Midterm-MARK101

Question 1

What are the five steps of the marketing process?

Answer 1

1. Understand the marketplace and customer needs
2. Design a customer-driven marketing strategy
3. Construct a marketing program
4. Build profitable customer relationships
5. Capture value from customers

Each step is crucial for creating value and maintaining customer relationships.

Question 2

What is the goal of understanding customer needs in marketing?

Answer 2

To design want-satisfying market offerings and build customer relationships that capture customer lifetime value

This understanding leads to increased long-term customer equity.

Question 3

What is market segmentation?

Answer 3

Dividing the market into segments of customers

This helps in selecting which segments to cultivate in target marketing.

Question 4

What is the production concept in marketing management?

Answer 4

Management’s task is to improve production efficiency and reduce prices

This concept emphasizes cost efficiency over customer satisfaction.

Question 5

What does the marketing concept focus on?

Answer 5

Determining the needs and wants of target markets and delivering desired satisfactions more effectively than competitors

This is key to achieving organizational goals.

Question 6

What is customer relationship management?

Answer 6

The process of engaging customers and building profitable relationships by delivering superior value and satisfaction

It aims to produce high customer equity.

Question 7

What are the 4 P’s of marketing?

Answer 7

1. Product
2. Price
3. Place
4. Promotion

These elements work together to create and communicate value.

Question 8

What is marketing myopia?

Answer 8

A business focus on the product rather than on customer value

This can lead to short-term improvements at the expense of long-term customer relationships.

Question 9

What is the difference between corporate objectives and marketing objectives?

Answer 9

Corporate objectives focus on long-term growth, sustainability, and ethics; marketing objectives are short-term goals that support corporate aims

Example: Fix & Fogg aims for sustainable food production by 2030.

Question 10

What is market penetration?

Answer 10

Increasing existing customers to buy existing products more often

An example is increasing open hours to encourage more purchases.

Question 11

What does product development involve?

Answer 11

Developing new products for an existing fan base

Example: New flavors or seasonal drinks.

Question 12

What are the main components of a marketing plan?

Answer 12

1. Executive summary
2. Current marketing situation
3. Threats and opportunities
4. Objectives and issues
5. Marketing strategies
6. Action programs
7. Budgets and controls

These components guide the marketing efforts of a company.

Question 13

What is the macroenvironment in marketing?

Answer 13

Larger societal forces affecting the entire microenvironment

It includes demographic, economic, natural, technological, political, and cultural forces.

Question 14

What is a line extension?

Answer 14

Extending an existing brand name into new forms, colors, or sizes of an existing product category

Examples include different flavors of an existing product.

Question 15

What is a brand extension?

Answer 15

Extending an existing brand name to a new product category

Example: A peanut butter brand launching almond butter.

Question 16

What does the marketing information system (MKIS) do?

Answer 16

Assesses information needs, develops needed information, and helps decision makers use the information

It generates actionable customer and market insights.

Question 17

What comprises the business market?

Answer 17

All organizations that buy goods and services for use in production or for reselling

This includes businesses that purchase products for profit.

Question 18

What are the three types of buying situations in business markets?

Answer 18

1. Straight rebuys
2. Modified rebuys
3. New tasks

Each type influences decision-making processes.

Question 19

What is need recognition in buyer behavior?

Answer 19

The realization of a need, which can be psychological or functional

Example: Buying apples for comfort or status.

Question 20

What is the difference between internal and external information search?

Answer 20

Internal search relies on past experiences; external search involves seeking information from outside sources

External sources can include reviews, marketing, and peer opinions.

Question 21

What is the universal set in alternative evaluation?

Answer 21

All possible choices in a category

It is often too large for practical decision-making.

Question 22

What does e-procurement refer to?

Answer 22

Business buyers purchasing products and services online

This trend has been facilitated by advances in information technology.