Chapter 12 (12.1-12.3, 12.7, 12.8)

Question 1

Marketing Concept

Answer 1

the whole firm is directed toward serving customers at a profit

Question 2

Delivering Value

Answer 2

Value = Benefits / Costs

Question 3

Utility

Answer 3

adding value
Time Utility
Place Utility
Ownership (Possession) Utility
Form Utility

Question 4

consumer goods

Answer 4

tangible products purchased by individuals for their use

Question 5

industrial goods

Answer 5

products purchased by companies to use directly or indirectly to produce other products

Question 6

Relationship Marketing

Answer 6

building lasting relationships with customers and suppliers (Goal: customer satisfaction and retention)

Question 7

Customer Relationship Marketing (C R M)

Answer 7

organized methods used to build information connections to improve company–client relationships

Question 8

Marketing Plan

Answer 8

a detailed, focused strategy for gearing the marketing mix to meet consumer needs and wants

Question 9

Marketing Mix

Answer 9

Product
Price
Place
Promotion

Question 10

Product

Answer 10

offering a good, service, or idea that satisfies buyers’ needs

Question 11

Product Differentiation

Answer 11

creating a product that has a different image than existing products to attract consumers
changing existing products by responding to trends or improving current offerings

Question 12

Market Segmentation

Answer 12

search for common traits between consumers
focus on traits that affect product need or purchase behaviour
Geographics
Demographics
Geo-Demographic
Behavioural Variables
Psychographics

Question 13

Behavioural segmentation

Answer 13

dividing a market into groups based on consumer knowledge, use, or response to a product

Question 14

Behavioural Variables

Answer 14

benefits sought
usage rate
occasion for use
loyalty status
user status

Question 15

Positioning

Answer 15

the process of fixing, adapting, and communicating the nature of the product itself
the place a product occupies in a consumer’s mind

Question 16

Industrial Products

Answer 16

Production items
Expense items
Capital items

Question 17

STEPS to developing new products

Answer 17

Step #1: Product ideas
Step #2: Screening
Step #3: Concept testing
Step #4: Business analysis
Step #5: Prototype development
Step #6: Product and market testing
Step #7: Commercialization

Question 18

Product Life Cycle

Answer 18

products have a limited profit-producing life cycle
may be months, years, or decades

Question 19

Extending Product Life: An Alternative to New Products

Answer 19

Product Extension
product marketed globally
Product Adaptation
product modified to appeal to foreign markets
Reintroduction
reviving old products for new markets

Question 20

Branding

Answer 20

use of symbols to communicate the qualities of a product made by a producer

Question 21

Brand Equity

Answer 21

added value a brand provides to a product beyond its basic functional benefits

Question 22

Types of Brand Names

Answer 22

• National
  distributed by, and carrying the name of the manufacturer
  (e.g., Kellogg’s)
• Private
  brands carrying the name of the retailer or wholesaler
  (e.g., President’s Choice)
• Generic
  house-brand sold under the category name rather than a specific company name
• Licensed
  selling the right to use the firm’s name on another company’s product
  e.g., Harley-Davidson, Disney characters