OVERVIEW OF MARKETING

Question 1

Customer Value (Driven Marketing)

Answer 1

Benefits would be more important than costs

Question 2

Benefits

Answer 2

-Functional
-Social
-Personal
-Experimental

Question 3

Costs

Answer 3

-Monetary
-Temporal
-Psychological
-Behavioral

Question 4

Functional

Answer 4

basic purpose of the product,
(e.g., watch keeps time, car takes you from point A to point B)

Question 5

Social

Answer 5

benefit you derive when other people admire and appreciate what you own or posses,

(e.g., you own an expensive car and it may signal to others something about you that you want them to know: may raise status or seem cool)

Question 6

Experimental

Answer 6

derived through one of the five senses

(e.g., visit to a theme park has lots of experimental benefits one can derive.)

Question 7

Personal

Answer 7

based on benefits that are closely aligned with your personal values

(e.g., an electric car if you are concerned about the effect of fossil fuels on the environment.)

Question 8

Customer Value

Answer 8

sometimes, more than one benefit can be offered by a brand

(e.g., an electric car may you look hip among your friends.)

Question 9

Monetary

Answer 9

how much you pay?

Question 10

Temporal

Answer 10

time taken to use the product.
-the opposite of time as a cost could be that some products save you time

(ex. a slow cooker takes more time to cook than a microwave. So temporal cost is more. If food tastes better, then experimental benefit is more with cooker. Now you decide what matters more to you-taste vs. time. That influences your decision to buy.)

Question 10

Psychological

Answer 10

this is a mental cost.

Usually the uncertainty associated with whether you are making the right choice, is this the right laptop for me? etc.

Question 11

Behavioral

Answer 11

the physical effort required to make a product work

(e.g., furniture has to be transported to our homes. How do we move it? Washer has to be moved and connected properly.)

Question 12

EXAMPLES: When a person donated blood to the Red Cross, what kind. of benefits do they derive?

A. Functional
B.Psychological
C.Personal
D.Experimental

Answer 12

C.Personal

• We donate blood as we feel we are doing something good for society.

Question 13

Different Views of Marketing Seen in Different Firms

Answer 13

-Production Orientation

-Product Orientation

-Sales Orientation

-Market Orientation
(Marketing Concept)

-Societal Orientation

Question 14

Marketing Concept

Answer 14

-Develop products based on what customers need and want.

-Almost anything can be marketed (e.g., Red Cross)

Question 15

Different Orientations Towards Marketing (Marketing Concept)

Answer 15

Not every company feels that this is what marketing is all about: products based on customer’s wants and needs

Question 16

Customer Value

Answer 16

Smart marketers understand customers so well that they figure out what customers really need and offer something even before customers express a need for a product or service.

These are usually “extremely” successful products or service in the marketplace.

Question 17

Customer Value

Answer 17

Ikea furniture –> Designer furniture at regular price. How did they do it?

Question 18

Customer Equity

Answer 18

total combined customer lifetime values of all of the company’s customers

number of customers x the average value of each customer

Question 18

Customer Lifetime Value

Answer 18

a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship

customer value x average customer lifespan

Question 19

Order of Chart

Answer 19

1. Superior Customer Value
   2.Customer Satisfaction and Delight
2. CustomerLoyalty
   4.Long Term Profitable Relationships