132. Suzie Chan strengthens her company’s connections with partners all along the supply chain. What type of management is she using? a. Outside partnering. b. Supplier connecting. c. Mentoring. d. Supply chain. e. Channeling. (Answer: d; p. 19; Easy)133. ABC Corporation realizes that they need partners to go beyond supply chain management. What do we call this association? a. Strategic alliances. b . strategic planning. c. Partnering. d. Mutual reciprocity. e. Reengineering. Answer: a; p. 19; Moderate)134. Sally purchased Brand X lotion. In analyzing the product’s perceived performance against her expectations, Sally was measuring her level of _____. a. customer perceived value b. customer satisfaction c. exchange d. demand e. customer lifetime value (Answer: b; p. 14; Moderate)135. Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using _____. a. selective relationship management b. a frequency marketing program c. a club marketing program d. demarketing e. a value proposition (Answer: a; p. 6; Easy) Short Answer136. What is the twofold goal of marketing? The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. (p. 5; Easy)137. Culture and individual personality shape human needs into wants. What transforms wants into demands? Wants become demands when backed by purchasing power. (p. 6; Moderate)138. How might a seller avoid marketing myopia? Sellers should consider the particular benefits and experiences produced by their products, not just pay attention to the specific products they offer. (p. 7; Moderate)139. How might a manufacturer of tents and camping equipment, for example, create brand experiences for consumers? Such manufacturers might produce tents, sleeping bags, cooking equipment, and so forth that allow consumers to benefit from the numerous products available to campers. (p. 7; Easy)140. The main elements of a modern marketing system relies on profitable relationships all along the way. Considering this, what might Wal-Mart rely on in order to offer low prices? Wal-Mart must rely on suppliers that will provide merchandise at low costs. (p. 8; Moderate)141. How might a marketer define its value proposition? In considering its value propos ition, a marketer will look at how the firm can best serve the customers and how it can differentiate itself in the marketplace. (p. 9; Easy)142. When demand for Beanie Babies was at its highest, manufacturers purposefully maintained strong demand by limiting supply that drove price up. Explain how such manufacturers were not carrying out the production concept. The production concept holds that consumers favor products that are available and affordable. With this concept, manufacturers work to increase production and improve manufacturing efficiency. (p. 10; Challenging)143. Company X carries a vast surplus of office supplies; thus, the company follows the selling concept. Explain how customer relationships may be lost in the process. The company’s aim is to sell the supplies rather than make what the market wants; such a strategy creates sales transactions but not long-term relationships. (p. 10; Challenging)144. Many companies, such as Southwest Airlines, take an outside-i n perspective. How do such companies address their customers’ desires? Outside-in companies are customer driven; they find the right products for their customers rather than the right customers for their products. (p. 11; Moderate)145. A nineteenth-century street vendor in London sang, â€Å"Who will buy my fresh, red roses? † Did the vendor take an outside-in or inside-out perspective? Explain. The vendor’s approach was inside-out. The roses were picked and available. The vendor’s job was then to attract willing buyers. (p. 11; Challenging)146. When a vendor has product available and needs to find customers who are willing to buy, is a production concept, product concept, or selling concept being practiced? Explain. A selling concept is used when the vendor has available product and needs to find customers who are willing to buy. (p. 10; Moderate)147. Explain why electronics and pharmaceuticals manufacturers may use customer-driving marketing. In such in dustries, consumers do not know exactly what new products are available; therefore, consumers rely on such firms to tell them what they need. (p. 11; Moderate)148. Company ABC implements its marketing strategy through a well-defined marketing mix. What elements are being addressed in the marketing mix? Company ABC has created a marketing offer (product), determined a selling price, decided how to distribute (place) the offer, and communicated with the target customer about the offer (promotion). (p. 13; Easy)149. Explain how storing customer information in a database might better prepare Saturn in customer relationship management (CRM). Managing detailed information about customers may allow Saturn to design new models around customer demographics and desires for specific features. These â€Å"touchpoints† can be the key to long-term customer loyalty. (p. 14; Moderate)150. What determines whether sellers create basic relationships or full partnerships with customers? A compan y with many low-margin customers develops basic relationships; a company with just a few high-margin customers relies on full partnerships. (p. 15; Challenging)151. Explain how a supermarket owner might consider customer lifetime value when a disgruntled customer leaves the store dissatisfied. The owner may view the situation as a $50,000 loss if, for example, each customer spends about $100 per week, shops 50 weeks per year, and remains in the area for about 10 years. Customer lifetime value includes the long-term value of the customer. (p. 20; Easy)152. How can a marketer increase â€Å"share of customer†? The marketer can offer greater variety to customers; in addition, the marketer can train employees to cross-sell and up-sell in order to market more products and services to existing customers. p. 21; Easy)153. In classifying customers into relationship groups, explain what marketers can expect from â€Å"butterflies. † â€Å"Butterflies† are profitable but not loyal. Marketers should enjoy â€Å"butterflies† â€Å"for the moment† because they soon flutter off. Marketers should create profitable and satisfying transactions with â€Å"butterflies,† then cease investing in them until the next time around. (p. 23; Moderate)154. If a firm practices â€Å"caring capitalism† in its social responsibility efforts, as does Ben & Jerry’s and Saturn, where does the firm place its focus? Such firms distinguish themselves by being more civic-minded and caring; they may build social responsibility into their company value and mission statements. (p. 28; Challenging)155. How is marketing being applied in the not-for-profit sector? Firms in the not-for-profit sector use marketing to enhance their images, to encourage donor marketing to attract memberships and donors, and to design social marketing campaigns to encourage specific causes. (p. 28; Moderate) Scenario Carol Veldt, owner of Seagull Terrace, watched her inv estment grow from a small, seaside motel to a thriving year-round resort in just a few years.Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. â€Å"But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland,† Carol added, â€Å"I couldn’t understand why seasonality had to hit Seagull Terrace so hard! † So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round.Carol’s plan, then, involved a seasonal promotional gimmick—to be implemented from late winter to late spring—that would attract the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers—both satisfied repeat guests as well as new guests w ho had been snagged by her promotional appeals. â€Å"We still have a long way to go,† Carol Veldt admitted. â€Å"Our delicatessen offers delicious entrees, but we’d like to expand that. We provide health club privileges off-site, but we’d like to eventually provide our own. These are goals I hope to achieve in a few years.Our first project, however, included a renovation of our guest rooms and I’m quite proud of the results. † Carol then added, â€Å"Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter. †156. Based on the marketing process, what are Carol Veldt’s strengths? Carol was able to understand her customers’ needs and wants. She was able to deliver superior value through her marketing program, which created customer delight. (p. 6; Easy)157. What is included in the marketing offering at Seagull Terrace? Seagull Terrace provides activities and amenities that make a night’s stay more satisfying; these various activities and amenities are sought by two targeted groups— seasonal visitors and year-round business travelers. (p. 7; Moderate)158. How is Carol Veldt attempting to create brand experiences for her visitors? Carol is attempting to include numerous services and amenities for her visitors. Eventually, everything the visitors want or need will be offered at Seagull Terrace. (p. 7; Moderate)159. How has Carol Veldt taken on the role of marketing manager? Carol is attempting to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value. (p. 8; Moderate)160. Define the target market at Seagull Terrace. Two types of guest are being lured: seasonal visitors during the summer and year-round business travelers. (p. 9; Easy)161. In what ways might Carol Veldt be implementing the product concept? Carol understands that guests will favor services that offer the most in quality and innovative features; Carol’s strategy currently focuses on making continuous improvements. (p. 10; Challenging)162. In what ways might Carol Veldt be implementing the selling concept? Carol understands that the success of Seagull Terrace, as she views it, requires a large-scale promotional effort. (p. 10; Challenging)163. How might the marketing mix at Seagull Terrace differ between its two target markets? Business travelers may be offered a discount business rate; obviously, the promotional tactic will differ for these guests. Summer guests may pay higher rates, but the beauty of Maine’s coast and the beach, as well as Seagull Terrace’s variety of services, will be the main attractions. (p. 3; Easy)164. How will Carol Veldt guarantee customer satisfaction? Carol will attempt to create services and amenities that exceed buyer expectations. (p. 14; Easy)165. Explain how Carol Veldt is engaging in partner relationship management. Explain how t his could be enhanced. Guests at Seagull Terrace currently receive health club privileges at a nearby health facility. Guests during the summer could receive sailboat rentals through such arrangements; year-round business travelers could be given meal discounts at local restaurants, dry cleaning services, and so forth. (p. 19; Challenging)