Chapter 11 Business Test Answers – Flashcards
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What is marketing?
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the action or business of promoting and selling products or services, including market research and advertising.
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What is customer lifetime value?
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is a prediction of the net profit attributed to the entire future relationship with a customer.
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What are some important considerations when implementing a marketing concept?
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how your enterprise will address the competitive marketplace how you will implement and support your day to day operations.
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Consumer market
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the consumer market pertains to buyers who purchase goods and services for consumption rather than resale.
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Business to business
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Business to business refers to business that is conducted between companies, rather than between a company and individual consumers.
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Producer
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a person, company, or country that makes, grows, or supplies goods or commodities for sale.
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Reseller
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A reseller is a company or individual (merchant) that purchases goods or services with the intention of selling them rather than consuming or using them. This is usually done for profit (but could be resold at a loss).
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Governmental
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the act or process of governing, especially the control and administration of public policy in a political unit.
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Institutional
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Relating to, formulated by, or managed by an institution. Governments often implement institutional programs such as subsidized housing and welfare programs for underprivileged citizens
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What is a market strategy?
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Marketing strategy is the fundamental goal of increasing sales and achieving a sustainable competitive advantage.
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What is a target market?
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a particular group of consumers at which a product or service is aimed.
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What is market segmentation?
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Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.
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What are the classifications of market segmentation?
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Geographic segmentation , Demographic segmentation sychographic segmentation, behavioral segmentation
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What is a marketing plan?
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A marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts
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Where do we get marketing information?
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The results of marketing research that are used to plan for future marketing or product development activities. The information may come from a single source or through a system of collection
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What is the consumer buying process?
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A buying process is the series of steps that a consumer will take to make a purchasing decision. A standard model of consumer purchase decision-making includes recognition of needs and wants, information search, evaluation of choices, purchase, and post-purchase evaluation.
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business buying behavior
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the purchasing of products by producers, resellers, governmental units, and institutions
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buying behavior
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the decisions and actions of people involved in buying and using products
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consumer buying behavior
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the purchasing of products for personal or household use, not for business purposes
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customer lifetime value
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a measure of a customer's worth (sales minus costs) to a business over one's lifetime
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customer relationship management (CRM)
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using information about customers to create marketing strategies that develop and sustain desirable customer relationships
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discretionary income
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disposable income less savings and expenditures on food, clothing, and housing
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disposable income
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personal income less all additional personal taxes
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form utility
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utility created by converting production inputs into finished products
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market
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a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchases them
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market segment
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a group of individuals or organizations within a market that share one or more common characteristics
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market segmentation
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the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market
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marketing
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the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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marketing concept
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a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives
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marketing information system
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a system for managing marketing information that is gathered continually from internal and external sources
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marketing mix
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a combination of product, price, distribution, and promotion developed to satisfy a particular target market
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marketing plan
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a written document that specifies an organization's resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group
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marketing research
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the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem
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marketing strategy
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a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives
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personal income
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the income an individual receives from all sources less the Social Security taxes the individual must pay
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place utility
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utility created by making a product available at a location where customers wish to purchase it
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possession utility
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utility created by transferring title (or ownership) of a product to a buyer
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relationship marketing
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establishing long-term, mutually satisfying buyer-seller relationships
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sales forecast
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an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort
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target market
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a group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group
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time utility
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utility created by making a product available when customers wish to purchase it
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undifferentiated approach
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directing a single marketing mix at the entire market for a particular product
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utility
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the ability of a good or service to satisfy a human need
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Marketing
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Creating, Communicating, Delivering, and Exchanging Offerings that have value for customers, clients, partners, and society at large
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Exchanging
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Buying and selling
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Distributing
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Transporting and storing
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Facilitating
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Financing, Standardization, Risk Taking, Gathering Information
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Relationship Marketing
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Establishing a long term, mutually satisfying buyer-seller relationships
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Customer Relationship managment
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Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
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Customer Lifetime Value
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Measure of a customers worth (sales minus costs) to a business over one's lifetime
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Managing Customer Relationships
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Who do customers want? Sometimes it's more profitable to retain customers by offering them big rewards than attracting new customers who may never develop the same loyalty.
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Utility: The Value Added by Marketing
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The ability of a good or service to satisfy a human need
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Form utility:
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Created by converting production inputs into finished products
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Place utility:
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Created by making a product available at a location where customers wish to purchase it
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Time utility:
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Created by making a product available when customers wish to purchase it
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Possession utility:
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Created by transferring title (ownership) of a product to a buyer
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Utility: The Value Added by Marketing
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Putting products at the customer's fingertips. Firms try to provide customers with products whenever and wherever they need them
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The Marketing Concept
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Providing goods and services that satisfy customers' needs To achieve success, a business must: Communicate with potential customers to assess their needs Develop a good or service to satisfy those needs Continue to seek ways to provide customer satisfaction
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The Marketing Concept Tell us what you really think.
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Surveys can be conducted in a variety of ways: in-person, by mail or fax, or online. Online surveys have made it very inexpensive for firms to gather customer feedback
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Evolution of the Marketing Concept
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Industrial revolution through the early twentieth century Business effort directed toward production to meet great demand
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Sales orientation
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Increased advertising, enlarged sales forces, and occasionally, high-pressure selling techniques 1950s Business efforts focused on satisfying customers' needs
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Production orientation -
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Emphasis on increased output 1920s Production began to exceed demand Business efforts included selling goods than just producing them
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Implementing the Marketing Concept
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Obtain information about present and potential customers Their needs Satisfaction of the needs Improving products Customer opinions about the firm Provide a product that will satisfy customers Price the product at an acceptable and profitable level Promote the product to potential customers Ensure distribution for product availability when and where wanted Obtain information on the effectiveness of the marketing effort and modify efforts as necessary
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Market:
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Group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products
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Consumer markets
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Purchasers and/or households members who intend to consume or benefit from the purchased products and who do not buy products to make a profit
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Business-to-business (industrial) markets
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Purchase specific kinds of products for use in making other products for resale or for day-to-day operations
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Governmental markets
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- Buy goods and services to maintain internal operations and to provide citizens with such products as highways, education, water, energy, and national defense
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Institutional markets
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- Churches, not-for-profit private schools and hospitals, civic clubs, fraternities and sororities, charitable organizations, and foundations
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Marketing strategy:
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Plan that will enable an organization to make the best use of its resources and advantages to meet its objectives Consists of: The selection and analysis of a target market The creation and maintenance of an appropriate marketing mix (product, price, distribution, and promotion)
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Target market:
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Group of individuals, organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group baby boomers/china
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Undifferentiated approach:
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Directing a single marketing mix at the entire market for a particular product Useful in only a limited number of situations
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Market segment:
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Group of individuals or organizations within a market that share one or more common characteristics
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Marketing Strategy and the Marketing Environment
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The marketing mix consists of elements that a firm controls and uses to reach its target market Forces that make up the external marketing environment Economic forces Sociocultural forces Political forces Competitive forces Legal and regulatory forces Technological forces
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Developing a Marketing Plan
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Components of the Marketing Plan Executive summary Environmental analysis SWOT analysis Marketing objectives Marketing strategies Marketing implementation Evaluation and control
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Sales forecast:
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Estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort Organizations use several forecasting methods Executive judgments Surveys of buyers or sales personnel Time-series analyses Correlation analyses Market tests
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Marketing Information Systems
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System for managing marketing information that is gathered continually from internal and external sources
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Internal data sources
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Sales figures, product and marketing costs, inventory levels, and sales force activities
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External data sources
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Suppliers, intermediaries, customers, competitors, and economic conditions
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Outputs
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Sales reports, sales forecasts, buying trends, market share
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Marketing Research
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Process of systematically gathering, recording, and analyzing data concerning a particular marketing problem
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Database
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- Collection of information arranged for easy access and retrieval Databases such as LEXIS-NEXIS, Reader's Digest
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Single-source data
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- Information provided by a single firm
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Online information services
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- Offer subscribers access to e-mail, websites, mailing lists
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Internet
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- Useful in accessing Web pages such as Nielsen and Advertising Age
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Buying Behavior
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Decisions and actions of people involved in buying and using products
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Consumer buying behavior:
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Purchasing of products for personal or household use, not for business purposes
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Business buying behavior
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: Purchasing of products by producers, resellers, governmental units, and institutions
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Recognizing a problem in consumer buying
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Problem recognition is the first stage of the consumer buying decision process. This ad makes consumers aware of an environmental problem they might not have known they were contributing to.
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Personal income:
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The income an individual receives from all sources less the Social Security taxes the individual must pay
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Disposable income:
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Personal income less all additional personal taxes
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Discretionary income
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Disposable income less savings and expenditures on food, clothing, and housing Of particular interest to marketers due to choice of how to spend it
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Business Buying Behavior
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Business buyers consider a product's quality, its price, and the service provided by suppliers Business buyers are better informed than consumers about products and generally buy in larger quantities In a business, a committee or a group of people, rather than just one person, decides on purchases
