Chapter 1 - Marketing Fundamentals

Question 1

What are the 4 P’s of the marketing mix?

Answer 1

Product, Price, Promotion, and Place

Question 2

What is a marketer’s ultimate objective?

Answer 2

To drive profits for a company or, if working in the non-profit sector, to generate revenue and support to fund programs and run operations

Question 3

What are the six main environmental forces that affect marketing decisions?

Answer 3

Demographic, Socio-cultural, Economic, Technological, Competitive, and Regulatory

Question 4

What is a need?

Answer 4

occurs when a person feels deprived of basic necessities such as food, clothing, and shelter.

Question 5

What is a want?

Answer 5

a need that is shaped by a person’s knowledge, culture, and personality.

Question 6

What is most commonly the first initial point of contact a customer has with a brand?

Answer 6

The first initial point of contact a customer has with a brand is often online like a corporate website, promotional microsite, company blog, social media site, a third-party product review site, or even a friend’s social media feed.

Question 7

How is customer value created?

Answer 7

Companies must first create products and services that not only meet customer needs but also provide added value versus the competition. Marketing programs and incentives encourage generating repeat purchases.

Question 8

What is customer value proposition?

Answer 8

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 9

Define analytics

Answer 9

The process of taking metrics data and applying smart thinking and technology to gain actionable insights that can help make better business decisions.

Question 10

Define content marketing

Answer 10

Creating and sharing expertise, information, or branded content that is designed to inform and engage with tools such as research papers, e-books, infographics, how-to videos, blogs, webinars, e-newsletters, case studies, and events that can readily be found with search engines.

Question 11

Define Corporate Social Responsibility (CSR)

Answer 11

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

Question 12

Define customer lifetime value

Answer 12

The potential sales that will be generated by a customer if that customer remains loyal to that company for a lifetime.

Question 13

Define customer relationship management (CRM)

Answer 13

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

Question 14

Define dashboards

Answer 14

The visualization of data and key performance indicators using graphs, charts, and numbers so that numerical information tells a story that is insightful and easy to use and understand.

Question 15

Define digital marketing

Answer 15

Using digital technology to reach consumers through computers, gaming devices, out-of-home electronic screens, or mobile devices such as smartphones and tablets.

Question 16

What is an exchange?

Answer 16

The trade of things of value between buyers and sellers so that each benefit.

Question 17

Define experiential marketing

Answer 17

Creating opportunities for consumers to directly interact with brands.

Question 18

What is a good?

Answer 18

A product you can touch and own.

Question 19

Define greenwashing

Answer 19

The deceptive use of marketing practices to give the impression that a good, service, or organization is environmentally friendly.

Question 20

What is an idea?

Answer 20

A concept that typically looks for support.

Question 21

What is a market?

Answer 21

Potential consumers with both the willingness and the ability to buy.

Question 22

Define marketing

Answer 22

The process of planning and managing goods, services, or ideas to meet consumer needs and organizational objectives. It includes the conception of these products and the pricing, promotion, and distribution programs designed to make a profit and generate revenue or support for an organization.

Question 23

Define marketing orientation

Answer 23

Focusing organizational efforts to collect and use information about customers’ needs to create customer value.

Question 24

What are the three steps of the marketing process?

Answer 24

The process of (1) identifying consumer needs, (2) managing the marketing mix to meet these needs, and (3) realizing profits.

Question 25

Define metrics

Answer 25

Numeric data that are collected and grouped to track performance, often presented in spreadsheets and dashboards.

Question 26

Define mobile marketing

Answer 26

A set of practices that enables organizations to communicate and engage with their audiences in an interactive and relevant manner through any mobile device or network.

Question 27

Define partnership marketing

Answer 27

The creation of formal associations between brands that will result in incremental business for both brands that could not have been achieved separately.

Question 28

Define place

Answer 28

Distribution channels, retail formats, and merchandising used to sell a product.

Question 29

Define price

Answer 29

What is exchanged for a product, including the expected regular retail or sale price.

Question 30

Define product

Answer 30

Attributes that make up a good, a service, or an idea, including product design, features, colour, packaging, warranty, and service levels.

Question 31

Define production orientation

Answer 31

Focusing organizational efforts on the manufacture of goods.

Question 32

Define promotion

Answer 32

Communication tools needed to inform consumers about a product, including advertising, public relations, sales promotion, direct response, event marketing, sponsorship, online approaches, and personal selling.

Question 33

Define relationship marketing

Answer 33

When organizations create long-term links with customers, employees, suppliers, and other partners to increase loyalty and customer retention. Customer relationship management (CRM) and corporate social responsibility (CSR) are important aspects in relationship marketing.

Question 34

Define sales orientation

Answer 34

Focusing organizational efforts on selling as many products as possible.

Question 35

What is a service?

Answer 35

A product that is intangible; an activity, benefit, or satisfaction that you cannot touch.

Question 36

Define share of wallet

Answer 36

The percentage of a customer’s purchases that a company has in a specific product category.

Question 37

What is social media?

Answer 37

A form of online media that allows members to create their own network of friends and contacts to share comments, articles, opinions, videos, and images as a form of self-expression.

Question 38

Define social media marketing

Answer 38

Reaching out to consumers online through social media networks.

Question 39

What is the societal marketing concept?

Answer 39

Marketing programs that focus on the consumer and the well-being of society.

Question 40

What is a strategic alliance?

Answer 40

Long-term arrangement between companies with similar values and marketing objectives that extends beyond short-term promotional offers into long-term formal business agreements. It is a form of partnership marketing.

Question 41

What is a target market?

Answer 41

The specific group or segment(s) of existing and potential consumers to which marketers direct their marketing efforts.

Question 42

What is the purpose of customer relationship management?

Answer 42

it is rooted in the knowledge that it is less expensive to service and maintain current customers than to obtain new ones.

Question 43

What is real-time marketing?

Answer 43

to interact with a target audience based on current local, national or global events and trends. Brands can engage with their consumers and connect them to what they need at critical moments.

Question 44

What does successful marketing focus on?

Answer 44

Successful marketing focuses on customer needs and wants and developing programs that engage customers and inspire customer loyalty

Question 45

Describe the evolution of marketing

Answer 45

The evolution of marketing has progressed from a production orientation stage to a sales orientation stage, to a marketing orientation stage, and finally to a relationship marketing stage.

Question 46

What is the purpose of the Canadian Marketing Association (CMA)?

Answer 46

it is the professional body of the marketing industry that responds to legislative issues and sets guidelines on responsible marketing processes.

Question 47

Define influencer marketing

Answer 47

employs leading, niche content creators to improve brand awareness, increase traffic, and drive a brand’s message to their target audience.