Chapter 1 - Creating Customer Relationships and Value Through Marketing

Question 1

What does Marketing affect?

Answer 1

All individuals, all organizations, all industries and all countries.

Question 2

What does the American Marketing Association represent?

Answer 2

Individuals and organizations involved in the development adn practice of marketing worldwide.

Question 3

Marketing is…

Answer 3

The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

This definitions shows that marketing is far more than simply advertising or personal selling.

Question 4

To serve both buyers and sellers, marketing seeks…

Answer 4

1. to discover the needs and wants of prospective customers

2. to satisfy them.

Question 5

Who are prospective customers?

Answer 5

Prospective customers include both individuals buying for themselves and their households and organizations, buying for their own use (such as manufacturers) or for resale (such as wholesalers and retailers).

Question 6

What is the the idea of exchange?

Answer 6

The trade of things of value between a buyer and a seller so that each is better off after the trade.

Question 7

Within an organization, whose mission and objectives determine what business it is in and what goals it seeks. Who is responsible for establishing these goals?

Answer 7

Management

Question 8

The marketing department works closely with?

Answer 8

A network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.

Question 9

What are the four factors required in order for Marketing to occur?

Answer 9

1. two or more parties (individuals or organizations) with unsatisfied needs. 2. a desire and ability on their part to have their needs satisfied. 3. a way for the parties to communicate, and 4. something to exchange.

Question 10

The Marketing Department is responsible for facilitating…

Answer 10

relationships, partnerships and alliances with organization’s customers, its shareholders (or often representatives of nonprofit organizations), its suppliers and other organizations.

Question 11

What is the first objective in Marketing?

Answer 11

Discovering the needs of prospective customers.

Question 12

What is a target market?

Answer 12

one or more specific groups of potential consumers toward which an organization directs its marketing program.

Question 13

What are the Four Ps: Controllable Marketing Mix Factors?

Answer 13

Product: a good service or idea to satisfy the consumer’s needs.
Price: What is exchanged for the product.
Promotion: A means of communication between the seller and buyer.
Place: A means of getting the product to the consumer.

Question 14

Why is the marketing mix elements called controllable factors?

Answer 14

They are under the control of the marketing department in an organization. Managing the marketing mix allows an organization to create a cluster of benefits that satisfies customer’s needs.

Question 15

What are the uncontrollable environmental forces?

Answer 15

The environmental forces that affect a marketing decision, which consist of social, economic, technological, competitive and regulatory forces.

Question 16

How could US companies gain loyal customers?

Answer 16

By providing unique value. this is the essence of successful marketing.

Question 17

What is customer value?

Answer 17

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

Question 18

What is relationship marketing?

Answer 18

The hallmark of developing and maintaining effective customer relationships. This links the organization to its individual customers, employees, suppliers and other partners for their mutual long-term benefit.
Relationship marketing involves a personal, ongoing relationship between the organization/ind.cust. that begin b4 sale and may evolve to different types of relationships after the sale

Question 19

What is a marketing program?

Answer 19

A plan that integrates the marketing mix to provide a good, service or idea to prospective buyers. Ideally, they can be formed into market segments.

Question 20

What is a market segment?

Answer 20

Relatively homogeneous groups of prospective buyers that 1. have common needs and 2. will respond similarly to a marketing action. This action might be a product feature a promotion or a price.

Question 21

What are the four different market orientations in the history of American business?

Answer 21

1. Production era: covers the early years of the US up until 1920s. Goods were comparatively scarce and buyers were willing to accept virtually any goods that were available and make do with them.
2. Sales era: from 1920s to 1960s. Manufacturers found they could produce more goods than buyers could consume. Competition grew. Firms hired more salespeople to find new buyers.
3. Marketing Concept era: Starting in the late 1950s. Marketing became the motivating force among many American firms.

Marketing Concept: the idea that an organization should 1. strive to satisfy the needs of consumers while also 2. trying to achieve the organization’s goals.

4. Consumer Relationship era: started in the 1980s and continues today as firms continuously seek to satisfy the high expectations of customers.

Market orientation: focuses on it’s efforts on 1. continuously collecting information about cusotmers’ needs. 2. sharing this information across departments.

Question 22

What is customer relationship management (crm)?

Answer 22

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and it’s offering so that buyers will choose them in the marketplace and become advocates after their purchase.

Question 23

What is the foundation of customer relationship management?

Answer 23

Customer Experience: the internal response that cusotmers have to all aspects of an organization and its offering. This internal response includes both the direct and indirect contacts of the contacts for he customer with the company.

Question 24

What is the direct contacts of the customer with the company?

Answer 24

Direct contacts include the customer’s contacts with the seller through buying, using and obtaining services.

Question 25

What is the indirect contacts of the customer with the company?

Answer 25

Indirect contacts most often involve unplanned “touches” with the company through word-of-mouth comments from other customers, reviewers and new reports.

Question 26

What is social responsibility?

Answer 26

the idea that organizations are accountable to a larger society.

Question 27

What is a societal marketing concept?

Answer 27

the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.

Question 28

in the breadth and depth of marketing, how does marketing today affect every person and organization?

Answer 28

To understand we must analyze:

1. who markets: every organization markets.
2. what is marketed: goods, services and ideas are marketed.
3. who buys and uses what is marketed: Both individuals and organizations buy and use products that are marketed.
4. who benefits from these marketing activities: There are three specific groups that benefits: consumers who buy, organizations that sell and society as a whole.
5. how consumers benefit: Marketing creates utility, the benefits or customer value received by users of the product. The utility is the result of the marketing exchange process and the way society benefits from marketing.

Question 29

What are the four different forms of utility?

Answer 29

Form, place, time and possession

Question 30

What does the four utilities mean?

Answer 30

form utility: The production of the product or service.
place utility: having the offering available where the consumers need it.
time utility: having it available when needed
possession utility: the value of making an item easy to purchase through the provision of credit cards or financial arrangements.

Question 31

How does marketing relate utility?

Answer 31

Marketing creates its utilities by bridging space (place utility) and hours (time utility) to provide products (form utility) for consumers to own and use (possession utility).