Chapter 10

Question 1

The marketing concept

Answer 1

1. Find customers needs
2. Develop profits to meet those needs
3. Engage the whole company in efforts to satisfy customers
   4, make profit

Question 2

Marketing concept

Answer 2

Basic philosophy of satisfying customer needs while meeting organizational goals

Question 3

Marketing strategy

Answer 3

Plan for performing 2 tasks
- selecting a target market
- developing market mix

Question 4

Consumer market

Answer 4

Buyers who want product for personal use

Question 5

Industrial market

Answer 5

Buyers who want product for use in making other products

Question 6

Demographic segmentation

Answer 6

Divides market based on variables such as age, marital status, gender, ethic background L occupation, and education

Question 7

Geographic segmentation

Answer 7

Divides market based on variables such as climate, region, population

Question 8

Behavioral segmentation

Answer 8

Divides consumers based on attitude towards product, user status, usage rate

Question 9

Psychographic segmentation

Answer 9

Classifies consumes bases on lifestyles

Question 10

Marketing mix

Answer 10

Product
Price
Place
Promotion

Question 11

Secondary data

Answer 11

Information already collected

Question 12

Primary data

Answer 12

Newly collected data

Question 13

Trademark

Answer 13

Identity legally used to protect a product from being copied

Question 14

Brand

Answer 14

Symbol that differentiates a product from similar products on the market

Question 15

Private branding

Answer 15

Company makes a product and sells it to retailer who in turn resells it under their name

Question 16

Generic branding

Answer 16

Manufacturer attaches no branding information to a product except a description of its contents

Question 17

manufacturer branding

Answer 17

Company sells one or more products under its own Brand names

Question 18

Brand equity

Answer 18

Value of a Brand generates by a favorable consumer experience with a product

Question 19

Brand loyalty

Answer 19

Consumer preference for a particular brow that develops over time based on satisfaction with a company’s products

Question 20

Slimming pricing

Answer 20

Company starts off with the highest price that interested customers will pay

Question 21

Penetration pricing

Answer 21

Charges a lower price to discourage competition and gain market share

Question 22

Cost-based pricing

Answer 22

Pricing strategy that bases the selling price of a product on now much people are willing to pay for it

Question 23

Demand -based pricing

Answer 23

Bases the price of a product on how much people are willing to pay for it

Question 24

Target costing

Answer 24

Determines how much to invest in a product by figuring out now much customers will pay and subtracting amount for profit

Question 25

Prestige pricing

Answer 25

Setting a price artificially high to give the impression that product is high quality

Question 26

Distribution channels

Answer 26

Sell directly to customers Sell through an intermediary

Question 27

3 activities of physical distribution

Answer 27

Materials handing Transportation Warehousing

Question 28

Materials handling

Answer 28

Process of physically moving goods during production, warehousing, and distribution

Question 29

To reduce handling costs

Answer 29

Use automation Use just-in-time production

Question 30

Supply chain

Answer 30

Suppliers factory Manufacturers factory Warehousing Dealers outlet Customer

Question 31

Customer value triad

Answer 31

Quality Good service Fair price

Question 32

Promotion mix

Answer 32

Means by which companies communicate with customers

Question 33

Sales promotion

Answer 33

Company provides an incentive for potential customers to buy something

Question 34

Customer relationship management

Answer 34

Marketing strategy that focuses on information about current customers to nurture and maintain strong relationships with them

Question 35

Repeat customers

Answer 35

Are more profitable Spend more More likely to recommend a business

Question 36

Interruption marketing

Answer 36

Marketing that interrupts people to get their attention

Question 37

Product life cycle

Answer 37

Introduction Growth Maturity Decline

Question 38

Uncontrollable factors of external environment

Answer 38

Political Economic Competitive Technological Cultural

Question 39

The buying process

Answer 39

Need recognition Information search Evaluation Purchase Post-purchase evaluation