Chapter 1An Overview of Marketing

SCENARIOS
Circuses
As recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers.
An advance man arrived about two weeks before the circus actually arrived, covered the community with
posters, and gave out free tickets to school children. If the advance man had done a good job, when the
circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When
the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's Greatest
Show on Earth began performing in 4,000-seat arenas. Attendance, however, has stagnated in recent
years. People have stopped going to the circus because they miss the circus tent and the close intimate
atmosphere it created. The newest thing in circuses is a return to the tent atmosphere with an emphasis
on the types of entertainment that was popular years ago. Antique circus wagons, calliope music, cotton
candy are replacing the exotic animals and the Prima Donna performers. To satisfy the needs of this new
audience, the tent circus does sell lattes and wine.
1. Refer to Circuses. The aggressive promotions used by advance men indicate that the circuses two
decades ago probably had a _____ orientation.
a. sales
b. market
c. production
d. societal
e. product
REF: p. 5
2.

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Refer to Circuses. Now circuses are trying to satisfy customers' needs and wants and to profit through
customer satisfaction. They have adopted a _____ orientation.
a. societal
b. selling
c. production
d. market
e. retail
REF: p. 6

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

a. rely on publicity and avoid any promotions
b. empower their employees to satisfy customer wants
c. donate a percentage of their profits to local educational institutions
d. use relationship marketing
e. emphasize customer value
REF: p. 7

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4. Refer to Circuses. One of the tent venues is called Barnum's Kaleidoscape, and it is in a permanent
location with the hopes that people who see the show will want to return and see it again as well as bring
their friends and relatives to the production. Which of the following techniques would most likely advance
this strategy of referrals and repeat business?
a. relationship marketing
b. empowerment
c. a sales orientation
d. authority to delegate
e. transactional marketing
REF: p. 10
.

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Chapter 1 An Overview of Marketing

5. Refer to Circuses. The circuses' goal of redesigning the circus experience is being completed through the
coordination of many marketing activities, such as value pricing, a product that includes exciting
performances, tent venue locations, and promotion. These activities make up the _____ for the circuses.
a. opportunity analysis
b. value of marketing
c. marketing environment
d. target market
e. marketing mix
REF: p. 14

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The Delta Faucet Company

Masco is the name of a company that is well-recognized in the construction industry. It produces
cabinetry, furniture, lighting, and plumbing fixtures for the upper-end homeowner and builder. One of the
divisions of Masco is the Delta Faucet Company, which is the leader in the faucet industry. Delta Faucet
was founded in 1955. Over the decades, it has developed a legacy based on well-crafted, high-quality
products. Since the 1970s, Delta has focused its energies on building loyalty with the builder
marketplace. Research in 2002 showed that while builders respect the Delta faucet for its quality,
durability, and dependability, household consumers were not enamored with Delta products. Due to the
number of new magazines and television programs devoted to home style, homeowners wanted faucets
that were chic and stylish. This was not the image of the Delta Faucet. To change its image, Delta
Faucet began a marketing program in which it committed itself to developing new products to appeal to
homeowners. It adopted a new slogan, Beautifully Engineered.
6. Refer to Delta Faucet. By showing a willingness to adapt to meet new demands, Delta Faucet exhibited
a__________orientation.
a. product
b. sales
c. market
d. societal marketing
e. sustainability
REF: p. 6
7.

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Refer to Delta Faucet. The marketing program, which Delta designed to develop new products to appeal
to homeowners, is evidence of a change in:
a. target market strategy
b. mission statement
c. intermediaries
d. promotion strategy
e. sustainability
REF: p. 13

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8. Refer to Delta Faucet. Deltas decision to make more stylish faucets represents a change in the _____
element of its marketing mix.
a. product
b. promotion
c. place
d. production
e. distribution
REF: p. 14

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8. Refer to Delta Faucet. Deltas development of a new slogan represents a change in the _____ element of
its marketing mix.
a. product
b. promotion
c. place
d. production
e. distribution
BUSINESS DIVISION

BU270 Principles of Marketing

REF: p. 15

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Dateline NBC and GM

In their desire to boost ratings, television news programs have done just about anything. One famous
example is the Dateline NBC segment about General Motor's 1973-1987 pickup trucks, which was
entitled "Waiting to Explode?" The 15-minute segment contained a short, dramatic portion that featured
two side-impact tests which NBC had run to purportedly demonstrate what could happen when the GM
pickup trucks are struck in the side. GM sued NBC alleging defamation and damage to its reputation. GM
argued that the Dateline segment was an unscientific demonstration, was inappropriate, and does not
support the position that GM's trucks are defective. NBC admitted that the crash was rigged and
apologized to GM and the Dateline viewers.
10. Refer to Dateline NBC and GM. NBC executives have to be concerned with the long-range welfare of the
network and its relationships to viewers. This concern is called:
a. consumerism
b. corporate social responsibility
c. ethical dilemma
d. conventional morality
e. environmental consideration
REF: p. 16

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11. Refer to Dateline NBC and GM. By admitting its error and providing a formal apology, NBC achieved
which level of the pyramid of corporate social responsibility?
a. philanthropic
b. legal
c. economic
d. moral
e. ethical
REF: p. 18

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12. Refer to Dateline NBC and GM. NBC felt that it had an obligation to its viewers to warn them about the
possible defects in GM pickup trucks. NBC is operating on a level of:
a. conventional morality
b. social responsibility
c. preconventional morality
d. postconventional morality
e. consumerism
REF: p. 19

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13. Refer to Dateline NBC and GM. When people tune in to a television news show, they expect to be told the
truth about events covered on the news. The moral principles or values that should generally govern the
conduct of the news media are called:
a. ethics
b. legal standards
c. manners
d. governances
e. social responsibility
REF: p. 18

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14. Refer to Dateline NBC and GM. NBC apologized and concluded that "unscientific demonstrations should
have no place in hard news stories at NBC. That's our new policy." This new policy should be
incorporated into NBC's:
a. legal standards
b. code of ethics
c. manners
d. governances
e. consumerism
Chapter 1 An Overview of Marketing

REF: p. 20

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OBJ: 6

BU270 Principles of Marketing