CH1 LOs - Marketing: Creating and capturing customer value

Question 1

[LO1] define ‘Marketing’

Answer 1

> process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Question 2

[LO1] what is the ‘Marketing process’ and how many steps does it entail?

Answer 2

> process by which marketing orgs engage customers, build strong customer relationships and create customer value in order to capture value from them in return.
5 steps

Question 3

[LO1] briefly explain the 1st ‘Marketing process’

Answer 3

> Understanding the marketplace and the customers needs, wants and demands.

Question 4

[LO1] briefly explain the 2nd ‘Marketing process’

Answer 4

> design a customer-driven marketing strategy with the goal of getting, keeping and growing target customers.

Question 5

[LO1] briefly explain the 3rd ‘Marketing process’

Answer 5

> construct an integrated marketing program that delivers superior value.

Question 6

[LO1] briefly explain the 4th ‘Marketing process’

Answer 6

> build profitable relationships and create customer delight.

Question 7

[LO1] briefly explain the 5th ‘Marketing process’

Answer 7

> capture value from customers to create profits and customer equity.

Question 8

[LO1] what is the aim of ‘Marketing’and what is it about?

Answer 8

> aim is to make selling unnecessary.

> about making people want to be part of your brand.

Question 9

[LO2] explain the importance of understanding the marketplace and customers.

Answer 9

> understanding customer’s needs, wants and demands, helps design want-satisfying market offerings and to build value-laden customer relationships by which they can capture customer lifetime value and greater share of customer.
results in long-term customer equity

Question 10

[LO2] identify the ‘5 core marketplace concepts’.

Answer 10

1. Needs, wants and demands
2. Market offerings (products, services and experiences)
3. Value and satisfaction
4. Exchange and relationships
5. Markets

Question 11

[LO2] briefly explain the 1st of the 5 core marketplace concepts: ‘Needs, wants and demands’

Answer 11

> Wants - are form of needs shaped by culture and individual personality
Demands - are ‘WANTS’ backed by buying power
Companies address ‘NEEDS’ by putting forth a ‘value proposition’, a set of boundaries they promise to consumers to satisfy consumers’ needs.

Question 12

[LO2] briefly explain the 2nd of the 5 core marketplace concepts: ‘Market offerings’

Answer 12

> Marker offerings fulfil the ‘value propositions’ that address the ‘NEEDS’

Question 13

[LO2] briefly explain the 3rd of the 5 core marketplace concepts: ‘Value and satisfaction’

Answer 13

> Value and satisfaction is delivered through the ‘market offerings’.

Question 14

[LO2] briefly explain the 4th of the 5 core marketplace concepts: ‘Exchange and relationships’

Answer 14

> Long-term relationships and exchanges result from ‘value and satisfaction’.

Question 15

[LO3] Identify the key elements of a customer-drive ‘marketing strategy’.

Answer 15

A winning marketing strategy has to elements:

1. Decide WHO it will serve by dividing the market into segments of customers through ‘market segmentation’ and selecting which segments it will cultivate (‘target marketing’).
2. Decide HOW it will serve targeted customers by deciding how it will ‘differentiate’ and ‘position’ itself in the marketplace.

Question 16

[LO3] Identify the ‘5 marketing management orientations’ that guide ‘marketing strategy’.

Answer 16

1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Social marketing concept

Question 17

[LO3] briefly explain the 1st of 5 marketing management orientations: ‘production concept’

Answer 17

> Manager’s task is to improve production efficiency and bring down prices.

Question 18

[LO3] briefly explain the 2nd of 5 marketing management orientations: ‘product concept’

Answer 18

> Consumers favour products that offer the most in quality, performance and innovative features; thus, little promotional effort is required.

Question 19

[LO3] briefly explain the 3rd of 5 marketing management orientations: ‘selling concept’

Answer 19

> Consumers will not buy enough of the organisation’s products unless it undertakes a large-scale selling and promotion effort.

Question 20

[LO3] briefly explain the 4th of 5 marketing management orientations: ‘marketing concept’

Answer 20

> Determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors do.

Question 21

[LO3] briefly explain the 5th of 5 marketing management orientations: ‘social-marketing concept’

Answer 21

> Generating customer satisfaction and long-run societal well-being through sustainable marketing strategies keyed both to achieving the company’s goals and to fulfilling its responsibilities.

Question 22

[LO4] define ‘Customer relationship management’

Answer 22

> Is the process of engaging customers and building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Question 23

[LO4] briefly explain ‘Customer engagement marketing’

Answer 23

> aims to make a brand a meaningful part of consumers’ conversations and lives through direct and continuous customer involvement in shaping brand conversations, experiences and community.

Question 24

[LO4] Identify the strategies for creating value for customers and capturing value from customers in return.

Answer 24

> Using ‘customer relationship management’ and ‘customer engagement’ to produce ‘customer equity, the total combined customer lifetime values of all of the customer’s.
Key to building long lasting relationships is the creation of superior ‘customer value’ and ‘satisfaction’. In return, the company captures value from customers in the form of profits and customer equity.

Question 25

[LO5] Identify the major trends and forces that are challenging the marketing landscape in this age of relationships.

Answer 25

> ‘The digital age’
The Great Recession
Not-for-profits
New generation of Marketers

Question 26

[LO5] briefly explain the ‘the digital age’ trend that is challenging the marketing landscape, and the key its success.

Answer 26

> advancement in digital and social media created new ways to learn about and relate to individual customers.
Online, mobile and social media offer new opportunities to target customers more selectively and engage them more deeply.
> Key: to blend the new digital and social media with traditional marketing to create smoothly integrated marketing strategies.

Question 27

[LO5] briefly explain the ‘Great recession’ force that has challenged the marketing landscape, and how it can be dealt with.

Answer 27

> caused customers to rethink their buying priorities and bring their consumption back in line with their incomes. > people are showing an enthusiasm for frugality.
> Challenge now: balance a brand’s value proposition with current times while also enhancing its long-term equity.

Question 28

[LO5] is it true that not-for-profits have increased their implementation of marketing strategies.

Answer 28

True

Question 29

[LO5] briefly explain the ‘new generation of marketers’ force that is challenging the marketing landscape, what they mean for the future.

Answer 29

> globally connected with their customers, marketing partners and competitors.
re-examining their ethical and social responsibilities - called upon to take greater responsibility to the social and environmental impacts of their actions.

Question 30

[LO5] sum up the major trends and forces in one concept.

Answer 30

> Engaging customers and creating customer value.