Session 2

Question 1

What is marketing (4 elements)

Answer 1

1. Create
2. Communicate
3. Deliver
4. Exchange
   (an offering)

Question 2

What are 3 elements marketing should optimize?

Answer 2

1. Company value
2. Customer value
3. Value to the world

Question 3

Empathic design (3 steps)

Answer 3

1. Observe consumer
2. Identify needs and pain points
3. Brainstorm and develop solutions

Question 4

What is a market (3) ?

Answer 4

1. The set of actual and potential customers for a good or service
2. People with desire and ability to buy
3. End users, intermediaries

Question 5

What are 4 eras of marketing?

Answer 5

1. Production era
2. Sales era
3. Marketing orientation era
4. Value based marketing era

Question 6

What 4 orientations related to evolution of marketing?

Answer 6

1. Product orientation
2. Sales orientation
3. Market orientation
4. Value-based orientation

Question 7

What is product orientation? (2)

Answer 7

1. Compete on price and quality
2. Assumed product would sell itself

Question 8

What is sales orientation?

Answer 8

Focus on acquiring customers - focus on selling

Question 9

What is market orientation?

Answer 9

Wants/needs of consumers should guide all firm actions

Question 10

What is value-based orientation? (2)

Answer 10

1. Value in broader sense
2. Focus on retaining customers; functional integration

Question 11

Why as product-based approach become less effective (3)?

Answer 11

1. Technology: Product life cycle became much shorter
2. Global competition: Firms can copy innovation very quickly
3. Consumer Power: Highly informed and empowered customers

Question 12

What do value-based firms do related to most valuable customers (3)

Answer 12

Understand, attract, retain

Question 13

What do customers buy?

Answer 13

Benefits/value

Question 14

How to calculate lifetime value (CLV) (ex for coffee store)

Answer 14

Price per coffee x coffee per visits (1) x visit per week x 52 week per year x # of years for which customers will buy there

Question 15

How much times more expensive to attract customer vs retaining?

Answer 15

25x

Question 16

Why do firms use customer relationship management strategies?

Answer 16

Build long term relationships

Question 17

Give 2 examples of customer relationship management strategies?

Answer 17

Customer service, loyalty programs

Question 18

What are 4Ps?

Answer 18

1. Product
2. Promotions
3. Place
4. Price

Question 19

What are 3Cs?

Answer 19

1. Customer
2. Company
3. Competitors

Question 20

What is STP?

Answer 20

1. Segmentation
2. Targeting
3. Positioning

Question 21

What are 4 elements of SWOT? Which ones internal vs external?

Answer 21

1. Strengths (int.)
2. Weaknesses (int.)
3. Opportunities (ext.)
4. Threats (ext.)

Question 22

What is positioning?

Answer 22

Way firm’s offering is perceived by customers, relative to what competitors can offer