Chapter 1 Review and Applications.

1.1

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


The AMA is the American Marketing Association. The AMA is a professional marketing association for those involved in marketing. It provides resources such as education and training, as well as networking. AMA also offers seminars, workshops, data, articles, studies, career opportunities and best practices. All of these things are benefits to marketers.

2.3

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


A company that is following a production orientation would be a mattress company such as the original mattress factory. They specialize in making mattresses and stick to what they are good at. They may be successful using this method because they are a niche product that people always need at some point in their life, it is a fairly large purchase so they are able to make money off of it.

3.3

How does Philip Morris handle the sensitive issues associated with marketing tobacco? What kind of information does its web site provide about smoking and its negative effects on health? How do you think PM is able to justify such marketing tactics? After checking around the site, do you think that approach makes the company more or less trustworthy?



PM states on their website that they are targeting adult consumers and encouraging brand loyalty as well as hoping to convert current tobacco users that use other brands. They state that they do encourage starting tobacco use. The website gives information on the ingredients in the products, information on health issues such as second hand smoke, disease and smoking and pregnancy is included on the website as well as information on helping to quit using tobacco products. PM is able to justify such marketing tactics because they are stating the health issues and targeting adult consumers who have a choice of whether or not to smoke which includes stating the risks of smoking. I think that the company is trustworthy at least to the extent of the website. They have information on health issues, how to prevent underage tobacco use, cessation programs, and they clearly state their position on marketing their product.