Business Chapter 12

Front 1

Summarize the ways in which marketing creates utility.

Back 1

Utility is the ability of a good or service to satisfy the wants and needs of customers. The production function creates form utility by converting inputs to finished goods and services. Marketing creates time, place, and ownership utility by making the product available when and where consumers want to buy and by arranging for orderly transfers of ownership.

Front 2

What is utility?

Back 2

Utility is the ability of a good or service to satisfy the wants and needs of customers.

Front 3

Identify ways in which marketing creates utility.

Back 3

Marketing creates time utility by making a good or service available when customers want to purchase it; place utility by making the product available in a convenient location; and ownership utility by transferring the product from the buyer to the seller.

Front 4

Explain the marketing concept and relate how customer satisfaction contributes to added value.

Back 4

The marketing concept refers to a company-wide customer orientation with the objective of achieving long-run success. This concept is essential in today's marketplace, which is primarliy a buyers' market, meaning buyers can choose from an abundance of goods and services. Customer satisfaction contributes to added value of a good or service by delivering more than buyers expect in the form of added features, reduced prices, enhanced customer service, a strengthened warranty, or other marketing mix improvements.

Front 5

What is the marketing concept?

Back 5

The marketing concept is a company-wide customer orientation with the objective of achieving long-run success. According to the marketing concept, success begins with the customer.

Front 6

How does customer satisfaction result in a value-added good or service?

Back 6

When a firm makes improvements that increase customer satisfaction, it may result in a value-added good or service. If customers believe they have received value, they are likely to remain satisfied with the firm' goods or services.

Front 7

Describe the not-for-profit marketing, and identify the 5 major categories of nantraditional marketing.

Back 7

Not-for-profit organizations must engate in marketing just as for-profit firms do. NOt-for-profit organizations operate in both the public and private sectors, and use marketing to obtain volunteers and donations, make people aware of their existance, achieve certain goals for society, and so on. NOt-for-profit organizations may engage in several types of nontraditional marketing--person, place, event, cause, or organization marketing. They may rely on one type or a combination.

Front 8

Why do not-for-profit organizations engage in marketing?

Back 8

Not-for-profit organizations use marketing to attract volunteers and doners, communicate their message, and achieve their societal goals.

Front 9

What are the 5 types of nontraditional marketing used by not for profit organizations?

Back 9

The five types of nontraditional marketing are person, place, event, cause, and organizational marketing

Front 10

Outline the basic steps in developing a marketing strategy.

Back 10

All organizations develop marketing strategies to reach customers. This process involves analyzing the overall market, sleecting a target market, and developing a marketing mix that blends elements related to product, distribution, promotion, and pricing decisions. Often company marketers develop a marketing plan that expresses their marketing strategy.

Front 11

Distinguish between business and consumer products and business products.

Back 11

Business products are goods and services purchased to be used, either directly or indirectly, in the production of other goods for resale. Consumer products are purchased by end users.

Front 12

What are the steps in developing a marketing strategy?

Back 12

The steps in developing a markteing strategy are to analyze the overall market, select a target market, and develop a marketing mix.

Front 13

Describe the marketing research function.

Back 13

Marketing research is the information-gathering function that links marketers to the marketplace. It provides valuable information about potential target markets. Firms may generate internal data or gather external data. They may use secondary data or conduct research to obtain primary data. Data mining, which involves computer searches through customer data to forecasting various trends such as sales revenues and consumer behavior.

Front 14

What is the difference between primary data and secondary data?

Back 14

SEcondary data are previously published facts that are low cost to retrieve and easy to obtain. Primary data are collected firsthand through observation or surveys.

Front 15

Why is marketing research importatn to business?

Back 15

Marketing research is important because it provides vital information about existing or potential target markets.

Front 16

Identify and explain each of the methods available for segmenting consumer and business markets.

Back 16

Consumer markets can be divided according to 4 criteria: demographis characteristis, such as age and family size, geographical factores; psychographic variables, which involve behavioral and lifestyle profiles; and product-related variables, such as the benefits consumers seek when buying a product or the degree of brand loyalty they feel toward it. Business markets are segmented according ot 3 criteria: geographical characteristsic, customer-based specifications for products, and end-user applications.

Front 17

What is the most common form of segmentation for consumer markets?

Back 17

Demographics is the most commonly used consumer market segmentation method.

Front 18

What are the three approaches to product-use segmentation?

Back 18

The three approaches to product-use segmentation are by benefits sought, product usage rate, and brand loyalty.

Front 19

What is end-use segmentation in the B2B market?

Back 19

End use segmentation focuses on the precise way a B2B purchaser will use a product.

Front 20

Outline the determinants of consumer behavior.

Back 20

Consumer behavior refers to the actions of ultimate consumers with direct effects on obtaining, consuming, and disposing of products, as well as the decision processess that preceed and follow these actions. Personal influences on consumer behavior include an individual's needs and motives, perceptions, attitudes, learned experiences and self-concept. The interpersonal determinants include cultural influences, social influences, and family influences. A number of people within a firm may participate in business purchase decisions, so business buyers must consider a variety of organizational influences in addition to their own preferences.

Front 21

Define consumer behavior.

Back 21

Consumer behavior refers to the actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products, along with the decision processes surrounding these actions.

Front 22

What are some determinants of consumer behavior?

Back 22

Determinants of consumer behavior include both personal influences and interpersonal influeneces. Personal influences include an individual's needs and motives; perceptions, attitudes, experiences, and self-concept. Interpersonal influences include cultural, social, and family influences.

Front 23

Discuss the benefits of and tools for relationship markteing.

Back 23

Relationship marketing is an organization's attempt to develop long term, cost effective links with individual customers for mutual benefit. Good relationships with customrs can be a vital strategic weapon for a firm. By identifying current purchasers and maintaining a positive relationship with them, an organization can efficiently target its best customers, fulfill their needs, and create loyalty. Information technologies, frequency, and affinity programs, and one-on-one efforts all help build relationships with customers.

Front 24

What is the lifetime value of a customer?

Back 24

The lifetime value of a customer incorporates the revenues and intangible benefits from the customer over the life of the relationship with a firm, minus the amount the company must spend to acquire and serve the customer.

Front 25

Discuss the increasing importance of one-on-one marketing efforts.

Back 25

One-on-one marketing is increasing in importance as consumers demand more customization in goods and services. It is also increasingly dependent on technology such as computer-aided design and manufacturing (CAD/CAM). The Internet also offers a way for businesses to connect with customers in a direct and personal manner.

Front 26

Marketing

Back 26

organizational function and 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.

Front 27

Exchange process

Back 27

activity in which 2 or more parties give something of value to each other to satisfy perceived needs.

Front 28

utility

Back 28

want-satisfying power of a good or service.

Front 29

marketing concept

Back 29

company-wide consumer orientation to promote long-run success.

Front 30

customer satisfaction

Back 30

ability of a good or service to meet or exceed a buyer's needs and expectations.

Front 31

target market

Back 31

group of people toward whom an organization markets its goods, services, or ideas, with a strategy designed to satisfy their specific needs and preferences.

Front 32

marketing mix

Back 32

blending the 4 elements of marketing strategy--product, distribution, promotion, and pricing--to satisfy chosen customer segments.

Front 33

marketing research

Back 33

collecting and evaluating information to support marketing decision making.

Front 34

data mining

Back 34

computer searches of customer data to detect patterns and relationships

Front 35

market segmentation

Back 35

process of dividing a total markte into several relatively homogeneous groups.

Front 36

consumer behavior

Back 36

actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.

Front 37

relationship marketing

Back 37

developing and maintaining long-term, cost effective exchange relationships with partners.

Front 38

time utility

Back 38

created by making a good or service available when customers want to purchase it

Front 39

place utitlyt

Back 39

created by making a product available in a location convenient for customers.

Front 40

ownership utitlity

Back 40

refers to an orderly transfer of goods and services from the seller to the buyer.

Front 41

value added

Back 41

when a company exceeds value expectations by adding features, lowering its price, enhancing customer service, or making other improvements that increase customer satisfaction.

Front 42

person marketing

Back 42

efforts designed to attract the attention, interest, and perferance of a target market towards a person

Front 43

place marketing

Back 43

attempts to attract a person to a particular area, such as a city, state, or nation

Front 44

event marketing

Back 44

sponsoring short-term events such as athletic competitions and charitable performances

Front 45

cause marketing

Back 45

marketing that promotes a cause or social issue, such as preventing child abuse, antilittering efforts, and antismoking campaigns.

Front 46

organization marketing

Back 46

influence consumers to accept the goals of, receive the services of, or contribute in some way to an organization.

Front 47

consumer products

Back 47

often known as B2C products--are goods and services such as DVDs shampoo, and dental care, that are purchased by end users.

Front 48

business products

Back 48

B2B products are goods and services purchased to be used, either drectly or indirectly in the production of goods for resale.

Front 49

data warehouse

Back 49

sophisticated customer database that allows managers to combine data from several differetn organizational functions.

Front 50

geographical segmentation

Back 50

dividing a market into homogeneous groups on the basis of their locations.

Front 51

demographic segmentation

Back 51

common demographic measures include gender, income, age, occupation, household size, stage in the family life cycle, education, and ethnic group.

Front 52

psychographical segmentation

Back 52

divides consumer markets into groups with similar psychological characteristics, values, and lifestyles.

Front 53

product-related segmentation

Back 53

sellers can divide a consumer market into groups based on buyers' relationships to the good or services. The three most popular approachses are based on benefits sought, usage rates, and brand loyalty levels.

Front 54

End-use segmentataion

Back 54

focuses on the precise way a B2B purchaser will use the product.

Front 55

lifetime value of a customer

Back 55

the revenues and intangible benefits from the customer over the life of the relationship, minus the amount the company must spend to acquire and serve that customer.

Front 56

frequency marketing programs

Back 56

reward purchases with cash, rebates, merchandise, or other premiums. These are enacted to build customer loyalty.

Front 57

affinity program

Back 57

tool for building emotional links with customers. Solicite involvement by individuals who share common interests and activities.

Front 58

comarketing

Back 58

two businesses jointly market each other's products.

Front 59

cobranding

Back 59

two or more businesses link their names to a single product.