chapter 1

Question 1

marketing

Answer 1

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. it is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals.

Question 2

marketing management

Answer 2

the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating customer value.

Question 3

marketer

Answer 3

someone who seeks a response (attention, purchase, vote, donation) from another party, which is the prospect. the marketer must properly manage all possible touchpoints, where customers directly or indirectly interact with the company (store layout, package designs, product function, shipping, etc.)

Question 4

market

Answer 4

a collection of buyers and sellers who transact over a particular product or product class. the buyers and sellers are connected by four flows.

Question 5

needs

Answer 5

the basic human requirements such as air, food, water, clothing, and shelter. also, humans have strong needs for recreation, education, and entertainment. marketers cannot create or influence needs. there are five types of needs: stated, real, unstated, delight, and secret.

Question 6

wants

Answer 6

unknown desires of consumers when directed to specific objects that might satisfy the need. marketers have the ability to influence the wants of consumers.

Question 7

demands

Answer 7

wants for specific products backed by an ability to pay.

Question 8

value proposition

Answer 8

used by companies to address customer needs. it is a set of benefits that satisfy these needs.

Question 9

offering

Answer 9

makes the intangible value proposition physical. it can be a combination of products, services, information, and experiences.

Question 10

communication channels

Answer 10

kind of marketing channel that deliver and receive messages from target buyers and include newspapers, radio, internet, etc.

Question 11

distribution channels

Answer 11

kind of marketing channel that help display, sell, or deliver the physical product or service to the buyer or user.

Question 12

service channels

Answer 12

kind of marketing channel that carry out transactions with potential buyers.

Question 13

paid media

Answer 13

category of group communication options. it allows marketers to show their ad or brand for a fee.

Question 14

owned media

Answer 14

category of group communication options. communication channels marketers own.

Question 15

earned media

Answer 15

category of group communication options. streams in which outsiders voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing methods.

Question 16

impressions

Answer 16

occur when consumers view a communication and are a useful metric for tracking the scope of a communication’s reach that can also be compared across all communication types.

Question 17

engagement

Answer 17

the extent of a customer’s attention and active involvement with a communication. it reflects a more active response than an impression and is more likely to create value for the firm.

Question 18

value

Answer 18

the sum of tangible and intangible benefits and costs. the buyer chooses the offerings he or she perceives to deliver the most value.

Question 19

customer value triad

Answer 19

the combination of quality, service, and price (QSP).

Question 20

satisfaction

Answer 20

reflects a person’s judgement of a product’s perceived performance in relationship to expectations.

Question 21

supply chain

Answer 21

a channel stretching from raw materials to components to finished products carried to final buyers.

Question 22

competition

Answer 22

includes all the actual and potential rival offerings and substitutes a buyer might consider.

Question 23

marketing environment

Answer 23

consists of the task environment and the broad environment.

Question 24

task environment

Answer 24

includes the actors engaged in producing, distributing, and promoting the offering.

Question 25

broad environment

Answer 25

consists of six components: demographic, economic, socio-cultural, natural, technological, and political-legal environment. marketers must pay close attention to the trends and developments in these and adjust their marketing strategies as needed.

Question 26

reintermediation

Answer 26

traditional companies are becoming ‘brick-and-click’ retailers, adding online services to their offerings.

Question 27

disintermediation

Answer 27

early dotcoms such as Amazon and others successfully created disintermediation in the delivery of products and services by intervening in the traditional flow of goods. in response, traditional companies engaged in intermediation.

Question 28

production concept

Answer 28

hold that consumers prefer products that are widely available and inexpensive.

Question 29

product concept

Answer 29

proposes that consumers favour products offering the most quality, performance or innovative features.

Question 30

selling concept

Answer 30

holds that consumers, if left alone, won’t buy enough of the organisation’s products.

Question 31

marketing concept

Answer 31

the job is to find the right product for the customer, instead of the right customer for your product.

Question 32

holistic marketing concept

Answer 32

based on the development, design, and implementation of marketing programs, processes, and activities that recognise their breadth and interdependencies. this concept acknowledges that everything matters in marketing.

Question 33

relationship marketing

Answer 33

aims to build mutually satisfying long-term relationships with key constituents to earn and retain their business. the ultimate outcome is a marketing network, consisting of the company and its supporting stakeholders with whom it has built mutually profitable business relationships.

Question 34

key constituents

Answer 34

customers, employees, marketing partners, and members of the financial community.

Question 35

internal marketing

Answer 35

the task of hiring, training, and motivating able employees who want to serve customers well.

Question 36

performance marketing

Answer 36

requires understanding the financial and non-financial returns to business and society from marketing activities and programs. top marketers are increasingly going beyond sales revenue to examine the marketing scorecard and interpret what is happening to market share, customer loss rate, customer satisfaction, and product quality.