Chapter 1

Question 1

What is marketing?

Answer 1

marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have VALUE for customers, clients, partners, and society at large

Question 2

Value is in the eyes of the beholder:

Answer 2

what is valuable to me isn’t always valuable to others

Question 3

What is marketing about?

Answer 3

satisfying customers needs and wants

Question 4

What does marketing entail?

Answer 4

an exchange

Question 5

What does marketing create?

Answer 5

value through product, price, place, and promotion decisions

Question 6

Who can perform marketing?

Answer 6

individuals or organizations

Question 7

Who does marketing affect?

Answer 7

various stakeholders

Question 8

Marketing mix

Answer 8

the controllable set of decisions or activities that the firm uses to respond to the wants of its target markets

Question 9

The 4 P’s of marketing mix

Answer 9

product, price, place, and promotion

Question 10

Product:

Answer 10

a good, service, or idea

Question 11

Product variable (and example)

Answer 11

creates value
ex: bike, doctor, poster warning of dangerous bike accidents

Question 12

Price variable:

Answer 12

capturing value
-everything a buyer gives up (money, time, energy) in exchange for the product or service

Question 13

Distribution variable (place):

Answer 13

-delivering the value proposition
-represents all the marketing processes necessary to get the product to the right customers when that customer wants it

Question 14

What does distribution variables deal with specifically?

Answer 14

retailing and marketing channel management (supply chain management)

Question 15

Promotion variable

Answer 15

communicating the value proposition
-communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their buying decisions and elicit a response

Question 16

What does marketing build?

Answer 16

relationships with customers and other stakeholders

Question 17

Exchange:

Answer 17

the trade of things of value between the buyer and the seller so that each is better off as a result (marketing depicts the exchange process)

Question 18

Stakeholders:

Answer 18

constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcome (they all have different agendas)

Question 19

Evolution: What occurred from the 1850s-1920s?

Answer 19

Product orientation
-industrial revolution improved speed and efficiency
-large increases in available products and most firms believed a good product would sell itself

Question 20

Evolution: What occurred from the 1920s-1960s?

Answer 20

Sales orientation
-many products with not enough demand
-businesses viewed sales and selling as the main means of increasing profits

Question 21

Evolution: What occurred from 1960s-1990s?

Answer 21

Marketing orientation
-an organization-wide commitment to researching and responding to customer needs
-determine what customers want and produce those products

Question 22

Evolution: What occurred from 2000s-current?

Answer 22

Value-based marketing
-maintains the market orientation but includes a part on giving greater value than the competition

Question 23

Value cocreation:

Answer 23

where customers act as collaborators to create a product or service that appeals mostly to them, such that it offers optimal value

Question 24

Value

Answer 24

in a marketing context, customers see this as a fair return in goods and/or services for their hard-earned money and scarce time

Question 25

Relational orientation

Answer 25

to build value, marketers use this orientation because they realize that they need to think about their customers in terms of relationships rather than transactions

Question 26

CRM (customer relationship management)

Answer 26

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

Question 27

How does marketing create value/firms become more value driven?

Answer 27

-build relationships with customers
-gather and analyze info
-balance benefits and costs
-connect with customers using social and mobile media platforms

Question 28

What are the 4 main activities of marketing?

Answer 28

1. value is central to marketing (adding value)
2. marketing analytics
3. social and mobile marketing
4. ethical and social dilemma