Exercise 1.

1
True or False
Instructions. Please write TRUE if the statement is correct and write FALSE if otherwise, in the space
provided before the number.

____________1. Selling and advertising are only part of a larger “marketing mix”—a set of marketing
tools that work together to satisfy customer needs and build customer relationships. T
____________2. Broadly defined, marketing is a social and managerial process by which individuals and
organizations obtain what they need and want through creating and exchanging value with others. T
____________3. The last step of the Marketing Process looks at who the customer is and what he needs
and wants. Before any other marketing activities make sense, the company should gain a complete
understanding of the marketplace. F
____________4. The purpose of the advertising program is to turn the marketing strategy into real
value for the customers. F
____________5. 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. T
____________6. Marketers must be careful to set the right level of expectations. If they set
expectations too high, they may satisfy those who buy but fail to attract enough buyers. If they set
expectations too low, buyers will be disappointed. F
____________7. Marketing management wants to design strategies that will build profitable
relationships with target consumers. T
____________8. The marketing concept holds that achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions better than competitors
do. T
____________9. The societal marketing concept questions whether the pure marketing concept
overlooks possible conflicts between consumer wants and consumer welfare. F
___________10. The key to building lasting customer relationships is to create superior customer value
and satisfaction. T
___________11. Good customer relationship management creates customer delight. In turn, delighted
customers remain loyal and talk negatively to others about the company and its products. F
___________12. Customer relationship management takes a short-term view. Companies want not
only to create profitable customers but also “own” them for life, earn a greater share of their purchases,
and capture their customer lifetime value. F
___________13. UPS seeks more than just short-run sales and profits. T
___________14. Implementing the marketing concept often means more than simply responding to
customers’ stated desires and obvious needs. T
___________15. Every day, dramatic changes are occurring in the marketplace. T
Exercise 1.2
Multiple Choice.
Instructions. Please choose the best answer to the following question.

1. The process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
a. Marketing c. Customer Value Proposition
b. CRM d. Management
2. Form human needs take as they are shaped by culture and individual personality.
a. Needs c. Demands
b. Wants d. Consumer
3. Some combination of products, services, information, or experiences offered to a market to
satisfy a need or a want.
a. Market Offerings c. Customer Value and Satisfaction
b. Marketing Myopia d. Exchange
4. The act of obtaining a desired object from someone by offering something in return.
a. Market Offerings c. Customer Value and Satisfaction
b. Marketing Myopia d. Exchange
5. The set of actual and potential buyers of a product or service.
a. Consumers c. Exchange
b. Customers d. Market
6. The art and science of choosing target markets and building profitable relationships with them.
a. Marketing c. Marketing Management
b. Management d. Customer Value and Satisfaction
7. Holds that consumers will favor products that offer the most in quality, performance, and
innovative features.
a. Production Concept c. Product Concept
b. Product Offer d. Selling Concept
8. Typically practiced with unsought goods—those that buyers do not normally think of buying,
such as insurance or blood donations.
a. Production Concept c. Product Concept
b. Product Offer d. Selling Concept
9. Holds that consumers will favor products that are available and highly affordable.
a. Production Concept c. Product Concept
b. Product Offer d. Selling Concept
10. Socially and environmentally responsible marketing that meets the present needs of
consumers and businesses while also preserving or enhancing the ability of future generations
to meet their needs.
a. Societal marketing concept c. environmental stewardship
b. Sustainable Marketing d. social responsibility
11. The overall process of building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction. It deals with all aspects of acquiring, keeping, and
growing customers.
a. Marketing c. Customer Value Proposition
 b. CRM d. Management
12. The customer’s evaluation of the difference between all the benefits and all the costs of a
market offering relative to those of competing offers.
a. Customer-perceived value c. Customer satisfaction
b. Customer Value d. Customer Loyalty
13. The share they get of the customer’s purchasing in their product categories.
a. Share of customer c. Customer Loyalty
b. Retention d. Customer satisfaction
14. The total combined customer lifetime values of all of the company’s current and potential
customers.
a. Share of customer c. Customer Loyalty
b. Customer Equity d. Customer satisfaction
15. The first step of the Marketing Process is?
a. Design a customer-driven marketing strategy
b. Constructing an integrated marketing program
c. Looks at who the customer is and what he needs and wants.
d. Build profitable customer relationships with target customers

Exercise 1.3
Activity- Case let

Hershey

During uncertain economic times, there are still some things that today’s consumers just aren’t
willing to give up—such as chocolate. But as with eating out and clothing purchases, they are trading
down. That is just fine with Hershey, America’s best-known chocolate maker. For years, riding the good
times, premium chocolates grew faster than lower-priced confectionery products. Slow to jump on the
premium bandwagon, Hershey lost market share to Mars Inc.’s Dove line. But as consumer frugality
increased during the Great Recession, the sales of premium chocolate brands went flat. However,
Hershey’s sales, profits, and stock price increased as many consumers passed up higher-end goods in
favor of Hershey’s chocolate bars, Reese’s Peanut Butter Cups, and Kit Kat wafers. Hershey seized the
opportunity of this trend by running new ads that stressed their value. It also cut costs by paring back
the varieties of products such as Hershey’s Kisses. As supermarkets reduced the shelf space they
allotted to premium chocolates, Hershey cashed in as consumers looked to affordable Hershey
favorites to satisfy their cravings. After all, even on a tight budget, people need to indulge at least a
little.

1. Is Hershey’s resurgence based on a want or a need?