Chapter 1: customer value and engagement

Question 1

What is marketing?

Answer 1

Marketing is the process by which companies engage their customers, build strong relationships, and create customer value. It is a social and managerial process by which individuals and businesses obtain what they need and want

Question 2

What are the 5 steps in the marketing process?

Answer 2

1. understand the marketplace and customers needs and wants
2. design customer value-driven strategy
3. construct integrated marketing program that delivers superior customer value
4. engage customers, build profitable relations and customer delight
5. capture value to create profits and customer equity

Question 3

vision of the future

Answer 3

explorers look at the future and what has not been invented

Question 4

Changes in trends

Answer 4

The appearance of new trends makes changes in consumer behavior and will alter the way people used to engage with products, services, and brands

Question 5

Changes in markets

Answer 5

The appearance of customers, competitors, new features, new technologies and the ways to improve the product will generate new revenue streams

Question 6

Changes in the company

Answer 6

decline in sales, become more profitable and be more sustainable

Question 7

Needs

Answer 7

states of felt deprivation

Question 8

What are the different types of needs?

Answer 8

physical, social and individual

Question 9

Wants

Answer 9

the form human needs take as they are shaped by culture and individual personality

Question 10

Demands

Answer 10

human wants that are backed by a buying power

Question 11

market offerings

Answer 11

the combination of products, services, information or experiences offered to a market to satisfy a certain need or want

Question 12

What is marketing myopia

Answer 12

The mistake of paying more attention to specific products that a company offers than to the benefits and experiences offered by these products

Question 13

What is the main idea of customer value and satisfaction?

Answer 13

Satisfied customers will tend to buy again and will tell others about their good experiences with a company or product.

Question 14

Why should marketers set the right level of expectations?

Answer 14

Because, if they set them too low, they might create satisfaction but fail to attract customers while if they set them to high, buyers might be disappointed

Question 15

What are exchanges

Answer 15

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

Question 16

How can companies build relationships

Answer 16

Companies look to build strong relationships by consistently delivering superior customer value

Question 17

What is a market?

Answer 17

A market is a set of actual and potential buyers of a product or service who share a particular need or want and can be satisfied through exchange relationships

Question 18

what is marketing management

Answer 18

The art and science of choosing target markets and building profitable relationships with them

Question 19

What are the steps in creating a value-driven marketing strategy

Answer 19

1. selecting customers to serve
2. create a value proposition
3. marketing management orientations

Question 20

Value proposition

Answer 20

The set of benefits or values a company promises to deliver to customers to satisfy their needs

Question 21

Marketing management orientations

Answer 21

design strategies that will engage target customers and build profitable relationships with them

Question 22

production concept

Answer 22

idea that customers will favour the products that are available and affordable

Question 23

Product concept

Answer 23

Customers will favour products with the highest quality, performance and features

Question 24

Selling concept

Answer 24

consumers will not buy enough of the firms products unless the firm undertakes a large scale selling and promotion effort

Question 25

Marketing concept

Answer 25

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

Question 26

Societal marketing concept

Answer 26

A company’s marketing decisions should consider customer wants, the companies requirements, customers long run interests and societies long run interests

Question 27

What is an integrated marketing plan

Answer 27

outline of which customers it will serve and how it will create value for these customers

Question 28

Purpose of an integrated marketing plan

Answer 28

Develop an integrated marketing program that will actually deliver the intended value to target customers

Question 29

customer relationship management

Answer 29

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Question 30

what are the relationship building blocks

Answer 30

1. customer perceived value
2. customer satisfaction

Question 31

customer perceived value

Answer 31

the customers evaluation of the difference between all the benefits and the costs of a marketing offer relative to competitive offers

Question 32

Customer satisfaction

Answer 32

Extent to which a product’s perceived performance matches a buyers expectations

Question 33

customer relationship levels

Answer 33

companies can build customer relationships at many levels which depend on the nature of the target market

Question 34

Customer relationship tools

Answer 34

marketers can use specific marketing tools to develop stronger bonds with customers

Question 35

Customer engagement marketing

Answer 35

making the brand a meaningful part of consumers conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences and community

Question 36

Consumer generated marketing

Answer 36

Brand exchanges created by consumers themselves by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

Question 37

Partner relationship management

Answer 37

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

Question 38

why create customer loyalty and retention

Answer 38

Satisfied customers remain loyal and talk favorably to others about the company and its products which might attract more potential customers

Question 39

Customer lifetime value

Answer 39

the value of the entire stream of purchases a customer makes over a lifetime of patronage

Question 40

growing share of customer

Answer 40

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

Question 41

Customer equity

Answer 41

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

Question 42

building the right relationships with the right customers

Answer 42

Butterflies: potentially profitable but not loyal
True friends: profitable and loyal
Barnacles: highly loyal but not profitable
Strangers: low profitability and little loyalty

Question 43

digital and social media marketing

Answer 43

Using digital marketing tools to engage consumers anywhere at any time, via their digital devices

Question 44

social media marketing

Answer 44

online social media provides a digital home where people can connect and share important information an moments in their lives

Question 45

Mobile marketing

Answer 45

Smartphones are always present, always on finely targeted and highly personal which makes them ideal for engaging customers anytime, anywhere as they move through the buying process

Question 46

what is the challenge of the changing economic environment

Answer 46

The challenge is to balance the brands value proposition with the current times while also enhancing its long term equity

Question 47

rapid globalization

Answer 47

marketers are taking a fresh look at the ways in which they relate with the broader world around them

Question 48

Sustainable marketing

Answer 48

marketers are reexamining their relationships with social values and responsibilities and with the very earth that sustains us. corporate ethics and social responsibility have become important for almost every business