Chapter 1

Question 1

What is marketing?

Answer 1

Marketing 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 2

What is the first step in the marketing process?

Answer 2

Understand the marketplace and customer needs and wants.

Question 3

What is the second step in the marketing process?

Answer 3

Design a customer value-driven marketing strategy.

Question 4

What is the third step in the marketing process?

Answer 4

Construct an integrated marketing program that delivers superior value.

Question 5

What is the fourth step in the marketing process?

Answer 5

Engage customers, build profitable relationships, and create customer delight.

Question 6

What is the fifth and final step in the marketing process?

Answer 6

Capture value from customers to create profits and customer equity.

Question 7

What is the overall goal of the marketing process?

Answer 7

To create value for customers and capture value from customers in return.

Question 8

What are needs in marketing terms?

Answer 8

Needs are states of felt deprivation.

Question 9

What are wants in marketing terms?

Answer 9

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

Question 10

What are demands in marketing terms?

Answer 10

Demands are human wants that are backed by buying power.

Question 11

What are market offerings?

Answer 11

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

Question 12

What do customers form expectations about regarding market offerings?

Answer 12

Customers form expectations about the value and satisfaction of market offerings.

Question 13

What do satisfied customers typically do?

Answer 13

Satisfied customers buy again.

Question 14

What do dissatisfied customers typically do?

Answer 14

Dissatisfied customers switch to competitors.

Question 15

What happens if a company sets low expectations for their market offerings?

Answer 15

Low expectations may fail to attract buyers.

Question 16

What happens if a company sets high expectations for their market offerings?

Answer 16

High expectations may disappoint buyers.

Question 17

What is exchange in marketing terms?

Answer 17

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

Question 18

What do marketing actions try to do regarding exchange relationships?

Answer 18

Marketing actions try to create, maintain, and grow desirable exchange relationships.

Question 19

What is a market in marketing terms?

Answer 19

A market is set of actual and potential buyers.

Question 20

When do consumers considered to be in a market?

Answer 20

Consumers considered to be in a market when they search for products, interact with companies to obtain information, and make purchases.

Question 21

Name the main elements in a modern marketing system.

Answer 21

Company, Suppliers, Marketing intermediaries, Final consumers, Competitors, and Major environmental forces.

Question 22

According to Figure 1.2, what is the role of suppliers in a marketing system?

Answer 22

Suppliers provide resources needed by the company to produce its goods and services.

Question 23

According to Figure 1.2, what are marketing intermediaries?

Answer 23

Marketing intermediaries help the company to promote, sell, and distribute its goods to final buyers.

Question 24

According to Figure 1.2, who are the final consumers?

Answer 24

Final consumers are the ultimate users of the products and services.

Question 25

According to Figure 1.2, what role do competitors play in a marketing system?

Answer 25

Competitors are other companies in the same industry that are trying to satisfy the needs of the same customer group.

Question 26

According to Figure 1.2, what are major environmental forces?

Answer 26

Major environmental forces are larger societal forces that affect all actors in the marketing system, such as demographic, economic, natural, technological, political, and social/cultural forces.

Question 27

What must be developed and managed in a marketing system to create customer value and profitable customer relationships?

Answer 27

Relationships between all parties in the system must be developed and managed.

Question 28

What is involved in marketing according to Figure 1.2?

Answer 28

Marketing involves serving a market of final consumers in the face of competitors.

Question 29

What do companies and competitors do to understand customer needs?

Answer 29

Companies and competitors research the market and interact with consumers.

Question 30

After researching the market, what do companies create and exchange with consumers?

Answer 30

Companies create and exchange market offerings, messages, and other marketing content with consumers.

Question 31

How can companies reach consumers according to Figure 1.2?

Answer 31

Companies can reach consumers either directly or through marketing intermediaries.

Question 32

What affects each party in the marketing system?

Answer 32

Each party in the system is affected by major environmental forces (demographic, economic, natural, technological, political, and social/cultural).

Question 33

What is marketing management?

Answer 33

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

Question 34

What are the two key questions a marketing manager must answer when designing a customer value-driven marketing strategy?

Answer 34

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

Question 35

What is a brand's value proposition?

Answer 35

A brand's value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs.

Question 36

In the selling concept, what is the starting point?

Answer 36

Factory.

Question 37

In the selling concept, what is the focus?

Answer 37

Existing products.

Question 38

In the selling concept, what are the means?

Answer 38

Selling and promoting.

Question 39

In the selling concept, what are the ends?

Answer 39

Profits through sales volume.

Question 40

In the marketing concept, what is the starting point?

Answer 40

Market.

Question 41

In the marketing concept, what is the focus?

Answer 41

Customer needs.

Question 42

In the marketing concept, what are the means?

Answer 42

Integrated marketing.

Question 43

In the marketing concept, what are the ends?

Answer 43

Profits through customer satisfaction.

Question 44

What kind of view does the selling concept take?

Answer 44

Inside-out view.

Question 45

What does the selling concept focus on?

Answer 45

Existing products and heavy selling.

Question 46

What is the aim of the selling concept?

Answer 46

To sell what the company makes rather than making what the customer wants.

Question 47

What kind of view does the marketing concept take?

Answer 47

Outside-in view.

Question 48

What does the marketing concept focus on?

Answer 48

Satisfying customer needs.

Question 49

What is societal marketing?

Answer 49

Societal marketing is a marketing orientation that considers consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Question 50

What three considerations underlie the societal marketing concept?

Answer 50

Society (Human welfare), Consumers (Want satisfaction), and Company (Profits).

Question 51

What is the marketing mix comprised of?

Answer 51

The marketing mix is comprised of a set of tools known as the four Ps: product, price, promotion, and place.

Question 52

What is an integrated marketing program?

Answer 52

An integrated marketing program is a comprehensive plan that communicates and delivers intended value.

Question 53

What is customer relationship management (CRM)?

Answer 53

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

Question 54

What are the two building blocks of customer relationships?

Answer 54

Customer-perceived value and Customer satisfaction.

Question 55

What is customer-perceived value?

Answer 55

Customer-perceived value is the difference between total customer perceived benefits and customer cost.

Question 56

What is customer satisfaction?

Answer 56

Customer satisfaction is the extent to which perceived performance matches a buyer's expectations.

Question 57

What is customer-engagement marketing?

Answer 57

Customer-engagement marketing fosters direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Question 58

What is partner relationship management?

Answer 58

Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Question 59

What is customer lifetime value?

Answer 59

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

Question 60

What is customer equity?

Answer 60

Customer equity is the total combined customer lifetime values of all of the company's customers.