Chapter 1

Question 0

Needs

Answer 0

States of felt deprivation

Question 1

What is marketing

Answer 1

The process by which companies create value for customers and build strong relationships in order to capture value from customers in return

Question 2

Wants

Answer 2

The form humans needs take as they are shaped by culture and individual personality

Question 3

Demands

Answer 3

Human wants that are backed by buying power

Question 4

Example of needs vs wants

Answer 4

Americans need food to live but want French fries from mcdonalds

Question 5

Exchange

Answer 5

The act of obtaining a desired object from someone by offering something in return

Question 6

Market

Answer 6

The set of actual and potential buyers of a product or service

Question 7

Production concept

Answer 7

Easily avaliabile and inexpensive. Therefore they should focus on improving the production and distribution efficiency.

Question 8

Disadvantage of production concept

Answer 8

Can lead to market myopia

Question 9

Product concept

Answer 9

Good quality products will sell itself. Therefore the organization should focus its energy to making improved products

A good product doesn’t need marketing

Question 10

Disadvantage of product concept

Answer 10

Making the best mouse trap when really customers are looking for a different solution.

Question 11

Selling concept

Answer 11

Aggressive selling and promotion

Overcapacity- when supply is higher than demand

Question 12

Disadvantage of selling concept

Answer 12

Focuses too much on creating sales transactions instead of developing long relationships with the customers

Question 13

The marketing concept

Answer 13

Knowing the needs and wants of target markets and delivering desired satisfactions better than the competitors.

Question 14

Disadvantage of marketing concept

Answer 14

Customers don’t know what they want or what is even possible

Question 15

Societal marketing concept

Answer 15

Understanding society’s well being and sustainable market. Should consider consumer wants the company’s requirements and consumers and society’s long run interest.

Question 16

Micro marketing

Answer 16

Perspective of company/organization

Question 17

Macro marketing

Answer 17

Big picture, how practiced in countries and society.

Question 18

Characteristics of micro marketing

Answer 18

How can we improve sales? Grab more customers from the company? Applies to non profit and profit organizations. Marketing from companies point of view.

Question 19

Characteristics of macro marketing

Answer 19

Broader view of marketing. Views marketing as a social process that matches supply with demand to satisfy society’s objectives NOT specific companies, focuses on society’s concern.

Question 20

Macro marketing systems

Answer 20

Planned economy and market orientated economy

Question 21

Utiltiy

Answer 21

Value that comes from satisfying human needs

Question 22

Production values utility

Answer 22

Form- creating tangible products from raw materials

Task-Intangible services

Question 23

Marketing values utility

Answer 23

Time-insuring customers get their products at the right time
Place-at the right place
Possession-transfers ownership

Question 24

Customer value

Answer 24

Benefits received-cost

• know how to calculate this

Question 25

Customer satisfaction

Answer 25

Products perceived performance-expectations

*know how to calculate this

Question 26

Marketing management philosophies

Answer 26

Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept

Question 27

Marketing decision variables

Answer 27

Product
Pricing
Promotion
Place

Question 28

Transaction

Answer 28

Actual terms of exchange specified times, prices,place etc

Question 29

Consumer generated marketing

Answer 29

Brand exchanges created by the consumers themselves. Consumers are playing a role in shaping their own brand experince and those of other consumers

Question 30

Partner relationship management

Answer 30

Working closely with others inside and outside the company to jointly bring more value to customers

Question 31

Macro-micro dilemma

Answer 31

What is good for some consumers/companies isn’t necessarily good for society.

Ex. Cigarettes, snow skiing, disposable packages

Question 32

Planned economy

Answer 32

Control what is produced and how much is

Question 33

Market oriented economy

Answer 33

Prices are set freely by supply and demand

Question 34

5 economic utilties

Answer 34

Form task time place and possession