AACSB: Application of knowledge
Skill: Concept
Objective: LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
Difficulty: Easy
28) Briefly compare and contrast the concepts of needs, wants, and demands and provide examples to illustrate your answer. How do these three concepts relate to marketing practices?
Answer: Human needs are states of felt deprivation. Needs are a basic part of the human makeup; they are not created by marketers. Humans have a basic physical need for food, clothing, warmth, and safety; a basic social need for belonging and affection; and a basic individual need for knowledge and self-expression. Wants are needs shaped by culture, society, and individual personality. For example, an American needs food but wants a Big Mac and a soft drink. Wants become demands when they are backed by consumers' buying power. For example, an American with ten dollars needs food, wants a Big Mac and soft drink, and demands lunch at McDonald's. Marketers conduct extensive research to understand customers' wants and demands. They then attempt to fulfill customers' wants and demands through their market offerings.
AACSB: Written and oral communication
Skill: Concept
Objective: LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
Difficulty: Moderate
29) You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might you go about creating brand experiences for your customers?
Answer: Such manufacturers should focus on the benefits enjoyed through the use of their products, such as arrangements to visit great outdoor locations, chances for customers to enjoy time with their families, and relive their memories of camping trips.
AACSB: Analytical thinking
Skill: Application
Objective: LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
Difficulty: Challenging
30) Explain how and why marketers go beyond selling a product or service to create brand experiences.
Answer: Sellers are most effective when they focus more on the benefits and experiences produced by their products and services than on the specific products and services themselves. Smart marketers focus on creating a brand experience, incorporating several products and services for their customers. By doing so, marketers hope to increase customer satisfaction. Satisfied customers buy again and tell others about their good experiences.
AACSB: Written and oral communication
Skill: Concept
Objective: LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
Difficulty: Moderate
31) The art and science of choosing target markets and building profitable relationships with them is called ________.
A) marketing management
B) positioning
C) marketing mix
D) market offering
E) differentiation
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 1.3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.
Difficulty: Easy
32) Selecting which segments of a population to serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation
Answer: D
Skill: Concept
Objective: LO 1.3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.
Difficulty: Easy
33) Dividing the market into various groups of customers that a company may serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation
Answer: A
Skill: Concept
Objective: LO 1.3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.
Difficulty: Easy
34) Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.