Ch12 - Marketing

Question 1

marketing def

Answer 1

an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

Question 2

relationship marketing

Answer 2

building lasting relationships with customers and suppliers
-> can result in greater long-term satisfaction, customer loyalty, and customer retention

Question 3

Customer relationship management

Answer 3

organized method that enterprises use to build better information connections with clients
-> better predictions on what customers will want to buy

Question 4

Date warehousing and data mining

Answer 4

Date warehousing : Compiling and storing customers’ data -> provides the raw materials from which marketers can gather information that allows them to find new clients
Data mining : automates the massive analysis of data by using computers to sort and search for previously undiscovered clues about what customers look at and react to and how they might be influenced

Question 5

marketing concept def

Answer 5

firm must get to know what customers really want and closely follow evolving tastes

Question 6

marketing plan def

Answer 6

identifies the marketing objectives stating what marketing will accomplish in the future. It contains a strategy that identifies the specific activities and resources that will be used to meet the needs and desires of customers in the firm’s chosen target markets, so as to accomplish the marketing objectives

Question 7

marketing strategy

Answer 7

Once it has clarified the marketing objectives, the team can develop a strategy
Marketing strategy : identifies the planned marketing programs, all the marketing activities that a business will use to achieve its marketing goals, and when those activities will occur
Often includes the 5 components of the marketing Mix -> people, product, pricing, place, and promotion

Question 8

people (target market)

Answer 8

a group of potential customers who have similar wants and needs

Question 9

product differentiation

Answer 9

creation of a feature or image that makes a product differ enough from existing products to attract customers

Question 10

place (distribution)

Answer 10

Placing a product in the proper outlet requires decisions about several activities, all of which are concerned with getting the product from the producer to the consume (warehousing, inventory control)

Question 11

promotion

Answer 11

techniques for communicating information about products. The most important promotional tools include advertising, personal selling, sales promotions, publicity/public relations, and direct or interactive marketing

Question 12

Market segmentation (and target markets)

Answer 12

dividing a market into categories of customer types or “segments”
Not everyone will want all products -> target markets : groups of people or organizations with similar wants and needs who can be expected to show interest in the same products

Question 13

product positioning

Answer 13

process of fixing, adapting, and communicating the nature of the product itself

Question 14

How to segment the market

Answer 14

most important segmentation approaches: demographic, geographic, geo-demographic, psychographic, and behavioural

Question 15

Demographic segmentation

Answer 15

identifying characteristics such as age, income, gender, ethnic background, marital status, race, religion, and social class (can be a single classification or combination)

Question 16

Geographic and geo-demographic segmentation

Answer 16

geographical units, from countries to neighbourhoods
geo-demo : combination of geographic and demographic traits

Question 17

psychographic segmentation

Answer 17

psychographic variable such as lifestyles, opinions, interests, and attitudes (differentiates demographically identical people)

Question 18

behavioural segmentation

Answer 18

dividing a market into groups based on consumer knowledge, use, or response to a product
variables include : benefits sought, user status (i.e., ex-users, current users), usage rate (ex. heavy users), loyalty status, and occasion for use (e.g., time of day, special occasion).

Question 19

marketing research

Answer 19

study of what customers need and want and how best to meet those needs and wants, is a powerful tool for gaining decision-making information

Question 20

role of marketing research

Answer 20

increase competitiveness by clarifying the interactions among a firm’s stakeholders (including customers), marketing variables, environmental factors, and marketing decisions

Question 21

study of human behaviour

Answer 21

study of the decision process by which people buy and consume products

Question 22

4 influences on customer behaviour

Answer 22

Psychological influences : an individual’s motivations, perceptions, ability to learn, and attitudes
Personal influences : lifestyle, personality, and economic status.
Social influences : family, opinion leaders (people whose opinions are sought by others), and reference groups ( friends, co-workers, and professional associates)
Cultural influences : culture (the way of living that distinguishes one large group from another), subculture (smaller groups with shared values), and social class (the cultural ranking of groups according to criteria such as background, occupation, and income).

Question 23

5 key stages of the customer buying process

Answer 23

1) problem/need recognition
2) information seeking
3) evaluation of alternatives
4) purchase decision
5) post-purchase evaluation

Question 24

B2B meaning

Answer 24

business-to-business

Question 25

Business marketing

Answer 25

involves organizational or commercial markets that fall into three B2B categories: industrial, reseller, and government/institutional markets. Taken together, B2B markets account for more than two times the sales amount of the consumer market

Question 26

industrial market

Answer 26

businesses that buy goods to be converted into other products or that are used up during production. It includes farmers, manufacturers, and some retailers

Question 27

reseller market

Answer 27

Before products reach consumers, they pass through a reseller market consisting of intermediaries, including wholesalers and retailers that buy and resell finished goods.

Question 28

Government and institutional market

Answer 28

Federal, provincial, and municipal governments are very important, not only for the laws they create and maintain but also for their economic spending power. The Canadian federal government, for example, spent an estimated $303.6 billion in 2020

Question 29

B2B buying behaviour

Answer 29

very different consumer buying practices Consumer–seller relationships : impersonal, short-lived, one-time interactions B2B situations : frequent and long-term buyer–seller relationships -> large quantities and are professional, specialized, and well informed -> decisions based on rational motives (relative performance, cost, efficiency, and maintenance costs)

Question 30

product features

Answer 30

qualities, tangible and intangible, that a company builds into its products. However, as we discussed earlier, to attract buyers, features must also provide benefits.

Question 31

consumer vs organizational products

Answer 31

Organizational buying is driven by the need to support the organization's operations, enhance efficiency, and achieve specific business objectives, whereas consumer buying is driven by personal needs, preferences, and desires

Question 32

3 types of consumer products

Answer 32

convenience G&S : consumed rapidly and regularly, inexpensive shopping G&S : purchased less often, more expensive, ppl may shop around and compare products specialty G&S : purchased infrequently, expensive, ppl spend a good deal of time choosing the "perfect" item

Question 33

3 types of organizational products

Answer 33

production items : used directly in the production process expense items : consumed within a year by firm (legal services, oil and electricity) capital items : permanent (expensive and long-lasting) g&s, purchased infrequently

Question 34

product mix

Answer 34

group of products that a company makes available for sale, whether consumer, industrial, or both

Question 35

product line

Answer 35

A group of products that are closely related because they function in a similar manner (e.g., flavoured coffees) or are sold to the same customer group (e.g., stop-in coffee drinkers) who will use them in similar ways

Question 36

product life cycle

Answer 36

series of stages through which it passes during its commercial life (after it reached the market) Depending on the product’s ability to attract and keep customers, its PLC may be a matter of months, years, or decades

Question 37

4 stages of the product life cycle

Answer 37

1- introduction : product reaches marketplace, marketers focus on awareness of the product, profits nonexistent 2- growth : if product attracts and satisfies enough consumers, sales begin to climb rapidly, begin to show profit, other firms in industry move to make their own versions 3- maturity : sale growth starts to slow, highest profit, increased competition forces price-cutting, end of stage - sales start to fall 4- decline : sale + profit continue to fall as new products are introduced, firms end of reduce promo

Question 38

3 ways to extend product life

Answer 38

1 - Marketed globally : international product extensions 2 - product adaptation : product modified for greater appeal in different countries. 3 - Reintroduction : reviving in new markets products that are becoming obsolete in older markets

Question 39

Branding def

Answer 39

use of symbols to communicate the qualities of a product made by a producer (ex. coca-cola)

Question 40

brand equity def

Answer 40

added value a brand name provides to a product beyond its basic functional benefits. Widely known and admired brands are valuable because of their power to attract customers

Question 41

3 ways to gain brand awareness

Answer 41

1 - product placement : brand exposure from TV, film, music, magazine, video game 2 - buzz marketing : word of mouth to spread "buzz" 3 - Viral marketing and social networking : social networks to spread info like a "virus"

Question 42

3 types of brand names

Answer 42

1 - national brands : produced and distributed by the manufacturer across an entire country 2 - private brands : carry the retailer’s own brand name, even though they are manufactured by another firm (ex. president's choice and loblaws) 3 - generic brands