MKT 3301 FINAL STUDY GUIDE
Production - Answers - making goods or performing services.
Customer satisfaction - Answers - the extent to which a firm fulfills a customer's needs,
desires, and expectations.
Innovation - Answers - the development and spread of new ideas, goods, and services.
Marketing - Answers - the performance of activities that seek to accomplish an
organization's objectives by anticipating customer or client needs and directing a flow of
need satisfying goods and services from producer to customer or client.
Pure subsistence economy - Answers - when each family unit produces everything it
consumes—there is no need to exchange goods and services and no marketing is
involved.
Macro-marketing - Answers - a social process that directs an economy's flow of goods
and services from producers to consumers in a way that effectively matches supply and
demand and accomplishes the objectives of society.
Economies of scale - Answers - as a company produces larger numbers of a particular
product, the cost of each unit of the product goes down.
Universal functions of marketing - Answers - buying, selling, transporting, storing,
standardization and grading, financing, risk taking, and market information.
Buying function - Answers - looking for and evaluating goods and services.
Selling function - Answers - promoting the product.
Transporting function - Answers - the movement of goods from one place to another.
Storing function - Answers - holding goods until customers need them.
Standardization and grading - Answers - sorting products according to size and quality.
Financing - Answers - the necessary cash and credit to produce, transport, store,
promote, sell, and buy products.
Risk taking - Answers - bearing the uncertainties that are part of the marketing process.
,Market information function - Answers - the collection, analysis, and distribution of all
the information needed to plan, carry out, and control marketing activities, whether in
the firm's own neighborhood or in a market overseas.
Intermediary - Answers - someone who specializes in trade rather than production—
plays a role in the exchange process.
Collaborators - Answers - firms that facilitate or provide one or more of the marketing
functions other than buying or selling.
E-commerce - Answers - exchanges between individuals or organizations—and
activities that facilitate these exchanges—based on applications of information
technology.
Economic system - Answers - the way an economy organizes to use scarce resources
to produce goods and services and distribute them for consumption by various people
and groups in the society.
Command economy - Answers - government officials decide what and how much is to
be produced and distributed by whom, when, to whom, and why.
Market-directed economy - Answers - the individual decisions of the many producers
and consumers make the macro-level decisions for the whole economy.
Simple trade era - Answers - a time when families traded or sold their "surplus" output
to local distributors.
Production era - Answers - a time when a company focuses on production of a few
specific products—perhaps because few of these products are available in the market.
Sales era - Answers - a time when a company emphasizes selling because of increased
competition.
Marketing department era - Answers - a time when all marketing activities are brought
under the control of one department to improve short-run policy planning and to try to
integrate the firm's activities.
Marketing company era - Answers - a time when, in addition to short-run marketing
planning, marketing people develop long-range plans—sometimes five or more years
ahead—and the whole company effort is guided by the marketing concept.
Marketing concept - Answers - means an organization aims all its efforts at satisfying its
customers—at a profit.
Production orientation - Answers - when managers make whatever products are easy to
produce and then try to sell them.
,Marketing orientation - Answers - means trying to carry out the marketing concept (try to
offer customers what they need).
Marketing metrics - Answers - numeric data that allow marketing managers to evaluate
performance, often against a set target or goal.
Triple bottom line - Answers - measures an organization's economic, social, and
environmental outcomes
Customer value - Answers - the difference between the benefits a customer sees from a
market offering and the costs of obtaining these benefits.
Micro-macro dilemma - Answers - what is "good" for some firms and consumers may
not be good for society as a whole.
Social responsibility - Answers - a firm's obligation to improve its positive effects on
society and reduce its negative effects.
Marketing ethics - Answers - the moral standards that guide marketing decisions and
actions.
Marketing management process - Answers - the process of (1) planning marketing
activities, (2) directing the implementation of the plans, and (3) controlling these plans.
Strategic (management) planning - Answers - the managerial process of developing and
maintaining a match between an organization's resources and its market opportunities.
Marketing strategy - Answers - specifies a target market and a related marketing mix.
Target market - Answers - a fairly homogeneous (similar) group of customers to whom a
company wishes to appeal.
Marketing mix - Answers - the controllable variables the company puts together to
satisfy this target group.
Target marketing - Answers - a marketing mix that is tailored to fit some specific target
customers.
Mass marketing - Answers - the typical production-oriented approach—vaguely aims at
"everyone" with the same marketing mix.
Channel of distribution - Answers - any series of firms (or individuals) that participate in
the flow of products from producer to final user or consumer.
, Personal selling - Answers - direct spoken communication between sellers and potential
customers.
Customer service - Answers - a personal communication between a seller and a
customer who wants the seller to resolve a problem with a purchase.
Mass selling - Answers - communicating with large numbers of customers at the same
time.
Advertising - Answers - any paid form of nonpersonal presentation of ideas, goods, or
services by an identified sponsor.
Publicity - Answers - any unpaid form of nonpersonal presentation of ideas, goods, or
services.
Sales promotion - Answers - promotion activities—other than advertising, publicity, and
personal selling—that stimulate interest, trial, or purchase by final customers or others
in the channel.
Marketing plan - Answers - a written statement of a marketing strategy and the time-
related details for carrying out the strategy.
Implementation - Answers - putting marketing plans into operation.
Operational decisions - Answers - short-run decisions to help implement strategies.
Marketing analytics - Answers - the practice of measuring, managing, and analyzing
marketing performance to measure its efficiency and effectiveness..
Marketing program - Answers - blends all of the firm's marketing plans into one "big"
plan.
Customer lifetime value - Answers - total stream of purchases that a customer could
contribute to the company over the length of the relationship.
Customer equity - Answers - the expected earnings stream (profitability) of a firm's
current and prospective customers over some period of time.
Retention rate - Answers - the percentage of customers retained as compared to the
total number of customers.
Acquisition cost - Answers - the expense required to acquire a new customer.
Breakthrough opportunities - Answers - opportunities that help innovators develop hard-
to-copy marketing strategies that will be very profitable for a long time.
Production - Answers - making goods or performing services.
Customer satisfaction - Answers - the extent to which a firm fulfills a customer's needs,
desires, and expectations.
Innovation - Answers - the development and spread of new ideas, goods, and services.
Marketing - Answers - the performance of activities that seek to accomplish an
organization's objectives by anticipating customer or client needs and directing a flow of
need satisfying goods and services from producer to customer or client.
Pure subsistence economy - Answers - when each family unit produces everything it
consumes—there is no need to exchange goods and services and no marketing is
involved.
Macro-marketing - Answers - a social process that directs an economy's flow of goods
and services from producers to consumers in a way that effectively matches supply and
demand and accomplishes the objectives of society.
Economies of scale - Answers - as a company produces larger numbers of a particular
product, the cost of each unit of the product goes down.
Universal functions of marketing - Answers - buying, selling, transporting, storing,
standardization and grading, financing, risk taking, and market information.
Buying function - Answers - looking for and evaluating goods and services.
Selling function - Answers - promoting the product.
Transporting function - Answers - the movement of goods from one place to another.
Storing function - Answers - holding goods until customers need them.
Standardization and grading - Answers - sorting products according to size and quality.
Financing - Answers - the necessary cash and credit to produce, transport, store,
promote, sell, and buy products.
Risk taking - Answers - bearing the uncertainties that are part of the marketing process.
,Market information function - Answers - the collection, analysis, and distribution of all
the information needed to plan, carry out, and control marketing activities, whether in
the firm's own neighborhood or in a market overseas.
Intermediary - Answers - someone who specializes in trade rather than production—
plays a role in the exchange process.
Collaborators - Answers - firms that facilitate or provide one or more of the marketing
functions other than buying or selling.
E-commerce - Answers - exchanges between individuals or organizations—and
activities that facilitate these exchanges—based on applications of information
technology.
Economic system - Answers - the way an economy organizes to use scarce resources
to produce goods and services and distribute them for consumption by various people
and groups in the society.
Command economy - Answers - government officials decide what and how much is to
be produced and distributed by whom, when, to whom, and why.
Market-directed economy - Answers - the individual decisions of the many producers
and consumers make the macro-level decisions for the whole economy.
Simple trade era - Answers - a time when families traded or sold their "surplus" output
to local distributors.
Production era - Answers - a time when a company focuses on production of a few
specific products—perhaps because few of these products are available in the market.
Sales era - Answers - a time when a company emphasizes selling because of increased
competition.
Marketing department era - Answers - a time when all marketing activities are brought
under the control of one department to improve short-run policy planning and to try to
integrate the firm's activities.
Marketing company era - Answers - a time when, in addition to short-run marketing
planning, marketing people develop long-range plans—sometimes five or more years
ahead—and the whole company effort is guided by the marketing concept.
Marketing concept - Answers - means an organization aims all its efforts at satisfying its
customers—at a profit.
Production orientation - Answers - when managers make whatever products are easy to
produce and then try to sell them.
,Marketing orientation - Answers - means trying to carry out the marketing concept (try to
offer customers what they need).
Marketing metrics - Answers - numeric data that allow marketing managers to evaluate
performance, often against a set target or goal.
Triple bottom line - Answers - measures an organization's economic, social, and
environmental outcomes
Customer value - Answers - the difference between the benefits a customer sees from a
market offering and the costs of obtaining these benefits.
Micro-macro dilemma - Answers - what is "good" for some firms and consumers may
not be good for society as a whole.
Social responsibility - Answers - a firm's obligation to improve its positive effects on
society and reduce its negative effects.
Marketing ethics - Answers - the moral standards that guide marketing decisions and
actions.
Marketing management process - Answers - the process of (1) planning marketing
activities, (2) directing the implementation of the plans, and (3) controlling these plans.
Strategic (management) planning - Answers - the managerial process of developing and
maintaining a match between an organization's resources and its market opportunities.
Marketing strategy - Answers - specifies a target market and a related marketing mix.
Target market - Answers - a fairly homogeneous (similar) group of customers to whom a
company wishes to appeal.
Marketing mix - Answers - the controllable variables the company puts together to
satisfy this target group.
Target marketing - Answers - a marketing mix that is tailored to fit some specific target
customers.
Mass marketing - Answers - the typical production-oriented approach—vaguely aims at
"everyone" with the same marketing mix.
Channel of distribution - Answers - any series of firms (or individuals) that participate in
the flow of products from producer to final user or consumer.
, Personal selling - Answers - direct spoken communication between sellers and potential
customers.
Customer service - Answers - a personal communication between a seller and a
customer who wants the seller to resolve a problem with a purchase.
Mass selling - Answers - communicating with large numbers of customers at the same
time.
Advertising - Answers - any paid form of nonpersonal presentation of ideas, goods, or
services by an identified sponsor.
Publicity - Answers - any unpaid form of nonpersonal presentation of ideas, goods, or
services.
Sales promotion - Answers - promotion activities—other than advertising, publicity, and
personal selling—that stimulate interest, trial, or purchase by final customers or others
in the channel.
Marketing plan - Answers - a written statement of a marketing strategy and the time-
related details for carrying out the strategy.
Implementation - Answers - putting marketing plans into operation.
Operational decisions - Answers - short-run decisions to help implement strategies.
Marketing analytics - Answers - the practice of measuring, managing, and analyzing
marketing performance to measure its efficiency and effectiveness..
Marketing program - Answers - blends all of the firm's marketing plans into one "big"
plan.
Customer lifetime value - Answers - total stream of purchases that a customer could
contribute to the company over the length of the relationship.
Customer equity - Answers - the expected earnings stream (profitability) of a firm's
current and prospective customers over some period of time.
Retention rate - Answers - the percentage of customers retained as compared to the
total number of customers.
Acquisition cost - Answers - the expense required to acquire a new customer.
Breakthrough opportunities - Answers - opportunities that help innovators develop hard-
to-copy marketing strategies that will be very profitable for a long time.
