Class 1

Question 1

What is Peter Drucker’s definition of Marketing

Answer 1

The only purpose of a business is to create a customer.

Question 2

What is Guiltinan, Paul and Madden’s view on Drucker’s definition

Answer 2

Identifying customer’s needs, pinpointing the needs the the organization can satifsfy at a profit, and developing products and services that convert potential buyers into customers.

Question 3

What is Kotler and Armstrong’s view of marketing

Answer 3

A social and managerial process by which individuals and groups obtain what they need and want through exchanges of products and services of value with others.

Question 4

What is the AMA definition of marketing

Answer 4

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.

Question 5

What is production orientation

Answer 5

Focus on production efficiency that will lead to high quality products

Question 6

What is product orientation

Answer 6

Thinking that consumers will always buy a good product at a reasonable price. The consumer is buying a solution. It also assumes that consumers are completely informed about everything on the market and that they are rational.

Question 7

What is sales orientation

Answer 7

Thinking that a good sales and communication strategy to convince the consumer to buy a product. This implies overlooking the consumer’s needs and convincing the consumer to buy the product by skillfully applying components of the marketing strategy.

Question 8

What is marketing orientation

Answer 8

Satisfy the customer while keeping the company’s goals in mind.

Question 9

What are the two basic activities a company performs

Answer 9

Producing and selling

Question 10

What is the role of the marketing function

Answer 10

Identify the appropriate consumers and try to sell them the product manufactured by the firm. It also discovers what products the consumers want and find what it needs to produce in what quantity and format.

Question 11

In the Maslow pyramid, whast needs need to be fulfilled first

Answer 11

Psychological needs => Safety and protection => belongingness => esteem => self-actualize

Question 12

What is a need

Answer 12

It is a state of lacking something

Question 13

What is a want

Answer 13

It is a way to meet the need

Question 14

What is a consumer

Answer 14

Economic agents

Question 15

What is the customer

Answer 15

The entity that makes the purchasing decision. The consumer may be different from the customer.

Question 16

What is the demand

Answer 16

Consumers buy products or services

Question 17

How is market demand expressed

Answer 17

In transactions
- Units of quantity (volume)
- Monetary units ($)

Question 18

Which demand expression represents more accurately the data

Answer 18

Volume since the results are not inflated. It is easier to compare data form one year to another.

Question 19

What are current dollars

Answer 19

When we look at the change in demand in dollars without adjusting from the change in price

Question 20

What are constant dollars

Answer 20

When we calculate the change in demand while eliminating inflation as a factor

Question 21

What is company demand

Answer 21

It is the expression, in volume or dollars, of the transactions carried out to buy a product or service from a specific company

Question 22

What is the market demand

Answer 22

The sum of individual company demand values

Question 23

What is market share

Answer 23

The company’s share of demand

Question 24

What are the two main types of demand

Answer 24

Actual and potential

Question 25

What is actual demand

Answer 25

It is a company's actual sales or volume at a specific point in time

Question 26

What is potential demand

Answer 26

The maximum level that demand for a product can reach in a given context

Question 27

What are potential customers

Answer 27

People who do not use a product, but might do so

Question 28

When is the market saturation level attained

Answer 28

When the actual demand and potential demand are equal.

Question 29

What is the market

Answer 29

A set of consumers, individuals or businesses that express wants and needs by buying products, services or even ideas

Question 30

What are the 5 markets

Answer 30

- Consumer - business - intermediaries - governement - international

Question 31

What is the consumer goods market

Answer 31

Products purchased to meet personal needs

Question 32

What is the most important characteristic for marketing strategists

Answer 32

The size of Canada's territory

Question 33

What is the business market

Answer 33

An organization that buys products and services on order to use them to make other hoods, or to meet their internal needs.

Question 34

What are the firm types in this sector

Answer 34

Processing, farm, construction, extraction

Question 35

What is the distribution intermediaries market

Answer 35

Individuals and organizations situated between the producer and the consumer

Question 36

As an intermediary, what is a key success factor

Answer 36

Location

Question 37

What is a priority in the government market

Answer 37

Price is a priority

Question 38

The concept of exchange rests on what four elements

Answer 38

- consumer's needs - satisfaction of this need - relationship between the business and the consumer - Optimization of business profits

Question 39

What is the difference between optimizing and maximizing profits

Answer 39

Maximizing : generating the largest possible profit Optimizing : obtaining the largest profit while taking into consideration organizational or environmental elements

Question 40

What is customer service

Answer 40

Everything that customers experience when ongoing business with a company

Question 41

What is customer approach

Answer 41

- The analysis and understanding of the expectations, wants, needs and behaviours of target customers. - Creating a product that meets customer needs in a cost-effective way - It also means innovating to go beyond the needs and expectations explicitly formulated by customers.

Question 42

What is the first function of customer service

Answer 42

Satisfy existing customers and build loyalty

Question 43

What is customer lifetime value

Answer 43

The sum total of the present values of all the profits that can be made from a particular customer over that person's lifetime

Question 44

What is value

Answer 44

The benefits perceived minus the monetary and non-monetary costs

Question 45

What is satifaction

Answer 45

The difference between the customer's expectations and their perception of performance

Question 46

What is the behavioural definition of loyalty

Answer 46

The customer retention

Question 47

What is the romantic definition of loyalty

Answer 47

Emotional attachment

Question 48

Which definition of loyalty should we choose

Answer 48

Behavioral because the romantic does not apply in all situations

Question 49

What are the aspects of loyalty

Answer 49

- Length of customer retention - Customer share

Question 50

What balance must companies find

Answer 50

Levels of satisfaction and costs

Question 51

What are the elements of the marketing mix

Answer 51

Productm price, promotion and place

Question 52

What is the price

Answer 52

It is expressed as the monetary value attributed to the product, and includes the effort consumers have to make when buying it.

Question 53

What factors affect the price

Answer 53

Rarity, reputation and symbolic value

Question 54

What is the fairest price

Answer 54

The one the consumer is willing to pay

Question 55

What is the element of place

Answer 55

- Physical distribution - Distribution networks - Place of business

Question 56

Marketing strategies must be consistent with what

Answer 56

The company's mission and objectives

Question 57

What is the MIS

Answer 57

Marketing information system. This allows the firm to compare its results with its objectives and to deal with discrepancies by taking the necessary corrective actions

Question 58

What are some statements from the AMA code

Answer 58

- A product must be safe - The price must be fair - Distributors, producers and retailers must not abuse their power by imposing restrictive conditions on the rest of the network - Advertising must not use fraudulent or inaccurate arguments - Customer service quality must always be consistent, no matter who the customer is

Question 59

How do you increase market share

Answer 59

- Increase the number of purchases per customer - Increase the number of customers

Question 60

What is demand projection

Answer 60

Based on consumers who might be receptive to the product, what might demand be in the future. You may look at historical information and expected or past industry growth

Question 61

What is customer share

Answer 61

The proportion of a customer’s relevant purchases that come from your brand