Chapter 11

Question 1

Utility

Answer 1

Ability of a good or service to satisfy the wants and needs of customers

Question 2

Three ways in which marketing creates utility

Answer 2

Time Utility: good or service available when customers want it
Place Utility: product available in a convenient location
Ownership Utility: transferring product from seller to buyer

Question 3

Marketing Concept

Answer 3

Compony wide customer orientation with the objective of achieving long-run success.
Marketplace success begins with customers

Question 4

How is marketing concept tied to the relationship and social eras of marketing?

Answer 4

Markets center on satisfaction of customers and building long term relationships with them through different channels; Internet and social media rather than just selling the good or service.

Question 5

Why do non-prophets organization engage in marketing?

Answer 5

To reach audience, secure funding, and accomplish their overall mission

Question 6

Five type of nontraditional marketing used by non profit?

Answer 6

Person, place, event, cause, and organization

Question 7

Consumer products
Business product

Answer 7

Consumer products (B2C): bought by end usar
Business products (B2B): purchased to be used directly or indirectly in the production of other food for resale.

Question 8

Steps of developing a market strategy

Answer 8

1. Study and analyze potential target markets a choosing among them
2. Creating a marketing mix to satisfy the chosen market

Question 9

What is primary and secondary data

Answer 9

Primary Data: first hand through observation or survey
Secondary Data: previously published facts that are inexpensive to retrieve and easy to obtain

Question 10

Data Mining

Answer 10

Task of using computer technology to evaluate data in a database and identify useful trends

Question 11

What is the most common form for consumer markets

Answer 11

Demographic

Question 12

Three approaches to product- related segmentation

Answer 12

Benefits sought
Product usage rate
Brand loyalty level

Question 13

What is the end-use segmentation in the B2B market

Answer 13

Focuses on the precise way a B2B purchaser will use a product

Question 14

Consumer behavior

Answer 14

Actions of ultimate consumers directly involved in obtaining, consuming, and disposing of product, along with the decision process that precede and follow these actions.

Question 15

What determines consumer behavior

Answer 15

Personal factors: individual needs, motives, perception, attitudes, and learned experience
Interpersonal factors: cultural, social, and family influences

Question 16

What is the lifetime value of the customer?

Answer 16

Incorporates the revenues and intangible benefits from the customer over the life of the relationship minus what the compony must spend to acquire and serve customers

Question 17

Importance of one to one marketing efforts

Answer 17

Increased importance when the demand of personalized goods and services increase.
Dependent on technology (CAD/CAM)
Internet also helps with one to one personal and direct manners