week 4

Question 1

A market-driven management mindset and business practice of ‘making what customers want’, based on the company’s fundamental goal of satisfying customer needs while meeting its objectives.

Answer 1

Marketing concept

Question 2

A short sighted management’s tendency to narrowly define its business in terms of its products instead of broader benefits that customers seek, often resulting in missed marketing opportunities.

Answer 2

Marketing myopia

Question 3

A company’s unique strengths or capabilities (such as superior customer service) that cannot be easily duplicated by rivals, and account for its performance or market position.

Answer 3

Competitive advantage

Question 4

The financial and marketing value of a company or brand name, based on its strengths, the customers’ attitudes toward the brand and benefits of using the product.

Answer 4

Brand equity

Question 5

Strategy to – temporarily or permanently – reduce total consumer demand (‘general … ’) or the demand of a specific group of buyers (‘selective … ’) for products that are in short supply or may be harmful to society.

Answer 5

Demarketing

Question 6

A deficiency that a consumer experiences when his physical or emotional balance is disturbed, prompting him to fill this void.

Answer 6

Need

Question 7

The quantity of products or services that buyers are willing to purchase at various prices at a given time, based on certain wants or needs.

Answer 7

Demand

Question 8

Present value of the profit a company anticipates making from an individual customer who buys the company’s products over an average lifetime.

Answer 8

Lifetime value

Question 9

The extent to which a customer makes repeat purchases from a particular supplier or continues to buy the same brand.

Answer 9

Customer loyalty

Question 10

Products that consumers buy frequently and, like other convenience products, have a relatively low profit margin.

Answer 10

Fast moving consumer goods

Question 11

An organisation’s marketing activities directed at the end users of a product.

Answer 11

Consumer marketing

Question 12

Marketing to companies to support the resale, use in daily operations or manufacture of other products.

Answer 12

Business-to-business marketing

Question 13

Marketing strategy aimed at intermediaries such as retailers that carry the products or consider including them in their product range.

Answer 13

Trade marketing

Question 14

Marketing strategy of a retail company, including the analysis of customers and competitors as well as the use of a store format and retailing mix to create loyal customers.

Answer 14

Retail marketing

Question 15

Strategy of organizations with charitable or other public service goals that, without seeking profits, strive to satisfy customers’ needs and maintain market share.

Answer 15

Non-profit marketing

Question 16

The courses of action through which – in what markets and with what resources – a company intends to realize its marketing goals (such as an increased market share) in the next 2 to 5 years.

Answer 16

Strategy

Question 17

A company’s actions to implement the broader strategy and meet its short-term objectives (one year or less).

Answer 17

Tactic

Question 18

One of the units in which the organization is split up for implementing its strategic decisions to focus – with specific products – on groups of prospects with particular needs.

Answer 18

Product-market combination

Question 19

A self-contained business or part of a diversified company (such as a subsidiary, product line or brand) with its own management, set of competitors and a distinct strategy.

Answer 19

Strategic business unit

Question 20

Development of a long-term plan to effectively use the company’s resources – within the constraints of its mission and business definition – in order to maintain a strategic fit between its objectives and the market opportunities

Answer 20

Strategic planning

Question 21

Answer to the question, ‘What business are we in?’, based on (Abell’s) three dimensions: the customers (target markets), their needs (desired benefits) and technologies used to satisfy the needs.

Answer 21

Business definition

Question 22

Part of the business definition, describing the extent of the firm’s current activities.

Answer 22

Business scope

Question 23

The company’s strengths and well-performed activities that its customers appreciate, and competitors would find hard to duplicate.

Answer 23

Core competencies

Question 24

Formal description of a company’s mission to direct its growth, usually listing its products or services, target markets, core competencies and the technologies it should master.

Answer 24

Mission statement

Question 25

Someone’s perception of a product, brand or an organization, which – from a marketing perspective – should overrule the reality of the situation.

Answer 25

Brand Image

Question 26

External, non-controllable forces and developments that may affect a firm’s market position and marketing strategy.

Answer 26

Environmental factors

Question 27

An analysis – as the groundwork of strategic planning – that identifies a company’s strengths, weaknesses, opportunities, and threats in order to assess the implications (situation analysis).

Answer 27

SWOT analysis

Question 28

Based on the SWOT analysis, this tool combines a company’s internal strengths and weaknesses with external opportunities and threats in order to identify possible strategies.

Answer 28

Confrontation matrix

Question 29

Strategic and financial value of a brand to a company based on positive customer attitudes about the brand.

Answer 29

Brand equity

Question 30

Cost savings as a result of producing or selling a larger number of units.

Answer 30

Economies of scale