BMI 3C1
Chapter 1: What Is Marketing? Answer Key
Mrs. Arnold
1. It is necessary to use different marketing methods for industrial goods compared
to consumer goods because the industrial buyer is purchasing for the organization
and is less interested in advertising and other promotional features.
2. Examples: Vary. Could use Steel turned into sheet metal, turned into a car door,
turned into a car.
3. The 3 steps to follow in applying the marketing concept are:
1) Identify an opportunity in a specific consumer or industrial market.
2) Ensure that the opportunity has not already been met in the competitive
market.
3) Use appropriate marketing strategies to organize marketing plans and to sell
its product or service successfully.
4. Items that are similar and have a large amount of competition should use
advertising. Industrial products do not require much advertising, if any, as the
needs/wants of the industrial buyer are different than that of the final consumer.
Also, products with little to no competition require less advertising.
5. Businesses have moved from production oriented to consumer oriented, with a
modern day focus on social and corporate responsibility.
6. Regional organization (Ontario, Quebec, Maritimes, Western Provinces),
international organization (North America, Europe, Asia, etc.) by brand (eg:
Nestle by beverage, cereal, dessert, baby food) and by distribution (Eg: Milk or
Soft Drinks; vending machines, hotels, restaurants, grocery stores).
7. Marketing Research: Collecting and analyzing information to solve a marketing
problem or understand the potential market.
8. Branding: creating a slogan, term, trademark, or design or a combination of these
to give a product an identity and differentiate it (make it difference) from the
competition.
9. a) Too much inventory means that the company has paid to produce or purchase
the inventory and has not sold it. It tied up money on its inventory.
b) Too little inventory may mean that customers may need to go elsewhere, to the
competitor, to purchase the good or service. This may result in a loss of business and
loss of customers.
BMI 3C1
Chapter 1: What Is Marketing? Answer Key
Mrs. Arnold
10.
Similarities
Differences
Nonprofit
Doesn’t have profit as main
motive
Raises money for a specific
cause (Canadian Cancer
society, Heart & Stroke)
Not-for-profit
Doesn’t have profit as main
motive
Raises money for its
members (child care coop,
housing)
11. Consumer market refers to all those consumers who are or may be interested in a
particular product or service and who have the means by which to purchase it.
Competitive market comprises all the products or services that compete with one
another for consumers’ money within a specific category.
12. B2B: Refers to business to business marketing. One business sells or supplies
another business (industrial/institutional consumer)
B2C: Refers to business to consumer marketing. A business sells to a final
consumer.
13. 4P’s Product, Price, Place and Promotion. 2C’s Customer and Competition.
14. Marketing Strategy: How a company uses its marketing mix in its efforts to sell
its product to its customers.
Marketing Plan: A document outlining a company’s marketing strategy and how
it will achieve its marketing goals.
15. Value Equation: adds all the benefits of a product, real and imagined, and
subtracts all of the costs involved in obtaining the product. Benefits and costs are
assigned values based on importance.
16. Varies
17. Push strategy: Sells the product to retailers, importers, or wholesalers, and not to
end-use consumers. Focus marketing efforts on distributors or sellers to “push”
the product to the consumer.
18. Pull strategy: Attempts to increase consumer demand directly, rather than rely on
retailers to sell the product to the customer. Focus marketing efforts on final
consumer to increase demand for the good/service.
BMI 3C1
Chapter 1: What Is Marketing? Answer Key
Mrs. Arnold
19. Push and pull strategy could be used to optimize effectiveness. Push strategy can
stand alone.
20. Security/safety and inability to try on the product or see it in person.
21. Industrial good: Goods purchased for producing other goods/services (by
businesses). Consumer good: goods produced for consumption by the final
consumer/general public (eg: shoes, clothing, etc.)
22. Modern marketing concept evolved by increased competition and a shift in power
from producers to consumers, giving consumers more choice.
23. Promotion: Advertising, sales promotion, branding, personal selling, publicity and
public relations.
24. Refer to question 14.