17) When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia.
Answer: FALSE
Diff: 2
LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
AACSB: Application of knowledge
18) A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia.
Answer: FALSE
Diff: 2
LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
AACSB: Application of knowledge
19) A market is a segment of potential consumers who share a common need or want.
Answer: TRUE
Diff: 1
LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
AACSB: Analytical thinking
20) Using suitable examples, briefly compare and contrast the concepts of needs, wants, and demands. Discuss how these concepts relate to marketing practices.
Answer: Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. 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. Unlike needs, wants are not innate. Instead, wants are needs shaped by culture, society, and individual personality. For example, an American needs food, wants a Big Mac and soft drink, and demands lunch at McDonalds. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' needs, wants, and demands. They then attempt to fulfill customers' needs, wants, and demands through their market offerings.
Diff: 3
LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
AACSB: Analytical thinking
21) Explain market offerings and marketing myopia.
Answer: Consumers' needs and wants are fulfilled through market offerings – some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. Market offerings are not limited to physical products. They also include services – activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services. More broadly, market offerings also include other entities, such as persons, places, organizations, information, and ideas. Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. These sellers suffer from marketing myopia. They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs. They forget that a product is only a tool to solve a consumer problem. A manufacturer of quarter-inch drill bits may think that the customer needs a drill bit but what the customer really needs is a quarter-inch hole. These sellers will have trouble if a new product comes along that serves the customer's need better or less expensively. The customer will have the same need but will want the new product.
Diff: 2
LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
AACSB: Application of knowledge
22) ________ is the art and science of choosing target markets and building profitable relationships with them.
A) Differentiation
B) Marketing management
C) Positioning
D) Segmentation
E) Customer-perceived value
Answer: B
Diff: 1
LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.