Chapter 1 Marketing: The Art and Science of Satisfying Cusotmers

Question 1

Define marketing?

Answer 1

The activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society

Question 2

Types of utility?

Answer 2

Form, time, place, ownership (possession)

Question 3

Define form utility? Provide an example.

Answer 3

Conversion of raw material and components into finished goods and services
Example: iPod

Question 4

Define time utility? Provide an example.

Answer 4

Availability of goods and services when customers want them

Example: Dental appointment, digital photogrphs

Question 5

Define place utility? Provide and example.

Answer 5

Availability of goods and services at convenient locations

Example: Banks in grocery stores

Question 6

Define ownership utility? Provide an example.

Answer 6

Ability to transfer title to goods and services from marketer to buyer
Example: Retail sales in exchange for credit card payment

Question 7

4P’s of the Marketing Mix

Answer 7

Product:

• Brand name
• Packaging
• Sizes
• Features

Question 8

4 P’s of the Marketing Mix

Answer 8

Price:

• Discounts
• Allowances
• Credit terms
• Payment period

Question 9

4 P’s of the Marketing Mix

Answer 9

Place:

• Distribution channels
• Inventory
• Transport
• Locations

Question 10

4 P’s of the Marketing Mix

Answer 10

Promotion:

• Advertising
• Sales promotions
• Public relations
• Direct marketing

Question 11

7 P’s of the Marketing Mix

Answer 11

1. Product
2. Price
3. Place
4. Promotion
5. Physical environment
6. Process
7. People

Question 12

Five eras in the history of marketing

Answer 12

Production Era (prior to 1920's) 
Sales Era (prior to 1950's)
Marketing Era (since 1950's)
Relationship Era (since 1990's)
Social Era (since 2000's)

Question 13

Describe the Production Era

Answer 13

Product Orientation - Stressing efficiency in producing a quality product
“ A good product will sell itself”
Production shortages and intense consumer demand

Question 14

Describe the Sales Era

Answer 14

Sales Orientation - Customers will resist purchasing nonessential items
Personal selling and creative advertising to persuade them to buy

Question 15

Describe the Marketing Era

Answer 15

Emergence of Marketing Concept - A company wide consumer orientation to achieve long term success
A strong market orientation improves market success and overall performance

Question 16

Describe the Relationship Era

Answer 16

Relationship Marketing - Developing long term, value added relationships over time with customers and suppliers

Question 17

Describe the Social Era

Answer 17

Social Era - Accessibility to the internet and the creation of social media sites

Question 18

High-End Marketing vs Low-End Marketing

Answer 18

High-End Market: Die hard fans and high image consumers
Enhanced brand equity
Low-End Market: New and budget oriented younger segment
Emerging markets

Question 19

Define Marketing Myopia. Provide an example.

Answer 19

Marketing Myopia - Management’s failure to recognize the scope of its business
A narrow understanding of what business they are in
Example: Kodak lost much of its hare to Sony cameras when digital cameras boomed

Question 20

Non-Traditional marketing types

Answer 20

• Person Marketing
• Place Marketing
• Cause Marketing
• Event Marketing
• Organizational Marketing

Question 21

Describe Personal Marketing. Provide an example.

Answer 21

Person Marketing - Focus on marketing of a fictional character, celebrity or political candidate to cultivate the attention of a target market
Example: Drake, the rapper

Question 22

Describe Place Marketing. Provide an example.

Answer 22

Place Marketing - Focus on marketing places as tourist attraction
Example: Saskatchewan - Land of living skies

Question 23

Describe Cause Marketing. Provide an example.

Answer 23

Cause Marketing - Marketing of a social issue, cause or idea to selected target markets
Example: “Smoke, stink, die”

Question 24

Describe Event Marketing. Provide an example.

Answer 24

Event Marketing - Market of sporting, cultural and charitable activities to selected target markets
Example: Grey Cup, Rogers Cup

Question 25

Describe Organizational Marketing. Provide an example.

Answer 25

Organizational Marketing - Influences others accept the organization’s goals, receive its services and contribute in some way
Example: United Way, Canadian Red Cross

Question 26

Define Transaction Based Marketing

Answer 26

Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between parties
Companies gain a competitive edge by moving customers up a loyalty ladder

Question 27

Define Mobile Marketing

Answer 27

Marketing messages transmitted via wireless technology

Question 28

Define Interactive Marketing

Answer 28

Buyer seller communications in which the customer controls the amount and type of information received from a marketer

Question 29

Define Social Marketing

Answer 29

The use of online social media as communications channels for marketing messages

Question 30

Define Strategic Alliances

Answer 30

Partnerships in which 2 or more companies combine resources and capital to create competitive advantages in the marketplace

Question 31

Forms of alliances

Answer 31

• Product development partnerships

- Vertical alliances

Question 32

Universal Marketing Functions

Answer 32

1. Buying
2. Selling
3. Transporting
4. Storing
5. Standardizing and Grading
6. Risk Taking
7. Financing
8. Securing Market Information

Question 33

Explain the buying function

Answer 33

Ensuring product offerings are available in sufficient quantities to meet customer demands

Question 34

Explain the selling function

Answer 34

Using advertising, personal selling and sales promotions to a match products to customer needs

Question 35

Explain the transporting function

Answer 35

Moving products from their point of production to locations convenient for purchasers

Question 36

Explain the the storing function

Answer 36

Warehouse products until needed for sale

Question 37

Explain the standardizing and grading function

Answer 37

Ensuring product offerings meet quality and quantity controls of size, weight and other variables

Question 38

Explain the risk taking functions

Answer 38

Dealing with uncertainty about future customer purchases

Question 39

Explain the financing function

Answer 39

Providing credit for channel members (Wholesalers/retailers) and consumers

Question 40

Explain the securing market information functio

Answer 40

Collecting information about consumers, competitors and channel members for use in marketing decisions

Question 41

Define ethics

Answer 41

Moral standards of behaviour expected in a society

Question 42

Define social responsibility and its benefits

Answer 42

Marketing philosophies, policies, procedures and actions whose primary objective is to enhance society
Benefits:
- Improved customer relationships
- Increased employee loyalty
- Marketplace success
- Improved financial performace

Question 43

Define sustainable products

Answer 43

Products that can be produced, sued and disposed of with minimal impact on the environment