Chapter 1

Question 1

What is the basic concept of marketing?

Answer 1

Marketing is engaging customers and managing profitable customer relationships. The aim of marketing is to create value for customers in order to capture value from customers in return.

Question 2

What are needs?

Answer 2

It can be: physical needs (foods, clothing, love, social needs (belonging, affection), safety and individual needs

Question 3

What are wants?

Answer 3

Wants needs become wants when they are shaped by culture and individual personality. For example, Dutch people need food but they want (potatoes, meat and vegetable)

Question 4

What are demands?

Answer 4

Demands are when wants are supported by buying power it becomes demand

Question 5

The marketing concept is composed of 5 strategies: name them!

Answer 5

Production concept: consumers will favour products that are available or highly affordable.

Product concept: consumers will favour products that offer the most quality performance, and features. that means the organization needs to make continuous improvements.

Selling concept: is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort. (Aggressive selling concept=offensive marketing)

Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do.

Societal marketing concept: is the idea that a company should make good marketing decisions by considering consumers wants the company’s requirements consumers long term interest and society’s long-run interests (green marketing sustainability)

Question 6

What is meant by Customer lifetime value?

Answer 6

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

Question 7

What is meant by Customer equity?

Answer 7

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

Question 8

What is Customer perceived value?

Answer 8

Customer - perceived value is the difference between total customers perceived benefits and customer cost. If we can understand his perceived value so that the value is higher than the cost get him engagement.

Question 9

What is company’s value proposition?

Answer 9

A customer value proposition is a business or marketing statement that describes why a customer should buy a product or use a service. It is specifically targeted towards potential customers rather than other constituent groups such as employees, partners or suppliers.

Question 10

What is marketing myopia ?

Answer 10

Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs.

Question 11

What is CRM?

Answer 11

Customer relationship management (CRM)The overall process of building and maintaining profitable customer relationship by delivering superior customer value and satisfaction.

Question 12

Marketing offerings

Answer 12

Some combination of products, services, information, or experience offered to a market to satisfy a need or want.

Question 13

Market

Answer 13

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

Question 14

Exchange

Answer 14

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

Question 15

Customer satisfaction

Answer 15

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

Question 16

Customer- engagement marketing

Answer 16

Making the brand a meaningful part of consumer´s conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Question 17

Customer-generated marketing

Answer 17

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

Question 18

Partner Relationship Management

Answer 18

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

Question 19

Share of customer

Answer 19

The portion of the customer´s purchasing that a company gets in its products categories.

Question 20

Digital and social media marketing

Answer 20

Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices.