Chapter 10

Question 1

the process through which organizations design, develop, and communicate the value of their products and/or services

Answer 1

marketing

Question 2

fundamental principles of customer behaviour

Answer 2

1. Customers don’t buy products or services - they buy solutions to problems or needs
2. Customers will not pay more for a product if they can get a similar product for less

Question 3

6R’s of marketing

Answer 3

1. Right need to pursue
2. Right solution to offer
3. Right value proposition for positioning
4. Right methodology for delivery
5. Right price to charge
6. Right communication message

Question 4

6 challenges of marketing

Answer 4

• message development and delivery
• need identification
• assessment of our ability to respond
• value proposition creation and positioning
• distribution capabilities
• price point validation

Question 5

marketing formula

Answer 5

Effective and Well-Defined market position + superior marketing effort = profitability and growth

Question 6

refers to determining the best way to divide the market in a manner that will result in a better understanding of potential customer needs, interests, preferences, attitudes, and behaviours

Answer 6

segmentation

Question 7

those that an organization develops or utilizes to generate information specific to the organization and the products services it offers
• i.e. customer surveys, tweets, input via Facebook

Answer 7

primary sources of information

Question 8

are those that exist and are available at no cost or on a fee basis; managers use these information sources to conduct research and draw conclusions
i.e. Statistics Canada website for demographical information

Answer 8

secondary sources of information

Question 9

is the process whereby organizations determine which market segments represent the strongest clustering of potential customers who are most likely to purchase the product and who have the capacity to do so

Answer 9

target marketing

Question 10

marketing process

Answer 10

marketing research

• segmentation
• -target market
• –value proposition and profiling
• —marketing mix development
• —-message rifling and concentration

Question 11

when assessing market opportunities, look at four key areas:

Answer 11

• Market penetration opportunities
• Product/service development opportunities
• Market development opportunities
• Diversification opportunities

Question 12

refers to expanding the focus of a product/service to similar and related market segment that share a positive affinity for the product/service offering

Answer 12

segmentation stretch

Question 13

the reduction in sales of an existing product/service due to the launch of a new, similarly targeted product/service offering

Answer 13

cannibalism

Question 14

occurs when customers move to a competitive offering due to a change in brand or product communication message focus

Answer 14

customer desertion

Question 15

In making a decision to buy, potential customers will fundamentally go through a four-phase process

Answer 15

1. initial consideration of options
2. active consideration and evaluation of options
3. decisions disruption opportunity
4. post purchase influence

Question 16

true or false: Marketing does ends at the point of purchase

Answer 16

false - considerable emphasis needs to be placed on the post-purchase period, which is where true customer loyalty and commitment is developed

Question 17

a statement that summarizes whom a product/service is geared toward and the benefits the purchases will realize as a result of using the product
= service benefits + product benefits + brand benefits + cost benefits + emotional benefits

Answer 17

value proposition