Chapter 1 Terms

Question 1

Marketing Strategies

Answer 1

• The tools that marketers use to identify and analyze customers’ needs, then show that their company’s goods and services can meet those needs

Question 2

Utility

Answer 2

• The want-satisfying power of a good or service

Question 3

Basic Kinds of Utility

Answer 3

• Form, time, place, ownership

Question 4

Form Utility

Answer 4

• When a company converts raw materials and component inputs into finished goods and services

Question 5

Time and Place Utility

Answer 5

• When consumers find goods and services available when and where they want to purchase them

Question 6

Ownership Utility

Answer 6

• The transfer of title to goods or services at the time of purchase

Question 7

How do organizations get a customer?

Answer 7

1. Identifying needs in the marketplace
2. Finding the needs the organization can serve
3. Developing goods and services to turn potential buyers into customers

Question 8

Marketing

Answer 8

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

Question 9

What are the five eras of marketing history?

Answer 9

• Production
• Sales
• Marketing
• Relationship
• Social

Question 10

Exchange Process

Answer 10

• Activity in which two or more parties give something of value to each other to satisfy perceived needs

Question 11

The Production Era

Answer 11

• Producers focused on quality -> high quality will sell itself

Question 12

Production Orientation

Answer 12

• Business philosophy stressing efficiency in producing a quality product, attitude: “a good product will sell itself”

Question 13

The Sales Era

Answer 13

• More emphasis on advertising

Question 14

Sales Orientation

Answer 14

• The thought that consumers will not purchase unessential items; marketing is aimed on advertising and selling to persuade the buyer

Question 15

The Marketing Era

Answer 15

• Shift in focus from products to satisfying customer needs; more and more companies selling the “same thing”

Question 16

Seller’s Market

Answer 16

• More buyers for fewer goods and services

Question 17

Buyer’s Market

Answer 17

• More goods and services than people are willing to buy

Question 18

Consumer Orientation

Answer 18

• Business concept that added marketing which emphasized determining consumer needs and then designing the product to satisfy

Question 19

Market Orientation

Answer 19

• The extent to which a company adopts the marketing concept

Question 20

The Relationship Era

Answer 20

• Focuses on maintaining relationships with customers and suppliers

Question 21

Relationship Marketing

Answer 21

• Developing and maintaining relationships with consumers and partners for mutual benefit

Question 22

The Social Era

Answer 22

• Using the web to connect

Question 23

Converting Needs to Wants

Answer 23

• Determine what the customer wants

Question 24

Marketing Myopia

Answer 24

• Managements failure to recognize the scope of its business

Question 25

Bottom Line

Answer 25

• Reference to overall company profitibility

Question 26

Person Marketing

Answer 26

• Marketing efforts designed to cultivate the attention, interests, and preferences of a target market toward a person

Question 27

Place Marketing

Answer 27

• Marketing efforts to attract people and organizations to a particular geographic area

Question 28

Cause Marketing

Answer 28

• Identification and marketing of a social issue, cause, or idea to targeted markets

Question 29

Event Marketing

Answer 29

• Marketing of sporting, cultural, and charitable activities to selected target markets

Question 30

Organization Marketing

Answer 30

• Marketing by mutual-benefit organizations, service organizations, and government organizations intended to persuade others to accept their goals, receive their services, or contribute to them in some sort of way

Question 31

Transaction-based Marketing

Answer 31

• The traditional view; buyer and seller exchanges characterized by limited communications and little or no ongoing relationships

Question 32

Mobile Marketing

Answer 32

• Marketing messages transmitted via wireless technology

Question 33

Interactive Marketing

Answer 33

• Buyer-seller communications in which the customer controls the amount and type of information received

Question 34

Social Marketing

Answer 34

• The use of online social media as a communications channel for marketing messages

Question 35

Strategic Alliances

Answer 35

• Partnerships that create competitive advantages

Question 36

What is marketing responsible for?

Answer 36

• Buying, selling, transporting, storing, standardizing, financing, risk-taking, and securing info

Question 37

Wholesalers

Answer 37

• Intermediaries that operate between producers and resellers

Question 38

Exchange Functions

Answer 38

• Buying and selling

Question 39

Ethics

Answer 39

• Moral standards of behavior expected by a society

Question 40

Social Responsibility

Answer 40

• Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective

Question 41

Sustainable Products

Answer 41

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