Chapter 1

Question 1

Marketing

Answer 1

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at a large

Question 2

Needs

Answer 2

States of felt deprivation

Question 3

Wants

Answer 3

The form human needs take as shaped by culture and individual personality

Question 4

Demands

Answer 4

Human wants that are backed by buying power

Question 5

Market offering

Answer 5

Some combination of products, services, information or experiences offered to a market to satisfy a need or want

Question 6

Marketing myopia

Answer 6

The mistake of paying more attention to the specific products a company offers than to be benefits and experiences produced by these products

Question 7

Exchange

Answer 7

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

Question 8

Transaction

Answer 8

A trade between two parties that involves at least two things of value, agreed upon conditions, and a time and place of agreement

Question 9

Market

Answer 9

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

Question 10

Marketing management

Answer 10

The art and science of choosing target markets and building profitable relationships with them

Question 11

Demarketing

Answer 11

Marketing in which the task is to temporarily or permanently reduce demand

Question 12

Production concept

Answer 12

The idea that consumers will favour products that are available and highly affordable, and that the organisation should therefore focus on improving production and distribution efficiency

Question 13

Product concept

Answer 13

That idea that consumers will favour products that offer the most quality, performance and features, and that the organisation should therefore devote its energy to making continuous product improvements

Question 14

Selling concept

Answer 14

The idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort

Question 15

Marketing concept

Answer 15

The marketing management philosophy which holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitiors do

Question 16

Societal marketing concept

Answer 16

The idea that a company’s marketing decisions should consider consumers wants, the company’s requirements, consumers long run interests and society’s long run interests

Question 17

Customer relationship management

Answer 17

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Question 18

Customer perceived value

Answer 18

The customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

Question 19

Customer satisfaction

Answer 19

The extent to which a products perceived performance matches or exceeds a buyers expectations

Question 20

Customer-managed relationships

Answer 20

Marketing relationships in which customers, empowered by today’s new digital technologies, interact with companies and with each other to shake their relationships with brands

Question 21

Consumer-generated marketing

Answer 21

Brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

Question 22

Partner relationship management

Answer 22

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers

Question 23

Customer life time value

Answer 23

The value of the entire stream of purchases that the customer would make over a lifetime of patronage

Question 24

Share of customer

Answer 24

The portion of the customers purchasing that a company gets in its product categories

Question 25

Customer equity

Answer 25

The total combined customer lifetime values of all of the company’s customers

Question 26

Not-for-profit marketing

Answer 26

Marketing as practised by a variety of organisations whose aim is to make surpluses so as to continue their operations, but who do not seek to make profits for shareholders

Question 27

Internet

Answer 27

A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large information repository