Chapter 1

Question 1

What is marketing?

Answer 1

To engage and manage relationships with customers with the aim of creating value for the customer in order to capture value (profit) from customers in return.

Question 2

What are the 5 steps of the marketing process?

Answer 2

1. Understand the marketplace and customer needs and wants.
2. Design a customer value-driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Engage customers while building profitable relationships and create customer delight.
5. Capture value from customers to create profits and customer equity.

Question 3

What are needs?

Answer 3

States of felt deprivation.

Question 4

What are wants?

Answer 4

The form human needs take as they are shaped by culture and individual personality.

Question 5

What are demands?

Answer 5

Human wants that are backed by buying power.

Question 6

What are market offerings?

Answer 6

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Question 7

Describe marketing myopia

Answer 7

The mistake of paying more attention to specific products a company offers than to the benefits and experiences produced by these products.

Question 8

Exchanges

Answer 8

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

Question 9

What are the 2 factors of Customer metrics?

Answer 9

• Share of customer- is the portion of the customers purchasing that a company gets in its products categories.
• Customer lifetime value- the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

Question 10

Product oriented vs Market oriented

Answer 10

Product oriented- The mission is more focused towards “making the product” and emphasizes the characteristics of the product.
Market orientation- this is the philosophy that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than the competitors do.

Question 11

Marketing management definition

Answer 11

The art and science of choosing target markets and building profitable relationships with them.
Their overall goal is to engage, maintain, and grow target customers by producing, delivering, and communicating superior customer value.

Question 12

How does a company determine its target market?

Answer 12

They first find the customers to serve, they choose a value proposition and decide how they will serve the targeted customer.

Question 13

What are the 5 concepts under which organizations design and implement their marketing strategies?

Answer 13

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

Question 14

The production concept

Answer 14

1. The production concept- this is the idea that consumers will favor products that are available and highly affordable- therefore, the organization would devote its energy to making continuous production improvements to enhance high efficiency, low cost, and mass distribution.

Question 15

The product concept

Answer 15

2. The product concept- this entails that consumers will favor products that offer the most quality, performance, and features; therefor, the organization should devote its energy to making continuous product improvements.

Question 16

The selling concept

Answer 16

3. The selling concept- this is based on the idea that consumers will not buy enough of the firms product unless the firm undertakes a large-scale selling and promotion effort.

Question 17

The marketing concept

Answer 17

4. The marketing concept- a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than the other competitors do.

Question 18

The societal marketing concept

Answer 18

5. The societal marketing concept- based on the idea that a company’s marketing decisions should consider consumers wants, the company’s requirements, consumers long run interest, and society’s long-run interests.

Question 19

Customer relationship management definition

Answer 19

This involves the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Question 20

Customer-perceived value definition

Answer 20

The customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Question 21

Customer engagement marketing definition

Answer 21

Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping conversations, experiences, and community.
The aim is to make the brand a meaningful part of consumers conversations and lives.

Question 22

Consumer generated marketing definition

Answer 22

A form of customer-engagement marketing which involves brand exchanges created by consumers themselves- both invited and uninvited- where the consumers play an increasingly important role in shaping their own brand experiences and to other consumers.

Question 23

Partner relationship management definition

Answer 23

This is the process of working closely together with partners in other company departments and outside the company to jointly bring greater value to customers- so overall is similar to integration.

Question 24

Customer equity definition

Answer 24

The total combined customer lifetime value of all the company’s current and future customers. It is a measure of the future value of the company’s customer base.

Question 25

4 categories of customer relationship goals:

Answer 25

1. Butterflies (potential profitability-high, projected loyalty- short-term).
   
   2. True friends (potential profitability- high, projected loyalty- long-term).
   3. Strangers (potential profitability- low, projected loyalty- short-term).
   4. Barnacles (potential profitability- low, projected loyalty- long-term).

Question 26

There are 5 major developments that are changing the marketing landscape:

Answer 26

1. The digital age: Online, mobile, and social media marketing.
2. The changing economic environment.
3. The growth of not-for-profit marketing.
4. Rapid globalization.
5. Sustainable marketing- the call for more environmental and social responsibility.