Chapter 1

Question 1

What is marketing?

Answer 1

The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

Question 2

What are the steps of the marketing process?

Answer 2

Understanding the needs & wants of customers and the marketplace
Designing a customer value-driven marketing strategy,
Constructing an integrated marketing program delivering superior value,
Engaging customers, building profitable relationships, and creating customer delight
Capturing value from customers to create profits & customer equity.

Question 3

Which steps of the marketing process are for creating value for customers, and which one is for reaping from strong customer relationships?

Answer 3

The 4 first steps are to create value for customers, the last one to capture value from customers

Question 4

What are the 5 core customer and marketplace concepts? What step of the marketing process are these linked to?

Answer 4

Needs, wants and demands
Market offerings (products, services, information or experiences)
Customer value & satisfaction
Exchanges and relationships
Markets

These are linked to understanding needs and wants

Question 5

How do companies address needs, wants and demands?

Answer 5

By putting forth a value proposition

Question 6

How is a value proposition fulfilled?

Answer 6

Through a market offering, delivering customer value and satisfaction, which results in long-term exchange relationships with customers

Question 7

How do you build a customer value-driven marketing strategy?

Answer 7

You design it with marketing management

Question 8

What is marketing management?

Answer 8

The art and science of choosing target markets and building profitable relationships with them

Question 9

How do you design a winning marketing strategy? What are the 2 questions to ask?

Answer 9

What is our target market? (who you will serve)
What is our value proposition? (how will you differentiate yourself)

Question 10

How does a company decide who it will serve?

Answer 10

First, by dividing the market into segments of customers (market segmentation), then by choosing which segments they will target (target marketing)

Question 11

What are the 5 competing market orientations?

Answer 11

The production concept
The product concept
The selling concept
The marketing concept
The societal marketing concept

Question 12

What is the production concept? (in market orientations)

Answer 12

Management’s task is to improve production efficiency and bring down the price.

Question 13

What is the product concept? (in market orientations)

Answer 13

Consumers favour products that offer the most in quality, performance, and innovative features, meaning little promotional effort is required.

Question 14

What is the selling concept? (in market orientations)

Answer 14

Consumers will not buy enough of an organization’s product unless it undertakes large-scale selling and promotional effort

Question 15

What is the marketing concept? (in market orientations)

Answer 15

Achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do

Question 16

What is the societal marketing concept? (in market orientations)

Answer 16

Generating customer satisfaction and long-run societal well-being through sustainable marketing strategies is key to both achieving the company’s goals and fulfilling its responsibilities

Question 17

What is partner relationship management?

Answer 17

A strategy for creating value and building strong customer relationships by closely working with others inside and outside the company to jointly engage and ring more value to customers

Question 18

What is customer relationship management? What does it aim to do?

Answer 18

The process of engaging customers by delivering superior customer value and satisfaction.

Question 19

What is customer-engagement marketing?

Answer 19

Making a brand a meaningful part of consumers’ conversations and lives through direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Question 20

What are customer relationship management and customer-engagement marketing aiming to do?

Answer 20

To produce high customer equity, the total combined customer lifetime values of all the company’s customers.

Question 21

What are the trends observed in the marketing world?

Answer 21

Mobile marketing, which is ideal for engaging customers anytime, anywhere, as they move through the buying process.