Chapter 1

Question 1

What is the point of marketing?

Answer 1

Manage profitable customer relationships
Discovering and satisfying needs
Creating value for customers and building strong relationships to capture value from customers in return

Question 2

Goal of marketing

Answer 2

Attract new customers

Keeping and growing current customer base

Question 3

Model of the marketing process

Answer 3

Understand the marketplace and customer needs and wants
Design a customer-driven marketing strategy
Construct an integrated marketing program that delivers superior value
Build profitable relationships and create customer delight
Capture value from customers to create profits and customers equity.

Question 4

5 core concepts

Answer 4

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

Question 5

Needs, Wants and Demand

Answer 5

Needs- Food, clothing, warmth, safety
Wants- Needs influenced by culture and personality
Demand- Sum of wants and buying power

Question 6

Market offerings

Answer 6

Products, services and experiences that are available to satisfy a need or a want

Question 7

Market Myopia

Answer 7

Paying more attention to the specifics of a product, rather than the benefits it can offer.
(Ties to market offerings)

Question 8

Exchange relationships

Answer 8

Act of obtaining a desired object from someone by offering something in return.
Exchange is the expected result of marketing but relationship building is a higher and more rewarding pursuit.

Question 9

Markets

Answer 9

The set of all actual and potential buyers of a product or service
The greater market is divided into segments comprised of consumers with similar needs

Question 10

Aspect of designing a costumer driven marketing strategy

Answer 10

Market segmentation
Target market
Value proposition (Benefits)

Question 11

Production concept

Answer 11

Customers will favor products that are available and affordable. Organization should focus on improving production and distribution efficiency.
Could lead to marketing myopia, focusing solely on operations.

Question 12

Product concept

Answer 12

Consumers will favor products that offer the most quality, performance and features.
Organization should devote energy to making continuous product improvements.

Question 13

Selling concept

Answer 13

Consumers will not buy enough of a company’s products unless it undertakes a large-scale selling and promotion effort. This creates sales transactions but no long-term profitable consumer relationships. (Focuses on selling existing products rather than focus on consumer needs)

Question 14

Marketing Concept

Answer 14

Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors.

Question 15

Social Marketing Concept

Answer 15

Long run interests, sustainability and corporate social responsibility
Presents needs while considering future interests.
Doing good rather than being good.

Question 16

Preparing an integrated marketing plan and program

Answer 16

Analyzes firm’s current situation and transforms the marketing strategy into action
4 P’s
Product
Price
Place (distribution)
Promotion

Question 17

Customer relationship managment

Answer 17

Maintaining relationships by delivering superior customer value and satisfaction
Deals with all aspects of acquiring, keeping and increasing customers

Question 18

Customer relationship groups

Answer 18

Butterflies (high profitability, short term)
True Friends (high profitability, Long term)
Strangers (don’t invest in them)
Barnacles (Low profitability, long-term)