CHAPTER 1

Question 1

What is marketing

Answer 1

“ the process in which companies engage customers,
builds customer relationship and create customer value
in order to capture value from customers return

Question 2

What are the marketing goals.

Answer 2

• Attract new customers by promising superior value.
• Keep and grow current customers by delivering value and satisfaction.

Question 3

To provide value you must create something that

Answer 3

• Satisfies customer needs and wants
• Performs well
• Provides benefits that can be clearly communicated
• Priced fairly
• Backed up by the company

Question 4

what happens when the Marketer engages consumers effectively,

Answer 4

• Understand their needs
• Develops products that provide superior customer value, prices, distributes
• Promotes them well
   product will sell easily

Question 5

How does the new concept of marketing differ from the old concept of marketing?

Answer 5

The old concept of marketing was profit oriented. Producer was more focused on quantity rather than quality.
But new concept of marketing is costumer oriented. Producer now focus on the issues like customer needs, quality, taste of consumer etc

Question 6

Marketing process

Answer 6

Create value from customers and build customer relationships.
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 build profitable relationships and create customer delight.
Capture value from customers in return
5. Capture value from customers to create profits and customer equity

Question 7

Marketing process
Step1

Answer 7

Understand the marketplace and customer needs and wants

Question 8

step 1:what are the 5 core customer and marketplace concepts

Answer 8

• Needs, wants and demands
• Market offerings
• Customer value and satisfaction
• Exchanges and relationship
• Markets

Question 9

Needs

Answer 9

• State of felt deprivation
  o Physical needs: food, clothing, warmth and safety
  o Social needs: belonging and affection
  o Individual needs: knowledge and self expression

Question 10

wants

Answer 10

• Form taken by human needs when shaped by culture and individual personality

Question 11

Demands

Answer 11

• When backed by buying power, wants become demands

Question 12

Market myopia

Answer 12

• Paying more attention to specific products than to the benefits and experiences produced by these products.

Question 13

Customer value and satisfaction

Answer 13

• Customers form expectations about the value and satisfaction the market offerings will deliver.
  o Satisfy customer: buys again and tells others
  o Dissatisfied customer: switch to competitors and disparage the profuct to others

Question 14

expectations

Answer 14

• Low expectations may fail to attract buyers
• Hugh expectations may dissappint buyers

Question 15

Exchanges and relationship

Answer 15

Exchange: act of obtaining a desired object from someone by offering something in return.
- Marketers goal: bring about a respond to the market offerings

Question 16

What is a market offering?

Answer 16

The products, services, or experiences offered to the customers in a market to meet their needs are known as market offerings.
- Strong relationshops are built by consistently delivering superior customer value.

Question 17

Markets

Answer 17

• Set of actual and potential buyers of a product or service
• Sellers search and engage buyers, identify their needs, design good marketing offerings, set prices, promote them, store and deluver.

Question 18

question to ask about custome relationships

Answer 18

o How can we influence our customers
o How can our customer influence us
o How can our customers influence each other

Question 19

What is the main problem that sellers suffering from market myopia face.

Answer 19

• They focus more on the products than on the customers underlying needs.

Question 20

draw/mention the marketing system

Answer 20

suppliers->company and competitors-> marketing intermediaries-> final customers.
final customers goes back to company and competitors and visceversa

Question 21

Designing a winning marketing strategy (2 questions)

Answer 21

• what is your target market? (what customers)
• what is our value proposition? (how can we best serve them)

Question 22

Target market

Answer 22

• selecting customers to serve

Question 23

Market segmentation

Answer 23

• dividing the markets into segments of customers

Question 24

Target marketing

Answer 24

• refers to selecting which segments to go after

Question 25

Value proposition

Answer 25

The set of benefits or value the brand promises to deliver consumers to satisfy their needs in a superior way.

Question 26

Marketing management orientations

Answer 26

It’s a strategic focus on identifying consumers needs and desires in order to define new products developed.

Question 27

There are five alternative concepts under which organizations design and carry out their marketing strategies: the production, product, selling, marketing, and soci- etal marketing concepts.

Answer 27

• production concept: affordability, production, distribution
• product concept: product quality, continuous product improvements
• selling concept: creating sales with selling and promotion effort
• marketing concept: costumer centered, customer value and relationship.
• social marketing concept: consumers and society’s wellbeing, sustainable marketing.

Question 28

Selling concept

Answer 28

1. factory (starting point)
2. existing products (focus)
3. selling and promoting (means)
4. profits through sales volume (ends)

Question 29

The marketing concept.

Answer 29

1. Market (starting point)
2. customer needs (focus)
3. integrated marketing (means)
4. profits through customer satisfaction (ends)

Question 30

the social marketing concept

Answer 30

The idea that a company’s market- ing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

Question 31

draw the social marketing concept

Answer 31

draw the triangle

Question 32

what should you consider when constructing an integrated marketing system?

Answer 32

• deliver the intended value to target customers
  4 Ps of marketing - Major marketing mix tools
  1. product
  2. price
  3. place: distribution
  4. promotion

Question 33

Engaging customer and managing customer relationships (last and most important step of marketing process)

Answer 33

o Customer relationship management: levels and tools
o Customer engagement marketing
o Consumer generated marketing
o Partner relationship management

Question 34

• Capturing value from customers (engaging customer and managing customer relationship)

Answer 34

o Creating customer loyalty retention
o Growing share of customers
o Building customer equity
o 4 customer relationship groups

Question 35

Customer relationship management

Answer 35

delivering superior customer value and satisfaction to build and maintain profitable customer relationships.

Question 36

3 points of customer relationship managament

Answer 36

1. Customer perceived value: customers evaluation of all benefits – all the costs of a market offering relative to competing offers
2. Customer satisfaction: how does the product match a buyers expectation
3. Customer delight: companies aim to delight customers by promising only what they can deliver and then delivering more than they promise.

Question 37

Levels and tools

Answer 37

Levels:
low margin cystomers: buil basic relationships
High margin customers: create full partnerships
Tools
Frequency marketing programs: eg airlines hotels
Loyalty rewards programs: eg scene with Scotiabank
Club marketing programs

Question 38

Customer engagement marketing

Answer 38

Makes the brand a meaningful part of customers’ conversations and lives

Successful engagement marketing means making relevant and genuine contributions to targeted consumers lives and interactions

Question 39

what is
Consumer generated marketing

Answer 39

• Brand exchanges created by consumers
  o Consumers play an increasing role in shaping their own brand experiences of other consumers
• Uninvited and invited
  o Consumers to consumer exchanges
  o Consumers invited by companies
• Anticipate potential negative consequences

Question 40

Partner relationship management

Answer 40

Working closely with others both inside and outside the company to jointly engage and bring more value to customers.
- Partners inside the firm: cross functional teams
- Partners outside the firm: suppliers distributors retailers.

Question 41

HOW TO CAPTURE VALUE FROM CUSTOMERS.

Answer 41

Creating customer loyalty and retention
Growing share of customer

Building customer equity

Question 42

Customer relationship groups

Answer 42

1. Butterflies
2. True friends
3. Strangers
4. Barnacles (loyal customers that rarely make purchases)