Chapter 12: Building Customer Relationships Through Effective Marketing

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Ch 12

marketing mix

Answer 1

a combination of product, price, distribution, and promotion developed to satisfy a particular target market

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Ch 12

place utility

Answer 1

utility created by making a product available at a location where customers wish to purchase it

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Ch 12

sales orientation

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marketing approach from 1920-1950s; characterized by increased advertising, enlarged sales forces, and occasionally, high-pressure selling techniques

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possession utility

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utility created by transferring title (or ownership) of a product to a buyer

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Ch 12

business buying behavior

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the purchasing of products by producers, resellers, governmental units, and institutions

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Ch 12

online information services

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a tool that allows marketers the ability to communicate online with customers, suppliers, and employees that improves the capability of a firm’s marketing information system and helps track its customers’ changing desires and buying habits

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Ch 12

marketing

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

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Ch 12

market

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a group of individuals and/or organizations that need products in a given category and that have the ability, willingness, and authority to purchase such products

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Ch 12

pricing ingredient

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controllable element of the marketing mix concerned with both base prices and discounts of various kinds in order to achieve particular goals

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Ch 12

consumer market

Answer 1

market consisting of purchasers and/or household members who intend to consume or benefit from the purchased products and who do not buy products to make profits

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Ch 12

technological forces

Answer 2

technological changes that can create new marketing opportunities or cause products to become obsolete almost overnight

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Ch 12

utility

Answer 3

the ability of a good or service to satisfy a human need

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Ch 12

legal and regulatory forces

Answer 4

laws that protect consumers and competition and government regulations that affect marketing

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Ch 12

disposable income

Answer 4

personal income less all additional personal taxes

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Ch 12

customer relationship management (CRM)

Answer 4

using information about customers to create marketing strategies that develop and sustain desirable customer relationships

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Ch 12

producer market

Answer 4

market consisting of individuals and business organizations that buy certain products to use in the manufacturing of other products

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Ch 12

undifferentiated approach

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directing a single marketing mix at the entire market for a particular product

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Ch 12

market segment

Answer 4

a group of individuals or organizations within a market that share one or more common characteristics

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Ch 12

governmental market

Answer 5

market consisting of federal, state, county, and local governments, who buy goods and services to maintain internal operations and to provide citizens with such products as highways, education, water, energy, and national defense

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Ch 12

promotion ingredient

Answer 6

controllable element of the marketing mix that focuses on providing information to target markets

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Ch 12

buying behavior

Answer 8

the decisions and actions of people involved in buying and using products

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Ch 12

marketing strategy

Answer 9

a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives

Question 10

Ch 12

marketing information system

Answer 10

a system for managing marketing information that is gathered continually from internal and external forces

Question 11

Ch 12

form utility

Answer 11

utility created by converting production inputs into finished products

Question 11

# Ch 12 internal sources

Answer 11

data sources consisting of sales figures, product and marketing costs, inventory levels, and activities of the sales force

Question 12

# Ch 12 differentiated market segmentation

Answer 12

type of market segmentation where multiple marketing mixes are focused on multiple market segments

Question 17

# Ch 12 single-source data

Answer 17

information provided by a single firm on household demographics, purchases, television viewing behavior, and responses to promotions such as coupons and free samples

Question 18

# Ch 12 relationship marketing

Answer 18

establishing long-term, mutually satisfying buyer-seller relationships

Question 18

# Ch 12 market segmentation

Answer 18

the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market

Question 19

# Ch 12 institutional market

Answer 19

market consisting of churches, not-for-profit private schools and hospitals, civic clubs, fraternities and sororities, charitable organizations, and foundations

Question 21

# Ch 12 consumer buying behavior

Answer 21

the purchasing of products for personal or household use, not for business purposes

Question 24

# Ch 12 database

Answer 24

collection of information arranged for easy access and retrieval used in marketing research

Question 26

# Ch 12 competitive forces

Answer 26

the actions of competitors, who are in the process of implementing their own marketing plans

Question 27

# Ch 12 marketing mix

Answer 27

the combining of a product, price of product, the means of distribution, and the promotion of a product in a way that reaches the firm's target market

Question 28

# Ch 12 marketing plan

Answer 28

a written document that specifies an organization's resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group

Question 29

# Ch 12 production orientation

Answer 29

marketing approach in early 1900s; emphasis was placed on increased output and production efficiency

Question 29

# Ch 12 marketing concept

Answer 29

a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives

Question 30

# Ch 12 customer lifetime value

Answer 30

a measure of a customer's worth (sales minus cost) to a business over one's lifetime

Question 32

# Ch 12 concentrated market segmentation

Answer 32

type of market segmentation where a single marketing mix is directed at a single market segment

Question 33

# Ch 12 time utility

Answer 33

utility created by making a product available when customers wish to purchase it

Question 35

# Ch 12 marketing research

Answer 35

the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem

Question 36

# Ch 12 business-to-business market (aka industrial market)

Answer 36

broad marketing group for those who purchase specific kinds of products for use in making other products for resale or for day-to-day operations

Question 38

# Ch 12 personal income

Answer 38

the income an individual receives from all sources less the Social Security taxes the individual must pay

Question 39

# Ch 12 sales forecast

Answer 39

an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort

Question 42

# Ch 12 distribution ingredient

Answer 42

controllable element of the marketing mix involving transportation, storage, and selection of intermediaries

Question 45

# Ch 12 economic forces

Answer 45

the effects of economic conditions on customers' ability and willingness to buy

Question 46

# Ch 12 political forces

Answer 46

influences that arise through the actions of elected and appointed officials

Question 47

# Ch 12 product ingredient

Answer 47

controllable element of the marketing mix which includes decisions about its design, brand name, packaging, warranties, etc.

Question 49

# Ch 12 discretionary income

Answer 49

disposable income less savings and expenditures on food, clothing, and housing

Question 50

# Ch 12 sociocultural forces

Answer 50

influences in a society and its culture that result in changes in attitudes, beliefs, norms, customs, and lifestyles

Question 51

# Ch 12 external sources

Answer 51

data sources relating to the organization's suppliers, intermediaries, and customers; competitors' marketing activities; and economic conditions

Question 52

# Ch 12 marketing environment

Answer 52

the external and generally uncontrollable forces that affect a firm's marketing activities and influence decisions about marketing-mix ingredients

Question 53

# Ch 12 target market

Answer 53

a group of individuals and/or organizations for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group

Question 54

# Ch 12 reseller market

Answer 54

market consisting of intermediaries such as wholesalers and retailers, who buy finished products and sell them for a profit