Test 1

Question 1

Definition of Marketing:

Answer 1

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.
seeks to discover needs/wants of customers and satisfy them.
exchange is key

Question 2

What is the meaning of societal marketing concept:

Answer 2

view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being

Question 3

Marketing mix:

Answer 3

controllable factors

Question 4

Four P’s:

Answer 4

product
price
promotion
place

Question 5

Cohesive marketing programs:

Answer 5

???

Question 6

Scanning the Marketing Environment:

Answer 6

other forces beyond marketers’ control:
Competitive - actions of competitors
Regulatory - government restrictions 
Economic - state of the economy - expanding or contracting?
Social - what consumers want and need
Technological - changing technology

Question 7

Customer Values:

Answer 7

the unique combination of benefits received by targeted buyers that includes, quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. (ie premium customers)
3 strategies: best product, best price, or best service

Question 8

Customer Relationships Management:

Answer 8

process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offering so that buyers will choose them in the market place.
“the regulars”

Question 9

Market Orientation:

Answer 9

efforts are focused on: (1) continuously collecting information about customer’s needs, (2) sharing this information across departments and (3) using it to create customer value.

Question 10

Production Era:

Answer 10

Period up until the 1920s when buyers were willing to accept virtually any goods that were available. Basically the products would sell themselves.

Question 11

Sales Era:

Answer 11

Lasted from 1920s to 1960s. Manufactures found they could produce more goods than buyers could consume, and competition grew, so the solution was to hire more salespeople to find new buyers.

Question 12

Marketing Concept Era:

Answer 12

In the late 1950’s, marketing became the motivating force among many American firms. This is where the marketing concept came about. This concept is the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

Question 13

Customer Relationship Era:

Answer 13

Started in 1980s, organizations seek continuously to satisfy the high expectations of customers- an aggressive extension of the marketing concept era.

Question 14

What is the meaning of the Marketing Concept Era:

Answer 14

the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

Question 15

Corporate Culture:

Answer 15

the set of values, ideas, and attitudes that is learned and shared among the members of an organization

Question 16

(Corporate) Mission:

Answer 16

a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies.

Question 17

Four product- market strategies

Answer 17

Market development, Product development, Market diversification, Market penetration

Question 18

Market development:

Answer 18

new market, current product

Question 19

Product development:

Answer 19

current market, new product

Question 20

Market diversification:

Answer 20

new market, new product

Question 21

Market penetration:

Answer 21

current market, current product. Increase sales either by using better promotion or distribution to sell more or by selling the same amount for a higher price.

Question 22

Strategic Marketing Process: Three steps in the planning phase

Answer 22

SWOT analysis
market-product focus and goal setting
marketing program

Question 23

Four types of competition and the role of marketing in these four types of market structures:

Answer 23

Pure Competition, Monopolistic Competition, Oligopoly, Monopoly

Question 24

Pure Competition:

Answer 24

Many sellers, similar product

Ex) Commodities common to agribusiness such as wheat, rice, and grain

Question 25

Monopolistic Competition:

Answer 25

Many sellers compete with substitutable products within a price range.
Ex) If the price of coffee rises too much, consumers might switch to tea.

Question 26

Oligopoly:

Answer 26

This occurs when a few companies control the majority of industry sales.
Ex) The wireless phone industry is mainly dominated by AT&T, Sprint, and Verizon.

Question 27

Monopoly:

Answer 27

When a single company owns all or nearly all of the market share of a product or service.
Ex) US Postal Services are the only company in the US that can deliver first class mail.

Question 28

Competitive forces:

Answer 28

entry barrier, exit barrier, bargaining power of buyers, bargaining power of suppliers, substitute power, existing rivalries.

Question 29

Entry barrier:

Answer 29

Consists of business practices or conditions that make it difficult for new firms to enter the market.
Ex) Capital requirements, advertising expenditures, product identity, or product identity.

Question 30

Exit barrier:

Answer 30

These are difficulties to close a company or product section down because some assets are so specialized they become difficult to sell.

Question 31

Bargaining power of buyers:

Answer 31

Exists when they are few in number, there are low switching costs, or the product represents a significant share of the buyer’s total costs.

Question 32

Bargaining power of suppliers:

Answer 32

Exists when the product is critical to the buyer and when it has built up the switching costs.

Question 33

Substitute power:

Answer 33

The ability for consumers to switch from one product or service to an alternative for various reasons.

Question 34

Existing competitors:

Answer 34

This is the ongoing goal of competitors to improve their product when being compared to the same product.

Question 35

Disposable income:

Answer 35

the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

Question 36

Discretionary income:

Answer 36

the money that remains after paying for taxes and necessities to be used for luxury items.

Question 37

Children’s Online Privacy Protection Act

Answer 37

gives parents control over what information websites can collect from their kids. When a company runs a website designed for kids or has a website geared to a general audience but collects information from someone they know is under 13 years old, they must comply with COPPA’s requirements.
designed to restrict information collection and unsolicited email promotions

Question 38

Better Business Bureau:

Answer 38

A voluntary alliance of companies whose goal is to help maintain fair practices. self-regulatory group.

Question 39

Consumer Bill of Rights:

Answer 39

Created during the presidency of John F Kennedy. The right to safety, to be informed, to choose, and to be heard.

Question 40

Economic Espionage:

Answer 40

The stealthy collection of trade secrets or private information about a company’s competitors

Question 41

Definition of the Code of Ethics:

Answer 41

a formal statement of ethical principles and rules of conduct. Typically addresses contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate record keeping.

Question 42

What are the shortcomings of the Code of Ethics:

Answer 42

It isn’t enough to ensure ethical behavior and the lack of specificity requires employees to judge whether or not a specific behavior is ethical.

Question 43

Social audit:

Answer 43

Doing well by doing good. A systematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility.
1 Recognition of the firm’s expectations and rationale
2 Identification of causes or programs consistent with the company’s mission
3 Determination of organizational objectives and priorities for programs and activities
4 Specification of resources required to achieve objectives
5 Evaluation of programs and activities and assessment of future involvement

Question 44

Social Responsibility:

Answer 44

organizations are part of a larger society and are accountable to that society for their actions

Question 45

Sustainable Development:

Answer 45

conducting business in a way that protects the natural environment while making economic progress

Question 46

ISO 1400:

Answer 46

worldwide standards for environmental standards for environmental quality and green marketing practices

Question 47

Green Marketing:

Answer 47

marketing efforts to produce, promote, and reclaim environmentally sensitive products.

Question 48

Cause-related Marketing:

Answer 48

the charitable contributions of a firm are directly related to the customer revenues produced through the promotion of one of its products.