Deck 1: Marketing: the Art and Science of Satisfying Customers

Question 1

Identify the four types of utility, and give an example of each.

Answer 1

Utility :
The ability of identifying the level of satisfaction of the consumer's needs and wants by the attributes of the product is called utility.
Types of utility :
Utility is categorized into four types, they are :
Form utility : The process of converting the stock into finished products is called as form utility; for example, converting the blue fabric into blue jeans.
Time utility : The availability of particular products found at a specific time is called as time utility. For example, during summer season the demand for ice cream is more due to the time utility of the product.
Place utility : The availability of particular services found at a specific location is called as place utility. For example, Automated Teller Machine (ATM) is installed in many malls.
Possession utility : The capability of transferring the buyer's ownership of services is called as possession utility. For example, leasing transfers the right or ownership from one customer to another customer.

Question 2

Hewlett-Packard Reduces, Reuses, Recycles
Hewlett-Packard (HP), the world's largest information technology (IT) company, was founded in 1939 and makes its headquarters in Palo Alto, California. Ranking among the top 10 of the Fortune 500, HP operates in more than 170 countries and earned annual revenues of more than $115 billion. Its products range from small, handheld devices to giant supercomputers and fall into three main business groups: Personal Systems, which includes PCs, workstations, and mobile computing devices; Enterprise Business, including storage devices, servers, and business software; and Imaging and Printing, encompassing inkjet and laser printers, commercial printing services, and printing supplies.
For its leadership role in reporting and reducing its greenhousegas emissions, HP was recently named the "Greenest Big Company in America" by Newsweek magazine. It has long been focused on contributing to each country and community in which it operates by reducing waste, raising standards among its global suppliers, and easing access to information technology around the world. Seeing itself as a "global steward," the firm recycles HP ink cartridges for free and accepts any brand of computer hardware and rechargeable batteries for recycling in the United States and Canada. In partnership with the National Cristina Foundation, HP also accepts used computer equipment for donation in the United States, as well as accepting equipment for trade-in and resale to reduce electronic waste.
"Recycling technology equipment is a win-win situation for everybody," HP believes. "It is good for the planet and good for business." In one recent year, the firm recycled more than 74,000 tons of hardware and print cartridges around the world, and it hopes soon to have recycled more than 900,000 tons of electronic products and supplies.
HP's scientists estimate that businesses' use of technology consumes more than 400 million tons of coal each year, emitting more than twice that amount in the form of carbon dioxide waste. "We cannot continue to consume energy at our current rates," the company's website says. As part of its Design for the Environment strategy, HP's corporate phones and laptops use less energy thanks to displays that use ambient light, and soon the firm hopes to reduce the energy consumption and greenhouse-gas emissions of all its operations and products to 40 percent below their 2005 levels. It has already met its 2010 goal to reduce them to 25 percent below 2005 levels, and it is moving forward with plans to invest in renewable energy sources and to make it even easier to recycle every one of its products.
But HP isn't only cleaning up its own act; it's helping its customers too. It recently announced that its newest ProBook laptop models include a dedicated hardware circuit and "Power Assistant" software that can estimate and display the computers' energy use over time. With this feature, users can check bar charts or pie charts of energy use and reduce it, by customizing their power settings to reduce screen brightness, turn offcertain networking features, run the processor at a lower speed, or squeeze out longer battery life. IT administrators can even manage a whole network of computers with Power Assistant, customizing the machines to go into energysaving hibernate mode sooner, for instance. Future laptops and desktops from HP will boast the same innovative feature. "The way we see it," says HP, "environmental responsibility and business success go hand in hand."
What kind(s) of marketing utility do you think Hewlett-Packard's sustainability efforts provide for its customers? Are there any downsides to these programs?

Answer 2

Case synopsis:
HEP is a world's largest information technology. The major businesses of HEP are personal systems, mobile computing devices, business software, hardware and print cartridge. HEP has made great steps in increasing the volume of the products recovered for reuses and recycling. HEP has also reduced the environment impact in the area of: recycled contents in products, packaging reduction and recycled content, energy efficiency. It is helpful for the consumer and for the firm to create products with lower environmental impact.
"Marketing utility provides sustainability efforts for the customer"
HEP sustainability efforts are designed at introducing products and services that are more eco-friendly to the society. The firm has sustained a strong focus on delivering high-quality products that are recyclable. This provides the marketing utility to consumer who are socially and environmentally accountable as it gives the customer satisfaction in knowing that the firm contributing toward the betterment of the environment and in the reduction of wastage resources.

Question 3

How does an organization create a customer?

Answer 3

Customer :
Customer is an individual or firm, who purchases the products and services created by business. Customer pays for the supply and creates demand for the products.
Way of creating a customer by organization :
Creating and delivering the products to the customer is essential for organizations operating in today's competitive marketplace. To craft customers, the organization has to understand about the marketplace and customer needs. Organization can create the customer by categorizing the needs of customers, and designing goods and services to meet the customer satisfaction of the products. Organization makes the products and services reachable to the customer at a time and place that meets the customer's needs.
Organization has to concentrate more on pricing; it reflects the costs, competition for products in market, and finally ensures the customer-satisfaction after the purchase of products. Organization as deliver the products in an effective and efficient way to customer. To make profitability, the organization has to generate customer loyalty. Customer loyalty is not a short term plan; it is a long term commitment to the products and services.

Question 4

You are having lunch with a friend who works for an advertising agency that competes with yours. Suddenly he remembers an errand he has to run before returning to work, and he rushes offwith a hasty good-bye after giving you some money to cover his lunch. As you gather your things to leave a few minutes later, you realize your friend left his notebook computer on the table, open to a report about a client. Your company is very interested in doing some work for this client in the future.
Would you take a quick look at the report before you return it to your friend? Why or why not?

Question 5

Marketing terminology. Like many subjects, marketing appears to have a language of its own. Visit the website of the American Marketing Association. Click on "Resources" and then "AMA Dictionary." Define the following terms: A/B testing, dating, never-out list, and will-call.www.ama.org

Question 6

Consider each of the following firms and describe how the firm's goods and services can create different types of utility. If necessary, go online to the company's website to learn more about it. You can do this alone or in a team.
a. American Express, Visa, or MasterCard
b. Flickr or other online digital photo service
c. Club Med
d. Amazon.com
e. SuperValu supermarkets

Question 7

What condition in the marketplace gave rise to the need for a consumer orientation by businesses after World War II?

Question 8

Hewlett-Packard Reduces, Reuses, Recycles
Hewlett-Packard (HP), the world's largest information technology (IT) company, was founded in 1939 and makes its headquarters in Palo Alto, California. Ranking among the top 10 of the Fortune 500, HP operates in more than 170 countries and earned annual revenues of more than $115 billion. Its products range from small, handheld devices to giant supercomputers and fall into three main business groups: Personal Systems, which includes PCs, workstations, and mobile computing devices; Enterprise Business, including storage devices, servers, and business software; and Imaging and Printing, encompassing inkjet and laser printers, commercial printing services, and printing supplies.
For its leadership role in reporting and reducing its greenhousegas emissions, HP was recently named the "Greenest Big Company in America" by Newsweek magazine. It has long been focused on contributing to each country and community in which it operates by reducing waste, raising standards among its global suppliers, and easing access to information technology around the world. Seeing itself as a "global steward," the firm recycles HP ink cartridges for free and accepts any brand of computer hardware and rechargeable batteries for recycling in the United States and Canada. In partnership with the National Cristina Foundation, HP also accepts used computer equipment for donation in the United States, as well as accepting equipment for trade-in and resale to reduce electronic waste.
"Recycling technology equipment is a win-win situation for everybody," HP believes. "It is good for the planet and good for business." In one recent year, the firm recycled more than 74,000 tons of hardware and print cartridges around the world, and it hopes soon to have recycled more than 900,000 tons of electronic products and supplies.
HP's scientists estimate that businesses' use of technology consumes more than 400 million tons of coal each year, emitting more than twice that amount in the form of carbon dioxide waste. "We cannot continue to consume energy at our current rates," the company's website says. As part of its Design for the Environment strategy, HP's corporate phones and laptops use less energy thanks to displays that use ambient light, and soon the firm hopes to reduce the energy consumption and greenhouse-gas emissions of all its operations and products to 40 percent below their 2005 levels. It has already met its 2010 goal to reduce them to 25 percent below 2005 levels, and it is moving forward with plans to invest in renewable energy sources and to make it even easier to recycle every one of its products.
But HP isn't only cleaning up its own act; it's helping its customers too. It recently announced that its newest ProBook laptop models include a dedicated hardware circuit and "Power Assistant" software that can estimate and display the computers' energy use over time. With this feature, users can check bar charts or pie charts of energy use and reduce it, by customizing their power settings to reduce screen brightness, turn offcertain networking features, run the processor at a lower speed, or squeeze out longer battery life. IT administrators can even manage a whole network of computers with Power Assistant, customizing the machines to go into energysaving hibernate mode sooner, for instance. Future laptops and desktops from HP will boast the same innovative feature. "The way we see it," says HP, "environmental responsibility and business success go hand in hand."
HP has entered a partnership with the National Cristina Foundation to accept used computer equipment for donation. What other partners, or types of partners, might help the company achieve its sustainability goals in the future?

Question 9

How can marketers use interactive and social marketing to convert needs to wants and ultimately build long-term relationships with customers?

Question 10

You are having lunch with a friend who works for an advertising agency that competes with yours. Suddenly he remembers an errand he has to run before returning to work, and he rushes offwith a hasty good-bye after giving you some money to cover his lunch. As you gather your things to leave a few minutes later, you realize your friend left his notebook computer on the table, open to a report about a client. Your company is very interested in doing some work for this client in the future.
Would you share any information in the report with anyone in your office? Why or why not?

Question 11

Event marketing. The Westminster Kennel Club runs the nation's largest dog show. Go to the event's website. Review the website and prepare a brief report relating what you learned to the material on event marketing in the chapter. Make sure to describe sponsor tie-ins and other joint marketing efforts. www.westminsterkennelclub.org

Question 12

With a classmate, choose a U.S.-based company whose products you think will do well in certain overseas markets. The company can be anything from a music group to a clothing retailer-anything that interests you. Suggestions include Papa John's Pizza, Zumba, StubHub, Katy Perry, or Bass Pro Shops. Then write a plan for how you would target and communicate with overseas markets.

Question 13

Define relationship marketing, and describe how it fits into the marketing concept.

Question 14

Why is utility such an important feature of marketing?

Question 15

You are having lunch with a friend who works for an advertising agency that competes with yours. Suddenly he remembers an errand he has to run before returning to work, and he rushes offwith a hasty good-bye after giving you some money to cover his lunch. As you gather your things to leave a few minutes later, you realize your friend left his notebook computer on the table, open to a report about a client. Your company is very interested in doing some work for this client in the future.
When you return the notebook to your friend, would you mention the contents and offer your own commentary on them? Why or why not?

Question 16

Sustainability. Johnson Johnson engages in a major effort to incorporate sustainability into its wide-ranging business activities. Visit the website listed here and read about the firm's recent activities. How does Johnson Johnson promote sustainability? What are some specific examples? www.jnj.com/connect/caring/environment-protection
Note: Internet Web addresses change frequently. If you don't find the exact site listed, you may need to access the organization's home page and search from there or use a search engine such as Google or Bing.

Question 17

Choose a company that interests you from the following list or select one of your own. Research the company online, through business magazines, or through other sources to identify the scope of its business. Write a brief description of the company's current scope of business. Then describe strategies for avoiding marketing myopia, expanding the company's scope of business over the next ten years.
a. United Parcel Service (UPS)
b. Walt Disney World
c. General Electric
d. E*Trade
e. Apple

Question 18

Why do not-for-profit organizations need to engage in marketing efforts?

Question 19

What benefits-monetary and nonmonetary-do social responsibility programs bring to a business?

Question 20

With a classmate, choose one of the following not-for-profit organizations. Then come up with a for-profit firm with which you think your organization could form a strategic alliance. Create a presentation-an ad, a poster, or the like-illustrating and promoting the partnership.
a. Humane Society
b. Oxfam
c. Habitat for Humanity
d. American Cancer Society
e. The Bill and Melinda Gates Foundation

Question 21

Give an example of how Big Apple Bagels could use one or more of the nontraditional marketing techniques to promote the opening of a new franchise.

Question 22

Why is determining the lifetime value of a customer an important analysis for a company to make?

Question 23

Research one of the following electronics companies, or another of your choosing, and study its efforts to improve the sustainability of its products, particularly their safe disposal. What does the company do well in this area? What could it do better?
a. Toshiba
b. Nintendo
c. Microsoft
d. Fujitsu
e. Samsung

Question 24

What might be some of the benefits of mobile marketing for firms that use it to reach out to consumers?

Question 25

Why is it important for a firm to establish high ethical standards for sustainability? What role do you think marketers play in implementing these standards?

Question 26

Describe the significance of the shift from transaction-based marketing to relationship marketing. When does relationship building begin?

Question 27

How has social media, such as Twitter and Facebook, changed marketing communications?

Question 28

How do ethics and social responsibility help a firm achieve marketplace success?

Question 29

What motivates firms to develop sustainable products?