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Principles of Marketing

Chapter 1

Principles of MarketingChapter 1

Chapter 1

1.1 Knowledge Check

1.
c. Place utility addresses convenience in terms of where a consumer can purchase your company’s product.
2.
b. Marketing is a complex activity and includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
3.
a. Employees are internal parties.
4.
a. Customer equity is the total potential profits a company earns from its current and potential customers.
5.
d. The aim of successful customer relationship management is to produce high customer equity.

1.2 Knowledge Check

1.
d. The 4Ps of marketing are product, price, place, and promotion.
2.
b. Price is the amount consumers pay for a product or service.
3.
c. Place—sometimes known as distribution—involves focusing on how and where to deliver the product to consumers most likely to buy it.
4.
d. Place— sometimes known as distribution—involves focusing on how and where to deliver the product to consumers most likely to buy it.
5.
d. In the realm of promotion advertising, direct mail, social media communications, trade shows, events, coupons, and media choices are among the many aspects considered.

1.3 Knowledge Check

1.
a. Materials considers the availability of the resources needed for product. It is the element that looks at the supply.
2.
b. Market intermediaries are retailers, wholesalers, and others in the distribution channel who help deliver products to the end user.
3.
a. The competition has to be assessed to see how well and to what degree the need you hope to fulfill is currently being addressed.
4.
b. The technological domain is responsible for emerging production technologies as well as the creation of new innovations that make possible new products.
5.
d. The social and cultural domain is concern with such things as social trends, attitudes, and opinions.

1.4 Knowledge Check

1.
a. The product concept is concerned most with the quality of the product a company intends to sell.
2.
c. The societal marketing concept involves meeting consumers’ and businesses’ current needs while simultaneously being aware of the environmental impact of marketing decisions on future generations’ ability to meet their needs.
3.
c. The goal of the selling concept was simple: beat the competition. Customer needs and satisfaction took a back seat to beating the competition.
4.
a. This order accurately represents the evolution of marketing.
5.
b. During the societal era, it was recognized that society as a whole, had to be considered in all activities.

1.5 Knowledge Check

1.
d. A delight need is an added value you may get from the seller without prior expectation or request for the same.
2.
c. The customer is the individual or business that purchases the product or service. The consumer is the user of the product or service.
3.
d. The value that a product promises to deliver is called the value proposition.
4.
a. The benefit(s) to the customer or consumer relative to the cost is known as value.
5.
c. The exchange process is designed to allow for the transaction to occur without either party feeling like the other has benefitted at its own cost.

1.6 Knowledge Check

1.
d. All the other choices are ways of achieving customer relationship management. Offering the lowest price of all companies on the market is not.
2.
b. Customer relationship management (CRM) is the means through which companies track, manage, and analyze customer interactions.
3.
b. Customer loyalty is a customer’s willingness to repeatedly return to a company to conduct business.
4.
d. Collaborative CRM is sharing customer data with outside companies. It can give the company a fuller perspective on customers by collaborating with other companies in order to obtain data to which it would not otherwise have access.
5.
a. A customer loyalty program offers rewards, discounts, and other special incentives designed to attract and retain customers.
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