Chapter 1

Question 1

What is marketing?

Answer 1

Creating customer value, building customer relationship and engaging customers.

Question 2

Marketing Process Steps

Answer 2

1. Understand the marketplace and customer needs and wants.
2. Create customer value
3. Prepare an integrated marketing plan and program
4. Customer relationship management
5. Capture value from customers to create profits and customer equity

Question 3

Five core customer and marketplace concepts.

Answer 3

1. Needs, wants, and demands
2. Market offerings
3. Value and satisfaction
4. Exchanges and relationships
5. Markets

Question 4

Market offerings

Answer 4

Products, services, information, and experiences

Question 5

Winning market strategy - what two questions must a marketing manager answer?

Answer 5

1. What customers will we serve?

2. How can we serve these customers best?

Question 6

The marketing concept

Answer 6

A firm should have a customer focus to achieve sales and profits

Question 7

Keys to guiding lasting customer relationships

Answer 7

Superior customer value and satisfaction

Question 8

Share of customer

Answer 8

The share a company gets of a customer’s purchasing in its product categories

Question 9

Big data and marketing analytics…

Answer 9

Enhances how marketers learn about and interact with customers

Question 10

The key to learn about and engage with individual customers is to blend the new digital technologies and approaches with traditional marketing to create…

Answer 10

A smoothly integrated marketing strategy and mix

Question 11

Goals of marketing

Answer 11

1. Attract new customers

2. Keep and grow current customers

Question 12

Traditional vs contemporary marketing

Answer 12

Traditional - “telling and selling”

Contemporary - satisfying customer needs

Question 13

Demands

Answer 13

When human wants are backed by buying power.

Question 14

Market

Answer 14

Set of actual and potential buyers

Question 15

Sellers market

Answer 15

Sellers search for buyers, identify their needs, design market offerings, set prices, promote them, store and deliver them.

Question 16

Consumers market

Answer 16

Consumers search for products interact with companies to obtain info and make purchases

Question 17

Customer value driven marketing strategy

Answer 17

Company must decide which customers to serve and how it will bring them value

Question 18

Selecting customers to serve

Answer 18

Market segmentation - dividing markets into segments of customers

Target marketing - which segments to go after

Question 19

Value proposition

Answer 19

Company must decide how it will differentiate and position itself in marketplace.

Value proposition - set of benefits or values it promises to deliver to consumers

Question 20

Production concept

Answer 20

Consumers will favor products that are available and highly affordable. Keep costs down so prices can stay low.

Question 21

Product concept

Answer 21

Customers favor products that offer most quality, performance, and features. Focuses on continuous improvement.

Question 22

Selling concept

Answer 22

Consumers will not buy enough of the firm’s products unless firm undertakes large scale selling and promotion effort.

Question 23

Societal marketing concept

Answer 23

Should consumers company profits, consumer wants, and society’s interests

Question 24

Marketing mix (4 P’s)

Answer 24

Product, place, price, promotion

Question 25

Maintaining customer relationship

Answer 25

Customer perceived value - customer’s evaluation of marketing offer relative to competing offers Customer satisfaction - extent to which products perceived performance matches buyer’s expectations

Question 26

Customer engagement marketing

Answer 26

Internet and social media Companies using technology to engage customers.

Question 27

Consumer generated marketing

Answer 27

Brand exchanges created by consumers | Ex.) MyOreoCreation Contest

Question 28

Partner relationship management

Answer 28

Partners inside firm - cross functional teams Partners outside the firm - suppliers, channel partners

Question 29

Creating customer loyalty and retention

Answer 29

Less costly to keep customers loyal than bringing in new customers. Customer lifetime value- value of the entire steam of purchases that a customer makes over a lifetime of patronage

Question 30

Customer equity

Answer 30

The total combines customer lifetime values of all company’s current and potential customers. Better measure of a firm’s performance than current sales or market share.

Question 31

Customer relationship groups

Answer 31

Strangers- low projected loyalty and low potential profitability Butterflies- profitable but low loyalty True friends- loyal and highly profitable Barnacles- loyal but low profitability

Question 32

Digital Age

Answer 32

Digital and social media marketing Mobile marketing Big Data and AI - used by marketers to analyze data