Chapter 4 - The basics of Marketing

what is the most difficult marketing decision to understand and plan

price

what is the first step in the consumer decision-making process

recognize a need

marketers use research techniques to

- identify customers - determine which marketing strategies work the best - analyze competitors

Marketing today (true facts)

- marketing is usually thought of as a critical investment - marketing has expanded in scope from a few activities to a variety o activities

common reasons for business failures

- the business believes it knows what the customers want - the business does not study the market - the business does not use any available marketing tools.

business profit

A non-__________ organization has as its primary focus something other than providing products and services for a profit.

strategy

A plan that identifies how a company expects to achieve its goals is known as a(n) __________.

target

A(n) __________ market is a clearly defined segment of the market to which a business wants to appeal.

segments

Groups of similar consumers within a larger market are known as market __________.

oligopoly

In a(n) __________, only a few companies compete in the same market but offer products in which consumers see few, if any, differences

opportunities

Market __________ include new markets and ways to improve a company's offerings in current markets.

most final pricing decisions are made by...

the retailer

what is the most effective way of dealing with customers needs

they try to understand how cutomers evaluate products and services to make decisions about what to purchase

product

this element of the marketing usually receives the most attention from producers and manufacturers

distribution

A channel of __________ is made up of all of the businesses involved in completing marketing activities as products move from the producer to the consumer

decision

A choice among alternatives is called a(n) __________.

True

Bringing a new product to the marketplace is expensive.

True

Businesses that do not use the marketing concept assume that most people are potential customers for their products and can be persuaded to buy with adequate marketing.

False

Businesses that use the marketing concept first develop a product or service and then decide how it will be marketed.

False

Effective companies focus almost exclusively on the quality of the products or services they offer.

True

Marketing is responsible for identifying and planning for opportunities.

True

Monopolies are often more concerned about protecting their market and making a profit than about meeting the needs of consumers.

Flase

Most products and services are exchanged directly between the producer and the customer.

True

Most service businesses work directly with their customers rather than through a channel of distribution.

True

Much of the planning efforts of a company are used to determine what to sell and how it will be presented to the customer.

False

Nonprofit groups such as the Red Cross have little need for marketing services.

False

Of all marketing tools used today, promotion creates the most economic utility.

False

Service businesses usually have less control over pricing than businesses that sell products.

mix

The marketing __________ is a blend of the four marketing elements—product, distribution, price, and promotion

True

The marketing concept keeps the main focus on customers' needs during the planning, production, distribution, and promotion of a product or service.

True

The most important type of marketing research for most businesses is the study of potential and current customers.

False

Today, marketing has become so complex that it is not well understood by business people who do not have marketing backgrounds; consequently, marketers usually work by themselves and have little contact with others in the business.

channel

__________ members are the businesses used to provide many of the marketing functions during the distribution process.

monopolistic competition

companies in this type of environment find the marketing concept to be of the most value

with the marketing concept, planning begins by

identifying potential customers and their needs