Chapter 7 Vocab

Question 1

Business Activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user

Answer 1

Small Business Marketing

Question 2

The fundamental benefit or solution sought by customers

Answer 2

Core Product/Service

Question 3

The basic Physical Product and/or service that delivers those benefits

Answer 3

Actual Product/Service

Question 4

The basic product and/or service plus any extra or unsolicited benefits to the consumer that may prompt a purchase

Answer 4

Augmented Product/Service

Question 5

The process of locating and describing potential customers

Answer 5

Market Analysis

Question 6

The combination of product/service, pricing, promotion, and distribution activities

Answer 6

Marketing Mix

Question 7

A description of potential customers in a target market

Answer 7

Customer Profile

Question 8

The gathering, processing, interpreting, and reporting of market information

Answer 8

Marketing research

Question 9

Market information that has been previously compiled

Answer 9

Secondary Data

Question 10

New market information that is gathered by the firm conducting the research

Answer 10

Primary Data

Question 11

A group of customers or potential customers who have purchasing power and unsatisfied needs

Answer 11

Market

Question 12

The division of a market into several smaller groups with similar needs

Answer 12

Market Segmentation

Question 13

The parameters used to distinguish one form of market behavior from another

Answer 13

Segmentation variables

Question 14

Specific characteristics that distinguish market segments according to the benefits sought by customers

Answer 14

Benefit Variables

Question 15

Specific characteristics that describe customers, their purchasing power, their consumption patterns, and other factors

Answer 15

Demographic Variables

Question 16

A strategy that defines the total market as the target market

Answer 16

Unsegmented Market (Mass Market)

Question 17

A strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each

Answer 17

Multi-Segment Strategy

Question 18

A strategy that recognizes the existence of several distinct market segments but focuses on only the most profitable segment

Answer 18

Single-Segment Strategy

Question 19

A prediction of how much of a product or service will be purchased within a given market during a specified time period

Answer 19

Sales Forecast

Question 20

A forecasting method that begins with a large scope variable and works down to the sales forecast

Answer 20

Breakdown Process (Chain-ratio method)

Question 21

A forecasting method in which all potential buyers in a target market’s submarkets are identified and the estimated demand is added up

Answer 21

Buildup Process

Question 22

A forecasting method in which sales is the estimated variable

Answer 22

Direct Forecasting

Question 23

A forecasting method in which variables related to sales are used to predict future sales

Answer 23

Indirect forecasting