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MOS 1021 Unit #5 > Chapter 8 > Flashcards

Chapter 8 Flashcards

1
Q

What is the simple definition of marketing?

A

Engaging customers and managing profitable customer relationships

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2
Q

What is the aim of marketing (two-fold goal)

A

Create value for customers in order to capture value from customers in return
Easier:
To attract new customers by
promising superior value and keeping and growing current customers by delivering value
and satisfaction

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3
Q

What is the primary trait shared by today’s successful companies like Amazon?

A

They are strongly customer-focused and heavily committed to marketing.

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4
Q

What drives successful companies in building lasting customer relationships?

A

A passion for satisfying customer needs in well-defined target markets and motivating everyone in the organization to create value.

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5
Q

Why are customer relationships and value more important today than ever before?

A

Due to dramatic technological advances, economic, social, and environmental challenges, customers are reassessing their engagement with brands.

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6
Q

How have digital, mobile, and social media developments impacted marketing?

A

They have revolutionized how consumers shop and interact, requiring new marketing strategies and tactics.

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7
Q

What should modern marketing strategies prioritize?

A

Building strong customer engagement, relationships, and advocacy based on real and enduring customer value.

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8
Q

Marketing more than any other business function deals with ______

A

Customers

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9
Q

What is an example of brands dominating the online marketplace?

A

Amazon:
By creating a world-class online buying experience that helps customers to “find and discover anything they might want to buy online.”
Facebook:
attracted two billion+ active web and mobile users worldwide by
helping them to “connect and share with the people in
their lives.”

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10
Q

What is an example of a brand dominating the out-of-home coffee market

A

Starbucks:
By “creating a culture of warmth and belong-ing, where everyone is welcome.”

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11
Q

What is critical to the success of every organization?

A

Sound marketing
Large for-profit firms such as Google, Target, Coca-Cola, Procter & Gamble, and Microsoft use marketing. But so do not-for-profit organizations, such as universities, hospitals, museums, symphony orchestras, and even churches

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12
Q

Marketing is all around us. T or F

A

True

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13
Q

What are examples of traditional forms of marketing?

A

Products at your nearby shopping mall and the ads that fill your TV screen, spice up your magazines,
or stuff your mailbox.

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14
Q

What are new marketing approaches assembled in recent years?

A

Everything from imaginative websites and smartphone apps to blogs, online videos, and social media

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15
Q

What do the new approaches of marketing do beyond blasting out messages to the masses?

A

They reach you directly, personally, and interactively. Today’s marketers want to become a part of your life and enrich your experiences with their brands. They want to help you live their brands

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16
Q

Where can marketing be observed in daily life?

A

At home, school, work, and play—it’s present in almost everything we do.

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17
Q

What is behind the marketing activities we see as consumers?

A

A massive network of people, technologies, and activities competing for attention and purchases.

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18
Q

What is a common generalization of marketing?

A

Many people think of marketing as only selling and advertising. We are bombarded daily with TV commercials, catalogues, spiels from salespeople, and online pitches.
Selling and advertising are only the tip of the marketing iceberg

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19
Q

How is marketing understood in the modern sense?

A

It focuses on satisfying customer needs rather than simply making a sale through “telling and selling.”

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20
Q

What can the marketer do to help products sell easily?

A

Engages consumers effectively, understands their needs, develops products that provide superior customer value, and prices, distributes, and promotes them well,

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21
Q

What is Peter Drucker’s perspective on the aim of marketing?

A

“The aim of marketing is to make selling unnecessary.”
Selling and advertising are
only part of a larger marketing mix

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22
Q

What is the marketing mix?

A

A set of marketing tools that work together to engage customers, satisfy their needs, and build relationships.

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23
Q

How is marketing broadly defined?

A

Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others

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24
Q

How is marketing defined in a narrower business context?

A

Marketing involves building
profitable, value-laden exchange relationships with customers

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25
Q

What is the definition of marketing FROM THE TEXTBOOK

A

The process by which companies
engage customers, build strong
customer relationships, and create
customer value in order to capture
value from customers in return

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26
Q

What is the first step as a marketer?

A

Need to understand customer needs and wants and the marketplace in which they operate.

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27
Q

What are the 5 core customer and marketplace concepts?

A
  1. needs, wants, and demands
  2. market offerings (products, services, and
    experiences)
  3. customer value and satisfaction
  4. exchanges and relationships
  5. markets
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28
Q

What is the most basic concept underlying marketing?

A

That of human need

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29
Q

What is (human) needs?

A

States of felt deprivation

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30
Q

What are examples of needs?

A

Physical needs for food, clothing,
warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression

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31
Q

Did marketers create human needs?

A

Marketers did not create these needs; they are a basic part of the human makeup

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32
Q

What are wants?

A

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

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33
Q

What is an example of a want vs a need?

A

A person needs food but wants a Big Mac, fries, and a soft drink

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34
Q

How are wants shaped?

A

Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs.

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35
Q

What are demands?

A

Human wants that are backed by
buying power.

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36
Q

What determines the products and services people demand?

A

Their wants, resources, and the perceived benefits that provide the most value and satisfaction.

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37
Q

How do companies learn about customer needs, wants, and demands?

A

They conduct consumer research, analyze mountains of
customer data, and observe customers as they shop and interact, offline and online

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38
Q

Who in a company is involved in staying close to customers?

A

People at all levels, including top management.

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39
Q

Example of company staying close to customers?

A

Airbnb:
CEO and co-founder regularly stay at company’s host locations. When first launched they went to all the New York location, wrote reviews making sure they lived up to company’s vision

Personal visits help the pair to shape new customer solutions based on real user experience

Target:
CEO makes unnanounced visits to stores. Nosing around stores and getting a real feel for what’s going on. It gives him “great, genuine feed-back.” Him and other executives even visit households of customers to to understand their product choices and buying habits

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40
Q

What are market offerings?

A

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

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41
Q

How are consumers’ needs and wants fulfilled?

A

Through market offerings

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42
Q

Are market offerings limited to physical products?

A

They also include services

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43
Q

What defines a service in the context of market offerings?

A

Activities or benefits offered for sale that are intangible and do not result in ownership of anything.

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44
Q

What are examples of services?

A

Banking, airline, hotel, retailing, and home-repair services

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45
Q

What entities, besides products and services, are included in market offerings?

A

Persons, places, organizations, information, ideas, and causes

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46
Q

What is an example of a market offering focused on a cause?

A

The “Bell Let’s Talk” campaign, which raises awareness and funds for mental health care in Canada.

It has raised over $100 million, assisted over 1.2 million Canadians, and in 2019 alone, engaged over 145 million interactions and raised a record-breaking $7.2 million.

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47
Q

What is marketing myopia?

A

The mistake of paying more
attention to the specific products
acompany offers than to the
benefits and experiences produced
by these products.

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48
Q

What are the issues of someone suffering from marketing myopia?

A

They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs.
They forget that a product is only a tool to solve a consumer problem.

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49
Q

What risk do sellers face when they focus solely on their existing products?

A

They may lose sight of underlying customer needs and struggle if a better or cheaper product meets those needs.

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50
Q

What is an example illustrating marketing myopia and what is the issue with it?

A

A drill bit manufacturer thinking customers need a drill bit, when they actually need a quarter-inch hole.

These sellers will have trouble if a new product
comes along that serves the customer’s need better or less expensively.

The customer will have the same need but will want the new product.

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51
Q

What do smart marketers focus on beyond product attributes?

A

Look beyond the attributes of the products and ser-vices they sell. By orchestrating several services and products, they create brand experiences for consumers.

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52
Q

How does Walt Disney World exemplify creating brand experiences?

A

By offering more than amusement park rides, using Disney magic to create carefully orchestrated family experiences.

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53
Q

How do customers choose among various market offerings?

A

Face a broad array of products and services that might satisfy a
given need but choose by forming expectations about the value and satisfaction each offering will deliver.

54
Q

What happens when customers are satisfied with a product or service?

A

They buy again and share their positive experiences with others.

55
Q

What are the consequences of customer dissatisfaction?

A

Customers may switch to competitors and share negative feedback about the product.

56
Q

Why is it important for marketers to set the right level of expectations?

A

Low expectations may satifsy those who but fail to attract buyers, while high expectations can lead to disappointment.

57
Q

What are the key building blocks for developing and managing customer relationships?

A

Customer value and customer satisfaction.

58
Q

What does a company’s marketing strategy outline?

A

It outlines which customers the company will serve and how it will create value for these customers.

59
Q

What is the purpose of an integrated marketing program?

A

To deliver the intended value to target customers and build customer relationships by transforming the marketing strategy into action.

60
Q

What is the marketing mix?

A

The set of marketing tools a company uses to implement its marketing strategy.

61
Q

What are the four Ps of marketing?

A

Product, price, place, and promotion.

Product: need-satisfying market offering
Price: how much it will charge for the offering
Place: how it will make
the offering available to target consumers
Promotion: persuade consumers of the offer’s merits

62
Q

What is customer relationship management?

A

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

63
Q

What aspects does customer relationship management deal with?

A

It deals with acquiring, engaging, and growing customers.

64
Q

What is perhaps the most important concept of modern marketing?

A

Customer relationship management

65
Q

What is the key to building lasting customer relationships?

A

Creating superior customer value and satisfaction.

66
Q

How do satisfied customers contribute to a business?

A

They are more likely to be loyal and give the company a larger share of their business.

67
Q

What is customer-perceived value?

A

The customer’s evaluation of the
difference between all the benefits
and all the costs of a marketing
offer relative to those of competing
offers.

68
Q

What is the key to building lasting customer relationships?

A

Creating superior customer value and satisfaction.

69
Q

Why can attracting and retaining customers be difficult?

A

Because customers face a wide variety of products and services to choose from.

70
Q

What determines which firm a customer buys from?

A

The customer-perceived value—the evaluation of the benefits versus costs of a market offering relative to competitors.

71
Q

How do customers judge value and costs?

A

Customers act on perceived value, which may not always be accurate or objective.

72
Q

How can value differ for different customers?

A

For some, value means sensible products at affordable prices, while for others, value means paying more for better quality or exclusivity.

73
Q

What is an example of perceived value in a premium product?

A

A Steinway piano, which may be expensive but is seen as a great value by those who own one.

A Steinway piano—any Steinway piano—costs a lot. But to a Steinway customer, it’s a small price to pay for the value of owning one.

74
Q

What does customer satisfaction depend on?

A

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

75
Q

What happens when a product’s performance falls short of expectations?

A

The customer becomes dissatisfied.

76
Q

What occurs when a product’s performance matches expectations?

A

The customer is satisfied.

77
Q

What happens when a product’s performance exceeds expectations?

A

The customer is highly satisfied or delighted.

78
Q

What do outstanding marketing companies do to keep important customers satisfied?

A

They go out of their way to ensure customer satisfaction.

79
Q

How does higher customer satisfaction impact company performance?

A

It leads to greater customer loyalty, which results in better company performance.

80
Q

How do companies aim to delight customers?

A

By promising only what they can deliver and then delivering more than they promise.

81
Q

What do delighted customers do beyond making repeat purchases?

A

They become brand advocates and “customer evangelists,” spreading the word about their positive experiences.

82
Q

What principle was L.L.Bean founded on?

A

The principle that keeping customers satisfied is key to building lasting relationships.

83
Q

Which companies are legendary for customer delight and service?

A

Amazon.com, Nordstrom department stores, and JetBlue Airways.

84
Q

Which companies were rated highest in customer satisfaction in Canada, according to J.D. Power?

A

Scotiabank for retail banking advice, and Videotron (Eastern Canada) and SaskTel (Western Canada) for TV and Internet service.

85
Q

Can a company with basic services still create customer delight?

A

Yes, for example, ALDI, a no-frills grocery chain, creates customer satisfaction through low pricing and good-quality products, despite customers having to bag their own groceries.

86
Q

What is key to creating customer satisfaction beyond exceptional service?

A

How well a company delivers on its basic value proposition and helps customers solve their buying problems.

87
Q

What do most customers want from their experience with a company?

A

An effortless experience, not necessarily something “wowed” or extraordinary.

88
Q

Does a customer-centered firm aim to maximize customer satisfaction?

A

No, it seeks to deliver high customer satisfaction relative to competitors, but not to maximize satisfaction at the cost of profitability.

89
Q

What can a company do to increase customer satisfaction, and what is the risk?

A

A company can lower prices or increase services to boost satisfaction, but this may result in lower profits.

90
Q

What balance must marketers maintain?

A

Marketers must generate more customer value and satisfaction without sacrificing profitability, avoiding the risk of giving too much away.

91
Q

How do companies build customer relationships?

A

Companies can build relationships at different levels, depending on the target market.

92
Q

What is an example of building basic relationships with many low-margin customers?

A

Tide detergent by P&G, which creates engagement through product experiences, brand-building advertising, websites, and social media, rather than personal calls.

93
Q

What do companies in high-margin markets with few customers aim to do?

A

They seek to create full partnerships with key customers.

94
Q

What is the relationship approach for markets in between the extremes of low-margin and high-margin?

A

Companies use other levels of customer relationships tailored to the specific needs of their market.

95
Q

What marketing tools can be used beyond offering consistently high value and satisfaction?

A

Specific marketing tools like frequency marketing programs and loyalty rewards.

96
Q

What is an example of a frequency marketing program?

A

Airlines offering frequent-flier programs, hotels giving room upgrades to frequent guests, and supermarkets offering discounts to loyal customers.

97
Q

How do loyalty rewards programs impact customers?

A

They enhance and strengthen the customer’s brand experience, encouraging repeat business.

98
Q

What has changed in the nature of customer-brand relationships?

A

Significant changes have occurred due to digital technologies, including the internet, online, mobile, and social media.

99
Q

How have digital technologies affected customer relationships?

A

They have profoundly changed the ways people relate to one another and impacted how companies and brands connect with customers.

Have profoundly changed the ways that people on the planet relate to one another. In turn, these events have had a huge impact on how companies and brands connect with customers and how customers connect with and influence each other’s brand behaviours

100
Q

What has the digital age introduced for customer relationship-building?

A

Dazzling set of new customer relationship-building tools, from websites, online ads and videos, mobile ads and apps, and blogs to online communities and the major social media, such as Facebook, Twitter, YouTube, Snapchat, and Instagram

101
Q

What is customer engagement marketing?

A

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

102
Q

How did yesterday’s companies approach marketing?

A

They focused mostly on mass marketing to broad segments of customers at arm’s length.

103
Q

How do today’s companies approach marketing differently?

A

Today’s companies use online, mobile, and social media to refine targeting and engage customers more deeply and interactively.

104
Q

What is the difference between old marketing and new marketing?

A

The old marketing involved marketing brands to consumers. The new marketing is customer-engagement marketing

105
Q

What is the goal of customer-engagement marketing?

A

The goal is to make the brand a meaningful part of consumers’ conversations and lives, beyond just selling a brand to them.

106
Q

How has the internet and social media boosted customer-engagement marketing?

A

They have given consumers more information, connectivity, and empowerment to interact and share their brand views.

107
Q

How are consumers today different from before?

A

Today’s consumers are better informed, more connected, and more empowered than ever before, with more platforms to share their opinions.

108
Q

What concept are marketers embracing alongside customer relationship management?

A

Marketers are embracing customer-managed relationships, where customers connect with companies and each other to share their brand experiences.

109
Q

What is the goal beyond building brand loyalty and purchasing?

A

The goal is to create brand advocacy, where satisfied customers initiate favorable interactions with others about the brand.

110
Q

How has greater consumer empowerment changed marketing strategies?

A

Companies can no longer rely on marketing by intrusion; they must practice marketing by attraction, engaging consumers rather than interrupting them.

111
Q

What types of marketing do most companies now use?

A

Most companies combine mass-media marketing with a rich mix of online, mobile, and social media marketing to promote brand-consumer engagement, conversations, and advocacy.

112
Q

How do companies use social media to engage customers?

A

Companies post ads and videos on social media, maintain a presence on platforms like Facebook, Instagram, Twitter, and YouTube, and create conversations, address customer service issues, and drive traffic to brand activities.

113
Q

What other tools do companies use to engage customers?

A

Companies launch blogs, mobile apps, brand microsites, and consumer-generated review systems to engage customers on a more personal, interactive level.

114
Q

What is the purpose of skilled social media use?

A

The goal is to get consumers involved with a brand, talking about it, and advocating it to others.

115
Q

What is the key to successful engagement marketing?

A

The key is to enter targeted consumers’ conversations with engaging and relevant brand messages, making genuine contributions to their lives and interactions.

116
Q

Why is simply posting a humorous video or creating a social media page not enough for engagement marketing?

A

Because successful engagement marketing involves making relevant and genuine contributions to consumers’ lives, not just passive content.

117
Q

Can you give an example of a successful engagement marketing strategy?

A

Bark, a subscription service, sends monthly BarkBoxes filled with toys and treats for dogs, creating a relevant and personalized experience for dog owners.

Engaging customers: Rather than
using intrusive, hard-sell product
pitches, Bark interacts with customers
in humorous ways about their
favourite mutual topic—“the weird
dogs we live with and the funny
things they do.”

118
Q

What is consumer generated marketing?

A

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

119
Q

How do consumers participate in consumer-generated marketing?

A

Consumers participate through uninvited exchanges in blogs, social media, and digital forums, sharing their experiences and opinions.

120
Q

How are companies involving consumers in shaping products and brand content?

A

Companies are increasingly inviting consumers to play a more active role in shaping products and creating brand content.

121
Q

How do some companies invite consumers to generate new product ideas?

A

Companies like Oreo and Starbucks ask consumers for new product or service ideas, such as through contests or idea-sharing platforms.

122
Q

Can you give an example of a consumer-generated marketing campaign by Oreo?

A

Oreo ran a #MyOreoCreation contest where fans submitted new flavor ideas. Finalist flavors were sold in stores, and fans voted online for a winner, with the prize being US$500,000.

123
Q

How does Starbucks engage customers in shaping their brand?

A

Starbucks uses the My Starbucks Idea site, where customers can share ideas for new products, store changes, and improvements, vote on others’ ideas, and see which ideas are implemented.

124
Q

How do companies involve consumers in shaping advertisements?

A

Companies like Tesla invite consumers to create ads or social media content, often through contests.

125
Q

What was Tesla’s approach to consumer-generated advertising?

A

Tesla held a fan-made ad contest, selecting three “charmingly low-budget” commercials from 10 finalists via public voting on Twitter.

126
Q

How did Tesla integrate fan-made ads into their marketing strategy?

A

Tesla posted the finalist ads online alongside the launch of its Model 3 sedan, drawing millions of views and sparking interactions among fans.

127
Q

What are some challenges companies face with consumer-generated content?

A

It can be time-consuming and costly to sift through submitted content, and consumer input can sometimes backfire.

128
Q

Can you give an example of a consumer-generated campaign that backfired?

A

McDonald’s #McDStories campaign was intended to inspire heartwarming stories but was hijacked by negative posts, turning the hashtag into a “bashtag.”

129
Q

How did McDonald’s respond to the #McDStories backlash?

A

McDonald’s pulled the campaign within two hours, but the hashtag continued to circulate negative messages for weeks, even months.

130
Q

Why is consumer brand engagement becoming more important?

A

As consumers become more connected and empowered and as the boom in digital and social media continues, consumer brand engagement—whether invited by
marketers or not—will be an increasingly important marketing force

131
Q

How do consumers influence brand experiences?

A

Through a pro-fusion of consumer-generated videos, shared reviews, blogs, mobile apps, and web-sites

132
Q

What must brands do to stay relevant in the digital and social media age?

A

Brands must embrace consumer empowerment and master digital and social media relationship tools or risk falling behind.

MOS 1021 Unit #5 (2 decks)

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