Chapter 1: Introduction To Marketing

Question 1

What is “marketing”?

Answer 1

The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large

Question 2

What is marketing about?

Answer 2

Understanding the needs of the customer. Customer = Central focus

Question 3

What does marketing focus on?

Answer 3

• Product
• Price
• Place
• Promotion

Question 4

Without marketing, there is no..

Answer 4

Customer

Question 5

What are the goals of the “marketing concept”?

Answer 5

1. Focusing on customers wants and needs so that the organization can distinguish its offerings from its competitors
2. Integrating all the organization’s activities, including production, to satisfy customer’s wants
3. Achieving long-term goals for the organization by satisfying customers’ wants and needs legally and responsibly

Question 6

What is a “need”?

Answer 6

A state of being where we desire something that we do not possess but yearn to acquire

Question 7

What is the ‘Era of Antecedents’?

Answer 7

• Focus on luxury goods
• Distribution and warehousing take hold
• Early days of capitalism (1500s, 1600s)

Question 8

What is the ‘Era of Origins’?

Answer 8

• Mass production thanks to the Industrial Revolution
• Market segmentation and promotion are used by companies
  -Consumer choice is born

Question 9

What is the ‘Era of Institutional Development’?

Answer 9

• Complex marketplaces are introduced to manage a more complicated interaction with customers
• Marketing is a tool used by companies and better understood by consumers

Question 10

What is the ‘Era of Refinement and Formalization’?

Answer 10

• Marketing research becomes an important aspect of understanding customers and their needs
• The marketing concept (give the customer what they want) takes centre stage
• Marketing fights negative perceptions (consumerism)

Question 11

What is customer satisfaction?

Answer 11

Customer’s evaluation of a good or service in terms of whether that good or service has met the customer’s needs and expectations

1. Focuses on delighting the customer
2. Retention is important
3. Great ROI: 2% increase in retention is EQUAL to a 10% decrease in costs

Question 12

What is relationship marketing?

Answer 12

Marketing strategy that focuses on keeping and improving relationships with customers

• Customer’s preference = Longstanding relationship w/ org

Question 13

What is ‘Customer Relationship Management (CRM)’?

Answer 13

Trust is key.
1. Listening to the customer
2. Act upon customer desires
3. Share stories

Question 14

What is ‘Exchange’?

Answer 14

People giving up one thing to receive another that they would rather have

• An exchange space is needed for buyer and seller to interact

Question 15

What is ‘customer value’?

Answer 15

The relationship between benefits and the sacrifice to achieve the benefits

• Customers value goods/services that are:
  
  • of the quality that they expect
  • sold at prices they are willing to pay

Question 16

What are ‘market segments’?

Answer 16

Groups of individuals, families, or companies that are placed together because it is believe that they share similar needs

• Forms the core of marketing efforts: represents the source of customer needs
• Targets specific market segments: researching lives, trends, and needs of a particular group

Question 17

What are the steps to ‘building relationships’?

Answer 17

1. Attract new customers
2. Increase business with current customers
3. Retain current customers
4. Grow market share

Question 18

What is ‘product’ in the marketing mix?

Answer 18

The tangible and intangible aspects of a company’s offering
(i.e. ballet performance, jeans)

• Companies need to look at what needs are being satisfied and how it’ll be packaged to meet customer satisfaction levels

Question 19

What is ‘price’ in the marketing mix?

Answer 19

The quantifying of a value in exchange for a company’s offering

• Competition, customer perception, and economic factors are huge issues in pricing
• Making the best decision that satisfies the bottom line and customer

Question 20

What is ‘place’ in the marketing mix?

Answer 20

The behind-the-scenes activities of making an offering available to the customer

• Channels and logistics. Decisions on how to get a company’s product to market.

Question 21

What is ‘promotion’ in the marketing mix?

Answer 21

What most people believe marketing to be about. Most visible activities of marketing

• Trying to find the right balance of what techniques to use (including advertising) and keeping a consistent feel + look

Question 22

Why does marketing matter?

Answer 22

1. It is part of every company
2. It is a rewarding career
3. It provides an important skill set
4. It is part of everyday life