1. Marketing: Creating Customer Value and Engagement

Question 1

Marketing is a process by which companies

engage, build, create -> capture

Answer 1

1. “engage” customers
2. “build” strong customer relationships
3. “create” customer value
   => “capture” value from customers

Question 2

The Marketing Process: Creating and Capturing Customer Value
I/ Create value for customers and build customer relationships:
1. Understand
2. Design strategy and plan
3. Construct program
4. Engage, build, create
II/ Capture value

Answer 2

1. “Understanding” the Marketplace and Customer Needs
2. “Designing” a Customer Value–Driven Marketing “Strategy and Plan”
3. “Construct” an Integrated Marketing “program” that Delivers Superior Value
4. Engage customers, build profitable relationships, and create customer delight
5. Capture value -> profits, customer equity

Question 3

Needs (deprivation) (definition, 3 types)

Answer 3

states of felt “deprivation” (sự thiếu thốn)

• “physical” needs (food, clothing, warmth, and safety)
• “social” needs (belonging and affection)
• “individual” needs (knowledge and self-expression)

*Marketers did not create these needs; they are a basic part of the human makeup.

Question 4

Wants (needs + culture, individual personality) (definition, eg.)

Answer 4

The form “human needs” take as they are shaped by:
1/ “culture”
2/ “individual personality”

Wants are:
1/ shaped by one’s society
2/ described in terms of objects that will satisfy those needs
\+ An American
-> needs food
-> "wants" a Big Mac, fries, and a soft drink. 
\+ A person in Papua, New Guinea
-> needs food
-> "wants" taro, rice, yams, and pork

Question 5

Demands (wants + buying power) (definition)

Answer 5

Human “wants” that are backed by “buying power”.

wants + resources = demand
products and services with benefits that add up to the most value and satisfaction

Question 6

*Market offerings (4 things)

Answer 6

Some combination of:
1. products
2. services
3. information
4. experiences
offered to a market -> satisfy a need or want.

Market offerings are not limited to physical products. They also include services activities or benefits offered for sale that are
+ “intangible”
+ “do not result in the ownership” of anything.

*Market offerings also include other entities, such as “persons, places, organizations, information, and ideas”
+ “Happiness Is Calling” advertising campaign that invites visitors to come and enjoy…-> person
+ “Stop the Texts. Stop the Wrecks” campaign that markets the idea of eliminating texting while driving -> idea

Question 7

Marketing myopia (product > benefit)

Answer 7

The mistake of paying more attention to the specific products > benefits and experiences produced by these products.

These sellers will have trouble if a new product comes along that serves the customer’s need better or less expensively. The customer will have the “same need” but will “want the new product”.

Question 8

Exchange

Answer 8

The act of “obtaining a desired object” from someone by “offering something in return”.

In the broadest sense, the marketer tries to bring about a response to some market offering. The response may be “more than simply buying or trading products and services” (eg: A political candidate wants votes; a church wants membership and participation; an orchestra wants an audience; and a social action group wants idea acceptance).

Question 9

Market

Answer 9

The set of all “actual and potential buyers” of a product or service.

These buyers “share a particular need or want” that can be satisfied through exchange relationships.
Core marketing activities: consumer research, product development, communication, distribution, pricing, and service.
Buyers also carry out marketing -> “consumers market” (search for products, interact with companies to obtain information, and make their purchases)
Today’s digital technologies -> two-way affair -> deal with “customer-managed relationships”.

Question 10

*Marketing management (choose “target” markets -> “build” relationships)

Answer 10

The art and science of

1. choosing target markets
2. building profitable relationships with them.

Question 11

5 concepts for marketing strategies
(production, product,
selling,
marketing, societal marketing)

Answer 11

1. production
2. product
3. selling
4. marketing
5. societal marketing

Question 12

“production” concept

“available, affordable”

Answer 12

The idea that consumers will favor products that are “available and highly affordable” -> organization should focus on improving production and distribution efficiency

Question 13

“product” concept (“quality, performance, features”)

Answer 13

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 14

selling concept (large-scale selling and promotion) (inside-out view)

Answer 14

The idea that consumers will not buy enough of the firm’s products unless it undertakes a “large-scale selling and promotion” effort

be typically practiced with unsought goods (those that buyers do not normally think of buying, such as life insurance or blood donation)

Question 15

marketing concept (know the needs and wants)
(outside-in view)

Answer 15

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. (customer-centered sense-and-respond philosophy)

Question 16

societal marketing concept 
(should balance:
1. company profits,
2. consumer wants,
3. society’s interests.)

Answer 16

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.

consumer short-run wants >< consumer long-run welfare/maintains or improves both the consumer’s and society’s well-being.

• > “sustainable marketing”, socially and environmentally responsible marketing that
  1. meets the present needs of consumers and businesses
  2. also preserving or enhancing the ability of future generations to meet their needs

Question 17

*Customer relationship management (build and maintain -> deliver superior customer value and satisfaction)

Answer 17

The overall process of 
1. building
2. maintaining 
profitable customer relationships
by "delivering superior customer value and satisfaction".

Question 18

Customer-perceived value (evaluation of difference)

Answer 18

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.

The difference between total customer value and total customer cost

(To some consumers, value might mean sensible products at affordable prices. To other consumers,
however, value might mean paying more to get more.)

Question 19

Customer satisfaction (performance = expectations)

Answer 19

The extent to which “a product’s perceived performance matches a buyer’s expectations”.

Question 20

Customer-engagement marketing (make the brand meaningful)

Answer 20

“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.
(online, mobile, social media -> refine market, engage)

Question 21

Consumer-generated marketing (customers build brand)

Answer 21

“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.
(through blogs, video-sharing sites, social media…)
(design based on customers’ comments)
(customers shaping ads and brand content)

Question 22

partner relationship management (other departments and outside the com.)

Answer 22

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

Question 23

Customer lifetime value (purchases over a lifetime of “patronage” (tín nhiệm))

Answer 23

The value of the entire stream of purchases a customer makes over a lifetime of patronage (sự tín nhiệm).

Question 24

*Share of customer (portion of purchasing in its “product categories”)

Answer 24

The portion of the customer’s purchasing that a company gets in its product categories.
(To increase share of customer, firms can:
+ offer greater variety to current customers
+ create programs to cross-sell and up-sell to market more products and services to existing customers.)

Question 25

Customer equity (“lifetime values” of company’s “current and potential customers” )

Answer 25

The total combined customer “lifetime values” of company’s “current and potential customers”
-> measure the “future value” of the company’s customer base.
(ultimate aim of customer relationship management: customer equity)

Question 26

customer relationship groups
(true friends >< strangers)
(butterflies >< barnacles)

Answer 26

1. True friends are both profitable and loyal.
2. Butterflies are potentially profitable but not loyal.
3. Barnacles are highly loyal but not very profitable.
4. Strangers show low potential profitability and little projected loyalty.

Question 27

Digital and social media marketing

Answer 27

Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices.

Question 28

Internet

Answer 28

A vast public web of computer networks, which connects users of all types all around the world to each other and to an amazingly large information repository