Chapter 1 Flashcards
What is marketing?
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.
What is the first step in the marketing process?
Understand the marketplace and customer needs and wants.
What is the second step in the marketing process?
Design a customer value-driven marketing strategy.
What is the third step in the marketing process?
Construct an integrated marketing program that delivers superior value.
What is the fourth step in the marketing process?
Engage customers, build profitable relationships, and create customer delight.
What is the fifth and final step in the marketing process?
Capture value from customers to create profits and customer equity.
What is the overall goal of the marketing process?
To create value for customers and capture value from customers in return.
What are needs in marketing terms?
Needs are states of felt deprivation.
What are wants in marketing terms?
Wants are the form human needs take as they are shaped by culture and individual personality.
What are demands in marketing terms?
Demands are human wants that are backed by buying power.
What are market offerings?
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
What do customers form expectations about regarding market offerings?
Customers form expectations about the value and satisfaction of market offerings.
What do satisfied customers typically do?
Satisfied customers buy again.
What do dissatisfied customers typically do?
Dissatisfied customers switch to competitors.
What happens if a company sets low expectations for their market offerings?
Low expectations may fail to attract buyers.
What happens if a company sets high expectations for their market offerings?
High expectations may disappoint buyers.
What is exchange in marketing terms?
Exchange is the act of obtaining a desired object from someone by offering something in return.
What do marketing actions try to do regarding exchange relationships?
Marketing actions try to create, maintain, and grow desirable exchange relationships.
What is a market in marketing terms?
A market is set of actual and potential buyers.
When do consumers considered to be in a market?
Consumers considered to be in a market when they search for products, interact with companies to obtain information, and make purchases.
Name the main elements in a modern marketing system.
Company, Suppliers, Marketing intermediaries, Final consumers, Competitors, and Major environmental forces.
According to Figure 1.2, what is the role of suppliers in a marketing system?
Suppliers provide resources needed by the company to produce its goods and services.
According to Figure 1.2, what are marketing intermediaries?
Marketing intermediaries help the company to promote, sell, and distribute its goods to final buyers.
According to Figure 1.2, who are the final consumers?
Final consumers are the ultimate users of the products and services.
According to Figure 1.2, what role do competitors play in a marketing system?
Competitors are other companies in the same industry that are trying to satisfy the needs of the same customer group.
According to Figure 1.2, what are major environmental forces?
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.
What must be developed and managed in a marketing system to create customer value and profitable customer relationships?
Relationships between all parties in the system must be developed and managed.
What is involved in marketing according to Figure 1.2?
Marketing involves serving a market of final consumers in the face of competitors.
What do companies and competitors do to understand customer needs?
Companies and competitors research the market and interact with consumers.
After researching the market, what do companies create and exchange with consumers?
Companies create and exchange market offerings, messages, and other marketing content with consumers.
How can companies reach consumers according to Figure 1.2?
Companies can reach consumers either directly or through marketing intermediaries.
What affects each party in the marketing system?
Each party in the system is affected by major environmental forces (demographic, economic, natural, technological, political, and social/cultural).
What is marketing management?
Marketing management is the art and science of choosing target markets and building profitable relationships with them.
What are the two key questions a marketing manager must answer when designing a customer value-driven marketing strategy?
What customers will we serve (target market)? and How can we best serve these customers (value proposition)?
What is a brand’s value proposition?
A brand’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs.
In the selling concept, what is the starting point?
Factory.
In the selling concept, what is the focus?
Existing products.
In the selling concept, what are the means?
Selling and promoting.
In the selling concept, what are the ends?
Profits through sales volume.
In the marketing concept, what is the starting point?
Market.
In the marketing concept, what is the focus?
Customer needs.
In the marketing concept, what are the means?
Integrated marketing.
In the marketing concept, what are the ends?
Profits through customer satisfaction.
What kind of view does the selling concept take?
Inside-out view.
What does the selling concept focus on?
Existing products and heavy selling.
What is the aim of the selling concept?
To sell what the company makes rather than making what the customer wants.
What kind of view does the marketing concept take?
Outside-in view.
What does the marketing concept focus on?
Satisfying customer needs.
What is societal marketing?
Societal marketing is a marketing orientation that considers consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
What three considerations underlie the societal marketing concept?
Society (Human welfare), Consumers (Want satisfaction), and Company (Profits).
What is the marketing mix comprised of?
The marketing mix is comprised of a set of tools known as the four Ps: product, price, promotion, and place.
What is an integrated marketing program?
An integrated marketing program is a comprehensive plan that communicates and delivers intended value.
Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
What is customer relationship management (CRM)?
Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
What are the two building blocks of customer relationships?
Customer-perceived value and Customer satisfaction.
What is customer-perceived value?
Customer-perceived value is the difference between total customer perceived benefits and customer cost.
What is customer satisfaction?
Customer satisfaction is the extent to which perceived performance matches a buyer’s expectations.
What is customer-engagement marketing?
Customer-engagement marketing fosters direct and continuous customer involvement in shaping brand conversations, experiences, and community.
What is partner relationship management?
Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
What is customer lifetime value?
Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.
What is customer equity?
Customer equity is the total combined customer lifetime values of all of the company’s customers.
