Chapter 1

Question 1

What is marketing ?

Answer 1

Marketing is the activity, set of institutions and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Question 2

What is the marketing mix?

Answer 2

A combination of the product itself, the price of the product, the promotional activities that introduce it and the place where it is made available, that together create a desired response among a set of predefined consumers.

Question 3

four P’s

Answer 3

Product
price
promotion
place

Question 4

Product

Answer 4

A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses.

Question 5

Promotion

Answer 5

The coordination of a marketer’s communication efforts to influence attitudes or behavior.

Question 6

Place

Answer 6

The availability of the product to the customer at the desired time and location.

Question 7

Price

Answer 7

The assignment of value, or the amount the consumer must exchange to receive the offering.

Question 8

Exchange

Answer 8

The process by which some transfer of value occurs between a buyer and a seller.

Question 9

Consumer goods

Answer 9

The goods individual consumers purchase for personal or family use.

Question 10

Services

Answer 10

Intangible products that are exchanged directly between the producer and the customer

Question 11

Business-to-business marketing

Answer 11

The marketing of goods and services from one organization to another.

Question 12

Industrial goods

Answer 12

Goods that individuals or organizations buy to further processing or for their own use when they do business.

Question 13

E-commerce

Answer 13

The buying or selling of goods and services electronically, usually over the internet.

Question 14

Not-for-profit organizations

Answer 14

Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members.

Question 15

Nongovernmental organizations (NGOs)

Answer 15

Another name for not for profit organizations

Question 16

Marketing concept

Answer 16

A management orientation that focuses on identifying and satisfying consumer needs to ensure the organizations long-term profitability.

Question 17

Need

Answer 17

The recognition of any difference between a consumers actual state and some ideal or desired state

Question 18

Want

Answer 18

The desire to satisfy needs in specific ways that are culturally and socially influenced.

Question 19

Benefit

Answer 19

The outcome sought by a customer that motivates buying behavior that satisfies a need or want

Question 20

Demand

Answer 20

Customers desired for products coupled with the resources needed to obtain them

Question 21

Market

Answer 21

All the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange.

Question 22

Marketplace

Answer 22

Any location or medium used to conduct an exchange

Question 23

Virtual goods

Answer 23

Digital products consumer buy for use in online contexts

Question 24

Rentrepreneurs

Answer 24

Enterprising consumer who make money by renting out their possessions when they aren’t using them

Question 25

Collaborative consumption

Answer 25

A term used to refer to the activities practiced by rentrepreneurs.

Question 26

Utility

Answer 26

The usefulness or benefit that consumers receive from a product

Question 27

Stakeholders

Answer 27

Buyers, sellers, or investors in a company; community residents; and even citizens of the nations where goods and services are made or sold-in other words, any person or organization that has a “stake” in the outcome

Question 28

Production orientation

Answer 28

A management philosophy that emphasizes the most efficient ways the produce and distribute products

Question 29

Selling orientation

Answer 29

A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory.

Question 30

Consumer orientation

Answer 30

A business approach that prioritizes the satisfaction of customers’ needs and wants.

Question 31

Total quality management(TQM)

Answer 31

A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement.

Question 32

Instapreneur

Answer 32

A business person who only produces a product when it is ordered.

Question 33

Triple-bottom-line orientation

Answer 33

A business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices

Question 34

Societal marketing concept

Answer 34

A management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and also deliver profit to the firm

Question 35

Sustainability

Answer 35

A product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs

Question 36

Green marketing

Answer 36

A marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers

Question 37

Return on investment (ROI)

Answer 37

The direct financial impact of a firms expenditure of a resource, such as time or money

Question 38

Attention economy

Answer 38

A company’s success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars.

Question 39

Value proposition

Answer 39

A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased

Question 40

Brandfests

Answer 40

Events that companies host to Thank customers for their loyalty.

Question 41

Lifetime value of a customer

Answer 41

The potential profit a single customers purchase of a firms products generates over the customers lifetime

Question 42

Distinctive competency

Answer 42

A superior capability of a firm in comparison to its direct competitors.

Question 43

Marketing scorecards

Answer 43

Feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals

Question 44

Metrics

Answer 44

Measurements or “scorecards” that marketers use to identify the effectiveness of different strategies or tactics.

Question 45

Differential benefit

Answer 45

Properties of products that set them apart from competitors products by providing unique customer benefits

Question 46

Value chain

Answer 46

A series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys

Question 47

Amafessionals

Answer 47

Consumers who contribute ideas to online forums for the fun and challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income.

Question 48

Consumer-generated content

Answer 48

Everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers.

Question 49

Social media

Answer 49

Internet-based platforms that allow users to create their own content and share it with others who access these sites.

Question 50

Social networking platforms

Answer 50

Online platforms that allow a user to represent him- or herself via a profile on a website and provide and receive links to other members of the network to share input about common interests.

Question 51

Web 2.0

Answer 51

The new generation of the World Wide Web that incorporates social networking and user interactivity.

Question 52

Folksonomy

Answer 52

A classification system that relies on users rather than preestablished systems to sort contents

Question 53

Wisdom of crowds

Answer 53

Under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products

Question 54

Crowdsourcing

Answer 54

A practice where firms outsource marketing activities (such as selecting an ad) to a community of users.

Question 55

Open-source model

Answer 55

A practice used in the software industry in which companies share their software codes with one another to assist in the development of a better product

Question 56

Consumer addiction

Answer 56

A physiological or psychological dependency on goods or services including alcoholism, drug addiction, cigarettes, shopping, and use of the internet.

Question 57

Shrinkage

Answer 57

Losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise.

Question 58

Anticonsumption

Answer 58

The deliberate defacement of products

Question 59

Marketing plan

Answer 59

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

Question 60

Mass market

Answer 60

All possible customers in a market, regardless of the differences in their specific needs and wants; the way in which the target market perceives the product in comparison to competitors brands

Question 61

Market segment

Answer 61

A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market

Question 62

Target market

Answer 62

The market segments on which an organizations focuses its marketing plan and toward which it directs its marketing efforts

Question 63

Market position

Answer 63

The way in which the target market perceives the product in comparison to competitors brands