CHAPTER 1

Question 1

Marketing

narrow definition

Answer 1

The process by which companies
- engage customers
- build strong customer relationships
- create customer value
=> to capture value from customers in return.

Question 2

The marketing Process

steps

Answer 2

1. Understand the marketplace and customers needs and wants
2. Design a customer value-driven mkt strategy
3. Construct an integrated mkt program that delivers superior value
4. Engage customers, build profitatble relationships, and create customer delights.
5. **Capture value from customers ** to create profits and customer equity

Question 3

5 core customer and marketplace concepts

Answer 3

1. needs, wants, and demands
2. market offerings (products, service and experiences)
3. customer value and satisfaction
4. exchanges and relationships
5. markets

Question 4

needs

Answer 4

states of felt deprivation

Question 5

wants

Answer 5

the form human needs take as they are shaped by culture and individual personality

Question 6

demands

Answer 6

human wants that are backed by buying power

Question 7

market offerings

Answer 7

some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Question 8

marketing myopia

not used in modern world

Answer 8

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

mistake of products>experience

Question 9

Exchange

Answer 9

the act of obtaining a desired object from someone by offering something in return

Question 10

Market

Answer 10

the set of all actual and potential buyers of a product or service

Question 11

marketing management

Answer 11

the art and science of choosing target markets and building profitable relationship with them

Question 12

Key elements of a customer-driven marketing strategy

Answer 12

• select a customers to serve
• choose a value proposition
• prepare an integrated marketing plan

Question 13

selecting customers to serve

Answer 13

• market segmentation: devide the market into segments of customers
• target marketing: select which segments to go after

Decide whom it will serve

Question 14

choosing a value preposition

Answer 14

how to differentiate and position itself in the marketplace

Question 15

value proposition

Answer 15

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

Question 16

Production concept

Answer 16

Idea: consumers will favor products that are Available and Highly Affordable
=> the organization should focus on improving production and distribution efficiency

Question 17

Product concept

Answer 17

Consumers will favor products that offer the most in quality, performance, and innovative features

Question 18

Selling concept

Answer 18

Consumers won’t buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort

Question 19

marketing concept

a

Answer 19

a philosophy in which achieving org. goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

Question 20

The selling concept procedure

Answer 20

• starting point: factory
• Focus: Existing products
• means: selling and promoting
• ends: profits through sales volume

the selling concept takes an inside-ouut view that focuses on existing products and heavy selling. The aim is to sell what the company makes rather than making what the customer wants

Question 21

societal marketing concept

Answer 21

the idea that a company’s marketing decisions should consider
- consumers’ wants,
- the company’s requirements,
- consumers’ long-run interests,
- societal long-run interests

Question 22

concept of shared value

Answer 22

creating economic value in a way that also creates value for society

Question 23

4 steps of strategic planning

Answer 23

1. Defining the mission statement
2. Setting company objectives and goals
3. Collection of businesses and products that make up the company
4. at market level, plan marketing strategies and tactics

Question 24

mission statement

Answer 24

statement of the org’s purpose, and should be market-oriented, not product-oriented

Question 25

marketing mix

Answer 25

collection of marketing tools and activities a company employs, and includes considerations of product, pricing, distribution (i.e. place/location), and promotion (i.e marketing communications and advertising)

Question 26

marketing strategy

Answer 26

company’s top level decisions about how to employ tactics of each of the 4Ps - the marketing mix