Chapter 1 Questions

Question 1.1:

What is the AMA? What does it do? How do its services benefit marketers?

With over 38,000 members worldwide, the American Marketing Association is a professional association for individuals and organizations involved in the practice, teaching and study of marketing worldwide.

The AMA’s principle roles are improving, promoting and supporting the profession of marketing.

• Improving - Advancing marketing competencies, practice and thought leadership.
• Promoting - Being an advocate for marketing and promoting its importance, efficacy and ethics.
• Supporting - Being an essential resource for marketing information, education/training and relationships.

The AMA benefits marketers by offering them opportunities for professional development to become a more effective marketer. Membership also provides marketers valuable networking opportunities and the ability to access thousands of others in the field of marketing. Finally members also gain valuable information about the field of marketing to include access to two publications, a library of case studies as well as a database of relevant articles in the field of marketing.

Question 2.3:

Give an example of a company that might be successfully following a production orientation. Why might a firm in the industry be successful following such an orientation?

One great example is one provided in the book, 3M.  3M produces products like post-it notes, scotch tape, etc.  They provide these products regardless of marketplace demands.  Their products are staples - like pencils, etc.

Firms that follow a production orientation can be successful in following such an orientation because they focus on the internal capabilities of the organization rather than the desires and needs of the marketplace. Sometimes what a firm can best produce is exactly what the marketplace wants.

Netflix Questions:

1. Describe the elements of the exchange process as they occur between Netflix and its customers.

Customers of Netflix give up money in order to gain access to their services. They also give up the ability to get their movies instantly at the store as they have to wait for the movie to arrive by mail. Netflix offers its customers lightning fast delivery of its selection of over 60,000 titles and has 34 strategically placed distribution centers.  Netflix also gives up gaining late fees in order to attract customers and both parties enter into a service contract that can be cancelled at any time.


2. Which marketing management philosophy does Netflix subscribe to?

Both the marketing concept and market orientation philosophies

3. How does Netflix’s approach to relationship marketing increase customer satisfaction?

Netflix is customer driven and responds to customer demands. They continuously add features and titles based on customer needs and do everything they can to continue to keep the customer and attract new ones.