Chapter 1 Terms

Question 1

Consumer

Answer 1

Ultimate user of a good/service; Can be individuals, companies, orgs, govt

Question 2

Marketing

Answer 2

Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners, and society at large

Question 3

Marketing Mix

Answer 3

Combination of the products itself, the price of the product, the promotional activities that introduce it, and the place where it is made available, that together create a desired response among a set of predefined consumers

Question 4

Four Ps

Answer 4

Product, price, promotion, place (all work together)

Question 5

Product

Answer 5

A good, service, idea , place, person of whatever a person/org offers for sale in the exchange; Includes design and packaging/delivery

Question 6

Promotion (Marketing Communication)

Answer 6

Coordination of a marketer’s communication efforts to influence attitudes/behaviors; Includes personal selling, Ads, Coupons, Billboards, Press Releases, Social Media

Question 7

Place

Answer 7

Refers to the availability of the product to the customer at the desired time and location; Includes local retailers, outlets, websites

Question 8

Price

Answer 8

Assignment of value, or the amount the consumer must exchange to receive the offering

Question 9

Channel of Distribution

Answer 9

Series of firms or individuals that facilitates the movement of a product from producers to final customer

Question 10

Exchange

Answer 10

Occurs when a person gives something and gets something in return; Most monetary, can be politician working for vote

Question 11

Business to Business Marketing

Answer 11

The exchange of goods and services from one organization to another

Question 12

E-Commerce

Answer 12

Buying or selling of goods and services electronically (internet)

Question 13

Not for Profit Organization/NGOs

Answer 13

Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members

Question 14

Marketing Concept

Answer 14

Focuses on identifying and satisfying consumer needs to ensure the organization’s long term profitability

Question 15

Need

Answer 15

Difference between a consume’s actual state and some ideal or desired state; Ex: Food

Question 16

Want

Answer 16

Desire for a particular product we use to satisfy a need in a specific way that are culturally/socially influenced; Ex: Certain type of food

Question 17

Benefit

Answer 17

The outcome sought by a customer that motivates buying behavior that satisfies a need or want

Question 18

Demand

Answer 18

Consumers’ want for a product coupled with the means to obtain it; Ex: Car/BMW

Question 19

Market

Answer 19

All the consumers who share a common need that can be satisfied by a specific product and who have the resources, willingness, and authority to make the purchase

Question 20

Marketplace

Answer 20

Location where buying and selling occurs

Question 21

Market Offering

Answer 21

Products; How needs and wants are fulfilled

Question 22

Utility

Answer 22

Refers to the usefulness or benefit we receive when we use a good or a service (form, place, time, possession)

Question 23

Production Orientation

Answer 23

Emphasizes the most efficient ways to produce and distribute products

Question 24

Selling Orientation

Answer 24

Management views of marketing as a sales function, or a way to move products out of warehouses so inventories don’t fill up

Question 25

Societal Marketing Concept

Answer 25

Idea that marketers must satisfy customers’ needs in ways that also benefit society while they deliver a profit to the firm

Question 26

Value Proposition

Answer 26

Marketplace offering that fairly and accurately sums up the value that the customer will realize if he or she purchases the product; Ex: BMW and statues

Question 27

Lifetime Value of the Customer

Answer 27

Looks at how much profit they expect to make from a particular buyer, including each and every purchase he or she will make from them now and in the future; LVC = amount person will spend - cost of maintaining relationship

Question 28

Competitive Advantage

Answer 28

An edge over its competitors that allows it to have higher sales, profits, customers, success

Question 29

Metrics

Answer 29

Measurements or “scorecards” that marketers use to identify the effectiveness of different strategies or tactics

Question 30

Value Chain

Answer 30

Series of activities involved in designing, producing, marketing, and supporting a product; Each link in chain has potential to either add or remove value from the product the customer eventually buys

Question 31

Mass Market

Answer 31

All possible customers in a market, regardless of the differences in their specific needs and wants; Risk losing potential customers to competitors who cater to specifically to needs

Question 32

Demographics

Answer 32

Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure

Question 33

Cultural Values

Answer 33

A society’s deeply held beliefs about right and wrong ways to live

Question 34

Social Norms

Answer 34

Specific rules dictating what is right or wrong, acceptable or unacceptable