Chapter 1

Question 1

What is marketing?

Answer 1

The 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 are 5 steps in Marketing process?

Answer 2

1) Understanding the marketplace and customer needs and wants.
2) Design a customer driven marketing strategy.
3) Construct an integrated marketing program that delivers superior value.
4) Build profitable relationships and create customer delight.
5) Capture value from customers to create profits and customer equity.

Question 3

What are needs, wants, and demands?

Answer 3

Needs - states of felt deprivation.
Wants - The form human needs take as they are shaped by culture and individual personality.
Demands - Human wants that are backed up by buying power.

Question 4

What are Market offerings?

Answer 4

Some combination of products, services, information, or experiences offered to a market to satisfy needs and wants.

Question 5

What is marketing myopia?

Answer 5

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

Question 6

What is exchange?

Answer 6

The act of obtaining a desired object from someone by offering something in return.

Question 7

What is a market?

Answer 7

The set of all actual and potential buyers of a product or service.

Question 8

What is marketing management?

Answer 8

The art and science of choosing target markets and building profitable relationships with them.

Question 9

What is Production concept?

Answer 9

The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.

Question 10

What is product concept?

Answer 10

The idea that consumers will favour products that offer the most quality, performance, and features, therefore, the organization should devote its energy to making continual product improvement.

Question 11

What is selling concept?

Answer 11

The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.

Question 12

What is marketing concept?

Answer 12

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

Question 13

What is societal marketing concept?

Answer 13

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 14

What is customer relationships management?

Answer 14

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Question 15

What is the customer-perceived value?

Answer 15

The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Question 16

What is customer satisfaction?

Answer 16

The extent to which a product’s perceived performance matches a buyer’s expectations.

Question 17

What is customer engagement marketing?

Answer 17

Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continual customer involvement in shaping brand conversations, experiences, and community.

Question 18

What is consumer-generated marketing?

Answer 18

Brand exchanges created by consumers themselves - both invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.

Question 19

What is partner relationship management?

Answer 19

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Question 20

What is customer lifetime value?

Answer 20

The value of the entire stream of purchases a customer makes over a lifetime of patronage.

Question 21

What is the share of customer?

Answer 21

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

Question 22

What is customer equity?

Answer 22

The total combined customer lifetime value of all the company’s customers.

Question 23

What is digital and social media marketing?

Answer 23

The use of digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs in order to engage customers anywhere and at any time via their digital devices.

Question 24

What are 4 customer relationship groups?

Answer 24

Low Profitability/Short term customers-Strangers little fit between company’s offerings and customer’s needs; lowest profit potential.
High profitability/Short term customers- Butterflies Good fit between company’s offerings and customer’s needs; high potential profit.
High Profitability/Long term customers- True friends Good fit between company’s offerings and customer’s needs; high potential profit.
Low Profitability/Long term customers- Barnacles limited fit between company’s offerings and customer’s needs; lowest profit potential.