Chapter 1 - Marketing Fundamentals

Question 1

Marketing department is responsible for facilitating ____, _____, and _____ with the organization’s customers, shareholders, suppliers, and other organizations.

Answer 1

relationships
partnerships
alliances

Question 2

A need occurs when…

Answer 2

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

Question 3

A want is a need…

Answer 3

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

Question 4

Successful marketing is…

Answer 4

focused on customer needs and wants.

Question 5

Customer Value Proposition

Answer 5

unique combination of benefits received by target buyers that will satisfy their needs.
Benefits include: quality, price, convenience, delivery, and both before-sale and after-sale service.

Question 6

Creating products with added value is achieved through a combo of:

Answer 6

Product design, pricing strategies, service elements

Question 7

Target Market

Answer 7

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

Question 8

Elements of Marketing Mix

Answer 8

Product
Price
Place
Promotion

Question 9

4P’s: Product

Answer 9

all attributes that make up a good/service/idea

- product design, features, colour, packaging, warranty, service levels

Question 10

4P’s: Price

Answer 10

what is exchanged for a product, including expected regular retail or sale price

Question 11

4P’s: Place

Answer 11

way in which product gets to the consumer, distribution channels, retail formats, and merchandising used to sell a product.

Question 12

4P’s: Promotion

Answer 12

tools needed to communicate with consumers about the product
- advertising, public relations (PR), sales promo, direct response, event marketing, sponsorship, online approaches, personal selling

Question 13

Marketing Process

Answer 13

1. Identifying consumer needs
2. Managing marketing mix to meet needs
3. Realizing profits

Question 14

Exchange

Answer 14

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

Question 15

A Good

Answer 15

tangible product, you can touch and own it

- example: a toy

Question 16

A Service

Answer 16

intangible product you cannot touch or own

- example: tutoring

Question 17

An Idea

Answer 17

concept that typically looks for support

- example: MADD, mothers against drunk driving

Question 18

Market

Answer 18

potential consumers with both the willingness and ability to buy

Question 19

Order of Business Philosophies

Answer 19

1. Production Orientation
2. Sales Orientation
3. Marketing Orientation
4. Relationship Marketing Orientation

Question 20

Production Orientation Stage

Answer 20

Before the 1930’s

• focused on manufacturing
• goods tend to sell, regardless of quality because supply was so small

Question 21

Sales Orientation Stage

Answer 21

1930’s - 1960’s

- focused on selling as many products as possible

Question 22

Marketing Orientation Stage

Answer 22

1960’s

• focuses on idea that organizations should strive to satisfy the needs of consumers while also trying to achieve their goals
• focuses efforts on continuously collecting info about customer needs, sharing info across departments, and creating customer value

Question 23

Relationship Marketing Stage

Answer 23

Now

• organizations considering the lifetime value of customers and striving to offer better services, higher-quality products
• encourage long-term relationships with customers
• greater use of CRM, CSR,

Question 24

Customer Relationship Management (CRM)

Answer 24

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

Question 25

Share of Wallet

Answer 25

% of customer’s purchases that a company has in a specific product category

Question 26

Customer Lifetime Value

Answer 26

potential sales that will be generated by 1 customer that remains loyal to that company for a lifetime

Question 27

Corporate Social Responsibility (CSR)

Answer 27

when organizations voluntarily consider the well-being of society

Question 28

Greenwashing

Answer 28

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

Question 29

Societal Marketing Concept

Answer 29

marketing programs that focus on the customer and the well-being of society

Question 30

Digital Marketing

Answer 30

using digital technology to reach consumers through computers, gaming devices, out-of-home electronic screens, or mobile devices

Question 31

Content Marketing

Answer 31

creating/sharing expertise, info, or branded content designed to inform and engage with tools that can be readily found with search engines

Question 32

Mobile Marketing

Answer 32

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

Question 33

Social Media Marketing

Answer 33

reaching out to consumers online through social media networks

Question 34

Experiential Marketing

Answer 34

creating opportunities for consumers to directly interact with brands
- create buzz, focal point for social media programs

Question 35

Partnership Marketing

Answer 35

creation of formal associations between brands that result in increased business for both brands, could not be achieved separately

Question 36

Strategic Alliance

Answer 36

long-term arrangement between companies with similar values/marketing objectives that extend betond short-term promo offers into long-term agreements