Chp 1 - Overview of Marketing

Question 1

define marketing

Answer 1

Set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships

Question 2

6 core aspects of marketing

Answer 2

1) Helps create value
2) About satisfying customer needs and wants
3) Entails an exchange
4) Requires product, price, place and promotion decisions
5) Can be performed by individuals and organizations
6) Occurs in many settings

Question 3

role of marketing

Answer 3

about satisfying customer needs and wants

Question 4

define want

Answer 4

particular way in which a person chooses to satisfy a need, shaped by knowledge, culture and personality

Question 5

define demand

Answer 5

ability and willingness to act on needs and wants

Question 6

define target market

Answer 6

customer segment or group to whom the firm is interested in selling its products and services. Firms direct marketing to their target market due to cost

Question 7

how can firms understand wants and needs

Answer 7

first firm must identify customers or market for product

Question 8

what are the 4 p’s

Answer 8

Product, price, place, promotion

Question 9

define the 4 p’s

Answer 9

controllable set of activities a firm uses to respond to the wants of its target market

Question 10

explain 4 p’s - product (2 points)

Answer 10

1) about creating value

2) product/service, brand, size, quality, features, packaging, warranty

Question 11

explain 4 p’s - price (2 points)

Answer 11

1) about transacting value

2) List price, discounts, allowances, costs, payment period, credit terms

Question 12

define price

Answer 12

overall sacrifice (time, money etc) consumer is willing to make to acquire product/service

Question 13

explain 4 p’s - place (2 points)

Answer 13

1) about delivering value

2) Marketing channels, distribution intensity, locations, supply chain, logistics

Question 14

explain 4 p’s - promotion (2 points)

Answer 14

1) about communicating value

2) Advertising, sales promotion, personal selling, public relations, direct marketing, electronic media

Question 15

how does marketing affect stakeholders example

Answer 15

impacts many stakeholders like supply chain partners and manufacturers (firms have to convince manufacturers to sell to them)

Question 16

2 reasons why marketing is important

Answer 16

1) it is universally applicable - it can be used by any organization or anyone for any good, service, event, idea
2) without customers you have no business and marketing is the link to the consumer. everyone who comes in contact with the consumer is a marketer, it shouldn’t be left to the department

Question 17

4 orientations of marketing

Answer 17

product, sales, market, value-based marketing

Question 18

3 points on product-based marketing orientation

Answer 18

1) If we make it, they will buy it
2) Focus on developing and distributing innovative products with little concern about whether products best satisfy customers needs
3) Retail stores considered places to hold merchandise until customer wanted it

Question 19

5 points of sales orientation

Answer 19

1) If we sell it right, they will buy it
2) Try to sell as many products as possible rather than focus on making what customers want
3) Short term view over long term customer relationships
4) Profits come from sales volume rather than repeat business from satisfied customers
5) Depend on advertising to attract new customers

Question 20

4 points on marketing orientation

Answer 20

1) If we make what they want, they will buy it
2) Focus on what customers need and want before designing/selling products
3) Do everything possible to satisfy customers
4) Focus on making marketing an integrated process through whole firm

Question 21

4 points on value-based orientation

Answer 21

1) Determining needs and wants of target markets then delivering the offer more efficiently and effectively than competitors to create value
2) Focus on triple bottom line: people, profits, planet
3) value and value co-creation

Question 22

define value in value-based orientation

Answer 22

reflects relationship of benefits to costs, what consumer gets for what they give

Question 23

define value co-creation in value based orientation

Answer 23

customers act as collaborators for product

Question 24

4 ways firms can become more value driven

Answer 24

1) sharing info
2) cost/benefit
3) relationship building through CRM
4) media based connections

Question 25

explain sharing info in value driving

Answer 25

Share info about customers and competitors collected through crm and integrate it with firm’s departments

Question 26

explain cost/benefit in value driving

Answer 26

Measure benefits customers perceive against cost of offering

Question 27

explain relationship building in value driving

Answer 27

relationship orientation and customer relationship management

Question 28

define relationship orientation

Answer 28

method of building relationship with customers based on philosophy that buyers and sellers should develop a long term relationship

Question 29

define customer relationship management

Answer 29

business philosophy that focuses on identifying and building loyalty among firm’s most valued customers; collect info about customers needs and use to target customers with focused products

Question 30

explain media based connections and give example

Answer 30

1) connect with customers using social and mobile media

Example: location-based social media apps like facebook places so customers can find their stores

Question 31

6 reasons why marketing is important

Answer 31

1) pervasive across organizations
2) pervasive across supply chain
3) makes life easier
4) enriches society (encourages firms to invest in socially responsible actions)
5) can be entrepreneurial
6) expands global presence

Question 32

LO1: define need

Answer 32

basic necessities of life, like food, clothing, shelter

Question 33

LO1: example of want

Answer 33

when we are hungry we want something to eat. some people want a salad from home and other people want mcdonalds to satisfy that hunger

Question 34

LO1: define market

Answer 34

the groups of people who need or want a company’s products or services and have the ability and willingness to buy them

Question 35

LO1: define exchange

Answer 35

trade of things of value between buyer and seller so that each is better off as a result

Question 36

LO2: how do marketers create value for product/service

Answer 36

by choosing an effective marketing mix

Question 37

LO2: define goods

Answer 37

items that can be physically touched

Question 38

LO2: define services

Answer 38

intangible customer benefits that are produced by people or machines and cannot be separated from the producer

Question 39

LO2: 3 things in product (4P)

Answer 39

good, service, idea

Question 40

LO2: define ideas

Answer 40

thoughts, opinions, philosophies, and intellectual concepts

Question 41

LO2: define place

Answer 41

all activities necessary to get product from manufacturer to right customer when they want it

Question 42

LO2: define promotion

Answer 42

communication by marketer that informs, persuades, reminds potential buying about product to influence their opinions

Question 43

LO2: why is promotion important for marketers

Answer 43

Promotion can enhance a product’s value, like promoting jeans that sells youth and style

Question 44

LO2: what do marketers do with 4Ps

Answer 44

4Ps work together - greater value is delivered to consumers by treating 4Ps as whole

Question 45

LO2: when is marketing performed by individuals?

Answer 45

in C2C marketing like in auction sites like kijiji. also in job applications through resumes and interviews - market yourself.

Question 46

define supply chain

Answer 46

the group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services

Question 47

define B2B

Answer 47

business to business - process of selling merchandise or services from one business to another

Question 48

define B2C

Answer 48

business to consumer - process in which business sells to consumers

Question 49

define C2C

Answer 49

consumer to consumer - process in which consumers sell to other consumers

Question 50

define social media

Answer 50

use of digital tools to easily and quickly share and create content to foster dialogue, social relationships and personal identities