Ch 1

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?

Answer 2

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 3

What is Marketing Management?

Answer 3

The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Question 4

What is Marketing Management?

Answer 4

The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Question 5

Social definition of Marketing

Answer 5

Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Question 6

What is marketed?

Answer 6

10 types of entities: goods, services, events, experiences, persons, places, properties, orga- nizations, information, and ideas.

Question 7

What is marketed?

Answer 7

10 types of entities: goods, services, events, experiences, persons, places, properties, orga- nizations, information, and ideas.

Question 8

What’s a marketer and a prospect?

Answer 8

A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect.
If two parties are seeking to sell something to each other, we call them both marketers.

Question 9

What’s a marketer and a prospect?

Answer 9

A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect.
If two parties are seeking to sell something to each other, we call them both marketers.

Question 10

8 demand states

Answer 10

negative, nonexistent, latent, declining, irregular, full, overfull, unwholesome

Question 11

What’s a M arket?

Answer 11

A collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market).

Question 12

4 types of Markets

Answer 12

Consumer, business, global, and nonprofit.

Question 13

4 types of Markets

Answer 13

Consumer, business, global, and nonprofit.

Question 14

What are needs, wants and demands?

Answer 14

• Needs: the basic human
requirements such as for air, food,
water, clothing, and shelter

• Wants: specific objects that might
satisfy the need

• Demands: wants for specific
products backed by an ability to pay

Question 15

What are needs, wants and demands?

Answer 15

• Needs: the basic human
requirements such as for air, food,
water, clothing, and shelter

• Wants: specific objects that might
satisfy the need

• Demands: wants for specific
products backed by an ability to pay

Question 16

What are 5 types of needs?

Answer 16

States, unstated, real, delight, secret

Question 17

Value proposition

Answer 17

A set of benefits that satisfy customer needs. Made physical with an offering.

Question 18

Value proposition

Answer 18

A set of benefits that satisfy customer needs. Made physical with an offering.

Question 19

Offering

Answer 19

A combination of products, services, information, and experiences

Question 20

Offering

Answer 20

A combination of products, services, information, and experiences

Question 21

Brand

Answer 21

Offering from a known source

Question 22

3 Marketing Channels

Answer 22

Communication, distribution, service

Question 23

Communication marketing channels

Answer 23

Deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, smart phone, billboards, posters, fliers, CDs, audiotapes, and the Internet.

Question 24

Distribution Channels

Answer 24

Help display, sell, or deliver the physical product or service(s) to the buyer or user.

These channels may be direct via the Internet, mail, or mobile phone or telephone or indirect with distributors, wholesal- ers, retailers, and agents as intermediaries.

Question 25

Service Channels

Answer 25

Carry out transactions with potential buyers.

Include warehouses, transportation companies, banks, and insurance companies.

Question 26

Paid Media

Answer 26

Paid media include TV, magazine and display ads, paid search, and sponsorships, all of which allow marketers to show their ad or brand for a fee.

Question 27

Owned media

Answer 27

Owned media are communication channels marketers actually own, like a company or brand brochure, Web site, blog, Facebook page, or Twitter account.

Question 28

Earned media

Answer 28

Earned media are streams in which consumers, the press, or other outsid- ers voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing meth- ods.

The emergence of earned media has allowed some companies, such as Chipotle, to reduce paid media expenditures.

Question 29

Impressions

Answer 29

Occur when consumers view a communication.

Tracks the scope or breadth of a communication’s reach.

The downside is that impressions don’t provide any insight into the results of viewing the communication.

Question 30

Engagement

Answer 30

The extent of a customer’s attention and active involvement with a communication.

Reflects a much more active response than a mere impression and is more likely to create value for the firm.

Some online measures of engagements are Facebook “likes,” Twitter tweets, comments on a blog or Web site, and sharing of video or other content. Engagement can extend to personal experiences that augment or transform a firm’s products and services.

Question 31

Value

Answer 31

Combination of quality, service, and price (qsp), called the customer value triad. Value perceptions increase with quality and service but decrease with price.

We can think of marketing as the identification, creation, communication, delivery, and monitoring of customer value.

Question 32

Satisfaction

Answer 32

Judgment of a product’s performance in relationship to expectations.

Question 33

Supply Chain

Answer 33

A channel stretching from raw materials to components to finished products carried to final buyers

Question 34

Task Marketing environment

Answer 34

Includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers.

In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transpor- tation companies, and telecommunications companies.

Distributors and dealers include agents, brokers, manufac- turer representatives, and others who facilitate finding and selling to customers.

Question 35

Broad Marketing environment

Answer 35

Consists of six components: demographic, economic, social-cultural, natural, technological, and political-legal environment.

Question 36

3 transformation forces

Answer 36

Technology, globalization and social responsibility

Question 37

New Consumer capabilities

Answer 37

1. Can use the Internet as a powerful information and purchasing aid
2. Can search, communicate, and purchase on the move
3. Can tap into social media to share opinions and express loyalty
4. Can actively interact with companies
5. Can reject marketing they find inappropriate

Question 38

New Company capabilities

Answer 38

1. Can use the Internet as a powerful information and sales channel, including for individually differentiated goods
2. Can collect fuller and richer information about markets, customers, prospects, and competitors
3. Can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information
4. Can improve purchasing, recruiting, training, and internal and external communications
5. Can improve cost efficiency

Question 39

Changing Channels

Answer 39

One of the reasons consumers have more choices is that channels of distribution have changed as a result of:

– Retail transformation

– Disintermediation

Question 40

Heightened Competition

Answer 40

While globalization has created intense competition among domestic and foreign brands, the rise of private labels and mega-brands and a trend toward deregulation and privatization have also increased competition.

– Private brands

– Mega-brands

– Deregulation

– Privatization

Question 41

Marketing in practice

Answer 41

• Marketing balance

• Marketing accountability

• Marketing in the organization

Question 42

Production Concept

Answer 42

Consumers prefer products that are widely available and inexpensive. Good for market expansion.

Concentrate on achieving high production efficiency, low costs, and mass distribution. China (Legend, Haier)

Question 43

Product Concept

Answer 43

Consumers favor products offering the most quality, performance, or innovative features.

Question 44

Selling Concept

Answer 44

Consumers and businesses, if left alone, won’t buy enough of the organization’s products.

It is practiced most aggressively with unsought goods—goods buyers don’t normally think of buying such as insurance and cemetery plots—and when firms with overcapacity aim to sell what they make, rather than make what the market wants.

Marketing based on hard selling assumes customers coaxed into buying a product not only won’t return or bad-mouth it or complain to consumer organizations but might even buy it again.

Question 45

Marketing Concept

Answer 45

Emerged in 1950s as a customer-centered, sense-and-respond philosophy.
The job is to find not the right customers for your products, but the right products for your customers.

The marketing concept holds that the key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets.

Selling focuses on the needs of the seller; marketing on the needs of the buyer.

Question 46

Holistic Concept

Answer 46

Based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.

Holistic marketing acknowledges that everything matters in marketing—and that a broad, integrated perspective is often necessary.

Question 47

Relationship Marketing

Answer 47

Aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business.

4 key parts for relationship marketing are customers, employees, marketing partners (channels, sup- pliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts).

IBM.

Question 48

Integrated Marketing

Answer 48

Occurs when the marketer devises marketing activities and assembles marketing programs to create, communicate, and deliver value for consumers such that “the whole is greater than the sum of its parts.”

Two key themes are that
(1) many different marketing activities can create, communicate, and deliver value and
(2) marketers should design and implement any one marketing activity with all other activities in mind.

Question 49

Internal Marketing

Answer 49

The task of hiring, training, and motivating able employees who want to serve customers well.

Airlines.

Internal marketing requires vertical alignment with senior management and horizontal alignment with other departments.

Question 50

Performance Marketing

Answer 50

Requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs.

Ben & Jerry’s.

Question 51

Modern 4 P’s

Answer 51

People, processes, programs, performance

Question 52

Each P explained

Answer 52

People reflect internal marketing and the fact that employees are critical to marketing success.

Processes reflects all the creativity, discipline, and structure brought to marketing management.

Programs reflects all the firm’s consumer-directed activities. It encompasses the old four Ps as well as a range of other marketing activities that might not fit as neatly into the old view of marketing.

We define performance as in holistic marketing, to capture the range of possible outcome measures that have financial and nonfinancial implications (profitability as well as brand and customer equity) and implications beyond the company itself (social responsibility, legal, ethical, and the environment).

Question 53

Marketing Management tasks

Answer 53

• Developing market strategies and
plans

• Capturing marketing insights

• Connecting with customers

• Building strong brands

• Creating value

• Delivering value

• Communicating value

• Creating successful long-term growth