The Marketing Concept
What are the three elements of the marketing concept?
Customer Satisfaction, Total Company Approach, Profit
What is channel management?
Getting products from producers to customers
What four qualities should a target market have?
Clearly defined needs, ability to pay, willingness and authority to buy, and profitability
Name two social influences on consumer behavior
Family, friends, culture, media, etc.
What is the opposite of competition?
A monopoly
What is utility in marketing?
Usefulness of a product or service, such as convenience of location or availability of information
What is another name for Marketing-Information Management (MIM)?
Marketing research.
What are the four Ps of the marketing mix?
Product, Price, Place, Promotion.
What are Maslow’s five levels of needs?
Physiological, Safety, Love/Belonging, Esteem, Self-Actualization
What is the formula for market share?
Company Sales ÷ Total Market Sales × 100
Give an example of how a business can increase customer satisfaction.
Providing good customer service, improving product quality, etc.
How does pricing impact product image?
Lower prices can signal affordability, while higher prices can indicate premium quality
Give an example of a company using target marketing
Nike targeting athletes, luxury brands targeting high-income customers, etc.
What are the four levels of purchase decisions?
Impulse, Routine, Limited, Extensive
Why is competition good for consumers?
Leads to better products, lower prices, and more choices
How do the four functions of business work together in a total company approach?
Marketing, Finance, Production, and Management must collaborate to satisfy customers
What is the role of product/service management?
Developing and improving products
Why is choosing the right target market so important?
It determines marketing strategy and potential profitability
What is the 80/20 rule in consumer behavior?
80% of a company’s sales come from 20% of its customers
What are the two types of competition?
Price and Nonprice competition
Why must businesses balance customer satisfaction and profit?
Providing everything a customer wants can be too expensive; businesses must find a balance
What is the difference between selling and promotion?
Selling is personal communication with customers, while promotion is non-personal communication like ads
What is market segmentation?
Dividing a market into smaller groups based on shared characteristics
How does a customer’s income level affect their purchasing decisions?
Lower-income consumers prioritize necessities, while higher-income consumers have more discretionary spending
How does online shopping impact competition?
Increases competition by giving consumers more choices and making price comparisons easier