Chapter 1: Intro. To Marketing

Question 1

Define Marketing

Answer 1

Marketing is a set of business practices designed to plan for, and present a company’s products or service. It is the understanding of customers wants and needs.

Question 2

Define a “need”

Answer 2

Basic necessities (water, basic foods)

Question 3

Define a “want”

Answer 3

Desired needs; to fulfill the needs (sparkling water, high end products)

Question 4

Define the Marketing Concept

Answer 4

The focus on customer wants and needs so that the company can distinguish its offerings vs their competitors

• Being able to satisfy customers based on their needs and wants
• Longterm goal is to make money (profit) in a legal and responsible way

Question 5

Why is it important to know the Evolution of Marketing

Answer 5

To provide better understandings of how marketing is perceived today

Question 6

Define Product Orientation (stage)

Answer 6

Here lets the customers know about the products. But at this time there was a lack of product options, so whatever the company made, was what the customers wanted

• The actual manufacturing and producing of the product

Question 7

Define Sales Orientation (stage)

Answer 7

Focused on just the advertising and selling of products and services

• Customer choice existed, and was hard to sell at this time.

Question 8

Define Marketing Company Orientation (stage)

Answer 8

Customers are grouped into segments (groups) to help the company and marketers better understand their customers and how to target each group in different ways

Question 9

Define Societal Marketing Orientation (stage)

Answer 9

Products that customers want but that can be bad for them and/or the society.

• This led to movements like Recycling, Awareness of dietary and safety issues
• Ex. MacDonalds Happy Meals were unhealthy so they added apple slices instead, and/or small books instead of toys to help make them “better”

Question 10

What does Marketing need to concentrate most on?

Answer 10

Engaging their customers and creating long lasting loyalty with them

Question 11

Define Customer Satisfaction

Answer 11

The customers evaluation of whether the good or service met their expectation.

Question 12

Define Relationship Marketing

Answer 12

Keeping and improving relationships with customers; customer preference keeps a longstanding relationship (long term customers)

Question 13

Define Customer Relationship Management (CRM)

Answer 13

A strong relationship between Customer and Seller

• Creating TRUST with customer
• Companies listening the customers
• Engaging, talking about personal things

Question 14

Define Exchange

Answer 14

People giving up one thing to receive another thing they would rather have

Question 15

Define Customer Value

Answer 15

The relationship between benefits and the sacrifice necessary to obtain those benefits

• The expected quality, price
• What customers are willing to pay
• Trust (giving customers honest facts about products)

Question 16

Define Marketing Segments

Answer 16

Groups of individuals that share similar needs. This helps marketers better understand how to target different groups based on needs

• Age, Families, Income, Religion

Question 17

Define Building Relationships with Customers

Answer 17

Always look to attract new customers, not just the old ones. Always develop long term relationships

Question 18

Define the Marketing Mix

Answer 18

Known as the 4 P’s. Under the control of the company and is designed to appeal to a group of potential buyers

Question 19

Define Product

Answer 19

Related to the tangible and intangible aspects of a company’s offering

• The actual product, quality of it

Question 20

Define Price

Answer 20

Relates to the quantifying of a value in exchange for a company’s offering. Competition is a significant customer perception and economic factors

Question 21

Define Place

Answer 21

Relates to the “behind the scenes” activities of making an offering available to the customer

• Production
• Manufacturing
• Producing

Question 22

Define Promotion

Answer 22

Relates to what most people believe marketing is about. It is the most visible activities of Marketing (ADVERTISING)