Module 4: Marketing, Promotional Planning, Advertising (Q3)

Question 1

Marketing

Answer 1

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

Question 2

Core product/service

Answer 2

The fundamental benefit or solution
sought by customers.

Question 3

Actual product/service

Answer 3

The basic physical product and/or
service that delivers those benefits

Question 4

Augmented product/service

Answer 4

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

Question 5

Production-oriented philosophy

Answer 5

Emphasizes the product as the single most important part of the business

Question 6

Sales-oriented philosophy

Answer 6

Emphasizes pushing the product

Question 7

Consumer-oriented philosophy

Answer 7

• Centers on the consumer and his or her needs
• This philosophy is most consistent with long-term success and
  is a two-stage process.
• Identifying customer needs
• Satisfying those needs

Question 8

Consumer Profile (Market Analysis)

Answer 8

A description of the key demographic and
psychological characteristics of potential customers in a target market

Question 9

Actual sales forecast (Market Analysis)

Answer 9

• Should include the most likely, best-case, and worst-case scenarios.
• Includes the major benefits to customers provided by the new product or service.

Question 10

Existing competitors (Market Analysis)

Answer 10

• Key management personnel profiles,
  competitors’ overall strengths and weaknesses.
• Existing related products or those possibly in the pipeline.

Question 11

SWOT Analysis

Answer 11

• Strengths
• Weaknesses
• Opportunities
• Threats

Question 12

Marketing Strategy

Answer 12

. Market analysis and information on competition provide the
basis of the marketing strategy.
ii. A good marketing management system should include:
iii. Marketing mix should be addressed (the “4 Ps”).
iv. The Product/Service Section
v. Place—The Distribution Section
vi. The Pricing Section
vii. The Promotion Section

Question 13

Marketing research

Answer 13

• The gathering, processing, interpreting, and reporting of market information.
• Estimate projected costs and compare costs with benefits.
• Using an expert can be money well spent.

Question 14

Step 1 in the Marketing Research Process

Answer 14

• Identify the Informational Need
• Search for Secondary Data
• Collect Primary Data: New market information that is gathered by the firm conducting the research
• Interpret the Data Gathered

Question 15

Market

Answer 15

A group of customers or potential customers who have purchasing power and unsatisfied needs
- A market must have buying units, or customers.
- Customers in a market must have purchasing power.
- A market must contain buying units with unsatisfied needs

Question 16

Market segmentation

Answer 16

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

Question 17

Segmentation variables

Answer 17

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

Question 18

Benefit variables

Answer 18

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

Question 19

Demographic variables

Answer 19

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

Question 20

Sales Forecast

Answer 20

• A prediction of how much of a product or service can be sold within a given market during a specified time period
• Essential component of business plan because it is critical to assessing the feasibility of a new venture

Question 21

Promotion

Answer 21

Marketing communications that inform and
persuade consumers

Question 22

Sales promotion

Answer 22

a plan which provides inducements to potential purchasers of products and/or services

Question 23

The Promotional Mix

Answer 23

A blend of nonpersonal, personal, and special forms of communication aimed at a target market

Question 24

Prospecting

Answer 24

A systematic process of continually looking for
new customers.
- Personal referrals
- Impersonal referrals
- Marketer-initiated contacts
- Customer-initiated contacts

Question 25

Advertising

Answer 25

A strategy to sell by informing, persuading, and
reminding customers of the availability or superiority of a firm’s products or services

Question 26

Product advertising

Answer 26

A presentation designed to make potential customers aware of a specific product or service and create a desire for it

Question 27

Institutional advertising

Answer 27

A presentation of information about
a particular firm, designed to enhance the firm’s image in order to make its product advertising more credible and effective

Question 28

Where to Advertise

Answer 28

• Most small firms restrict either geographically or by customer type.
• Media should reach, but not overreach, firm’s present or desired target market.
• Combination of media depends on type of business and its current circumstances.

Question 29

Sales promotion

Answer 29

• An inclusive term for any promotional
  technique other than personal selling and advertising that stimulates the purchase of a particular product or service.
• Used in combination with personal selling and advertising

Question 30

Branding

Answer 30

A method of applying verbal and/or symbolic means to identify a product or service

Question 31

Personal Selling

Answer 31

A face-to-face meeting with a customer

Question 32

Publicity

Answer 32

A promotional strategy that provides visibility for a business at little or no cost