Ch. 1 | Marketing Fundamentals

Question 1

explain what is meant by “customer’s needs” in marketing

Answer 1

occurs when a person feels deprived of their basic necessities

Question 2

explain what is meant by “customer’s wants” in marketing

Answer 2

a need that is shaped by a person’s knowledge, culture, and personality

Question 3

define what is meant by customer value proposition

Answer 3

value proposition
is a simple statement that summarizes why a customer would choose your product or service. It communicates the clearest benefit that customers receive by giving you their business.

• product design
• pricing strategies
• service elements
  includes: quality, price, convenience, delivery, and both before-sale and after-sale service

Question 4

what is a market?

Answer 4

a market is used to describe potential consumers who have both the willingness and ability to buy a product

Question 5

what are the elements of the marketing mix (4 P’s)?

Answer 5

• product
• price
• place
• promotion

Question 6

what is a target market?

Answer 6

a specific group or segment(s) of existing and potential consumers to which marketers direct their marketing efforts

Question 7

define what product means in in the marketing mix

Answer 7

attributes that make up a good, a service, or an idea.
- including product design, features, colour, packaging, warranty, and service levels

Question 8

define what price means in the marketing mix

Answer 8

what is exchanged for a product, including the expected regular retail or sale price

Question 9

define what place means in in the marketing mix

Answer 9

the way in which your product gets to the consumer, including the distribution channels, retail formats, and merchandising used to sell a product

Question 10

define what promotion means in in the marketing mix

Answer 10

the tools needed to communicate with consumers about a product, including advertising, public relations, sales promotion, direct response marketing, sponsorship, online approaches, and personal selling

Question 11

what 3 things does the marketing process involve?

Answer 11

1. identifying consumer needs
2. managing the marketing mix to meet these needs
3. reaching the potential consumers or the market

Question 12

describe what marketing is really all about

Answer 12

the process through which goods and services move from concept to the customer.

it includes the coordination of the 4 P’s:
- to identify, to select, and develop a product
- determine its price
- select a distribution channel to reach a customer’s places
- develop and implement a promotional strategy

Question 13

what are the 4 stages of the evolution of business philosophies?

Answer 13

1) product orientation (-1930s)
2) sales orientation (1930 - 1960)
3) marketing orientation (1960 - 1990)
4) relationship marketing orientation (1990-)

Question 14

what 3 things are included in the marketing process?

Answer 14

1) identifying consumer needs
2) manaing the marketing mix to meet these needs
3) reaching potential consumers or the market

Question 15

define what a service is in marketing

Answer 15

a service is a product that is intangible

an activity, physitherapy session, vacation, etc.

Question 16

define what a good is in marketing

Answer 16

a good is a product that is tangible, where you can touch and own

Question 17

define the term production orientation

Answer 17

a business philosophy stage until the 1930s that focused on the manufacturing of goods
- consumer needs were not a priority

Question 18

define the term sales orientation

Answer 18

1930s - 1960s
this stage focused on selling as many products as possible

Question 19

define the term marketing orientation

Answer 19

this stage focuses on the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve an organization’s goals

Question 20

define the term relationship marketing

Answer 20

organizations consider the lifetime value of their customers and strive to offer better services, along with higher-quality products to encourage long-term relationships with customers.

Question 21

what is CRM and what does it mean?

Answer 21

• customer relationship management (CRM)
• the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Question 22

define the term “share the wallet”

Answer 22

the percentage of a customer’s purchases that a company has in a specific product category

Question 23

what is meant by customer lifetime value?

Answer 23

the potential sales that will be generated by a customer if that customer remains loyal to that company for a lifetime

eg. if a pregnant woman buys prenatal vitamins at a stoe that uses CRM tracking software, in time she may start receiving coupons for diapers, baby food, etc.

Question 24

what is CSR and what does it mean?

Answer 24

• corporate social responsibilty (CSR)
• when organizations voluntarily consider the well-being of society by taking responsibility for how their busnesses impact consumers, customers, suppliers, employees, shareholders, communities, the environment, and society in general

Question 25

define “greenwashing”

Answer 25

the deceptive use of marketing practices to give the impression that a good, service, or organization is environmentally friendly

eg. dawn dish soap as their slogan is “dawn helps save wildlife” while triclosan, an antibacterial agent present in dawn dish soap is declared toxic to aquatic life

Question 26

what is the societal marketing concept?

Answer 26

marketing programs that focus on the consumer and the well-being of society

Question 27

what are the 7 recent marketing approaches?

Answer 27

1. digital marketing
2. augmented reality
3. experimental marketing
4. influencer marketing
5. partnership marketing
6. metrics and analytics
7. new marketing regulations and ethical considerations

Question 28

what is experimental marketing?

Answer 28

is an approach where marketers create fun and memorable opportunities for consumers to directly interact with brands

the consumers will spread word about their experience via. social media

exp. a brand can follow a number of approaches with experiential marketing., often using a combination of public relations, event marketing, and promotions.

Question 29

what is partnership marketing?

Answer 29

the creation of formal associations between brands that will result in incremental business for brands that could not been achieved separatley

eg. nutella has partnered with tim hortons to offer a nutella doughnut, as well as nutella-filled pastries.

Question 30

what is a strategic alliance?

Answer 30

long-term arrangements between companies with similar values and objectives that extend beyond short-term promotional offers into long-term business agreements

eg. scene loyalty movie rewards program where cineplex entertainment and scotiabank formed a long-term arrangement to benefit both companies.
- scene members collect points when purchasing cineplex tickets or concession items. scotiabank visa credit card holders earn additional points when paying with their scotiabank visa card.

Question 31

define the term “metrics”

Answer 31

numeric data that are collected and grouped to track performance, often presented in spreacdsheets and dashboards

so it is easy to understand and interpret