marketing chapter 4

Marketing is more effective when it is not integrated into other business activities

False

Most of today's consumers are not well informed

False

Spending money on marketing reduces a company's profit in the long run

False

What is the main focus of producers and manufacturers?

Product/Service

What is a market segment?

Group of similar consumers within a larger group

What is the goal of product changes?

To better satisfy customers needs

4 major reasons why a business might be unsuccessful

- Concerned only about the product/service - Believed that they knew what customers would buy - Did not study the market - Failed to use a variety of marketing tools available to them

What are the most common forms of promotion?

Advertising, personal selling, visual displays, sales promotions, publicity, etc.

What is the main focus of service businesses?

All 4 parts of the marketing mix

Why should non-profit organizations worry about marketing?

Because satisfying their customers' needs is necessary if they are to achieve whatever their goals are and maximize their effectiveness

Provide a description of intense competition. Give an example.

Businesses are competing with other businesses offering very similar products. Ex: pure competition, oligopoly.

Name at least 4 ways businesses can alter the prices they charge.

Discounts, markdowns, trade-ins, coupons, credit cards for specific store, etc.

What is the main focus of channel members?

Distribution

What two ways do businesses tend to deal with customers needs?

Do not see the specific needs of consumers as important See consumer needs are an important part of their business activities

Most consumers are individuals who make decisions in a unique way

FALSE

A business that believes in the marketing concept bases their business planning on increasing sales

False

Customers using the products and services of a monopoly business are usually satisfied

False

Marketing and product planning should occur at the same time

False

What are the 4 ways that today's marketing differs from marketing practices in the past?

From Few to Many- from a few activities to a variety activities From Independent to Integrated- from a largely independent activity to a range of integrated business functions From Problems to Opportunities- used to be handled as a problem-solving tool, but now it is regarded as an opportunity creation tool From Expensive to Investment- used to be thought of as an expense, but is now priced as a critical investment

Name three things for which businesses use marketing research.

Identify customers, characteristics that make groups of customers different from others, their needs, and how they make decisions, identify the type of competition, strengths and weaknesses of competition, determine which are the most effective, which are the most profitable marketing strategies

Monopolistic Competition

Many competitors, but some differences among the choices (retail)

What is wrong with treating marketing mainly as a problem-solving tool?

May deprive a business of the many opportunities that marketers an identify and create when marketing is used to unconcern new markets and seek out ways to improve customer satisfaction

What kind of competition do most businesses face?

Monopolistic

From a consumer perspective, which type of competition offers the most choice? The least choice?

Most- Intense Least- Limited

Provide a description of limited competition. Give an example.

Some businesses have the advantage of offering a product of service with little or not direct competition. Ex: Monopoly

When one decision in the marketing mix is made, it affects others. Give 2 examples of when this could be true.

Offering many protects, with many choices, could call for more promotion to promote the number of options provided. Making a product that is easily accessible, may affect the number of products your business is able to offer if you are unable to produce as many products as are demanded from your business. Prices decrease and you need to get rid of product that will soon expire, you will need to promote the sales and bundles your business is now offering to ensure you don't lose too much profit, ETC.

Name three reasons it is difficult to meet customer needs.

People may not be sure of their needs or have conflicting needs, they have limited resources with which to satisfy their needs, and people have very different needs

Business Roles

Producers and Manufacturers- to develop the products and services needed by other businesses and by consumers Channel Members- to move products from the producer to the consumer Service Businesses- works directly with their consumers rather than through a channel of distribution, so they are responsible for the entire marketing mix

Combining the marketing mix to satisfy customer needs provides:

Products- offers choices Price- gives value Promotion- aids on decision making Place- provides convenience

Why is quality control more difficult for a service business than for a business that makes or distributes a product?

Quality control is more difficult for a provider of services because the quality level is highly dependent on the person who is delivering the service, and people are not as controllable as physical objects and manufacturing processes. Also, since many services are delivered at the customer's place of business, it is hard to monitor their quality directly.

Explain the 5 stages of consumer decision-making.

Recognize the needs Identify alternative options to fill the need Evaluate your options Decide on an option Assess your satisfaction

What type of business is responsible for most final pricing decisions?

Retailers

Why does monopolistic competition allow businesses to benefit most from the marketing concept?

Since customers already recognize their unique choices, they attempt to select the brands that are most satisfying

Why is it important for businesses to understand the consumer decision-making process?

So they can provide the consumer with the right information at the right time to facilitate a satisfying exchange

Planning that identifies how a company expects to achieve its goals is know as what?

Strategy

When the marketing concept is followed, what is the initial focus of the planning process?

The customers needs

All businesses must respond to the needs of the final consumers of their products, but most manufacturers and producers must also satisfy the needs of whom else?

The members of their distribution channels

If a new business would look at marketing as an expense instead of an investment, what might happen to their business because of it?

They may fail eventually since they would not be getting feedback from consumers, promoting their business, advertising their products/services, finding consumer needs, etc.

A consumer evaluates the choices that are available after identifying possible solutions

True

Businesses often fail because they don't understand and use the marketing concept

True

Businesses that are not prepared for competition have a difficult time staying in the market

True

Many businesses reduce marketing efforts when faced with financial problems

True

Marketing can help business solve problems

True

Marketing strategies are developed as a part of the business plans

True

Most service businesses do not use a channel of distribution

True

Product and distribution are important to producers and manufacturers

True

Retailers are responsible for most final pricing decisions

True

Some businesses do not see the specific needs of consumers as important

True

The earliest use of marketing was to move products from the producer to the consumer

True

Various consumer groups may have different needs

True

Without the marketing concept, a business will develop a product or service and then decide how to market the product

True

Marketing Concept

Using the needs of the customers as the primary focus during the planning, production, distribution, and promotion of a product or service

How does the timing of product development differ in businesses that use the marketing concept compared with those that do not?

When businesses use the marketing concept, product development is an integral part of developing a marketing mix to meet customer needs that research has identified. Businesses that do not use the marketing concept develop products first and later try to convince people to buy them.

Middleman

a person who goes between buyers and sellers and is responsible for adding markup

Specialization products and services

consumers with different needs require

Special Features

parts of the product decision that can improve customer satisfaction are

Market Opportunity Analysis

studying and prioritizing market segments to locate the best potential based on demand and competition

Markup

the difference between the price a business pays for a product and the price it sells for it