Chapter 1: customer value and engagement Flashcards

1
Q

What is marketing?

A

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

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2
Q

What are the 5 steps in the marketing process?

A
  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
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3
Q

vision of the future

A

explorers look at the future and what has not been invented

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4
Q

Changes in trends

A

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

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5
Q

Changes in markets

A

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

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6
Q

Changes in the company

A

decline in sales, become more profitable and be more sustainable

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7
Q

Needs

A

states of felt deprivation

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8
Q

What are the different types of needs?

A

physical, social and individual

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9
Q

Wants

A

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

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10
Q

Demands

A

human wants that are backed by a buying power

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11
Q

market offerings

A

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

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12
Q

What is marketing myopia

A

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

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13
Q

What is the main idea of customer value and satisfaction?

A

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

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14
Q

Why should marketers set the right level of expectations?

A

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

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15
Q

What are exchanges

A

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

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16
Q

How can companies build relationships

A

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

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17
Q

What is a market?

A

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

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18
Q

what is marketing management

A

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

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19
Q

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

A
  1. selecting customers to serve
  2. create a value proposition
  3. marketing management orientations
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20
Q

Value proposition

A

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

21
Q

Marketing management orientations

A

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

22
Q

production concept

A

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

23
Q

Product concept

A

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

24
Q

Selling concept

A

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

25
Marketing concept
Achieving goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors
26
Societal marketing concept
A company's marketing decisions should consider customer wants, the companies requirements, customers long run interests and societies long run interests
27
What is an integrated marketing plan
outline of which customers it will serve and how it will create value for these customers
28
Purpose of an integrated marketing plan
Develop an integrated marketing program that will actually deliver the intended value to target customers
29
customer relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
30
what are the relationship building blocks
1. customer perceived value 2. customer satisfaction
31
customer perceived value
the customers evaluation of the difference between all the benefits and the costs of a marketing offer relative to competitive offers
32
Customer satisfaction
Extent to which a product's perceived performance matches a buyers expectations
33
customer relationship levels
companies can build customer relationships at many levels which depend on the nature of the target market
34
Customer relationship tools
marketers can use specific marketing tools to develop stronger bonds with customers
35
Customer engagement marketing
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
36
Consumer generated marketing
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
37
Partner relationship management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
38
why create customer loyalty and retention
Satisfied customers remain loyal and talk favorably to others about the company and its products which might attract more potential customers
39
Customer lifetime value
the value of the entire stream of purchases a customer makes over a lifetime of patronage
40
growing share of customer
the portion of the customer's purchasing that a company gets in its product categories
41
Customer equity
The total combined customer lifetime values of all the company's customers
42
building the right relationships with the right customers
Butterflies: potentially profitable but not loyal True friends: profitable and loyal Barnacles: highly loyal but not profitable Strangers: low profitability and little loyalty
43
digital and social media marketing
Using digital marketing tools to engage consumers anywhere at any time, via their digital devices
44
social media marketing
online social media provides a digital home where people can connect and share important information an moments in their lives
45
Mobile marketing
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
46
what is the challenge of the changing economic environment
The challenge is to balance the brands value proposition with the current times while also enhancing its long term equity
47
rapid globalization
marketers are taking a fresh look at the ways in which they relate with the broader world around them
48
Sustainable marketing
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