Chapter 1

Question 1

Marketing

Answer 1

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return.

Question 2

Five core customer and marketplace concepts

Answer 2

Needs, wants, and demands
Market offerings 
Value and satisfaction
Exchanges and relationships
Markets

Question 3

market offerings

Answer 3

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

Question 4

marketing myopia

Answer 4

s focusing only on existing wants and losing sight of underlying consumer needs.

Question 5

exchange

Answer 5

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

Question 6

market

Answer 6

is the set of actual and potential buyers of a product.

Question 7

marketing management

Answer 7

is the art and science of choosing target markets and building profitable relationships with them.
What customers will we serve?
How can we best serve these customers?

Question 8

market segmentation

Answer 8

refers to dividing the markets into segments of customers.

Question 9

target market

Answer 9

refers to which segments to go after

Question 10

Value propositon

Answer 10

is the set of benefits or values a company promises to deliver to customers to satisfy their needs.

Question 11

Production concept

Answer 11

is the idea that consumers will favour products that are available or highly affordable.

Question 12

Product concept

Answer 12

is the idea that consumers will favour products that offer the most quality, performance and features and that the organisation should therefore devote its energy to making continuous product improvements.

Question 13

Selling concept

Answer 13

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

Question 14

Marketing concept

Answer 14

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

Question 15

Societal marketing

Answer 15

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

Question 16

The marketing mix

Answer 16

set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion and place.

Question 17

Integrated marketing programme

Answer 17

comprehensive plan that communicates and delivers the intended value to chosen customers.

Question 18

Customer-managed relationships:

Answer 18

Marketing relationships in which customers, empowered by today’s new digital technologies, interact with companies and with each other to shape their relationships with brands.

Question 19

Partner relationship management

Answer 19

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

Question 20

Supply chain

Answer 20

a channel that stretches from raw materials to components to final products to final buyers.

Question 21

Customer lifetime value

Answer 21

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

Question 22

Share of customer

Answer 22

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

Question 23

Share of Customer is increased by:

Answer 23

Good customer relationship management
Offering greater variety to current customers
Creating programs to cross-sell and up-sell to existing customers

Question 24

Customer equity

Answer 24

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