Chapter 1 - Creating Customer Value Flashcards
Define marketing
Marketing is to engage customers and attract new and build profitable customer relationships. Companies will get value from customers in return.
Outline the steps in the marketing process.
There’s 5 steps in the marketing process. First 4 steps create value for customers. Marketers will have to understand the market and the customers wants and need. Next, they will design a market strategy based on their targeted customers, its goal and to engage them. Third, a market plan will be constructed to deliver value to customer.
In short: engaging customers, building profitable relationships and creating customer delight. The company will get rewarded by capturing value from customers, in the last step.
Reflect: why are customer orientated firms more likely to succeed in the future than firms that are not?
More value from customers in the long run.
If a customer is satisfied, they will then go and tell others about it and «market» your business.
Define market offerings
It is a combination of products, services, information offered to satisfy a customers need or want
What is marketing myopia? What are the short- and long term implications for business in this situation?
Market myopia is where marketers put more focus on the product than the benefit and experience of the products. The seller will lose sight of customer need.
Explain what low expectations and high expectations can effect buyers and the firm.
If the company sets too low expectations, it will satisfy the customers but may fail to attract new ones.
Too high expectations will make buyers disappointed if the product did not turn out the way they hoped.
Explain the human need, want and demand.
Human needs are states of felt deprivation. Ex: need for food, warmth, clothing…
Wants are shaped by culture and individual personality. Ex: a person needs food, but wants Big mac and fries.
When wants gets backed by power, it becomes a demand. People will then demand products and services that will benefit and satisfy them.
Why is brand experiencing important?
Because the customer will get to experience what your brand will have to offer, if it lives up to its name and motto. For example, people don’t just visit Disney world just to visit. They will immerse themselves in a world of wonder.
How does a customer choose among all these many market offerings?
Customers often buys from the firm that offers the highest customer-perceived value.
Explain exchange relationships
It is the act of obtaining a desired object from someone by offering something in return.
Define market and the core marketing activities.
A market is a result of exchange and relationships, and is the set of actual and potential buyers of a product and service. Here, buyers can share their need or want that can satisfied through exchange relationships.
Search and engage consumers, identify their needs, design good market offerings, set prices, promote, store and deliver + activities such as consumer speech, product development, communication, distribution, pricing and service are all core marketing activities.
Some questions to ask
What customers will we serve(target market?)
How can we serve these customers best?
Why is target marketing important? Come with examples.
Because a company cannot focus on serving everyone and satisfy everyones needs, that’s why they will need to target whom it will serve and only focus on that target market. By that, the company will serve well and profitably.
In order to differentiate your brand from another, what is it called?
Value proposition. This will make answer the question why some are choosing your brand over another.
Name the two basic notions of value.
Category value, which is equal for all competitors.
Relative(brand)value, which is a value compared to competitors
Explain the five different concepts to carry out their marketing strategies.
Production concept Product concept Marketing concept Selling concept Societal marketing concept
Explain production concept, its focus, pros and cons
This concept holds that consumers will favour products that are available and highly affordable products. Therefore, management should focus on improving efficiency and production.
Pros: low labour cost, high-efficiency, mass distribution
Cons: can lead to marketing myopia
Explain product concept, its focus, pros and cons
This concept holds that consumers will favour quality, performance and innovative features.
Marketing strategy will focus on making continous product improvements.
Cons: focusing only on its products can lead to marketing myopia.
Pros: it a good strategy to produce high-quality products.
Explain the selling concept, its strategy, pros and cons
This concepts means the consumers will not buy their products unless they make a huge effort on promoting it. They sell through heavy advertising. Its aim is often to sell what the company makes rather than what the market wants.
Pros: It is usually practiced with things that buyers will usually not think of buying.
Cons: it focuses on selling rather than on building long-term, profitable customer relationships.
Explain the marketing concept, its strategy, cons and pros
This concept focuses on its customers needs and is customer orientated. Its strategy is to know what the market wants and delivers the desired satisfaction.
Pros: knows the market and is delivering better than competitors. Focus on customer and value will lead to to sales and profits.
Explain the societal marketing concept, its strategy and why it is important
This concept means that a company’s marketing decisions should consider consumers wants, the company’s requirements, consumers long-run interests and society’s long-run interests.
Should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being.
It is a socially and environmentally responsible marketing that produces enough to meet its consumers now while preserving for later generations.
What is customer lifetime value?
CLV presents the value of revenue that can be produced by customers during their relationship with the firm.
Define customer equity
It is the value of potential future revenue generated by a company’s customers in a lifetime.
The more loyal customers -> customer equity
What is the four P’s?
The four P’s are marketing mix tools which are:
- Product: First create a need-satisfying product
- Price: How much it will charge for it.
- Place: How it will make the product available for consumers.
- Promotion: Engage target customers, communicate and persuade them.
Define customer relationship management and how to use this to create superior customer value.
CRM is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Satisfied customers are more likely to be and remain loyal.
Define customer-perceived value
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative those of competing offer.
What is customer satisfaction depended on and what does high satisfaction lead to?
Expectations and higher customer satisfaction lead to greater loyalty, which in turn results in better company performance.
Customer-engagement marketing is…
Continous customer involvement in shaping brand conversations, brand experiences and brand community. Its goal is to be a meaningful part of consumers lives.
Consumer-generated marketing is…
Is a way to make consumers take part in shaping their own brand experience. It can ex be done im blogs, social media and other digital forms.
Partner relationship management is…
When marketers work with others inside and outside the company to engage and bring more value to customers. For example partner with influencers, retailers and others who connect the company to its buyers.
Share of customer
…
Digital and social media marketing is…
When marketers used digital marketing tookd to connect with consumers, it can be through apps, websites, ads, email osv…
Why is marketing as important for not-for-profit organizations as profit-driven ones?
Marketing for not-for-profit organizations such as hospitals, colleges, museums can help them attract membership, funds and support. For example hospitals can do marketing for fundraising.
Reflect: how has rapid globalization effected the market?
…
Reflect: why are customer orientated firms more likely to succeed in the future than firms that are not?
More value from customers in the long run.
If a customer is satisfied, they will then go and tell others about it and «market» your business.
Define market offerings
It is a combination of products, services, information offered to satisfy a customers need or want
What is marketing myopia? What are the short- and long term implications for business in this situation?
Market myopia is where marketers put more focus on the product than the benefit and experience of the products. The seller will lose sight of customer need.
Explain what low expectations and high expectations can effect buyers and the firm.
If the company sets too low expectations, it will satisfy the customers but may fail to attract new ones.
Too high expectations will make buyers disappointed if the product did not turn out the way they hoped.
Explain the human need, want and demand.
Human needs are states of felt deprivation. Ex: need for food, warmth, clothing…
Wants are shaped by culture and individual personality. Ex: a person needs food, but wants Big mac and fries.
When wants gets backed by power, it becomes a demand. People will then demand products and services that will benefit and satisfy them.
Why is brand experiencing important?
Because the customer will get to experience what your brand will have to offer, if it lives up to its name and motto. For example, people don’t just visit Disney world just to visit. They will immerse themselves in a world of wonder.
How does a customer choose among all these many market offerings?
..
Explain exchange relationships
It is the act of obtaining a desired object from someone by offering something in return.
Define market and the core marketing activities.
A market is a result of exchange and relationships, and is the set of actual and potential buyers of a product and service. Here, buyers can share their need or want that can satisfied through exchange relationships.
Search and engage consumers, identify their needs, design good market offerings, set prices, promote, store and deliver + activities such as consumer speech, product development, communication, distribution, pricing and service are all core marketing activities.
Some questions to ask
What customers will we serve(target market?)
How can we serve these customers best?
Why is target marketing important? Come with examples.
Because a company cannot focus on serving everyone and satisfy everyones needs, that’s why they will need to target whom it will serve and only focus on that target market. By that, the company will serve well and profitably.
In order to differentiate your brand from another, what is it called?
Value proposition. This will make answer the question why some are choosing your brand over another.
Name the two basic notions of value.
Category value, which is equal for all competitors.
Relative(brand)value, which is a value compared to competitors
Define marketing
Marketing is to engage customers and attract new and build profitable customer relationships. Companies will get value from customers in return.
