Chapter 2

Question 1

Buyers vs sellers

Answer 1

Buyers: lower prices, more buyers then sellers, exceed supply over demand.

Sellers: higher prices, more sellers then buyers, demand exceeds supply.

Question 2

Value vs. cost

Answer 2

Value: tangible or intangible attributes that improve the desire of a product.

Cost: actual vs. perceived
Actual: monetary, shopping cost
Perceived: value/price

Question 3

STP formula

Answer 3

Segment: how to segment consumers
Target: how to determine your target market.
Place: placing them into marketplace.

Question 4

Positioning how to determine 6 marketing tools

Answer 4

4’s P place, product, promotion, price

2 ancillary tools: people, procedure

Question 5

4’s C & 4’s P

Answer 5

C’s - consumer, cost, convenience, communication

P’s- product, place, price, promotion

Question 6

Selling concept:

Answer 6

Trying to sell what a company has already made

Question 7

Marketing concept

Answer 7

Knowing your consumers, satisfying their need, do more then competitors

Question 8

Societal marketing concept: four key ideas

Answer 8

Customer wants, competitors actions, company profits, society’s interest

Question 9

Cause related marketing

Answer 9

Profit company pairs with a non profit cause