MCS*1000 University of Guelph UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
What is marketing? Marketing is the process of creating value through exchanges between buyers
and sellers so that both parties are better off.
What is an exchange in marketing? An exchange is the trade of things of value between a buyer and a seller where
both benefit.
What must happen for an exchange to occur? Both parties must have something of value, be willing to give it up, and believe
they will benefit from the transaction.
What is a need? A need is a basic necessity of life such as food, shelter, clothing, or safety.
What is a want? A want is how a person chooses to satisfy a need, influenced by culture,
personality, and experience.
What is demand? Demand is when a customer has both the willingness and ability to pay for a
product or service.
Why is demand more important than wants? Because marketers can only sell to customers who are able and willing to
purchase, not just those who want something.
What is a market? A market is a group of people who share similar needs and wants and can engage
in exchange.
What is market segmentation? Dividing a market into smaller groups of people with similar characteristics
relevant to a business.
Why do companies segment markets? To better target specific groups and meet their needs more effectively.
What is value in marketing? Value is the relationship between the benefits received and the costs given.
What are the 4 Ps of marketing? Product, Price, Place, Promotion.
What is Product in marketing? Anything offered to satisfy a need or want, including goods, services, and ideas.
What are goods? Physical, tangible items that can be touched.
What are services? Intangible benefits produced and consumed at the same time.
, Why are services intangible? Because they cannot be physically touched or stored.
What are ideas in marketing? Concepts, opinions, or philosophies that can be promoted.
What is Place (distribution)? Activities that make products available to customers when and where they want
them.
What is Promotion? Communication used to inform, persuade, and remind customers.
What is Price? Everything a buyer gives up to obtain a product.
Why is price not just money? Because it also includes time, effort, and energy.
What is market orientation? A business approach focused on understanding and satisfying customer needs.
What is product orientation? A focus on creating products without considering customer needs.
What is sales orientation? A focus on selling as much as possible rather than building relationships.
What is value co-creation? When customers actively help create value with a company.
What is the triple bottom line? A focus on people, profits, and the planet.
What is a product development strategy? A product development strategy involves creating new products or services for
an existing target market.
What does a product development strategy focus on? It focuses on innovation for customers the company already serves.
Give an example of product development. Apple releasing a new iPhone to existing Apple customers.
Why do companies use product development? To increase sales by offering more value to current customers.
What risk is associated with product development? The new product may not meet customer expectations or demand.
What is a market penetration strategy? A strategy that uses the existing marketing mix to increase sales among current
customers.
What does market penetration focus on? Getting existing customers to buy more or buy more often.
How can a company increase market penetration? Through advertising, promotions, or improved distribution.
Give an example of market penetration. Starbucks offering loyalty rewards to encourage repeat purchases.
ANSWERS
What is marketing? Marketing is the process of creating value through exchanges between buyers
and sellers so that both parties are better off.
What is an exchange in marketing? An exchange is the trade of things of value between a buyer and a seller where
both benefit.
What must happen for an exchange to occur? Both parties must have something of value, be willing to give it up, and believe
they will benefit from the transaction.
What is a need? A need is a basic necessity of life such as food, shelter, clothing, or safety.
What is a want? A want is how a person chooses to satisfy a need, influenced by culture,
personality, and experience.
What is demand? Demand is when a customer has both the willingness and ability to pay for a
product or service.
Why is demand more important than wants? Because marketers can only sell to customers who are able and willing to
purchase, not just those who want something.
What is a market? A market is a group of people who share similar needs and wants and can engage
in exchange.
What is market segmentation? Dividing a market into smaller groups of people with similar characteristics
relevant to a business.
Why do companies segment markets? To better target specific groups and meet their needs more effectively.
What is value in marketing? Value is the relationship between the benefits received and the costs given.
What are the 4 Ps of marketing? Product, Price, Place, Promotion.
What is Product in marketing? Anything offered to satisfy a need or want, including goods, services, and ideas.
What are goods? Physical, tangible items that can be touched.
What are services? Intangible benefits produced and consumed at the same time.
, Why are services intangible? Because they cannot be physically touched or stored.
What are ideas in marketing? Concepts, opinions, or philosophies that can be promoted.
What is Place (distribution)? Activities that make products available to customers when and where they want
them.
What is Promotion? Communication used to inform, persuade, and remind customers.
What is Price? Everything a buyer gives up to obtain a product.
Why is price not just money? Because it also includes time, effort, and energy.
What is market orientation? A business approach focused on understanding and satisfying customer needs.
What is product orientation? A focus on creating products without considering customer needs.
What is sales orientation? A focus on selling as much as possible rather than building relationships.
What is value co-creation? When customers actively help create value with a company.
What is the triple bottom line? A focus on people, profits, and the planet.
What is a product development strategy? A product development strategy involves creating new products or services for
an existing target market.
What does a product development strategy focus on? It focuses on innovation for customers the company already serves.
Give an example of product development. Apple releasing a new iPhone to existing Apple customers.
Why do companies use product development? To increase sales by offering more value to current customers.
What risk is associated with product development? The new product may not meet customer expectations or demand.
What is a market penetration strategy? A strategy that uses the existing marketing mix to increase sales among current
customers.
What does market penetration focus on? Getting existing customers to buy more or buy more often.
How can a company increase market penetration? Through advertising, promotions, or improved distribution.
Give an example of market penetration. Starbucks offering loyalty rewards to encourage repeat purchases.
