Chapter 1: Marketing: Creating Customer Value and Engagement

Question 1

Marketing

Answer 1

the process by which companies CREATE VALUE for customers and build strong customer relationships in order to CAPTURE VALUE from customers in return
- create, maintain, and grow desirable exchange relationships with target audiences involving a product, service, idea, etc

Question 2

5 core customer and marketplace concepts

Answer 2

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

Question 3

Needs

Answer 3

states of felt deprivation

• basic physical needs for food clothing, warmth and safety
• social needs for belonging and affection
• individual needs for knowledge and self-expression

Question 4

Wants

Answer 4

the form human needs take as they are shaped by culture and individual personality
- objects that satisfy needs

Question 5

Demands

Answer 5

Human wants that are backed by BUYING POWER

Question 6

Market offerings

Answer 6

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

Question 7

Marketing myopia

Answer 7

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

Question 8

The marketing process: creating and capturing customer value

- Create value for customers and build customer relationships

Answer 8

1. Understand the MARKETPLACE and customer NEEDS and WANTS
2. Design a customer value-driven marketing STRATEGY
3. Construct an INTEGRATED marketing program that delivers superior value
4. Build PROFITABLE relationships and create customer delight
5. Capture value from customers to create PROFITS and customer EQUITY

Question 9

Key building blocks for developing and managing customer relationships

Answer 9

Customer value
Customer satisfaction
- DEPENDS on marketers -> right level of expectations

Question 10

Exchange

Answer 10

The act of obtaining a desired object from someone by offering sth in return

Question 11

Market

Answer 11

the set of all actual and potential buyers of a product or service
- share a particular need/ want that can be satisfied through exchange relationships.

Question 12

Marketing is a two-way affair

Answer 12

• digital technologies, social media, online sites
• empowered consumers
  “How can our customers influence us?”
  “How can our customers influence each other?”

Question 13

A Modern Marketing system

Answer 13

Suppliers
(major environmental forces)
-> Company
-> Competitors
to Marketing intermediaries
-> Final Consumers (go back to company and competitors)
- each party adds value
- arrow = relationship that must be developed and managed.
e.g Walmart cheap = suppliers are low cost

Question 14

Marketing management

Answer 14

The art and science of choosing target markets and building profitable relationships with them
- Customer management and Demand management

Question 15

Grow target customers

Answer 15

find, engage, keep, and grow target customers by creating, delivering, and communicating superior customer value

Question 16

2 questions for marketing manager

Answer 16

what customers will we serve (target customers)

how can we serve these customers best (what’s our value proposition)

Question 17

Selecting customers to serve

Answer 17

1. market segmentation

2. target marketing

Question 18

Choosing a Value Proposition

Answer 18

• differentiate and position itself in the marketplace

- must design strong value propositions that give the greatest advantage

Question 19

Value proposition

Answer 19

set of benefits or values it promises to deliver to customer to satisfy their needs

Question 20

5 concepts that organizations design and carry out MARKETING STRATEGIES

Answer 20

1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal marketing concept

Question 21

1. Production concept

Answer 21

the idea that consumers will favor products that are AVAILABLE and HIGHLY AFFORDABLE
-> organization focus on improving production and distribution efficiency

Question 22

2. Product concept

Answer 22

the idea that consumers will favor products that offer the MOST QUALITY, PERFORMANCE, and FEATURES.
-> organization should devote its energy to making continuous product improvements

Question 23

3. Selling concept

Answer 23

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

Question 24

4. Marketing concept

Answer 24

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do

Question 25

5. Societal marketing concept

Answer 25

The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Question 26

Customer relationship management

Answer 26

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Question 27

Customer-perceived value

Answer 27

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Question 28

Customer satisfaction

Answer 28

the extent to which a product's perceived performance matches a buyer's expectations

Question 29

Customer-engagement marketing

Answer 29

Making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community

Question 30

Consumer-generated marketing

Answer 30

Brand exchanges created by consumers themselves- both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.

Question 31

Partner relationship management

Answer 31

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers

Question 32

Customer lifetime value

Answer 32

The value of the entire stream of purchases a customer makes over a lifetime of patronage

Question 33

Share of customer

Answer 33

The portion of the customer's purchasing that a company gets in its product categories

Question 34

Customer Equity

Answer 34

The total combined customer lifetime values of all of the company's customers.

Question 35

Digital and social media marketing

Answer 35

Using digital marketing tool such as Web sites, social media, mobile apps and ads, online video, e-mail, and blogs that engage consumers anywhere, at any time, via their digital devices