CAIB 3 Chapter 6 Study Questions with
Answers
Define Marketing - ✔✔Marketing is a system of business activities which are designed to plan,
promote, price and distribute want-satisfying products, services and ideas to target markets in
order to achieve objectives of both the consumer and the company.
Identify the four "p's" used in marketing - ✔✔Price
Product
Promotion
Place
Identify the three stages of marketing development and briefly explain each - ✔✔Toolkit-
using the right mix of the four p's will guarantee client satisfaction
Strategy- company determines what market to serve, clients to do business with, then develops
strategies to attract and retain those clients.
Culture- everyone who works with a company and everything the company does is focused on
clients and satisfying their needs.
Marketing as a toolkit- explain the toolkit view of marketing - ✔✔When companies have a great
product at a great price, customers will beat a path to their door
Strategic marketing embodies three fundamental strategies. Explain - ✔✔Segmentation-
determining which client segments a company whishes to do business with
Differentiation- doing things differently from competitors to provide clients with reasons to do
business with them instead of the competitors.
, Positioning- determining image of company and the place it wants to occupy in the marketplace
Insurance has had to be marketed differently than other consumer products due to it's
"intangible" characteristics. Explain - ✔✔Clients cannot see, touch, taste, smell insurance.
Clients purchase insurance but have nothing to show from the purchase. When clients are
fortunate, they will never have to see how well their insurance works.
What is included in the product component of brokerage marketing mix. - ✔✔product line to
sell, services surrounding core product, brands to sell and how product will be bundled
Describe brokerage "price" components - ✔✔base price, credit terms, fees and commissions
reductions are all apart of a brokerage price component
What considerations should brokerages review when developing their "place" component -
✔✔Brokerages should consider location of office, hours of op's, 24 hour emergency access,
existence of call center operations and internet presence.
What are two types of advertising brokerages could sue when developing their "promotion"
component? also, describe each - ✔✔Promotional advertising- this is advertising to generate
sale of a specific product
Corporate advertising- this is advertising to create a positive image of the brokerage.
Why do so many brokerages undertake public relations activities - ✔✔Public relations activities
help brokerage to earn acceptance and confidence of public.
Describe position and differential advantage. - ✔✔Positioning advantage considers image of
brokerage perceived by the public.
Answers
Define Marketing - ✔✔Marketing is a system of business activities which are designed to plan,
promote, price and distribute want-satisfying products, services and ideas to target markets in
order to achieve objectives of both the consumer and the company.
Identify the four "p's" used in marketing - ✔✔Price
Product
Promotion
Place
Identify the three stages of marketing development and briefly explain each - ✔✔Toolkit-
using the right mix of the four p's will guarantee client satisfaction
Strategy- company determines what market to serve, clients to do business with, then develops
strategies to attract and retain those clients.
Culture- everyone who works with a company and everything the company does is focused on
clients and satisfying their needs.
Marketing as a toolkit- explain the toolkit view of marketing - ✔✔When companies have a great
product at a great price, customers will beat a path to their door
Strategic marketing embodies three fundamental strategies. Explain - ✔✔Segmentation-
determining which client segments a company whishes to do business with
Differentiation- doing things differently from competitors to provide clients with reasons to do
business with them instead of the competitors.
, Positioning- determining image of company and the place it wants to occupy in the marketplace
Insurance has had to be marketed differently than other consumer products due to it's
"intangible" characteristics. Explain - ✔✔Clients cannot see, touch, taste, smell insurance.
Clients purchase insurance but have nothing to show from the purchase. When clients are
fortunate, they will never have to see how well their insurance works.
What is included in the product component of brokerage marketing mix. - ✔✔product line to
sell, services surrounding core product, brands to sell and how product will be bundled
Describe brokerage "price" components - ✔✔base price, credit terms, fees and commissions
reductions are all apart of a brokerage price component
What considerations should brokerages review when developing their "place" component -
✔✔Brokerages should consider location of office, hours of op's, 24 hour emergency access,
existence of call center operations and internet presence.
What are two types of advertising brokerages could sue when developing their "promotion"
component? also, describe each - ✔✔Promotional advertising- this is advertising to generate
sale of a specific product
Corporate advertising- this is advertising to create a positive image of the brokerage.
Why do so many brokerages undertake public relations activities - ✔✔Public relations activities
help brokerage to earn acceptance and confidence of public.
Describe position and differential advantage. - ✔✔Positioning advantage considers image of
brokerage perceived by the public.
