Chapter 7 Packet Notes

Question 1

Business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator (producer) to the targeted user and that satisfy the targeted user or consumer.

Answer 1

Small Business Marketing

Question 2

• Identification of a target market
• Determining a target market’s potential
• Preparing, communicating, and delivering a bundle of satisfaction to the target market.

Answer 2

Small Business Marketing Activities

Question 3

• Core product/service
• Actual prodcut/service
• Augmented product/service

Answer 3

The Levels of Product/Service

Question 4

• Production-oriented
• Sales-oriented
• Consumer-oriented

Answer 4

Marketing Philosophies

Question 5

Emphasizes development of the product and production effciencies over other activities.

Answer 5

Production-Oriented

Question 6

Favors product sales over production efficiencies and customer preferences.

Answer 6

Sales-Oriented

Question 7

• The right choice
• All marketing efforts begin and end with customers
• The focus is on customers’ needs, which is most consistent with long-term success of the firm.

Answer 7

Consumer-Oriented

Question 8

• Market analysis
• Developing the marketing mix

Answer 8

Marketing Research Activities

Question 9

An evaluation process that encompasses market segmentation, marketing research, and sales forcasting.

Answer 9

Market Analysis

Question 10

The combination of product, pricing, promotion, and distribution activities.

Answer 10

Developing the Marketing Mix

Question 11

• Market Analysis
• The competition
• Marketing Strategy

Answer 11

The Formal Marketing Plan

Question 12

• State of the competition
• Production focus
• Focus on the present

Answer 12

Reasons for not adopting a consumer orientation

Question 13

With no competition or high demand, firms focus on production.

Answer 13

State of Competition

Question 14

Entrepreneurs may have strong production skills and weak marketing skills.

Answer 14

Production Focus

Question 15

Entrepreneurs tend to focus on current success which is the result of an overemphasis on selling.

Answer 15

Focus on the Present

Question 16

• Marketing research
• Outside sources
• Steps in the marketing research process

Answer 16

The Nature of Marketing Research

Question 17

The gathering, processing, reporting and interpreting of market information.

Answer 17

Marketing Research

Question 18

• Hiring professional marketing researchers
• Using the Internet for web-based surveys and online focus groups.

Answer 18

Outside Sources

Question 19

1. Identifying the informational need- Why do we need to know this?
2. Searching for secondary data- Who has researched this topic already?
3. Collecting primary data- Who do we ask and what do we ask them?
4. Interpreting the data- Got the information, now what does it mean?

Answer 19

Steps in the Marketing Research Process

Question 20

• Observational methods
• Questioning methods

Answer 20

Methods for Collecting Primary Data

Question 21

• Human
• Mechanical

Answer 21

Observational Methods

Question 22

• Surveys
  
  • Mail
  • Telephone
• Personal interviews
• Experiments

Answer 22

Questioning Methods

Question 23

• Market Ingredients
• Market Segmentation
• Focus Strategy

Answer 23

Understanding Potential Target Markets

Question 24

A group of:

1. Customers or potential customers who have:
2. Purchasing power
3. Unsatisfied needs

Answer 24

Market Ingredients

Question 25

The division of ar market into several smaller customer groups with similar needs.

Answer 25

Market Segmentation

Question 26

A type of competitive strategy which cost and differentiation-based advantages are achieved within narrow market segments.

Answer 26

Focus Strategy

Question 27

* Segmentation variables * Benefit variables * Dempgraphic variables

Answer 27

Market Segmentation and its Variables

Question 28

The parameters used to distinguish one form of market behavior from another for the purpose of market segmentation.

Answer 28

Segmentation Variables

Question 29

Specific characteristics that distinguish market segments according to the benefit sought.

Answer 29

Benefit Variables

Question 30

Specific characteristics that describe customers and their purchasing power.

Answer 30

Demographic Variables

Question 31

* Unsegmented Strategy (Mass Marketing) * Multisegment Strategy * Single-Segment Strategy

Answer 31

Types of Market Segmentation Strategies

Question 32

A strategy that defines the total market as the target market.

Answer 32

Unsegmented Strategy (Mass Marketing)

Question 33

A strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each. (Taylors to each group).

Answer 33

Multisegment Strategy

Question 34

A strategy that recognizes the existence of several distinct segments but focuses on only the most profitable segment.

Answer 34

Single-Segment Strategy

Question 35

A prediction of how much (in units and/or dollars) of a product or service can be sold within a market in a defined period of time. * Assesses the new venture's feasibility * Assists in planning for product scheduling, setting inventory levels, and personnel decisions.

Answer 35

The Sales Forecast

Question 36

* Unique new business circumstances * Lack of familiarity with quantitative methods * Lack of familiarity with the forecasting process.

Answer 36

Limitations to Forecasting (for Entrepreneurs)

Question 37

* Breakdown process (chain-ratio method) * Buildup process

Answer 37

Two Dimensions of Forecasting

Question 38

Forecasting begins with a macro-level variable and works down to the sales forecast (top-down)

Answer 38

Breakdown Process (Chain-Ratio Method)

Question 39

All potential buyers in various submarkets are identified and then the estimated demand is added up (bottom down).

Answer 39

Buildup Process

Question 40

* Direct forecasting * Indirect forecasting

Answer 40

Forecasting and Predicting Variables

Question 41

Use of sales as the predicting variable.

Answer 41

Direct Forecasting

Question 42

Use of variables related to sales as proxies to project future sales.

Answer 42

Indirect Forecasting