Chapter 1

Question 1

Commoditization

Answer 1

A Consequence of mature industries.

Slowing innovation, extensive product assortment, excess supply and frugal consumers force margins down.

Question 2

Today’s Economy: Marketing Challenges and Opportunities

Answer 2

• 1. Power Shift to Customers
     
     2. Massive increase in product selection
• 3. Audience and media fragmentation
     
     4. Changing Value Propositions
     5. Shifting Demand Patterns
     6. Privacy, security and ethic concerns
     7. Unclear Legal Jurisdiction

Question 3

*A Market

Answer 3

A collection of buyers and sellers

A group of individuals or institutions that have similar needs

Question 4

*A Marketspace

Answer 4

Electronic Marketplace unbound by time or space

Question 5

*A Metamarket

Answer 5

A cluster of closely related goods and services that center around a specific consumption activity

Question 6

*A Metamediary

Answer 6

Provides a single access point where buyers can locate and contact many different sellers in the metamarket

Question 7

*An Exchange

Answer 7

A process of obtaining something of value by offering something in return; typically obtaining products for money

Question 8

*Five Conditions of an Exchange

Answer 8

1. At least 2 parties
2. Each party has something of value to the other party
3. Each party must be capable of communication and delivery
4. Each party must be free to accept or reject the exchange
5. Each party believes it is desirable to exchange with the other party

Question 9

*A Product

Answer 9

Something that can be acquired via exchange to satisfy a need or want

Question 10

Types of Products

Answer 10

Goods
Services
Ideas
Information
Digital Products
People
Places
Experiences and Events
Real or Financial Property
Organizations

Question 11

*Utility

Answer 11

The ability of a product to satisfy a customer’s needs or wants.

Question 12

*Five Types of Utility

Answer 12

1. Form Utility
2. Time Utility
3. Place Utility
4. Possession Utility
5. Psychological Utility

Question 13

*Form Utility

Answer 13

Attributes or features that set the product apart

Question 14

*Time Utility

Answer 14

Products available when customers want them

Question 15

*Place Utility

Answer 15

Products available where customers want them

Question 16

*Possession Utility

Answer 16

Transfer of ownership or title; ease of acquisition

Question 17

*Psychological Utility

Answer 17

Positive experiential attributes that customer find satisfying

Question 18

Strategy

Answer 18

The Organizations Game Plan for Success

Question 19

Tactical Planning

Answer 19

Specific Markets/Segments and the marketing programs that will meet customers needs and wants

Question 20

Marketing Plan

Answer 20

the outline of the marketing program

how to combine product, pricing, distribution, and promotion to create an offering customers find attractive

Question 21

Internal Analysis

Answer 21

Analyzing the firm’s current strategy and performance

Question 22

Competitive Intelligence

Answer 22

Analyzing competing businesses capabilities, vulnerabilities and intentions

Question 23

Environmental Scanning

Answer 23

Analyzing the external environment

Economic, political, legal, technological and cultural

Question 24

Situation Analysis

Answer 24

Combination of all Internal Analysis, Competitive Intelligence, and Environmental Scanning

Question 25

Competitive Advantage

Answer 25

Something the firms does better than competing firms

Question 26

SWOT Analysis

Answer 26

Strength, Weakness, Opportunity and Threats

Question 27

Marketing Strategy Decisions

Answer 27

Market Segmentation and Target Marketing Marketing Mix Branding and Positioning

Question 28

Social Responsibility

Answer 28

Maximizing positive impact on society, while minimizing negative impact

Question 29

Types of Customer Relationship in Marketing

Answer 29

Transactional Marketing Relationship Marketing

Question 30

*Relationship Marketing

Answer 30

Develop and maintain long term, mutually satisfying arrangements. Both buyer and seller focus on value obtained from the relationship

Question 31

Transactional Marketing

Answer 31

Complete a large number of discrete exchanges with individual customers

Question 32

Marketing Implementation

Answer 32

The process of executing the marketing strategy The "how" of marketing planning

Question 33

Product Positioning

Answer 33

A mental image, or position, of the product offering relative to competing offerings in the minds of target buyers

Question 34

Marketing Goal

Answer 34

To connect the organization to its customers

Question 35

Integrated Marketing Communication (IMC)

Answer 35

Coordination of all promotional activities to produce a unified, customer focused message

Question 36

Market Mix

Answer 36

1. Product 2. Price 3. Distribution 4. Promotion