Chapter 1

Question 1

Marketing –> definition

Answer 1

marketing is a process where companies create value for customer and build strong relationships in order to capture value in return

1- attract new customers by promising superior value
2- keep and grow current customers by delivering satisfaction

Question 2

The marketing concept

Answer 2

Create value for customers:
1- understand the marketplace and customer needs and wants
2-design customer value driven marketing strategy
3- construct an integrated marketing program
4- build prfitale relationships and create customer delight

Capture value from customers in return:
5- capture value from customers to create profits and customer equity

Question 3

5 core concepts in marketing

Answer 3

1 - Customer needs, wants and demand
2 - marketing offerings = products, services and experiences
3- customer value and satisfaction
4 - exchange and relationships
5 - markets

Question 4

1 - Understand the marketplace and customer needs

Answer 4

needs = are states of deprovation, they include basic needs such as good cloth warmt and safety, belonging, affection

Wants = the form human needs take as they are shaped by culture and individual personality

Demands= human wants that are backed by buying power

Question 5

Marketing offerings - products, services, 2- and experiences

Answer 5

Marketing offerings are some combination of products, services, solutions and experiences offered to a market tot satisfy a need or want

Question 6

Marketing myopia

Answer 6

marketing myopia is focusing only on existing wanrs and losing sight of underlying consumer needs

Question 7

3- Customer value and satisfaction

Answer 7

Marketers need to set right level of expectations. if they are to low fail to attract enough customers, if too high buyers will be dissapointed

customers form expectations about the value and satisfaction that will be delivered

Question 8

4- exchange and relationships

Answer 8

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

Exchange relationships –> marketing actions try to create maintain and grow desirable exchange reltaionship

Question 9

5- Markets

Answer 9

the set of all actual buyers of a product or a service

“How can we influence our customers?” Instead, they are also asking, “How can our customers influence us?” and even “How can our customers influence each other?

Question 10

Designing customer value-driven marketing strategy and planning

Answer 10

Once it fully understands consumers and the marketplace, marketing management can design a customer value–driven marketing strategy

the marketing manager must acquire, engage, keep, and grow target customers by creating, delivering, and communicating superior customer value.

What customers will we serve (what’s our target market)? and How can we serve these customers best (what’s our value proposition)?

• selecting customers
• choosing a value proposition
• marketing orientation

Question 11

designing customer value driven marketing strategy part 2

Answer 11

selecting customers = whom to serve
segment -> target

choosing value proposition = how to serve
differentiate -> position

Marketing managment orientation
focus on production or selling, or marketing.

Question 12

selecting customers to serve

Answer 12

marketing managment is the art and scienc of choosing target markets and building profitable relationships

▪ What customers will we serve?
▪ How can we best serve these customers?

Question 13

Selecting Customers to Serve

Answer 13

Market segmentation refers to dividing the markets into segments of customers.

Target marketing refers to which segments to go after.

Question 14

choosing a value proposition

Answer 14

a brands value proposition is the set of benefits or value it promises to deliver to customers to satisfy their needs

Question 15

Marketing orientations

Answer 15

1- production concept
2- product concept
3 - selling concept
4- marketing concepts
5- societal marketing concept

Question 16

Marketing orientations - 1 production concept

Answer 16

focus is on mass production and process efficiency improve production and distribution efficiency

little direction from the customers –> can lead to marketing myopia

Question 17

<marketing> 2 product orientation
</marketing>

Answer 17

focus on developing products that offer the most quality, performance and innovative features
the product is more important than the other 3P’s

Question 18

< marketing orientation > 3 selling concept

Answer 18

focus on convincing pressuring the customers

maximizing sales by whatever means necessary ( price cuts aggressive promotions and sales tactics )
The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.

profits through sales volume

Question 19

< market orientation > 4 marketing concept

Answer 19

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
profits through customer satisfaction

Question 20

< marketing orientation > 5 societal marketing concept

Answer 20

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

Question 21

preparing an integrated marketing plan and program

Answer 21

an integrated marketing program is a comprehensive plan that communicates and delivers that intended value to chosen customers. Transforms the strategy into action

Question 22

marketing mix

Answer 22

marketing mix is the set of tools ( 4 p’s ) that the firm uses to implement its strategy. this set includes product, price, promotion and place

Question 23

< Building Customer Relationships > Customer relationship management

Answer 23

customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction

Question 24

< Building Customer Relationships > Value & Satisfaction

Answer 24

Value = the customers evaluation of the difference between all the benefits and all the costs of marketing offer relative to those of competing offers

satisfaction = to extend to which a products perceived performance matches a buyers expectations

Question 25

< Building Customer Relationships > Customer relationships levels and tools

Answer 25

basic relationships = low margin customers

full partnership = high margin customers

frequency marketing programs = reward customers

Question 26

< Capturing Value from Customers >

Creating Customer Loyalty and Retention

Answer 26

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

Share of customer (Share of wallet) = is the portion of the customer’s purchasing that a company gets in its product categories.

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

Question 27

< Capturing Value from Customers >

Answer 27

1- creating customer loyalty
2- growing share of customers
3- building customer equity

Question 28

< Capturing Value from Customers >
Building customer loyalty

Answer 28

potential profitablity
and projected loyalty

high profitability - short term projected loyalty = butterflies

high profitability - long term loyalty = true

low profitability - short loyalty = strangers

low profitability - long term loyalty = barnacies

Question 29

< Capturing Value from Customers >
growing share of customer / wallet

Answer 29

the portion of the customer’s purchasing that a company gets in its product categories

Upselling = is a sales technique where a seller encourages a customer to purchase a more expensive version of a product or service than they originally intended. The goal is to increase the value of the purchase by offering premium features, upgrades, or additional benefits.

Cross-selling = involves suggesting complementary or related products to the customer in addition to their original purchase. The aim is to enhance the customer’s experience and increase overall sales.

Question 30

Building Customer Relationships &
Capturing Value

Answer 30

Building Customer Relationships
- Customer Relationship Management
- Engaging Customers
- Partner Relationship Management

Capturing Value from Customers
- Creating Customer Loyalty & Retention
- Growing Share of Customer
- Building Customer Equity