Ch 1 - Overview of Marketing

Question 1

Marketing

Answer 1

set of business practices designed to plan for and present an organization’s products or services that build effective customer relationships

Question 2

How marketing provides value

Answer 2

• Build and maintain a loyal customer base
• Make a product that satisfies a variety of consumer demands
• Consumer positioning is important
• Good marketing can establish value
• Leveraging influencers to help promote a brand is critical

Question 3

Key aspects of marketing

Answer 3

• Marketing helps create value
• Satisfying customer needs and wants
• Marketing entails an exchange
• Requires a product, place, price, and promotion decision
• Performed by both individuals and organizations
• Occurs in many settings

Question 4

Exchange

Answer 4

the trade of things of value between the buyer and the seller so that each is better off as a result
- customers give money/information for problems
- producers give communications and delivery to consumers

Question 5

need

Answer 5

basic necessity of life - food, clothing, shelter, or safety

Question 6

Want

Answer 6

• particular way in which persons choose to fulfill their needs, shaped by their knowledge, culture, and personality

Question 7

Market

Answer 7

the groups of people who need or want a company’s products or services and have the ability and willingness to buy them

Question 8

Target market

Answer 8

the customer segment or group to whom the firm is interested in selling its products and services

Question 9

Marketing Mix
4 P’s

Answer 9

• Product - create value
• price - capture/transaction value
• place - deliver value
• promotion - communicating value

Question 10

Product

Answer 10

• creating value
• Purpose of marketing is to create value by developing a variety of offerings – including goods, services, and ideas - to satisfy customer needs
  Brand, size, quality, features, packaging, warranty

Question 11

Price

Answer 11

Capturing/Transaction Value - Price is everything the buyer gives up - money, time, energy - in exchange for the product

List price, discounts, allowances, costs, payment period, credit terms

Question 12

Place:

Answer 12

Delivering Value -
- Place describes all the activities necessary to get the product from the manufacturer or producer to the right customer when that customer wants it

• Marketing channels, distribution intensity, location, supply chain, logistics

Question 13

Promotion

Answer 13

• communicating value
• Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response
• Advertising, sales promotion, personal selling, public relations, direct marketing, digital media

Question 14

Four Orientations of Marketing

Answer 14

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

Question 15

Product Orientation

Answer 15

• focus on developing and distributing innovative products with little concern about whether the products best satisfy customer’s needs
• Think about the product they want to build → sell it → understand customer need

Question 16

Sales Orientation -

Answer 16

• view marketing as a selling function where companies try to sell as many of their products as possible rather than focus on making products consumers really want
• Profits generated from sales volume rather than repeat/satisfied customers
• Depend on personal selling/advertising to attract new customers

Question 17

Market Orientation

Answer 17

• start out by focusing on what customers want and need before they design, make, or attempt to sell their products and services

Question 18

Value-Based Orientation

Answer 18

• Provide their customers with greater value than their competitors
• To compete successfully, firms focus on the triple bottom line:

people (consumers wants and needs)
profits (long-term profitable relationships)
planet (social and environmental responsibility)

Question 19

Value

Answer 19

reflects the relationship of benefits to costs, or what you get for what you give

Question 20

Value co creation

Answer 20

customers act as collaborators with a manufacturer or retailer to create the product or service

Question 21

Firms becoming value driven

Answer 21

1. Gathering and Sharing Information
2. Balancing Benefits with Costs
3. Building Relationships with Customers
4. Connecting With Customers via social/mobile media

Question 22

Gathering and Sharing Information

Answer 22

• in a value-based, market-oriented firm, marketers gather and share information about customers and competitors
• Modern marketers rely on sophisticated data analytics to define and refine their approaches to their customers and their markets

Question 23

Balancing Benefits with Costs -

Answer 23

value- oriented marketers constantly measure the benefits that customers perceive against the cost of their offering

Question 24

Building Relationships With Customers -

Answer 24

marketers have developed a relational orientation

Question 25

Relational orientation

Answer 25

a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

Question 26

Customer relationship management (CRM) -

Answer 26

a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers

Question 27

Connecting With Customers Using Social and Mobile Media

Answer 27

Marketers embrace new technologies such as social and mobile and more recently artificial intelligence (AI), to allow the connect better with their customers and thereby serve their needs more effectively

Question 28

Why is Marketing Important

Answer 28

Expands global presence, pervasive across organization/supply chain - firms do not work in isolation, makes life easier, enriches society, can be entrepreneurial