Principles of Marketing Exam 1 Questions and Correct Answers 100% Guaranteed Success

Principles of Marketing Exam 1 Questions and Correct Answers 100% Guaranteed Success Marketing - Answers Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return Demands - Answers Human wants that are backed by buying power Physical (food, clothing, warmth, safety) Social (belonging and affection) Individual (Knowledge and self-expression) - Answers 3 Different kinds of Needs Market Offerings - Answers Some combo if products, services, info, or experiences offered to a market to satisfy a need or want (includes physical products, services, persons, places, orgs, info, and ideas) Marketing Myopia - Answers Mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products Exchange - Answers Act of obtaining a desired object from someone by offering something in return Market - Answers Set of all actual and potential buyers of a product or service Expectations too low, satisfy but dont attract Expectations too high, buyers will be disappointed - Answers Why is it important for marketers to set the right level of expectations? Marketing management - Answers Art and science of choosing target markets and building profitable relationships with them Target Market - Answers Customer segment that the company decides to go after Market Segmentation - Answers Dividing the market into segments of customers Production Concept - Answers Idea that consumers will favor products that are available and highly affordable and that the org. should therefore focus on improving production and distribution efficiency Product Concept - Answers Idea that consumers will favor products that offer the most quality, performance, and features and that the org. should therefore devote its energy to making continuous product improvements -Production -Product -Selling -Marketing -Societal Marketing concepts - Answers 5 Alternative concepts under which organizations design and carry out their marketing strategies Selling Concept - Answers Idea that consumers will not buy enough of the firm's product unless it undertakes a large-scale selling and promo effort Marketing Concept - Answers Philosophy that holds that achieving org. goals depends on knowing the needs and want of target markets and delivering the desired satisfactions better than competitors Societal Marketing Concepts - Answers idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long run interests, and society's long run interests -Product -Place -Price -Promotion - Answers 4 broad groups that make up the Marketing mix: Customer-percieved Value - Answers Customers evaluation of the difference btwn all the benefits and all the costs of a marketing offer relative to those of competing offers Basic Relationships - Answers Type of relationship companies build. Ex: Nike creates this kind thru brand-building ads, PR, and its website Full Partnerships - Answers Type of relationship companies build. Ex: Nike sales reps work close with Sports Authority, Dicks, etc Customer Managed Relationships - Answers Marketing relationships in which customers, empowered by today's new digital techs, interact w/ companies and w/ each other to shape their relationships w/ brands Consumer-generated Marketing - Answers Brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers Customer Lifetime Value - Answers Value of the entire stream of purchases that the customer would make over a lifetime of patronage Share of Customer - Answers Portion of the customer's purchasing that a company gets in its product categories Customer Equity - Answers Total combined customer lifetime values of all of the company's customers Strangers - Answers Low potential profitability and little projected loyalty Butterflies - Answers Potentially profitability but not loyal True Friends - Answers Both profitable and loyal Barnacles - Answers Highly loyal but not very profitable Sustainable Marketing - Answers Customers expect companies to deliver value in a socially and environmentally responsible way Strategic Planning - Answers Process of developing and maintaining a strategic fit btwn the org.'s goals and capabilities and its changing marketing opportunities Mission Statement - Answers Statement of the org.'s purpose - what it wants to accomplish in the larger environment Business Portfolio - Answers Collection of businesses and products that make up the company Portfolio Analysis - Answers Process by which management evaluates the products and businesses that make up the company Strategic Business Unites (SBUs) - Answers Can be a company division, a product line w/i a division, or sometimes a single product or brand -Stars -Cash Cows -Question Marks -Dogs - Answers Growth share matrix's 4 types of SBUs Stars - Answers High growth, high share Cash Cows - Answers Low growth, high share Question Marks - Answers High growth, low share Dogs - Answers Low growth, low share Market Penetration - Answers Company growth by increasing sales of current products to current market segments w/o changing the product Market Development - Answers Company growth by identifying and developing new