Chapter 1 Vocab

Question 1

Customer Experience

Answer 1

The internal response that customers have to all aspects of an organization and its offering.

Question 2

Customer Relationship Management (CRM)

Answer 2

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings to that buyers will choose them in the marketplace.

Question 3

Customer Value

Answer 3

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

Question 4

Customer Value Proposition

Answer 4

The cluster of benefits that an organization promises customers to satisfy their needs.

Question 5

Environmental Forces

Answer 5

The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.

Question 6

Exchange

Answer 6

The trade of things of value between buyer and seller so that each is better off after the trade.

Question 7

Market

Answer 7

People will both the desire and the ability to buy a specific offering.

Question 8

Market Orientation

Answer 8

An organization that focuses its efforts on (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.

Question 9

Market Segments

Answer 9

The relatively homogenous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.

Question 10

Marketing

Answer 10

The activity for creating, communicating, delivering, and exchanging offerings that benefit customers, the organization, its stakeholders, and society at large.

Question 11

Marketing Concept

Answer 11

The idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization’s goals.

Question 12

Marketing Mix

Answer 12

The marketing manager’s controllable factors — product, price, promotion, and place — that can be used to solve a marketing problem.

Question 13

Marketing Program

Answer 13

A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

Question 14

Organizational Buyers

Answer 14

Those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale.

Question 15

Product

Answer 15

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.

Question 16

Relationship Marketing

Answer 16

Links the organization to is individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

Question 17

Societal Marketing Concept

Answer 17

The view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.

Question 18

Target Market

Answer 18

One or more specific groups of potential consumers toward which an organization directs its marketing program.

Question 19

Ultimate Consumers

Answer 19

The people who use the products and services purchased for a household. Also called “consumers,” “buyers,” or “customers.”

Question 20

Utility

Answer 20

The benefits or customer value received by users of the product.

Question 21

Marketing is far more than simply advertising or personal selling.

Answer 21

true

Question 22

To serve both buyers and sellers, marketing seeks

Answer 22

(1) to discover the needs and wants of prospective customers
and
(2) to satisfy them.

Question 23

Prospective Customers include

Answer 23

both individuals, buying for themselves and their households, and organizations, buying for their own use (such as manufacturers) or for resale (such as wholesalers and retailers).

Question 24

The key to achieving the two objectives is the idea of

Answer 24

exchange.

Question 25

For marketing to occur, at least four factors are required

Answer 25

(1) two or more parties (individuals or organizations) with unsatisfied needs,
(2) a desire and ability on their part to have their needs satisfied,
(3) a way for the parties to communicate,
and
(4) something to exchange

Question 26

The first objective in marketing is discovering the needs of prospective customers.

Answer 26

but these prospective customers may not always know or be able to describe what they need and want.

Question 27

A need

Answer 27

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

Question 28

A want

Answer 28

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

Question 29

Marketing tries to influence what we buy.

Answer 29

A principal activity of a firm’s marketing department is to scrutinize its consumers to understand what they need and want and the forces that shape those needs and wants.

Question 30

Potential consumers make up a market.

Answer 30

All markets ultimately are people.

Question 31

People who are aware of their unmet needs may have the desire to buy the product, but that alone isn’t sufficient.

Answer 31

People must also have the ability to buy, such as the authority, time, and money. People may even “buy” an idea that results in an action, such as having their blood pressure checked annually or turning down the thermostat to save energy.

Question 32

Because the organization can’t satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers.

Answer 32

This is the target market.

Question 33

The four Ps

Answer 33

controllable marketing mix factors

Question 34

Product

Answer 34

a good, service, or idea to satisfy the consumer’s needs.

Question 35

price

Answer 35

what is exchanged for the product

Question 36

promotion

Answer 36

a means of communication between the seller and buyer

Question 37

place

Answer 37

a means of getting the product to the consumer.

Question 38

The marketing mix elements are called controllable factors because

Answer 38

they are under the control of the marketing department in an organization.

Question 39

Designing an effective marketing mix also conveys to potential buyers a clear

Answer 39

customer value proposition

Question 40

An organization’s marketing program connects it with its customers.

Answer 40

Gaining loyal customers by providing unique value is the essence of successful marketing.

Question 41

A firm achieves meaningful customer relationships by creating connections with is customers through careful coordination of the

Answer 41

product, its price, the way its promoted, and how its placed.

Question 42

Relationship marketing involves a

Answer 42

personal, ongoing relationship between the organization and its individual customers that beings before and continues after the sale.

Question 43

Consumer needs trigger product concepts that are translated into actual products that stimulate further discovery of consumer needs.

Answer 43

.

Question 44

The first stage, the production era

Answer 44

covers the early years of the united states up until the 1920s.
-goods were scarce and buyers were willing to accept virally any goods that were available and make do with them.

Question 45

sales era

Answer 45

from the 1920s to the 1960s

• manufacturers found they could product more goods than buyers could consume.
• competition grew. firms hired more salespeople to find new buyers. this salsas era continued into the 1960s for many american firms.

Question 46

Marketing concept era

Answer 46

starting in the late 1950s, marketing became the motivating force among many American firms. general electric probably launched the marketing concept and its focus on consumers when its 1952 annual report stated something.

Question 47

Customer relationship era

Answer 47

(today) started in the 1980s and occurs as firms continuously seek to satisfy the high expectations of customers.

Question 48

who markets?

Answer 48

every organization markets.

Question 49

goods

Answer 49

are physical objects, such as toothpaste, cameras, or computers, that satisfy consumer needs.

Question 50

services

Answer 50

are intangible items such as airline trips, financial advice, or art museums.

Question 51

ideas

Answer 51

are thoughts about concepts, actions, or causes.

Question 52

services rely more heavily on effective marketing

Answer 52

ideas are most often marketed by nonprofit organizations or the government.

Question 53

there are three specific groups that benefit from effective marketing in our free-enterprise society

Answer 53

consumers who buy
organizations that sell
and
society as a whole.

Question 54

true competition between products and services in the market place ensures that consumers can find value from the best products, the lowest prices, or exceptional service.

Answer 54

providing choices leads to the consumer satisfaction and quality of life that we expect from our economic system.

Question 55

utility is the result of the

Answer 55

marketing exchange process and the way society benefits from marketing.

Question 56

form utility

Answer 56

the production of the product or service

Question 57

place utility

Answer 57

mens having the offering available where consumers need it

Question 58

time utility

Answer 58

means having it available when needed

Question 59

possession utility

Answer 59

the value of making an item easy to purchase through the provision of credit cards or financial arrangements.

Question 60

marketing creates utilities by bridging space (place utility) and hours (time utility) to provide products (form utility) for consumers to own and use (possession utility)

Answer 60

.