Ch.1 Foundations of Marketing

Question 1

How was marketing perceived in 1935?

Answer 1

-The activity that direct the goods/services from producer to consumer

Question 2

How was marketing perceived in 1985?

Answer 2

Planning, executing the conception of ideas via …
- conception
-pricing
-promotion
-distribution
Createsan exchange that satisfy individual and organizational objective

Question 3

How was marketing perceived in 2004?

Answer 3

Marketing is an organizational function, and a set of processes for CREATING, COMMUNICATING and CREATING, delivering value to costumer relationships in ways that BENEFIT the ORGANIZATION and STAKEHOLDER

Question 4

How was marketing perceived in 2007

Answer 4

Marketing is the activity, set of institutions and processes for CREATING, COMMUNICATING,DELIVERING and EXCHANGING offering that have value for

• customers
• client
• partners
• society as a large

Question 5

Academic Literature

McCarthy (1983)

Answer 5

Micro- Performance of activities which seek to accomplish organizational objectives
Macro - A social process which directs an economy’s flow if goods and services form producers to consumers in a way which effectively matches supply and demand and accomplishes the objectives of society\

Question 6

Academic Literature

Kotler (2001)

Answer 6

The science and art of exploring, creating, and delivering vlaue to satisfy needs of a target market at a profit.

Question 7

Winer and Dhar (2011)

Answer 7

The set of activities designed to influence choice whenever an individual or an organization has a choice to make.

Question 8

Describe the Basic Exchange System (4)

and name the direction of each of all four elements

Answer 8

Society at Large

Exhange system

• Outbound Communication (ads) ->
• Customer Value (creating & delivering ->
• Organizational Value (Profit & Sustainability)
• Inbound Communication

Question 9

Who are the two parties of the exchange system

Answer 9

1) Partners, organization, and producer

2) Customer, clients, and cosumer

Question 10

Needs, Wants & Demands. Describe all

Answer 10

Needs- State of felt deprivation
          - Innate
          -basis specific part of 
           human nature
Want - Specific solution to 
           satisfy need
   -Learned through culture, 
     socialization
Demand - Wants backed by 
                  buying power

Question 11

Needs, Wants & Demands. Describe each needs.

Answer 11

Needs- State of felt deprivation
- Innate
-basis specific part of
human nature

Question 12

Needs, Wants & Demands. Describe each Wants.

Answer 12

Want - Specific solution to

satisfy need

Question 13

Needs, Wants & Demands. Describe demand

Answer 13

Demand - Wants backed by

buying power

Question 14

What is the Marketing Concept:

Answer 14

A philosophy that focuses on achieving organizational goals (e.g., profit, sustainability) by analyzing the needs of customers then making decisions to satisfy those needs, better than the competition

Question 15

What the Marketing Concept is NOT

Answer 15

• Be all things to all people
• Serve all customers’ needs
  at all costs
  -The customer is always right

Question 16

Business Orientation (4)

Answer 16

Product Focused
Sales Driven
Marketing driven
Market focused

Question 17

Business Orientation - Describe Product Focused (internal)

Answer 17

Production/ product driven
  Dominant: Industrial 
  Revolution (1940)
-Focuses on mass 
production/ distribution
-Less concern w quality, variety, competition

Question 18

Business Orientation - Describe Sales Driven

Answer 18

Dominant: Post-WW2 -1960s

• Increased competition; increased choice alternatives
• Sales as a competitive advantage
• Required for unsought, shopping, complex and unknown goods

Question 19

Business Orientation - Marketing Driven

Answer 19

Dominant: later 20th century

• Numerous brand managers, layered decision making
• Over-reliance on marketing research, test markets
• Many line extensions, few “new” product

Question 20

Business Orientation - list Market Focused (external) (2)

Answer 20

1) Market Orientation

2) Societal Marketing

Question 21

Business Orientation - Market Focused (external)

- Describe Market Orientation (3)

Answer 21

1) Customer focused
2) Interdepartmental Cooperation
3) Sustainability

Question 22

Business Orientation - Market Focused (external)

• Market Orientation
• Describe Customer Focused (2)

Answer 22

1) Understand that customers buy benefits not products

2) Translate the demand for benefit

Question 23

Business Orientation - Market Focused (external)

• Market Orientation
• Describe Interdepartmental Cooperation (2)

Answer 23

• Generate and disseminate market information

- Acknowledges that customer satisfaction is the responsibility of all departments

Question 24

Business Orientation - Market Focused (external)

• Market Orientation
• Describe Sustainability (2)

Answer 24

1) Align cross-functional goals

2) Satisfy customers’ needs better than competitors

Question 25

Business Orientation - Market Focused (external) | - Describe Societal Marketing Orientation

Answer 25

Adopting a market orientation subject to long-term benefits of society

Question 26

``` Business Orientation - Market Focused (external) - Societal Marketing Orientation (21st century) Describe the (3) points ```

Answer 26

- Economic well-being - Sustainability of natural resources - Viability of key partners

Question 27

What are the first four steps on the Marketing Process and what do they represent

Answer 27

1) Understand the marketplace and customer needs/wants 2) Design a customer-driven marketing strategy 3) Construct an integrated marketing program that delivers superior value 4) Build profitable relationships and create customer delight They represent, the created value FOR CUSTOMER and build customer relationships

Question 28

What is the last step in the marketing process? What does is represent?

Answer 28

5) Captures value from customers to create profits and customer equity It represents captured value FROM CUSTOMER in return

Question 29

The Marketing Process | Define Offering Portfolio (4)

Answer 29

- Products and services - Branding, packaging and labelling - Packaging - New product development

Question 30

The marketing Process | Communication (2)

Answer 30

1) In-bound - Research and intelligence generation | 2) Outbound - Integrated communication

Question 31

The Marketing Process | Getting to Market to Market (2)

Answer 31

1) Intermediaries | 2) Partnerships and alliances

Question 32

Define a Value Proposition:

Answer 32

A set of benefits or values that you can deliver to customers to satisfy their need - Perceived Value

Question 33

How do you calculate perceived value

Answer 33

Perceived value= benefits- perceived cost to receive

Question 34

What is unique positioning

Answer 34

Why us and not the competitors | ex) Safety (Volvo), performance (BMW), Fuel economy (prius), reliability (Honda)

Question 35

Relationship Marketing name the three Relational Concepts

Answer 35

1) CRM 2) SRM 3) SCM

Question 36

Define CRM

Answer 36

Customer relationship management. - Loyalty and reward management - More than data mining

Question 37

Define SRM

Answer 37

Supplier relationship management. - join ventures, alliances - More than integrated systems

Question 38

Define SCM

Answer 38

Supply Chain Management. - End-to-end coordination - More than purchasing management