Ch 11 – Building Customer Relationships Through Effective Marketing

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services.
marketing
A business philosophy that involves the satisfying customers’ needs, while also achieving a firm’s goals.
marketing concept
Value is added through converting raw materials into finished goods.
form utility
The individuals in a market who share common characteristics.
market segment
Income that is left after savings, food, clothing, and housing are paid.
discretionary income
A combination of marketing elements designed to reach a target market.
marketing mix
A plan of actions intended to accomplish a marketing goal.
marketing strategy
The decision-making process that is used when purchasing personal-use items.
consumer buying behavior
Marketing activities that focus on a particular group, such as teenagers.
target market
The marketing objectives for a product are established.
marketing plan
T/F Marketing is a process that fulfills consumers’ needs.
True
T/F Financing and risk taking are physical distribution functions of marketing.
False
T/F The first step in implementing the marketing concept is to provide a product that satisfies customers.
False
T/F Markets are classified as consumer markets or business-to-business markets.
True
T/F The marketing mix is composed of product, price, distribution, and promotion.
True
T/F When Toyota focuses its advertising for the Corolla on the population between the ages of 20 and 34, it is targeting a specific market.
True
T/F The four common bases of market segmentation are demographic, strategic, geographic, and discretionary.
False
T/F Pricing is an uncontrollable element of the marketing environment.
False
T/F Advertising Age and Hoover’s are important resources for marketing research.
True
T/F Understanding factors that affect buying behavior helps marketing managers to predict consumer responses to marketing strategies and helps to develop a market mix.
True
Which facilitating function of marketing is riddled with thefts, obsolescence, and lawsuits?
a. Risk taking
b. Standardizing
c. Financing
d. Information gathering
e. Selling
a. Risk taking
When fresh vegetables are shipped to Oklahoma from Mexico, which utility is added?
a. Form
b. Place
c. Price
d. Possession
e. Time
b. Place
Sales orientation was predominate during the
a. late 1800s.
b. 1920s.
c. 1940s.
d. late 1950s.
e. 1970s.
b. 1920s
To implement the marketing concept, the firm must mobilize its marketing resources to
a. price the product at a level that is acceptable to buyers.
b. provide a product that will not satisfy the firm’s objectives.
c. minimize promotion.
d. reduce the number of distribution sites.
e. obtain incorrect marketing information.
a. price the product at a level that is acceptable to buyers.
Women in the market can be classified as
a. market segmentation.
b. a marketing mix.
c. a market segment.
d. an independent market.
e. a producer market.
c. a market segment.
What element of the marketing mix provides information to consumers?
a. Product
b. Price
c. Promotion
d. Distribution
e. Quality
c. Promotion
Which element of the marketing mix focuses on transportation, storage, and intermediaries?
a. Product
b. Price
c. Distribution
d. Promotion
e. Buying
c. distribution
Which environmental force influences change in consumers’ attitudes, customs, and lifestyles?
a. Legal, political, and regulatory
b. Competitive
c. Technological
d. Economic
e. Sociocultural
e. Sociocultural
What situational influence can affect the consumer buying process?
a. They have uses for the products.
b. They like the convenience that products provide.
c. They take pride in ownership of products.
d. They believe that products will enhance their wealth.
e. All of the above.
e. All of the above
What type of income is Ramona’s $2,450 monthly take-home amount after taxes?
a. Ordinary
b. Personal
c. Disposable
d. Gross
e. Discretionary
b. Personal
Relationship Marketing
establishing long-term, mutually satisfying buyer-seller relations
Customer Relationship Management (CRM)
using information about customers to create marketing strategies that develop and sustain desirable customer relations
Customer Lifetime Value
measure of a customer’s worth (sales – cost) to a business over one’s lifetime
Customer Loyalty
customers who are loyal to the company/brand
Form Utility
created by converting production inputs into finished products
Place Utility
created by making a product available at a location where customers wish to buy it
Time Utlity
created by making a product available when customers wish to buy it
Possession Utility
created by transferring title (ownership) of a product to a buyer
Market
a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products
Target Market
a group of individuals, organizations, both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group
Marketing Mix
consists of elements that a firm controls and uses to reach its target marketing
– economic
– sociocultural
– political
– competitive
– legal and regulatory
– technological
Marketing Plan
written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group
Sales forecast
estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort
Buying behavior
decisions and actions of people involved in buying and using products
Consumer buying behavior
purchasing of products for personal or household use, not business purposes
Business buying behavior
purchasing of products by producers, resellers, governmental units, and institutions
Discretionary income
disposable income (minus savings and expenditures on food, clothing, and household)