Understanding Business Chapter 13

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

Marketing Concept

Answer 2

A three-part business philosophy: (1) a customer orientation. (2) a service orientation. and (3) a profit orientation.

Question 3

Customer Relationship Management (CRM)

Answer 3

The process of learning as much as possible about customers and doing everything you can to satisfy them - or even exceed their expectations - with goods and services.

Question 4

Marketing Mix

Answer 4

The ingredients that go into a marketing program: product. price. place. and promotion.

Question 5

Product

Answer 5

Any physical good. service. or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers. such as the brand.

Question 6

Test Marketing

Answer 6

The process of testing products among potential users.

Question 7

Brand Name

Answer 7

A word. letter. or group of words or letters that differentiates one seller’s goods and services from those of competitors.

Question 8

Promotion

Answer 8

All the techniques sellers use to inform people about and motivate them to buy their products or services.

Question 9

Marketing Research

Answer 9

The analysis of markets to determine opportunities and challenges. and to find the information needed to make good decisions.

Question 10

Secondary Data

Answer 10

Information that has already been compiled by others and published in journals and books or made available online.

Question 11

Primary Data

Answer 11

Data that you gather yourself (not from secondary sources such as books and magazines).

Question 12

Focus Group

Answer 12

A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization. its products. or other given issues.

Question 13

Environmental Scanning

Answer 13

The process of identifying the factors that can affect marketing success.

Question 14

Consumer Market

Answer 14

All the individuals or households that want goods and services for personal consumption or use.

Question 15

Business-to-Business (B2B) Market

Answer 15

All the individuals and organizations that want goods and services to use in producing other goods and services or to sell. rent. or supply goods to others.

Question 16

Market Segmentation

Answer 16

The process of dividing the total market into groups whose members have similar characteristics.

Question 17

Target Marketing

Answer 17

Marketing directed toward those groups (market segments) an organization decides it can serve profitably.

Question 18

Geographic Segmentation

Answer 18

Dividing a market by cities. counties. states. or regions.

Question 19

Demographic Segmentation

Answer 19

Dividing the market by age. income. education level.

Question 20

Psychographic Segmentation

Answer 20

Dividing the market using the group’s values. attitudes. and interests.

Question 21

Benefit Segmentation

Answer 21

Dividing the market by determining which benefits of the product to talk about.

Question 22

Volume ( or usage) Segmentation

Answer 22

Dividing the market by usage (volume of use).

Question 23

Niche Marketing

Answer 23

The process of finding small but profitable market segments and designing or finding products for them.

Question 24

One-to-One Marketing

Answer 24

Developing a unique mix of goods and services for each individual customer.

Question 25

Mass Marketing

Answer 25

Developing products and promotions to please large groups of people.

Question 26

Relationship Marketing

Answer 26

Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements.