chapter 13

Question 1

what is marketing?

Answer 1

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

Question 2

utility

Answer 2

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

Question 3

form utility

Answer 3

finished product

Question 4

place utility

Answer 4

putting product where client wants it

Question 5

time utility

Answer 5

making product available when client wants it

Question 6

possesion utility

Answer 6

getting product in clients possession

Question 7

marketing concept

Answer 7

what does your customer want

Question 8

3 stages of evolution of customer orientation

Answer 8

-production orientation- take orders + distribute goods (take it or leave it)

-sales orientation-increase advertising, enlarge sales force, intensify sales technique (makes more product)

-customer orientation- determine customer needs, develop products to fill their needs, achieve the organization goals (focus on customer needs!)

Question 9

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

two steps in market strategy

Answer 10

1- identify target market
2- create and maintain marketing mix

Question 11

3 approaches in determining target market

Answer 11

1- undifferentiated (one customer, anyone can buy, household stapled)

2-differentiated market ( different possible target market, modified to hit every matket (diet sodas)

3-concentrated market (individualized customized products like supplements) needs a quantity of buyers to sustain business

Question 12

market segmentation

Answer 12

look for differences in customers, then similarities

Question 13

market segmentation variables

Answer 13

product
price
place
promotion

Question 14

3 influences of customer buying behavior

Answer 14

1- situational factors- depending on the situation
2- psychological factors (about the person)
3- social factors (experiences)

Question 15

consumer buying behavior processes

Answer 15

1- awareness (i need this)
2- search for alternatives (looking for what to purchase)
3- evaluating alternatives (criteria)
4- purchase- you want them to purchase
5- post purchase behavior- learing *cognitive dissonance

Question 16

product life style

Answer 16

introduction- high price, costs, r&d, marketing costs, firstmover advantage, “me too”

growth- costs competition price goes down, rise in industry sales volume

maturity- market saturation (everyone whos gonna buy already has) #1 price advantage

decline- industry profits die out

Question 17

product line

Answer 17

a group of similar products that differ only in relatively minor characteristics (apples iphone line)

Question 18

product mix

Answer 18

all of the products a company sells

Question 19

product modification

Answer 19

small changes to a product that already exists (camera iPhone updates)

Question 20

brand

Answer 20

your identity/reputation in the marketplace (position)

Question 21

brand name

Answer 21

spoken part of the brand (apple)

Question 22

brandmark

Answer 22

logo

Question 23

trademark

Answer 23

legal protection (tM)

Question 24

trade name

Answer 24

legal name if the company (can be the same as the brand name)

Question 25

brand loyalty

Answer 25

1- brand recognition (know) 2- brand preference (like) 3- brand insistence (trust)

Question 26

brand equity

Answer 26

marketing and financial value associated with a brands strength in a market trust-> consistency

Question 27

packaging

Answer 27

developing and providing a container with graphics for a product -protects the product -maintains the function of product -offer consumer convenience -promotes a brand

Question 28

price

Answer 28

the amount of money a seller is willing to accept in exchange for a product finished

Question 29

3 pricing methods

Answer 29

1- cost based pricing (taking the cost and add a mark up of at least 10%) 2- demand based pricing (based on buyers and how much they will spend) 3- competition based pricing (pricing based on what your competitors are enlarging, then trying to lower the price

Question 30

new product pricing options

Answer 30

1- price skinming (start with a high price then lower it) 2- penetration pricing (early bird deals, start lower and then raise the price or you can stay low)

Question 31

psychological pricing

Answer 31

1-odd number pricing (pricing at weird costs to make customers think they are paying less than they are) 2- multiple number pricing (the more you buy the less you pay) 3- reference pricing (price in consumer head that they think the product is worth) 4-bundle pricing ( get internet, phone, and tv for a lower price)

Question 32

consumer product classification

Answer 32

1- convenience products (low risk, example being doritos, you can easily buy anywhere) 2- shopping products- *a step up (medium involvement, in frequent purchase, not bought super often like appliances) 3- specialty products- high involvement, high price, major once in a lifetime purchase, usually high end luxury products

Question 33

consumer distribution system

Answer 33

a network of businesses that moves products from a producer to a consumer

Question 34

3 types of distributions

Answer 34

1- intensive distribution (the use of all available outlets for a product) 2- selective distribution (the use of only a portion of the available outlets for a product in each geographic area) 3- exclusive distribution (the use of only a single retail outlet for a product in a large geographic area

Question 35

direct marketing

Answer 35

relies on direct communication or distribution to individual consumers rather than through a third party like mass media

Question 36

integrated marketing communications

Answer 36

coordination of promotion efforts to ensure maximum informational and persuasive impact on customer

Question 37

IMC mix elements

Answer 37

1-advertising 2-personal selling 3-sales promotion 4- public relations/publicity