MBA 706 Module 1 Si Chen Exam
Questions and Answers
What is marketing? Definition from AMA - answers-the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.
What is Marketing? Definition from Philip Kotler - answers-CCDVTP = Create,
Communicate, and Deliver Value to a Target market at a Profit.
•Create Value = Product Management
•Communicate Value = Brand Management
•Deliver Value = Customer Management
Traditional Marketing Mix (Also known as the 4 P's) - answers-Product
Price
Place
Promotion
New Marketing Mix (How many Ps?) - answers-•Today, the 4Ps have been extended to
even 7Ps, 8Ps, ... and 20Ps.
•Some examples of those additional Ps: participation, personnel, personality of a
store/brand, etc.
Why do we use the 4 P's? - answers-•These Ps are the tools that firms can
use/manipulate to achieve their goals.
What does a wise firm do when in response to spatial and temporal changes in market
segments, industry structure, and competitors' behavior. - answers-alters its strategy
What do decisions on the 4 P's Affect? - answers-who buys from the firm and how many
(quantity) they buy, and ultimately affect the profitability of the firm
What do consumers consider when making decisions regarding when and where they
will shop? - answers-the benefits and the costs of shopping
, What benefits do consumers consider? - answers--Utilities derived from purchasing
goods and services.
-Physical benefits: exercising
-Psychic benefits: e.g., retail therapy, satisfaction, social interaction.
-Information gathering: brands, products, etc.
What costs do consumers consider? - answers--Monetary costs: dollars
-Physical energy: e.g., driving, walking around, etc.
-Psychic energy: e.g., interacting with others.
-Time: time to get to the store + time spent in the store.
What do firms attempt to do? - answers-maximize their profits, subject to their internal &
external environments
Simple Economic Model - answers-a retailer's profits = sales revenue - costs
Sales Revenue = ∑_1^𝑛 𝑃𝑟𝑖𝑐𝑒 ∗𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦= 〗P1 * Q1 + P2 * Q2 + .... + Pan * Qn
What is a firm’s costs? - answers-costs associated with selling the goods
what is a firm’s quantity? - answers-determined by consumers - price (budget), product
itself (utilities), place (physical energy required), promotion (budget), competitor's
offerings, & other factors
What does marketing do? - answers-•brings in customers, and customers bring in
money.
•helps to build brand equity and the company's reputation.
•helps engage the customer and the company can learn from its customer relationships.
•helps a company stay ahead of the competition.
What can be Marketed? - answers-Goods, Services, Experiences, Events, People,
Places, Information, Ideas, and Companies
Evolution Of Modern Marketing - answers-•Product/production orientation - e.g., Ford
model T
-Focus on building a better gadget.
•Sales orientation
-Focus on convincing the customer that your product works best for them.
•Customer orientation
-Focus on identifying customers' wants BEFORE formulating attractive solutions.
Measuring Marketing's Effectiveness - answers-•Marketing is no longer a function within
a firm, but more of a systematic way of thinking
•Marketing is everywhere
•Sometimes the effectiveness of marketing programs is not easy to quantify.
Marketing Management Framework - answers-Who: 5 C's
Questions and Answers
What is marketing? Definition from AMA - answers-the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.
What is Marketing? Definition from Philip Kotler - answers-CCDVTP = Create,
Communicate, and Deliver Value to a Target market at a Profit.
•Create Value = Product Management
•Communicate Value = Brand Management
•Deliver Value = Customer Management
Traditional Marketing Mix (Also known as the 4 P's) - answers-Product
Price
Place
Promotion
New Marketing Mix (How many Ps?) - answers-•Today, the 4Ps have been extended to
even 7Ps, 8Ps, ... and 20Ps.
•Some examples of those additional Ps: participation, personnel, personality of a
store/brand, etc.
Why do we use the 4 P's? - answers-•These Ps are the tools that firms can
use/manipulate to achieve their goals.
What does a wise firm do when in response to spatial and temporal changes in market
segments, industry structure, and competitors' behavior. - answers-alters its strategy
What do decisions on the 4 P's Affect? - answers-who buys from the firm and how many
(quantity) they buy, and ultimately affect the profitability of the firm
What do consumers consider when making decisions regarding when and where they
will shop? - answers-the benefits and the costs of shopping
, What benefits do consumers consider? - answers--Utilities derived from purchasing
goods and services.
-Physical benefits: exercising
-Psychic benefits: e.g., retail therapy, satisfaction, social interaction.
-Information gathering: brands, products, etc.
What costs do consumers consider? - answers--Monetary costs: dollars
-Physical energy: e.g., driving, walking around, etc.
-Psychic energy: e.g., interacting with others.
-Time: time to get to the store + time spent in the store.
What do firms attempt to do? - answers-maximize their profits, subject to their internal &
external environments
Simple Economic Model - answers-a retailer's profits = sales revenue - costs
Sales Revenue = ∑_1^𝑛 𝑃𝑟𝑖𝑐𝑒 ∗𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦= 〗P1 * Q1 + P2 * Q2 + .... + Pan * Qn
What is a firm’s costs? - answers-costs associated with selling the goods
what is a firm’s quantity? - answers-determined by consumers - price (budget), product
itself (utilities), place (physical energy required), promotion (budget), competitor's
offerings, & other factors
What does marketing do? - answers-•brings in customers, and customers bring in
money.
•helps to build brand equity and the company's reputation.
•helps engage the customer and the company can learn from its customer relationships.
•helps a company stay ahead of the competition.
What can be Marketed? - answers-Goods, Services, Experiences, Events, People,
Places, Information, Ideas, and Companies
Evolution Of Modern Marketing - answers-•Product/production orientation - e.g., Ford
model T
-Focus on building a better gadget.
•Sales orientation
-Focus on convincing the customer that your product works best for them.
•Customer orientation
-Focus on identifying customers' wants BEFORE formulating attractive solutions.
Measuring Marketing's Effectiveness - answers-•Marketing is no longer a function within
a firm, but more of a systematic way of thinking
•Marketing is everywhere
•Sometimes the effectiveness of marketing programs is not easy to quantify.
Marketing Management Framework - answers-Who: 5 C's
