1.2.

Understanding business concepts

1.2.1. Match the key terms in column A with the suitable definitions in column B.
A. Key terms B. Definitions
LO1: A. a three-part business philosophy: (1) a customer orientation, (2) a
marketing service orientation, and (3) a profit orientation
marketing concept B. the process of learning as much as possible about customers and doing
customer relationship everything you can to satisfy them - or even exceed their expectations - with
management (CRM)
goods and services
C. 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

LO2: A. any physical good, service, or idea that satisfies a want or need plus
marketing mix anything that would enhance the product in the eyes of consumers,
product such as the brand
test marketing B. the process of testing products among potential users
brand name C. the ingredients that go into a marketing program: product, price,
promotion place, and promotion
D. a word, letter, or group of words or letters that differentiates one
seller's goods and services from those of competitors
E. all the techniques sellers use to inform people about and motivate
them to buy their products or services

LO3: A. data that you gather yourself

marketing research B. a small group of people who meet under the direction of a discussion
secondary data leader to communicate their opinions about an organization, its products, or
primary data other given issues
focus group C. information that has already been compiled by others and published
in journals and books or made available online
D. the analysis of markets to determine opportunities and challenges,
and to find the information needed to make good decisions

LO4 and LO6: A. all the individuals and organizations that want goods and services
environmental scanning to use in producing other goods and services or to sell, rent, or supply
consumer market goods to others
business-to-business (B2B) B. all the individuals or households that want goods and services for
market
personal consumption or use
C. the process of identifying the factors that can affect marketing
success; include global, technological, sociocultural, competitive, and
economic influences
 LO5:
market segmentation
geographic segmentation
demographic segmentation
psychographic segmentation
benefit segmentation
volume (usage) segmentation
A. dividing the market by usage
B. the process of dividing the total market into groups whose members
have similar characteristics
C. dividing the market by determining which benefits of the product to
talk about
D. dividing a market by cities, counties, states, or regions
E. dividing the market by age, income, and education level
F. dividing the market using the group's values, attitudes, and interests

niche marketing A. marketing strategy with the goal of keeping individual customers
one-to-one marketing over time by offering them products that exactly meet their
mass marketing requirements
relationship marketing B. the process of finding small but profitable market segments and
designing or finding products for them
C. developing a unique mix of goods and services for each individual
customer
D. developing products and promotions to please large groups of
people

1.2.2. Read each statement below carefully. Place a T on the line if you think a statement is TRUE.
Place an F on the line if you think the statement is FALSE. If you have questions, raise your hand and
ask your lecturer.
1. After World War II, the tremendous demand for goods and services among the returning veterans allowed
businesses to sell whatever they produced without having to worry about what the competition was doing.
_____
2. It is the job of marketers today to persuade consumers to buy the goods and services those marketers have
available to sell. _____
3. Social media is not having an effect on the emerging era of mobile/on-demand marketing. _____
4. Marketers are concerned with selling goods and services, and therefore are not involved in designing the
products their firm will sell. _____
5. Marketing involves developing and promoting a firm's products and allowing the firm's purchasing
department to make all distribution and transportation decisions. _____
6. Marketing focuses on the pricing and distribution of want-satisfying products, as well as determining the
best way to promote the products to consumers. _____
7. The secondary data collected in the research process does not need to be carefully evaluated since it's
always collected from reliable secondary sources. _____
8. Because accurate and timely market information is vital to a firm's success, businesses should budget
whatever it takes to get the best data available. _____
9. The purchase of a cash register is likely a B2B product. _____
10. In order to be successful, marketers avoid small market segments in favor of larger targets. _____

1.2.3. Read each question and answer choice carefully and circle the correct answer, A, B, C or D
1. According to the _________ concept, a firm must (1) find out what customers want and provide it,
(2) make sure everyone in the organization has customer satisfaction as an objective, and (3) provide
goods and services that will earn a profit.
A. stakeholder relationship C. marketing
B. consumerism D. demand-side
2. Firms that have adopted _________ seek to do more than simply sell a product; they seek to learn
as much as possible about their customers in order to satisfy them with goods and services over time.
A. nonprofit marketing C. management by objectives
B. customer relationship management D. the marketing mix
3. A ___________ orientation refers to the process of determining the wants and needs of buyers and
then providing goods and services to meet or exceed their expectations.
A. market C. customer
B. profit D. production
4. Which of the following is a part of the marketing concept?
A. a consumer orientation C. financial return orientation
B. avoidance of risk D. emphasis on efficient production
5. Which of the following statements is most consistent with today's views on effective marketing?
A. "There's a sucker born every minute."
B. "Find out what your competition does and do it better."
C. "A good promotional campaign can sell anything."
D. "Learn about your customers and exceed their expectations."
6. Comparing the business practices of the 1950s to those of today indicates that today's marketing
managers:
A. have a more ambitious goal of not just satisfying customers, but of exceeding their expectations.
B. are much more focused on production and mass marketing.
C. put less emphasis on earning a profit, since doing so makes it harder to satisfy the needs of the firm's
stakeholders.
D. operate essentially the same as their predecessors.
7. Which of the following statements about marketing is the most accurate?
A. Because nonprofit organizations are not motivated by profit, marketing activities are not consistent with
their goals.
B. To be successful, marketers must be able to persuade consumers to purchase goods they don't really need.
C. Once a product is sold, focus on the next customer.
D. Marketers recognize the need to learn as much as possible about customers and do everything possible to
satisfy them.
8. Which of the following refers to the process of dividing the total market into several groups with
similar characteristics?
A. Market segmentation C. Market determinants
B. Market differentiation D. Market partitioning
9. Which of the following refers to the process of dividing the total market into several groups with
similar characteristics?
A. Market segmentation C. Market determinants
B. Market differentiation D. Market partitioning
10. __________ marketing is the marketing of products to groups of customers a firm decides it can
serve profitably.
A. Objective C. Target
B. Departmentalized D. Subjective
1.2.4. Questions and Answers
Helping terms With the assistance of the terms in the left column, fill in the blanks to answer the
following questions. Please note that in some cases, you must use your own words.

marketing 1. What does it mean to “help the buyer buy?”

marketing concept In the past ___________ focused entirely on helping the seller sell the ___________.
customer Today marketing has ___________ from selling to helping the buyer buy. It is critical
relationship
today that organizations do everything to help ___________ make decisions.
management
(CRM)
marketing mix 2. What are the three parts of the marketing concept?
product The three parts of the marketing concept are: (1) ___________ orientation, (2)
test marketing ___________ orientation, and (3) a ___________ orientation.
brand name
promotion 3. What are the Four P’s of the Marketing Mix?
marketing research
The Four P’s of the marketing mix are: (1) ___________, (2) ___________, (3)
secondary data
primary data ___________, and (4) ___________.
focus group
environmental 4. What are the four steps in the marketing research process?
scanning The steps in the marketing research process are as follows: (1) ___________ the problem and
consumer market ___________the present situation, (2) Collect the research ___________, (3)
___________the research data, and (4) Choose the best ___________ and then implement it.

5. What factors are included in environmental scanning?

The factors in environmental scanning include: g___________, t___________,
s___________, c___________, and e___________ influences.
1.3. Video worksheet
Before you watch
1.3.1. Work with a partner. Answer the questions.
1. Have you ever written survey questions?
2. Can you name some survey question types?
3. What are some common survey question mistakes?

While you watch

1.3.2. Watch the first part of a film about the power of market survey. Complete the survey
questions and answers with the information you hear. Use no more than two words and/or
number.
A: Hi, excuse me I'm doing a survey on ________ and I was ________ if you have four minutes
to give me to answer some questions?
B: It's just four minutes?
A: Yes, and then to show our ________ you will receive a six-dollar ________.
B: I'd love to help.
A: All right so looking at this product, how ________ would you be to buy it?
B: Not ________.
A: Why not?
B: It looks ________ for me. Okay.
A: But if a friend were to ________ it to you, how likely you would be then?
B: Maybe if it didn't cost more than my ________.
A: Okay. So in a ________ of one to five, how likely would you be to buy it if a friend recommended
it to you?
B: One ________ very likely?
A: Yeah.
B: Maybe about a two.
A: All right. Just ________ more questions.
B: Awesome.
A: [LAUGH] All right, so let's say a friend recommended that you buy it knowing that it's ________
more than your regular toothpaste. How likely would you be to buy it?
B: Not very likely. I don't ________ product like toothpaste.
A: Okay. So, if you understood that this product prevents ________ because it has ________ in it,
how likely would you be to buy it?
B: Got me there. I really can't afford ________ to a dentist. So, very likely.
A: Okay. Thank you very much for ________. And have a good day.
A: Thank you.
B: You're welcome. [SOUND]
1.3.3. In the second part of the film, Elizabeth and her manager are talking about the survey
power. Decide if the sentences are true (T), false (F), or not given (NG)
1. Elizabeth conducted the market survey. _____
2. Katherine gave Elizabeth some analytics of the survey. _____
3. The team decided to plot their survey data on a graph. _____
4. The graph demonstrates the sales data in the past and in the future. _____
5. The team agreed on the power of the survey. _____

After you watch

1.3.4. Work with a partner. Read the following blog post which gives you good and bad example
survey questions with explanation.
"Survey Questions 101: Do You Make any of These 7 Question Writing Mistakes?" (blog)
http://www.qualtrics.com/blog/writing-survey-questions/

1.3.5. With the assistance of Qualtrics application, write 10 survey questions about the Faculty
of Foreign Languages of Nguyen Tat Thanh University. Then send a short report of the survey
results to your lecturer in the next class meeting.
1.4. Critical thinking activities
1.4.1. Consumer or B2B good?
For each product below, indicate whether it is a consumer good, a B2B (industrial) good, or both.
Explain the reasons for your choices.

Item Type of Good Rationale

… Consumer
1. McDonald’s Big Mac … B2B
… Both
… Consumer
2. Xerox copy paper … B2B
… Both
… Consumer
3. 14-pound bag of sugar
… B2B
(1 pound = 450 grams)
… Both
… Consumer
4. A set of Lego building
… B2B
toy
… Both
… Consumer
5. Hewlett-Packard laser
… B2B
printer
… Both
… Consumer
6. Band-Aid strips … B2B
… Both
… Consumer
7. Designer wedding
… B2B
dress
… Both
… Consumer
8. 20-pound box of
… B2B
framing nails
… Both
9. Craftsman 48-inch-cut … Consumer
riding lawnmower (1 … B2B
inch = 2.54 … Both
centimeters)
… Consumer
10. Thermos bottles and
… B2B
lunch boxes
… Both
1.4.2. Identifying the target market

For each of the products below, identify the target market. Be specific. For example, the target market
for Just For Men hair color could be broadly defined as “men.” However, by analyzing the potential
users and characteristics, a narrower market segment can be defined—men, over 40, involved in a
romantic relationship, with some amount of disposable income, who care about looking younger.

Product/Service Target Market

1. Hypertension prescription
drug

2. Wilson tennis racquet

3. Bobby Fresh disposable diaper

4. Avon cosmetics

5. Cesar gourmet canned dog

food

6. First-class airline ticket to

Hanoi

7. Set of twin-sized bed linens

8. Sterling silver flatware, one

setting

9. Hummer SUV

10. Romantic novel from Amazon

1.5. Case study discussion and presentation
1.5.1. Read the following case study

CUSTOMER-ORIENTED MARKETING CONCEPTS AT THERMOS

Thermos is the company made famous by its Thermos bottles and lunch boxes. Thermos also
manufactures cookout grills. Its competitors include Sunbeam and Weber. To become a world-class
competitor, Thermos completely reinvented the way it conducted its marketing operations. By
reviewing what Thermos did, you can see how new marketing concepts affect organizations.

First, Thermos modified its corporate culture. It had become a bureaucratic firm organized by function:
design, engineering, manufacturing, marketing, and so on. That organizational structure was replaced by
flexible, cross-functional, self-managed teams. The idea was to focus on a customer group—for example,
buyers of outdoor grills—and build a product development team to create a product for that market.

The product development team for grills consisted of

six middle managers from various disciplines,
including engineering, manufacturing, finance, and
marketing. They called themselves the Lifestyle Team
because their job was to study grill users to see how
they lived and what they were looking for in an outdoor
grill. To get a fresh perspective, the company hired
Fitch, Inc., an outside consulting firm, to help with
design and marketing research. Team leadership was
rotated based on needs of the moment. For example,
the marketing person took the lead in doing field
research, but the R&D person took over when technical
developments became the issue.

The team’s first step was to analyze the market. Together, team members spent about a month on the
road talking with people, videotaping barbecues, conducting focus groups, and learning what people
wanted in an outdoor grill. The company found that people wanted a nice-looking grill that didn’t
pollute the air and was easy to use. It also had to be safe enough for apartment dwellers, which meant
it had to be electric.

As the research results came in, engineering began playing with ways to improve electric grills.
Manufacturing kept in touch to make sure that any new ideas could be produced economically. Design
people were already building models of the new product. R&D people relied heavily on Thermos’s
core strength—the vacuum technology it had developed to keep hot things hot and cold things cold in
Thermos bottles. Drawing on that technology, the engineers developed a domed lid that contained the
heat inside the grill.

Once a prototype was developed, the company showed the model to potential customers, who
suggested several changes. Employees also took sample grills home and tried to find weaknesses.
Using the input from potential customers and employees, the company used continuous improvement
to manufacture what became a world-class outdoor grill.
No product can become a success without communicating with the market. The team took the grill on
the road, showing it at trade shows and in retail stores. The product was such a success that Thermos
is now using self-managed, customer-oriented teams to develop all its product lines.

1.5.2. Discuss the following questions with your team members

1. How can Thermos now build a closer relationship with its customers online?

2. What other products might Thermos develop that would appeal to the same market segment that
uses outdoor grills?

3. What do you think the Thermos team would have found if it had asked customers what they thought
about having consumers put the grills together rather than buying them assembled? What other
questions might Thermos place on its website to learn more about customer wants and needs?

1.5.3. Analyze for the above case, covering the following items in your PowerPoint presentation

1. Summary of background and facts

2. Statement of the “core” problem
3. Secondary problems
4. Constraints and limiting factors
5. Alternate solutions
6. Implementation of the most feasible solution
7. Justification