Chapter 1

Question 1

Marketing mix

Answer 1

a set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. 4Ps framework (Product, Price, Place and Promotion), 7Ps (4Ps + People, Processes and Physical evidence), 4Cs (Customer solution, Customer cost, Convenience and Communication).

Question 2

Marketing process (5 steps)

Answer 2

1. Understanding the marketplace and customers’ needs and wants
2. Design a customer-driven marketing strategy
3. Construct and integrating program that delivers superior customer value
4. Built profitable relationships and customer delight
5. Capture value from customers in return to create profits and customer equity

Question 3

need

Answer 3

a state of felt deprivation

Question 4

want

Answer 4

forms that a human need takes which is shaped by culture and individual personality

Question 5

Maslow’s hierarchy of needs

Answer 5

human needs are arranged in a hierarchy from the most pressing to the least pressing. Humans try to satisfy the most important need first and, once it is satisfied, it stops to be a motivator and the person will try to satisfy the next one: 1) survival needs, 2) safety needs, 3) social needs, 4) esteem needs, 5) self-actualization needs.

Question 6

Demand

Answer 6

wants backed by buying power

Question 7

Market offering

Answer 7

what fulfills customers’ needs and wants by providing tangible and intangible products

Question 8

Customer value

Answer 8

difference between the benefits that a customer gain from owning or using a product and the costs of obtaining it

Question 9

Customer satisfaction

Answer 9

it depends on the product perceived performance relative to customer expectations.

Question 10

Market

Answer 10

a set of actual and potential buyers with common needs and want and the buying power to satisfy them through exchange relationships.

Question 11

Marketing management orientations (5 steps)

Answer 11

1. Production concept → focus on production and distribution (if we produce, they will buy)
2. Product concept → focus on the product, not the consumer!!! Marketing myopia.
3. Selling concept → aggressive sales techniques.
4. Marketing concept → achieving organizational goals while satisfying customers’ needs and wants
   more efficiently than competitors.
5. Societal marketing concept → achieving organizational goals, satisfying customers’ needs and wants
   better than competitors + maintain or improve consumers’ and society’s well-being.

Question 12

Customer Relationship management (CRM)

Answer 12

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

Question 13

Customer life time value

Answer 13

stream of profits that a customer will create over the life of his/her relationship with the business !!! Losing a client means losing more than a single sale.

Question 14

Right relationship with the right costumer: model based on potential profitability and projected loyalty

Answer 14

1. Strangers: neither profitable nor loyal.
2. Butterflies: potentially profitable but not loyal.
3. True friends: both profitable and loyal.
4. Barnacles: not profitable but loyal.