question

How does the American Marketing Association define marketing?

answer

as "an organizational function and a set of processes for creating, communicating, and delivering value to customers and its stakeholders.

question

What are some marketers basics?

answer

the way marketers build relationships with customers.

question

Although our desires for many goods and services available to us may be unbounded, what forces us to be selective?

answer

limited financial resources

question

Accordingly, what kind of products do customers buy?

answer

one's that offer the best value when it comes to meeting their needs and wants.

question

Define: value

answer

relative comparison of a product's benefits versus its costs

question

What do benefits include?

answer

not only the functions of products, but also the emotional emotional satisfaction associated with owning, experiencing, or possessing it.

question

What do costs include?

answer

sales price, the expenditure of the buyer's time, and even the emotional costs of making a decision.

question

What does a satisfied customer perceive the benefits derived from the purchase as?

answer

greater than its costs

question

What is the formula for value?

answer

Value = benefits/costs

question

What do marketing strategies of leading firms focus on? Why are marketing resources deployed?

answer

increasing value for customers; to add benefits and decrease costs of products to provide greater value.

question

To satisfy customers, a company may do what?

answer

-Develop entirely new product that performs better than existing products -Keep a store open for longer hours during a busy season (greater shopping convience) -Offer price reductions (benefit of lower costs) -Offer information that explains how a product can be used in new ways (benefit of new uses at no additional cost).

question

What do benefits provide buyers with?

answer

utility

question

utility

answer

ability of a product to satisfy human need or want

question

What are the four types of utility?

answer

-form utility -time utility -place utility -possession utility

question

form utility

answer

Marketing has a voice in designing products with features that customers want.

question

Time utility:

answer

Marketing creates a time utility by providing products when customers will want them.

question

Place utility:

answer

Providing products where customers will want them.

question

Possession utility:

answer

transferring product ownership to customers by providing and setting selling prices, setting terms for customer credit payment and providing ownership documents.

question

Because they determine product features, and the timing, place, and terms of sale that provide utility and value for customers, marketers must understand what?

answer

customers' wants and needs

question

The marketing of goods belongs to which two types of customers?

answer

those who buy consumer goods and those who buy industrial goods.

question

consumer goods

answer

physical products purchased by consumers for personal use.

question

Firms that sell goods to consumers for personal consumption are engaged in consumer marketing, also know as what?

answer

B2C (business-to-consumer) marketing.

question

industrial goods

answer

physical products purchased by companies to produce other products

question

Firms that sell goods to other companies are engaged in what?

answer

industrial marketing or B2B (business-to-business) marketing.

question

Services

answer

products having nonphysical features, such as information, expertise, or an activity that can be purchased

question

Service marketing

answer

the application of marketing for services; continues to be a major growth area in the US.

question

True or False: Marketing techniques can also be applied to services.

answer

True

question

Finally, what do marketers do?

answer

promote ideas

question

Although marketing often focuses on single transactions for products, services, or ideas, what do marketers also take?

answer

a long-term perspective

question

relationship marketing

answer

marketing stray that emphasizes building lasting relationships with customers and suppliers

question

Stronger relationship- including stronger economic and social ties- can result in what?

answer

long-term satisfaction, customer loyalty, and customer retention.

question

True or False: Like many other marketing areas, the ways that marketers go about building relationships with customers have changed dramatically.

answer

True

question

Customer relationship management (CRM)

answer

organized methods that a firm uses to build better information connections with clients, so that stronger company-client relationships are developed

question

The power of the internets communication coupled with the ability to gather and assemble information on customer preferences allows what?

answer

marketers to better predict what clients will want to buy.

question

Data warehousing

answer

The compiling and storage of consumer data; it provides raw materials for which marketers can extract information and also enables them to find new clients

question

Data mining

answer

Automates the massive analysis of data by using computers to sift, sort, and search for previously undiscovered clues about what customers look at, react to, and how they might be influenced.

question

What is the hoped-for result of data mining?

answer

a clearer picture of how marketing, knowing a client's' preferences, can more effectively use its resources to better satisfy those particular needs, thereby building closer, stronger relationships with customers.

question

True or False: Marketing strategies are not determined unilaterally by any business- rather they are strongly influenced by powerful outside sources.

answer

True

question

Every marketing program must recognize the factors in a company's external environment, which is what?

answer

everything outside of an organization's boundaries that might affect it.

question

What are the four external environments in marketing?

answer

Political-legal, economic, socio-cultural, technological

question

Political activities, both global and domestic, have what?

answer

profound effects on marketing.

question

How do marketers try to maintain favorable positions?

answer

to gain public support for products and activities, marketers use ad campaigns to raise public awareness of important issues. Companies contribute to political action committees (PACs) maintained by their respective industry.

question

What do changing social values force companies to develop and promote?

answer

new products for both individual and industrial consumers.

question

New industrial products, too, reflect what?

answer

changing social values: A growing number of wellness programs are available to companies for improving employee's health.

question

What do trends reflect?

answer

the values, beliefs, and ideas that shape society.

question

What do new technologies create?

answer

new goods and services

question

What do new products make old products?

answer

absolete, and many products change our values and lifestyles.

question

In turn, what so lifestyle changes often stimulate? What do products also do?

answer

new products not directly related to the new technologies themselves. free up time for recreation and leisure.

question

Because they determine spending patterns by consumers , businesses, and governments, what do economic conditions influence?

answer

marketing plans for product offerings, pricing, and promotional strategies.

question

Marketers are concerned with which economic variables? Thus, what do they monitor?

answer

inflation, interest rates, and recession. the general business cycle to anticipate trends in consumer and business spending.

question

True or False: the interconnected global economy has become an increasingly important concern for marketers worldwide.

answer

True

question

the product shift/ downsizing of products affects all areas of marketing, including what?

answer

target markets, pricing, promotion, and distribution.

question

In a competitive environment, what must marketers convince buyers?

answer

that they should purchase one company's products rather than those of some other seller.

question

True or false: Because both consumers and commercial buyers have limited resources, every dollar spent on one product is no longer available for other purchases.

answer

True

question

What does each marketing program seek?

answer

to make their product most attractive

question

Expressed in business terms, what does a failed program lose?

answer

the buyer's dollar forever (or at least until the next purchase decision.)

question

To promote products effectively, what must marketers first understand?

answer

which of three types of competition they face.

question

Substitute product

answer

product that is dissimilar from those of competitors but can fulfill the same need

question

Brand competition

answer

competitive marketing that appeals to consumer perceptions of benefits of products offered by particular products.

question

International competition

answer

competitive marketing of domestic products against foreign products.

question

Having identified the kind of competition, what can marketers develop?

answer

a strategy for attracting more customers.

question

A company's marketing manager is responsible for what?

answer

planning and implementing all of the activities that result in the transfer of goods or services to its customers.

question

Marketing managers

answer

manager who plans and implements the marketing activities that result in the transfer of products from producer to consumer.

question

These activities cumulate in what?

answer

the marketing plan

question

Marketing Plan

answer

A detailed strategy for focusing marketing efforts on consumers' needs and wants

question

When does a strategy begin?

answer

when a company identifies a customer need and develops a product to meet it.

question

In planning and implementing strategies, what do managers develop?

answer

four basic components ("Four P's") of marketing mix: product, pricing, place, and promotion.

question

Marketing Mix

answer

combination of product, pricing, promotion, and place (distribution) strategies used to market products

question

Marketing begins with what?

answer

a product

question

Product

answer

good service or idea that is marketed to fill consumers' needs and wants

question

Why is conceiving and developing new products a constant challenge for marketers?

answer

because they must always consider the factor of change- changing technology, wants or needs of customers, and changing economic conditions.

question

Meeting these changing conditions often means what?

answer

changing existing products

question

Producers often promote particular features of products in order to do what?

answer

distinguish them in the marketplace

question

Product differentiation

answer

creation of a product feature or product image that differs enough from existing products to attract customers.

question

pricing

answer

process of determining the best price at which to sell a product

question

What must prices support?

answer

a variety of costs: -Operating -Administrative -Research costs -Marketing costs

question

On the other hand what can't prices be?

answer

too high that customers turn to competitors.

question

What does successful pricing mean?

answer

finding a profitable middle ground between these two requirements.

question

Low prices generally lead to what? And high prices?

answer

larger sales volume, limit market size but increase profits per unit.

question

High prices may also attract customers by implying what?

answer

that a product is of high quality

question

Place (distribution)-

answer

part of the marketing mix concerned with getting products from producers to consumers.

question

In the marketing mix, what does place refer to?

answer

distribution

question

Decisions about warehousing, inventory control, and transportation are what?

answer

distribution decisions

question

Firms must also make decisions about channels through which they do what?

answer

distribute products

question

Many manufacturers sell goods to other companies that, in turn, distribute them to who?

answer

retailers

question

Others sell directly to who?

answer

major retailers or directly to final consumers

question

The most visible component of the marketing mix is what?

answer

promotion

question

Promotion

answer

aspect of the marketing mix concerned with the most effective techniques for communicating information about products.

question

What are the most important promotional tools?

answer

advertising, personal selling, sales promotions, publicity/public relations, and direct or interactive marketing.

question

Integration marketing strategy

answer

strategy that blend together the Four P's of marketing to ensure their compatibility with one another and with the company's non-marketing activities as well

question

What did the emergence of the marketing concept and the recognition of customers' needs and wants lead marketers to think?

answer

in terms of target markets.

question

Target Markets

answer

Group of people with similar wants and needs who can be expected to show interest in the same products

question

What is usually the firsts step to a marketing strategy?

answer

Selecting target markets

question

What does marketing require?

answer

market segementation

question

Market Segmentation

answer

process of Dividing a market into categories of customer types or "segments".

question

Once they have identified segments the firm can adopt what?

answer

a variety of strategies

question

True or False: Some firms market products to more than one segment.

answer

True

question

True or False: In contrast, Some businesses offer a narrower range of products.

answer

true

question

Segmentation is a strategy for analyzing consumers, not ___________.

answer

products

question

Product positioning

answer

process of fixing, adapting, and communicating the nature of a product.

question

By defintion, members ofA MARKET SEGMENT MUST SHARE COMMON TRAITS that affect what?

answer

their purchasing decisions

question

In identifying consumer segments, researchers look at what?

answer

several different influences on consumer behavior.

question

What are the five most important variables?

answer

-Geographic Segmentation -Demographic Segmentation -Geo-Demographic Segmentation - Pyschographic Segmentation -Behavioral Segmentation

question

Geographic Variables

answer

geographic units that may be considered in developing a segmentation strategy

question

Demographic Variables

answer

characterisitics of populations that may be considered in developing a segmentation strategy

question

What identifying traits describe a demographic population?

answer

age, income, gender, ethnic background, marital status, race, religion, social class.

question

Depending on the marketer's purpose, a demographic segment can be what?

answer

a single classification or a combination of categories

question

Geo-demographic variables

answer

combination of geographic and demographic traits used in developing a segmentation strategy

question

What is segmentation more effective?

answer

because the greater number of variables defines the market more precisely.

question

Psychographic variables

answer

consumer characteristics, such as lifestyles, opinions, interests, and attitudes that may be considered in developing a segmentation strategy

question

Why are psychographics particularly important to marketers?

answer

Because unlike demographics and geo-graphics, they can be changed by marketing efforts

question

Behavioral Variables

answer

behavioral patterns displayed by a group of consumers and that are used in developing a segmentation strategy.

Quiz: Advanced Business Topics-268 to 278 – Flashcards

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