Chapter 01

Question 1

The four Ps make up a marketing mix

Answer 1

product;
place;
promotion;
and price.

Question 2

The customer is not part of the marketing mix. Why?

Answer 2

The four Ps are things that the marketer can control, but the marketer cannot directly control the customer’s behavior.

Question 3

What is the Place Element of the Marketing Mix?

Answer 3

The objective for the place, or distribution, is to get the right product, to the right consumer, in the right place, at the right time, in the right quantity, and in the right condition.

Question 4

Channel of distribution

Answer 4

any series of firms or persons used to move goods from producers to final users. Channels can be:
very long or very short;
simple or complex.

Question 5

What do marketers do?

Answer 5

find the best kinds and types of channels for the product;

effectively manage the channel.

Question 6

aspects of place

Answer 6

logistics or physical distribution;

roles of middlemen, such as wholesalers and retailers

Question 7

The Promotion Element of the Marketing Mix

Answer 7

telling the target market about the product and selling the product

Question 8

Promotion involves

Answer 8

telling the target market about the product and selling the product to the target customer

Question 9

Personal selling-

Answer 9

direct communication between sellers and potential customers

Question 10

customer service

Answer 10

a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase

Question 11

Mass selling-

Answer 11

communicates with large numbers of customers at the same time

Question 12

Advertising

Answer 12

any paid form of nonpersonal presentation of ideas, goods, and services by an identified sponsor

Question 13

Publicity

Answer 13

unpaid, nonpersonal presentation of ideas, goods, or services.

Question 14

Sales promotion-

Answer 14

promotion activities, other than advertising, publicity, and personal selling, that stimulate interest, trial, or purchase

Question 15

Price is the ? of the marketing mix?

Answer 15

revenue-generating function

Question 16

Pricing policies

Answer 16

price flexibility;
how price changes over the product life cycle;
various allowances, discounts, and geographic terms that affect the final price.
Other aspects of price include:
cost structure and demand;
price sensitivity; competition, available substitutes;
impact of the price of one product on any other products offered by the organization.

Question 17

The Price Element of the Marketing Mix

Answer 17

Pricing Objectives
Price Flexibility
Price Changes Over the Life Cycle
Discounts and Allowances
Geographic Pricing Terms
Legal Environment
Cost and Demand
Price Sensitivity
Competition and Substitutes
Price of Other Products In the Line

Question 18

Which of the 4 P’s have an impact on satisfying the needs of consumers in the target market?

Answer 18

All of the four Ps–product, place, promotion and price- No single area is more important than the others–they are all interconnected.

Question 19

Uncontrollable Environmental Forces

Answer 19

Social
Economic
Technological
Competitive
Regulatory

Question 20

Stores with Customer Value Strategies

Answer 20

Best Price: Target
Best Service: Nordstrom
Best Product: Starbucks

Question 21

Customer value

Answer 21

the difference between the benefits a customer sees from a marketing offering and the costs of obtaining those benefits.

Question 22

Customer value

Answer 22

builds relationships

Question 23

4 Eras is American business

Answer 23

Production era
Sales era
Marketing Concept era
Customer Relationship era

Question 24

Relationship Marketing

Answer 24

Easy to Understand,

Hard to Do

Question 25

Marketing

Answer 25

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large

Question 26

Exchange

Answer 26

the trade of thingsof value between a buyer and a seller so that each is better off after the trade

Question 27

Market

Answer 27

people with both the desire and the ability to buy a specific offering.

Question 28

target market

Answer 28

one or more specific groups of potential consumers toward which an organization directs its marketing program.

Question 29

marketing mix

Answer 29

the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

Question 30

Market orientation focuses on

Answer 30

(1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.

Question 31

Customer value proposition

Answer 31

the cluster of benefits that an organization promises customers to satisfy their needs.

Question 32

Environmental forces

Answer 32

the uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.

Question 33

Customer value

Answer 33

the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

Question 34

Relationship marketing

Answer 34

links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

Question 35

marketing program

Answer 35

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

Question 36

Market segments

Answer 36

the relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.

Question 37

marketing concept

Answer 37

the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

Question 38

market orientation

Answer 38

occurs when an organization focuses its efforts on (1) continuously collecting information about customers’needs, (2) sharing this information across departments, and (3) using it to create customer value.

Question 39

Customer relationship management (CRM)

Answer 39

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

Question 40

Customer experience

Answer 40

the internal response that customers have to all aspects of an organization and its offering.

Question 41

Societal marketing concept

Answer 41

the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.