Marketing Terminology Glossary

Competitive advantage is best described as the

• quality making a product more desirable than rivals

• increase in units sold due to heavy advertising

• legal protection that prevents imitation by others

• ability to offer the lowest price in the market

Product differentiation primarily involves

• features distinguishing a company’s product from others

• reducing costs by standardizing internal processes

• using price promotions to increase repeat purchases

• expanding distribution to reach multiple new regions

In marketing, utility refers to the

• power of a good or service to satisfy a need

• legal ownership granted by paying the full price

• sum of benefits received after a rebate program

• value created by lowering taxes on consumer goods

Form utility is created when a business

• transforms inputs and materials into products

• delivers goods to stores in nearby locations

• offers extended hours for peak shopping times

• facilitates financing to transfer ownership

Place utility focuses on

• making products available in convenient locations

• adding services that improve product durability

• extending warranties to reduce purchase risk

• offering financing plans for easier ownership

Possession utility arises when a consumer

• gains ownership or the right to use a product

• can find the product in a nearby retail outlet

• receives the product during preferred hours

• sees features transformed to fit new needs

A marketing strategy is the

• overall plan for marketing a specific product

• set of operational rules for factory efficiency

• framework for securing external venture capital

• procedure for handling customer service calls

In marketing, a market is best defined as

• people who want a product and can buy it

• all businesses operating in a given industry

• any place where goods and services are exchanged

• the total population living in a given country

The industrial/organizational market consists of customers who

• buy goods for resale or use in business

• purchase products solely for household use

• seek luxury items based on emotional motives

• are segmented only by demographic traits

The consumer market is the population that

• buys goods and services for personal use

• procures inputs for production processes

• resells merchandise to retail partners

• contracts services for organizational goals