Ch. 1 - Intro to Marketing

Question 1

Need

Answer 1

Occurs when a person feels deprived of basic necessities. This could be physical (eg. food, shelter), social, or individual (eg. self-esteem)

Question 2

Want

Answer 2

Needs shaped by a person’s knowledge, culture, and personality

Question 3

True or False: Consumers always know what they want and what they don’t want

Answer 3

False. Choices are often but not entirely based on self-image and emotional attachment to a brand (eg. luxury cars)

Question 4

How do needs and wants become demands?

Answer 4

Needs and wants become demands when they are backed by money

Question 5

Name the 4 elements that make up the Marketing Mix

Answer 5

Recall the 4 Ps of marketing:
- Product
- Promotion
- Price
- Place

Question 6

Product

Answer 6

All the attributes that make up a good, service, or an idea to satisfy a customer need

Question 7

Promotion

Answer 7

The tools needed to communicate with the consumers about a product

Question 8

Price

Answer 8

What is exchanged for a product

Question 9

Place

Answer 9

The way in which your product gets to the consumer

Question 10

Target Market

Answer 10

The specific group or segments of existing and potential consumers to which marketers direct their marketing efforts

Question 11

Customer Value Proposition

Answer 11

The unique combination of benefits received by targeted buyers that will satisfy their needs. Includes quality, price, convenience, delivery, and both before-sale and after-sale service

Question 12

How can companies create products with added value?

Answer 12

Creating products with added value is often achieved through a combination of:
- Product design
- Pricing strategies
- Service elements

Question 13

The Marketing Process

Answer 13

1) identify consumer needs
2) manage the marketing mix to meet those needs
3) realize profits

Question 14

Segmentation

Answer 14

Divides the market into groups of customers with varying needs and wants

Question 15

Targeting

Answer 15

Selecting the right segment to nurture

Question 16

What happens if performance is higher than expectations?

Answer 16

Satisfaction is high and the company outperformed

Question 17

What happens if performance is lower than expectations?

Answer 17

Satisfaction is low and the company underperformed

Question 18

What are the different marketing philosophies that have existed over time?

Answer 18

• Production philosophy (oldest)
• Product philosophy
• Sales philosophy
• Marketing philosophy
• Societal marketing philosophy (newest)

Question 19

Production Philosophy

Answer 19

Focus on mass production. Produce as many products as efficiently as possible. A consequence is that consumer needs are not a priority

Question 20

Product Philosophy

Answer 20

Focus on innovation. Products are packed with extra features regardless of consumer needs.

Question 21

Sales Philosophy

Answer 21

Focus on selling as many products as possible (through salespeople). 1 salesperson markets to 1 customer (very expensive).

Question 22

Marketing Philosophy

Answer 22

Focus on collecting information about customers’ needs to create value.

Question 23

Societal Marketing Philosophy

Answer 23

Focus on the consumer and the greater good for society. Recognizes the need for corporate social responsibility (CSR)

Question 24

Corporate Social Responsibility (CSR)

Answer 24

When organizations voluntarily consider the well-being of society by taking responsibility for how their business impacts consumers, suppliers, employees, shareholders, communities, the environment, and society in general

Question 25

Why is engaging in corporate social responsibility desirable for companies?

Answer 25

Corporate social responsibility becomes part of the company’s brand and help to build long-term relationships and solidify brand connections with consumers