MARKETING FOUNDATIONS
What is the difference between a need and a want?
A need is necessary for survival; a want adds comfort or pleasure.
A sportswear company targets teenagers aged 13–18.
Which segmentation variable is being used?
What does the "P" for Price represent in the Marketing Mix?
Demographic.
A manufacturer turns steel, plastic, and glass into a bicycle.
Which utility is being created?
Form Utility
Which of the 3 Cs focuses on understanding rivals in the marketplace?
Competition
During which phase would a company identify opportunities revealed through SWOT analysis?
Planning Phase
Give one example of a good and one example of a service.
Any valid example (e.g., computer = good; haircut = service).
A ski resort targets people living in tropical regions differently from those living near mountains.
Which segmentation variable is involved?
Geographics
A supermarket stays open 24 hours during a holiday weekend.
Which utility is primarily being increased?
Time Utility
A flower shop competes with another flower shop located across the street.
What type of competition exists?
Direct competition.
During which phase would a company decide on pricing, promotion, and distribution strategies?
Implementation Phase.
Which type of income is left after taxes are subtracted?
Disposable income.
A luxury travel company targets consumers who value exclusivity and prestige.
Which segmentation variable is involved?
Psychographics
A company launches an online store so customers can buy products without visiting a physical location.
Which utility is most directly improved?
Place Utility
A local florist loses sales because customers are purchasing flowers at supermarkets.
What type of competitor is the supermarket?
Indirect competitor.
Which phase would examine customer loyalty and repeat purchases?
Evaluation Phase
A family receives $6,000 per month after taxes. They spend $4,500 on rent, food, transportation, and utilities.
What is their discretionary income?
$1,500
A coffee chain identifies customers who purchase coffee every morning before work.
Which segmentation variable is being used?
Behavioral
A retailer introduces Buy Now, Pay Later financing.
Which utility is affected, and why?
Possession Utility because it makes ownership easier.
A company sells $24 million in a market worth $300 million.
Calculate its market share.
8%
A company achieves strong sales but very low customer retention.
Which phase should identify this issue?
Evaluation Phase
Compare the Henry Ford approach with the Marketing Concept.
Henry Ford focused on mass-producing standardized products; the Marketing Concept focuses on satisfying customer needs and wants while making a profit.
A toy is purchased by a grandmother for her grandson.
Who is the customer and who is the consumer?
Customer = grandmother
Consumer = grandson
A company creates a television commercial, redesigns its packaging, and includes detailed nutritional information on the label.
Which utility is being strengthened in all three actions?
Information Utility.
A company increases sales from $30 million to $45 million while the industry remains at $300 million.
By how many percentage points did its market share increase?
Old share = 10%
New share = 15%
Increase = 5 percentage points
A company's objective is to increase market share by 5% in one year.
Which phase establishes this objective and which phase measures whether it was achieved?
Planning Phase establishes it.
Evaluation Phase measures it.