Chapter 14 Definitions

Question 1

Marketing

Answer 1

The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

Question 2

Relationship marketing

Answer 2

Marketing decisions and activities focused on achieving long-term, satisfying relationships with customers.

Question 3

Customer relationship management

Answer 3

CRM focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

Question 4

Customer lifetime value

Answer 4

A measure of a customer’s worth (sales minus costs) to a business during one’s lifetime.

Question 5

Utility

Answer 5

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

Question 6

Form utility

Answer 6

Utility created by converting production inputs into finished products.

Question 7

Place utility

Answer 7

Utility created by making a product available at a location where customers wish to purchase it.

Question 8

Time utility

Answer 8

Utility created by making a product available when customers wish to purchase it.

Question 9

Possession utility

Answer 9

Utility created by transferring title (or ownership) of a product to a buyer.

Question 10

Marketing concept

Answer 10

A business philosophy that a firm should provide goods and services that satisfy customers’ needs through a coordinated set of activities that allow the firm to achieve its objectives.

Question 11

Market

Answer 11

A group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products.

Question 12

Consumer markets

Answer 12

Consists of purchasers and or household member who intend to consume or benefit from the purchase products and who do not buy products to make profits.

Question 13

Business-to-business markets

Answer 13

Grouped broadly into producer, reseller, governmental and institutional categories.
These markets purchase specific kinds of products for use in making other products for resale or for day-to-day operations.

Question 14

Producer Markets

Answer 14

Consist of individuals and business organizations that buy certain products to use in the manufacture of other products

Question 15

Reseller markets

Answer 15

Consist of intermediaries such as wholesalers and retailers, who buy finished products and sell them for a profit.

Question 16

Governmental markets

Answer 16

Consist of federal, state, county and local governments.
They buy goods and services to maintain internal operations and to provide citizens with such products as highways, educations, water, energy and national defense.

Governmental purchases total billions of dollars each year.

Question 17

Institutional markits

Answer 17

Include churches, not-for-profit private schools and hospitals, civic clubs, fraternities and sororities, charitable organizations and foundations.

Their goals are different from such typical business goals as profit, market share or return on investment.

Question 18

Marketing strategy

Answer 18

A plan that will enable an organization to make the best use of its resources and advantages to meet its objectives.

Question 19

Marketing mix

Answer 19

A combination of product, price, distribution and promotion developed to satisfy a particular target market.

Question 20

Target market

Answer 20

A group of individuals or organizations or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group.

Question 21

Undifferentiated approach

Answer 21

Directing a single marketing mix at the entire market for a particular product.

Question 22

Market segment

Answer 22

A group of individuals or organizations within a market that shares one or more common characteristics.

Question 23

Market Segmentation

Answer 23

The process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market.

Question 24

Marketing plan

Answer 24

A written document that specifies an organization’s resources, objectives, marketing strategy and implementation and control efforts to be used in marketing a specific product of product group.

Question 25

Sales forecast

Answer 25

An estimate of the amount of a product that an organization expects to cell during a certain period of time based on a specified level of marketing effort.

Question 26

Buying behavior

Answer 26

The decisions and actions of people involved in buying and using products

Question 27

Consumer buying behavior

Answer 27

The purchasing of products for personal or household use, not for business purposes.

Question 28

Business buying behavior

Answer 28

The purchasing of products by producers, resellers, governmental units and institutions.

Question 29

Personal income

Answer 29

The income an individual receives from all sources less the Social Security taxes the individual must pay.

Question 30

Disposable income

Answer 30

Personal income less all additional personal taxes, including income, estate, gift and property taxes levied by local, state and federal governments.

Question 31

Discretionary income

Answer 31

Disposable income less savings and expenditures on food, clothing and housing.