Chapter 1 Marketing Fundamentals

Question 1

Marketing planning starts with a scan of the environment

Answer 1

• External demographic
• social-culture
• economic
• technological
• competitive
• regulatory forces

Question 2

Successful marketing is focused on

Answer 2

Customer’s wants and needs

Question 3

Need

Answer 3

Occurs when a person feels deprived of basic necessities

Question 4

Want

Answer 4

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

Question 5

Marketers need to consider how consumers navigate online environment when developing marketing programs

Answer 5

1) Understand the consumer’s path to purchase. What website/social media should you advertise to in order to engage with consumers
2) Website must be easily found and highly ranked by search engines

Question 6

Customer Value Proposition

Answer 6

The unique benefits received by customers that will benefit their needs (price, convenience, delivery, and both before-sale and after-sale services)

Question 7

Marketing Mix (4P)

Answer 7

Product, price, place, and promotion (all are controllable factors)

Question 8

Creating products with added values is achieved through

Answer 8

1) Product design
2) Pricing strategies
3) Service elements (fast delivery, points, healthy benefits, reviews)

Question 9

With limited funds, target…

Answer 9

customers who are most interested rather than targeting everyone

Question 10

Target Market

Answer 10

Specific group (or segment) of existing or potential consumers where marketers direct their efforts towards  
(Ensuring each element of the marketing mix is appealing to the target market)

Question 11

Describing the 4P of marketing mix

Answer 11

1) Product: All attribute that makes up a good, it can be a good, service or idea to satisfy customer need and includes product design, features, color, packaging, warranty, and service levels
2) Price: What is exchanged for a product, regular retail price or sale price
3) Place: The way your product gets to the customer, including distribution channels, retail formats, and merchandising used to sell a product
4) Promotion: The tools used to communicate with consumers about a product, including advertising, public relations, sales promotions, direct response, event marketing, sponsorship, online approaches, and personal selling

Question 12

Marketing Process

Answer 12

1) Identifying consumer needs
2) Managing the marketing to meet consumer needs
3) realizing profits

Question 13

Marketing

Answer 13

Process of planning, managing goods, services, or ideas to meet consumer needs and organizational objectives

Question 14

Exchange

Answer 14

Is the trade of things between buyers and sellers so that they both benefit

Question 15

A Good

Answer 15

Is a product that is tangible and you can touch it and own it

Question 16

A Service

Answer 16

Is an intangible product you cannot touch or own

Question 17

An Idea

Answer 17

An idea is a concept that typically looks for support (Mothers against drunk driving)

Question 18

Market

Answer 18

Describes potential consumers who are willing and have the ability to buy a product

Question 19

Production Orientation

Answer 19

Focused on manufacturing, consumer needs was not a priority. Assembly line. (Up until 1930)

Question 20

Sales Orientation

Answer 20

Focused on selling as many products as possible (From 1930 to 1960)

Question 21

Marketing Orientation

Answer 21

Focused on the idea to satisfy the need of the customers while achieving organization’s goal (From 1960-1990)

Question 22

Relationship Marketing

Answer 22

Focus on the life time value of consumers and strive to offer better services and higher quality products to establish long-term relationships with customers (1990-Now)

Question 23

Customer Relationship Management (CRM)

Answer 23

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction (Reward cards etc)

Question 24

Share of Wallet

Answer 24

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

Question 25

Customer lifetime value

Answer 25

The potential sales that will be made if a customer stays loyal to a company for a lifetime

Question 26

Corporate Social Responsibility (CRS)

Answer 26

Organizations voluntarily consider the well-being of society by taking responsibility for how their business impact consumers, customers, suppliers, shareholders, communities, the environment, and society

Question 27

Greenwashing

Answer 27

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

Question 28

Societal Marketing Concept

Answer 28

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

Question 29

New and Evolving marketing practices

Answer 29

• Digital market (Content marketing, Mobile marketing, social media marketing)
• Real-time marketing
• Experiential marketing
• Partnership marketing
• Metrics and Analytics
• Marketing Regulations and Ethical Considerations

Question 30

Digital Marketing

Answer 30

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

-display marketing, affiliate marketing, search engine marketing, search engine optimization, pay-per-click advertising, mobile marketing, email marketing, and social media marketing

Content Marketing: Creating and sharing expertise, information or branded content that is designed for using to advertise with research papers, e-books, infographics, how-to videos, blogs etc… and events that can be found through search engines

Mobile Marketing: Organizations engage and communicate with customers with mobile devices and network

Social Media Marketing: Ability to interact with consumers, often in real time though social networks like facebook, twitter, instagram etc

Real-time Marketing: A planned tactical approach where brands post on social media during times of event to get in on the buzz (Superbowl, Olympics, Academy Awards, Pride day etc)

Experiential Marketing: Marketers create fun and memorable experiences for consumers so they interact with the brand and will spread the word on social media (pop-ups at different locations, lego bus-stops for instagram for pictures and using hashtags)

Partnership Marketing: Partnering with other companies with similar customers to add business value to both brands and achieve goals that can only be achieved together (Affinity Marketing)
Brand Partnership (co-branding): Nutella is a key
ingredient product in their partnership
offerings and not just a take-home product
Strategic Alliance: Long-term arrangements between
companies with similar values and objectives
that’s more than just short-term promotional
offers (Cineplex scene cards and sociabank
loyalty card)

Metrics and Analytics: Can measure and track online sales, also measure website interactions such as time on site, page views, returning visitors, newsletter signups, and digital downloads. Metric is the numeric data collected to track performance, and its presented as spreadsheet and dashboards to make it easy to read

   Dashboards: visualize data using graphs and charts 
                          and numbers

        Analytics: Process of taking metric data and 
                         applying smart thinking and technology 
                         to gain insight that can help make 
                         better business decisions

Question 31

The Canadian Marketing Association (CMA)

Answer 31

Has a code of ethics where all members must follow and encourage high marketing standards that are honest, truthful, accurate, fair, and professional