CHAPTER 12

Question 1

Marketing

Answer 1

The process of creating value for customers and building relationships with those customers in order to capture value back from them.

Question 2

Needs

Answer 2

Differences between a person’s actual state and his or her ideal state; they provide the basic motivation to make a purchase.

Question 3

Wants

Answer 3

Specific goods, services, experiences, or other entities that are desirable in light of a person’s experiences, culture, and personality.

Question 4

Exchange Process

Answer 4

The act of obtaining a desired object or service from another party by offering something of value in return.

Question 5

Transaction

Answer 5

An exchange of value between parties.

Question 6

Utility

Answer 6

The power of a good or service to satisfy a human need.

Question 7

Marketing Concept

Answer 7

An approach to business management that stresses customer needs and wants, seeks long-term profitability, and integrates marketing with other functional units within the organization.

Question 8

Relationship Marketing

Answer 8

A focus on developing and maintaining long-term relationships with customers, suppliers, and distribution partners for mutual benefit.

Question 9

Customer Loyalty

Answer 9

The degree to which customers continue to buy from a particular retailer or buy the products of a particular manufacturer or service provider.

Question 10

Customer Relationship Management (CRM)

Answer 10

A type of information system that captures, organizes, and capitalizes on all the interactions that a company has with its customers.

Question 11

Social Commerce

Answer 11

The creation and sharing of product-related information among customers and potential customers.

Question 12

Voice of the Customer (VoC)

Answer 12

Everything that current and potential customers are saying and writing about a company and its products; also refers
to efforts to capture all this feedback.

Question 13

Attribution

Answer 13

The contribution a given marketing activity makes to sales and other marketing goals.

Question 14

Marketing Research

Answer 14

The collection and analysis of information for making marketing decisions.

Question 15

Permission-Based Marketing

Answer 15

A marketing approach in which firms first ask permission to deliver messages to an audience and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest.

Question 16

Customer Experience

Answer 16

The cumulative effect of the customer journey from presales exploration through purchase through product use and ownership.

Question 17

Touchpoint

Answer 17

Any point of interaction— online, on the phone, or in person—between a company and its current and potential customers.

Question 18

Consumer Market

Answer 18

Individuals or households that buy goods and services for personal use.

Question 19

Organizational Market

Answer 19

Companies, government agencies, and other organizations that buy goods and services either to resell or to use in the creation of their own goods and services.

Question 20

Cognitive Dissonance

Answer 20

Tension that exists when a person’s beliefs don’t match his or her behaviors.

Question 21

Strategic Marketing Planning

Answer 21

The process of examining an organization’s current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives.

Question 22

Market Penetration

Answer 22

Selling more of a firm’s existing products in the markets it already serves.

Question 23

Product Development

Answer 23

Creating new products for a firm’s current markets.

Question 24

Market Development

Answer 24

Selling existing products to new markets.

Question 25

Diversification

Answer 25

Creating new products for new markets.

Question 26

Market Share

Answer 26

A firm’s portion of the total sales in a market.

Question 27

Marketing Strategy

Answer 27

An overall plan for marketing
a product; includes the identification of target market segments, a positioning strategy, and a marketing mix.

Question 28

Market

Answer 28

A group of customers who need or want a particular product and have the money to buy it.

Question 29

Market Segmentation

Answer 29

The division of a diverse market into smaller, relatively homogeneous groups with similar needs, wants, and purchase behaviors.

Question 30

Demographics

Answer 30

The study of the statistical characteristics of a population.

Question 31

Psychographics

Answer 31

Classification of customers on the basis of their psychological makeup, interests, and lifestyles.

Question 32

Geographic Segmentation

Answer 32

Categorization of customers according to their geographical location.

Question 33

Behavioral Segmentation

Answer 33

Categorization of customers according to their relationship with products or response to product characteristics.

Question 34

Target Markets

Answer 34

Specific customer groups or segments to whom a company wants to sell a particular product.

Question 35

Positioning

Answer 35

Managing a business in a way designed to occupy a particular place in the minds of target customers.

Question 36

Marketing Mix

Answer 36

The four key elements of marketing strategy: product, price, distribution, and customer communication.

Question 37

Product

Answer 37

A bundle of value that satisfies a customer need or want.

Question 38

Price

Answer 38

The amount of money charged for a product or service.

Question 39

Distribution Channels

Answer 39

Systems for moving goods and services from producers to customers; also known as marketing channels.

Question 40

Promotion

Answer 40

A wide variety of persuasive techniques used by companies to communicate with their target markets and the general public.

Question 41

Marketing Analytics

Answer 41

A range of analytical tools and techniques that help marketers plan and evaluate marketing activities.