9 - MARKETING AND ADVERTISING

Question 1

• Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
• Process of engaging customers and managing profitable customer relationships
• Both a social and managerial process

Answer 1

Marketing

Question 2

Two-fold goal of marketing:

Answer 2

1. Attract new customers
2. Keep and grow current customers

Question 3

Should not focus on “telling and selling” but ?

Answer 3

“satisfying customer needs”

Question 4

Marketing Process

Answer 4

1. Understand the marketplace and customer needs and wants
2. Design a customer value-driven marketing strategy
3. Prepare an integrated marketing plan and program
4. Build and manage profitable customer relationships
5. Capture value from customers

Question 5

Includes the five core customer and marketplace concepts

Answer 5

Understand the marketplace and customer needs and wants

Question 6

Five core customer and marketplace concepts

Answer 6

1. Needs, wants, and demands
2. Market offerings (products, services, and expenses)
3. Value and satisfaction
4. Exchanges and relationships
5. Markets

Question 7

Answers 2 questions:
1. What customers will we serve (what’s our target market)?
* Market segmentation
* Target marketing
2. How can we serve these customers best (what’s our value proposition)?
* Value proposition – set of benefits or values it promises to deliver to consumers to satisfy their needs

Answer 7

Design a customer value-driven marketing strategy

Question 8

set of benefits or values it promises to deliver to consumers to satisfy their needs

Answer 8

Value proposition

Question 9

• Transforms the organization’s marketing strategy into action
• Marketing mix

Answer 9

Prepare an integrated marketing plan and program

Question 10

marketing tools used to implement the marketing strategy (also called 4Ps)

Answer 10

Marketing mix

Question 11

what are the 4Ps?

Answer 11

Product
Price
Place
Promotion

Question 12

• Destination point of the first 3 steps of the marketing process
• Most important step
• Customer relationship management
• Deals with the aspects of acquiring, engaging, and growing customers

Answer 12

Build and manage profitable customer relationships

Question 13

Deals with the aspects of acquiring, engaging, and growing customers

Answer 13

Customer relationship management

Question 14

• Focuses on outcomes of building customer relationship such as sales, market share, and profits

Answer 14

Capture value from customers

Question 15

Possible outcomes of capturing value from customers

Answer 15

1. Customer loyalty and retention
   * Customer lifetime value – the value of the entire stream of purchases a customer makes over a lifetime of patronage
2. Share of market and customer
3. Customer equity
   * Total combined lifetime values of a company’s current and potential customers

Question 16

• Key building blocks for developing and managing customer relationships
• Influenced by customer expectation
• If you meet their expectations = high satisfaction
• Expectations may also be set by marketers

Answer 16

Value and satisfaction

Question 17

• Exchange – the act of obtaining a desired object from someone by offering something in return
• May be:
  1. Buying the product
  2. Acquiring the service
  3. Signing up for membership
  4. Donating to an organization, etc.

Answer 17

Exchanges and relationships

Question 18

• Set of actual and potential buyers of a product or service
• Buyers have a common need or want that is satisfied through exchange relationships
• Marketing – making sure that the organization has a profitable relationship with the “market”

Answer 18

Markets

Question 19

• Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
• Used to engage, inform, and persuade the public to achieve its objective

Answer 19

Advertising

Question 20

Possible Advertising Objectives

Answer 20

1. Informative Advertising
2. Persuasive Advertising
3. Reminder Advertising

Question 21

• Communicating customer value
• Building a brand and company image
• Telling the market about a new product
• Explaining how a product work
• Suggesting new uses for a product
• Informing the market of a price change
• Describing available services and support
• Correcting false impressions

Answer 21

Informative Advertising

Question 22

• Building brand preference
• Encouraging switching to a brand
• Changing customer perceptions of product value
• Persuading customers to purchase now
• Creating customer engagement
• Building brand community

Answer 22

Persuasive Advertising

Question 23

• Maintaining customer relationships
• Reminding consumers that the product may be needed in the near future
• Reminding consumers where to buy the product
• Keeping the brand in a customer’s mind during off-seasons

Answer 23

Reminder Advertising

Question 24

Differences between Marketing and Advertising

Answer 24

Marketing
* Systematic planning, implementation, and control of a mix of activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products or services
* Step-by-step process that begins with a unique selling proposition—a short compelling sentence that describes your business
* All marketing elements must work independently but they also must work together toward the bigger goal of one unified marketing campaign with a common message

Advertising
* Only one component of the overall marketing process
* Includes the placement of an ad in such mediums as newspapers, magazines, direct mail, billboards, TV, radio, and online
* Most expensive part of all marketing plans

Question 25

Consists of creating different groups of customers based on geographic boundaries.

Answer 25

Geographic Segmentation

Question 26

Consists of dividing the market through different varlables such as age, gender, income, etc.

Answer 26

Demographic Segmentation

Question 27

Consists of grouping the target audience based on their behavior, lifestyle, attitudes and interests.

Answer 27

Psychographic Segmentation

Question 28

Focuses on specific reactions and the way customers go through their purchasing processes.

Answer 28

Behavioral Segmentation