CHAPTER 1

Question 1

What are the Five Core Marketplace Concepts

Answer 1

*Understanding the Marketplace and Customer Needs

*Designing a Customer Value-Driven Marketing Strategy

*Preparing an Integrated Marketing Plan and Program

*Building Customer Relationships

*Capturing Value from Customers

Question 2

What is Marketing?

Answer 2

is a process by which companies create value for customers (and build strong customer relationships) in order to capture value from customers in return

Question 3

What is a need ?

Answer 3

A human need is a state of felt deprivation

Question 4

What is a want ?

Answer 4

A want is the specific form a need takes as shaped by culture and individual personality

Question 5

What are demands?

Answer 5

Demands are wants backed by buying power

Question 6

Market offerings

Answer 6

are some combination of products, services or experiences offered to a market to satisfy a need or want

Question 7

Marketing myopia

Answer 7

is paying more attention to the specific products than to the benefits and experiences produced

Question 8

Exchange

Answer 8

is the act of obtaining a desired object from someone by offering something in return

Question 9

Why do companies deliver superior customer value?

Answer 9

Marketing actions aim to create, maintain and grow desirable exchange relationships by delivering superior customer value

Question 10

Customer-managed activities

Answer 10

*Searching for products
*Interacting with companies to get information
*Making recommendations & posting comments
*Purchasing products or services

Question 11

Marketing management

Answer 11

is the art and science of choosing target markets and building profitable relationships with them

Question 12

Market segmentation

Answer 12

refers to dividing the markets into segments of customers

Question 13

Target marketing

Answer 13

refers to which segments to go after

Question 14

Demarketing

Answer 14

is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it

Question 15

brand’s value proposition

Answer 15

is the set of benefits or values it promises to deliver to customers to satisfy their needs

Question 16

Marketing concept

Answer 16

Achieving organizational goals depends on knowing the needs & wants of the target markets and delivering the desired satisfactions better than competitors do

Question 17

Customer-driving marketing

Answer 17

is understanding customer needs even better than they themselves do and creating products that meet their existing & subconscious needs

Question 18

Societal marketing concept

Answer 18

Company decisions should consider not only consumers’ wants and the company requirements, but also consumers’ and society’s long-run interests

Question 19

The marketing mix

Answer 19

is a set of tools (the four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place

Question 20

Integrated marketing program

Answer 20

is a comprehensive plan that communicates and delivers the intended value to chosen customers

Question 21

Customer Relationship Management (CRM)

Answer 21

*Involves building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
*Smart companies delight customers by promising only what they can deliver, then delivering more than they promise

Question 22

Customer-Engagement Marketing

Answer 22

encourages direct and continuous customer involvement in shaping brand conversations, experiences, and community

Question 23

Consumer-Generated Marketing

Answer 23

involves brand exchanges created by consumers themselves. Consumers are playing an increasing role in shaping brand experiences

Question 24

The Changing Nature of Customer Relationships

Answer 24

*Relating with more carefully selected customers: Targeting fewer, more profitable customers (not all customers are equal)

*Relating more deeply and interactively: Using websites and social networks for more interactive, two-way relationships

*Relating for the long term: To retain current customers and build profitable, long-term relationships

Question 25

Customer-managed relationships

Answer 25

Customers, empowered by today’s digital technologies, interact with companies and with each other to shape their relationships with brands

Question 26

Partner relationship management

Answer 26

Involves working closely with partners, in other company departments and outside the company (suppliers and distributors), to jointly bring greater value to customers

Question 27

Customer lifetime value

Answer 27

is the value of the entire stream of purchases that the customer would make over a lifetime of patronage

Question 28

Customer equity

Answer 28

is the total combined customer lifetime values of all of the company’s customers