Chapter 1- MKTG

Question 1

Market

Answer 1

Set of all actual and potential buyers of a product or service

Question 2

Customer brand advocacy

Answer 2

Actions by which satisfied customers initiate favorable interactions with others about a brand

Question 3

Customer equity

Answer 3

Total combined customer lifetime values of all the company’s current and potential customers.

the more loyal the firms profitable customers are, the higher the customer equity.

Question 4

Societal marketing concept

Answer 4

The idea that a company’s marketing decisions should consider:
- Consumer wants and long-term interests
- company’s requirements
- society’s long-run interests

Question 5

Demands

Answer 5

Wants backed by buying power

Question 6

Marketing concept

Answer 6

Achieving organizational goals depends on knowing the needs and wants of target markets & delivering the desired satisfaction better than competitors do

Question 7

Customer engagement marketing

Answer 7

Making the brand a meaningful part of customer’s conversations by fostering direct and continuous customer involvement in shaping brand, experience and community

Question 8

Customer relationship management

Answer 8

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

Question 9

Marketing channels

Answer 9

distributors, retailers, and other who connect the company to its buyers

Question 10

Supply chain

Answer 10

Longer channel, from raw materials to components to final products.

Question 11

Customer lifetime value

Answer 11

Value of the entire stream of purchases a customer makes over a lifetime of patronage.

This emphasizes long-term value of customers

Question 12

Supply chain management

Answer 12

Important because profit depends on the performance of the whole supply chain vs the supply chain of the competitor.

Question 13

Integrated marketing mix

Answer 13

4 P’s
Product
Price
Place
Promotion

Question 14

Demarketing

Answer 14

Reducing demand temporarily or permanently (not destroying)

Question 15

Customer satisfaction

Answer 15

Depends on the product’s perceived performance relative to buyer’s expectations.

Companies should aim to promise what they can deliver, and then delivering more than they promised.

Question 16

Customer-driving marketing

Answer 16

Understanding customer needs even better than customer themselves & create products and services that meet both existing and latent needs.

Question 17

Shared value

Answer 17

Creating economic value in a way that also creates value for society.

→ recognizes that societal needs (not just economic needs) define markets

Question 18

Production concept

Answer 18

Holds that consumer will favor concepts that are available and highly affordable

Question 19

Product concept

Answer 19

Holds that consumers will favor products that offer the most in quality, performance and innovative features.
Focuses on making continuous product improvements.

Question 20

Market segmentation

Answer 20

Dividing the market into segments of customers
→ e.g., demographics (age, gender, income)

Question 21

Marketing myopia

Answer 21

Paying more attention to the specific products than to the benefits and experiences produced, and the broader needs of the customers

It’s technically forgetting that a product is only a tool to solve a consumer problem.

Question 21

Target marketing

Answer 21

Select a segment of customers to pursue

Question 22

Value proposition

Answer 22

Set of benefits or values the company promises to deliver to its customers to satisfy their needs.

It answers the question: Why should I buy from your brand rather than a competitors.

Question 23

Market offerings

Answer 23

Combination of products, services or experiences offered to a market to satisfy a need or a want.

Question 24

Butterflies

Answer 24

potentially profitable but not loyal

e.g., stock market investors. they don’t build a regular relationship with a single brokerage company.

Question 25

Barnacies

Answer 25

Not profitable but loyal.
→ most problematic customers because they absorb a lot of time and attention.

Question 26

True friends

Answer 26

Profitable + Loyal

the company should make continuous investments to delight these customers.

Question 27

Share of customer

Answer 27

“Share of customer” refers to the portion of a particular customer’s total spending in a specific product category that a company captures.

In other words, it measures how much of a customer’s overall purchases in a given category are directed toward a specific company compared to its competitors.

Example: a customer spends $50 per month on coffee.

They spend $30 at Starbucks
And $20 at Stories

In this case, Starbucks’s share of customer is 60% because it captures $30 out of the customer’s total $50 monthly coffee budget.

Question 28

Partner relationship management

Answer 28

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

Question 29

Strategic Planning

Answer 29

Process of developing and maintaining a profitable strategic fit between the organization’s goals and capabilities and its changing market opportunities.

it sets the stage for the rest of the planning in the firm.

Steps:
→ 1 Defining its overall mission (how the company wants to positively affect it’s market or society in operates)
Set by marketing leaders (e.g., chief marketing officer)

→ 2 Setting company objectives and goals
by each business unit and product team

→ 3 Designs portfolio of businesses and products ( and decide how much support to give each one.

Question 30

Mission statement

Answer 30

statement of the organization’s purpose - what it wants to accomplish in the higher environment.

clear mission statement : acts as ‘invisible hand’ that guides

→ Should be Market-oriented
+ defined in terms to satisfy customer and societal needs.