MGM101 Chapter 15 - Understanding
Marketing Principles and Developing
Products Exam Questions and 100% Correct
Answers
Marketing - ANSWER An organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders
Marketing Concept - ANSWER The idea that the whole firm is directed towards serving present
and potential customers at a profit
Delivering Value - ANSWER Buyers are attracted to one product over others because of products
that offer the best value
Value - ANSWER A relative comparison of a product's benefits versus its costs
Methods to satisfy customers - ANSWER 1. Develop entire new products that perform better
than existing products
a. Provides better performance benefits
2. Keep stores open for longer during busy season
a. Adding benefit of greater shopping convenience
3. Offer price reductions
a. Benefit of lower costs
4. Offer information that explain
a. Benefit of new uses at no added cost
Utility - ANSWER The ability of a product to satisfy a human want or need
consumer goods - ANSWER Physical products purchased by consumers for personal use
, Industrial goods - ANSWER Physical products purchased by companies to produce other
products
Services - ANSWER Products with non-physical features, such as information, expertise, or an
activity that can be purchased
Relationship Marketing - ANSWER A marketing strategy that emphasizes building lasting
relationships with customers and suppliers
Customer Relationship Management (CRM) - ANSWER Organized methods that a firm uses to
build better information connections with clients so that stronger company-client relationships
are developed
Data Warehousing - ANSWER Compiling and storing customers' data, providing information for
marketers to find new clients
Data Mining - ANSWER Automating the analysis of data by using computers to sort and search
for what customers react to or are influenced by
Marketing Environment - ANSWER The competitive, economic, political, legal and regulatory,
technological, and sociocultural forces that surround the customer and affect the marketing mix
Political-Legal Environment - ANSWER Political activities have major effects on entire industries
Socio-Cultural Environment - ANSWER Changing social values force companies to adapt and
create new products
Technological Environment - ANSWER New technologies create new goods and services
Economic Environment - ANSWER Economic environment determines the spending patterns of
consumers, which influences marketing plans for product offerings, pricing, and promotional
strategies
Competitive Environment - ANSWER the number and types of competitors the marketing
manager must face, and how they may behave
substitute product - ANSWER Products that fulfill the same needs
brand competition - ANSWER Occurs between similar products and is based on buyer's
perception of benefits of products from different companies
International Competition - ANSWER Matching products of domestic marketers against those of
foreign competitors
Marketing Plan - ANSWER Detailed strategy for focusing marketing efforts on consumers' needs
and wants
Marketing Principles and Developing
Products Exam Questions and 100% Correct
Answers
Marketing - ANSWER An organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders
Marketing Concept - ANSWER The idea that the whole firm is directed towards serving present
and potential customers at a profit
Delivering Value - ANSWER Buyers are attracted to one product over others because of products
that offer the best value
Value - ANSWER A relative comparison of a product's benefits versus its costs
Methods to satisfy customers - ANSWER 1. Develop entire new products that perform better
than existing products
a. Provides better performance benefits
2. Keep stores open for longer during busy season
a. Adding benefit of greater shopping convenience
3. Offer price reductions
a. Benefit of lower costs
4. Offer information that explain
a. Benefit of new uses at no added cost
Utility - ANSWER The ability of a product to satisfy a human want or need
consumer goods - ANSWER Physical products purchased by consumers for personal use
, Industrial goods - ANSWER Physical products purchased by companies to produce other
products
Services - ANSWER Products with non-physical features, such as information, expertise, or an
activity that can be purchased
Relationship Marketing - ANSWER A marketing strategy that emphasizes building lasting
relationships with customers and suppliers
Customer Relationship Management (CRM) - ANSWER Organized methods that a firm uses to
build better information connections with clients so that stronger company-client relationships
are developed
Data Warehousing - ANSWER Compiling and storing customers' data, providing information for
marketers to find new clients
Data Mining - ANSWER Automating the analysis of data by using computers to sort and search
for what customers react to or are influenced by
Marketing Environment - ANSWER The competitive, economic, political, legal and regulatory,
technological, and sociocultural forces that surround the customer and affect the marketing mix
Political-Legal Environment - ANSWER Political activities have major effects on entire industries
Socio-Cultural Environment - ANSWER Changing social values force companies to adapt and
create new products
Technological Environment - ANSWER New technologies create new goods and services
Economic Environment - ANSWER Economic environment determines the spending patterns of
consumers, which influences marketing plans for product offerings, pricing, and promotional
strategies
Competitive Environment - ANSWER the number and types of competitors the marketing
manager must face, and how they may behave
substitute product - ANSWER Products that fulfill the same needs
brand competition - ANSWER Occurs between similar products and is based on buyer's
perception of benefits of products from different companies
International Competition - ANSWER Matching products of domestic marketers against those of
foreign competitors
Marketing Plan - ANSWER Detailed strategy for focusing marketing efforts on consumers' needs
and wants
