Entrepreneurship CIB0243 – Chapter 5: Building a Powerful Marketing Plan

A comprehensive set of question-and-answer flashcards covering definitions, core concepts, market types, targeting, research, CRM, marketing mix, STP, environmental forces, and marketing research processes discussed in Chapter 5.

What is the definition of marketing according to Chapter 5?

An organizational function of business activities that directs the flow of goods and services from producer to user.

In marketing, what are “needs”?

Requirements for something necessary in a person’s life.

In marketing, what are “wants”?

Needs that are shaped by culture and individual personality.

How is “demand” created?

When buying power backs a person’s want.

What is an “offering” in marketing?

A mix of goods, services, and experiences that provides benefits to satisfy customer needs.

What is a “product” in marketing terms?

A need-satisfying offering presented for attention, acquisition, use, or consumption.

How is customer “value” defined?

The relative worth of a product, comparing perceived product benefits to cost.

What determines customer “satisfaction”?

The comparison of a buyer’s expectations before purchase with feelings after using the product.

What is an “exchange” in marketing?

The act of giving something of value to receive a desired object.

What is a “transaction”?

The basic unit of measurement for an exchange.

What is a marketing “relationship”?

A bond between a customer and a product/marketer built through frequent transactions.

Who makes up the consumer market?

Customers who buy products for their own consumption (end users).

Who makes up the business market?

Customers buying products for further processing, reselling, or renting—not personal use.

What characterizes the government market?

Government bodies and agencies purchasing products to provide public services.

What is the reseller market?

Customers who buy goods to resell them for profit.

What is the international market?

Customers in other countries—consumers, producers, resellers, and governments.

What is the main objective of pinpointing the target market?

To identify the specific group of customers at whom the company aims its products or services.

Why do mass-marketing techniques no longer work for small companies?

Trying to reach everyone often results in appealing to almost no one; focus is required.

Name two ways market research can be conducted quickly and inexpensively.

Web-based online surveys and trend-tracking.

What is the first step in conducting market research?

Define the objective or problem to be studied.

What is “data mining” in market research?

Analyzing large databases to uncover patterns about customer behavior and preferences.

What is relationship marketing (Customer Relationship Management)?

Developing and maintaining long-term relationships so customers make repeat purchases.

What is the first step in CRM, according to the notes?

Collect meaningful customer information and compile it in a database.

What is Customer Lifetime Value (LTV) used for?

To identify which customers are most desirable and profitable over time.

What is the marketing mix?

A blend of product, place, promotion, and pricing strategies designed for a target market.

Name the four Ps of the marketing mix.

Product, Place (distribution), Promotion, and Price.

Besides product benefits, what does product strategy focus on?

What the product means to customers—status, quality, and reputation.

What does place strategy include?

Physical distribution such as storing and transporting raw materials or finished goods.

What are the main tools of promotion strategy?

Advertising, public relations, sales promotion, and personal selling.

What is “price” in marketing terms?

What a buyer must give up to obtain a product.

What are the three steps in selecting a target market (STP)?

Market Segmentation, Market Targeting, and Market Positioning.

What is market segmentation?

Dividing a market into smaller groups with distinct needs, characteristics, or behaviors.

What separates the micro-environment from the macro-environment?

Micro factors are internal/close and controllable; macro factors are external and largely uncontrollable.

List the six factors of the micro-environment.

The company, suppliers, marketing intermediaries, customers, competitors, and the public.

List the six factors of the macro-environment.

Demographic, economic, natural, technological, political, and cultural forces.

What is marketing research?

Gathering, designing, analyzing, and reporting information to solve a specific marketing problem.

List the five steps in the marketing research process.

Identify research issues, design/develop research plan, gather information, analyze information, report findings.

Name five types of information needed to support marketing decisions.

Information about the market, products, pricing, promotion, and distribution.

Approximately what percentage of small companies have a website, according to the notes?

About 70 percent.

Why should companies encourage customer complaints?

Complaints are opportunities to improve service and quality, enhancing customer satisfaction and loyalty.