Chapter One:creating and capturing customer value

Question 1

What is marketing

Answer 1

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

Question 2

Explain the marketing process

Answer 2

°Understand the marketplace and customer needs and wants.
°design a customer-driven marketing strategy.
°construct an integrated marketing program that delivers superior value.
°build profitable relationships and create customer delight.
Capture value from customers to create profits and customer equity.

Question 3

Define market offerings

Answer 3

Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Question 4

Define marketing myopia

Answer 4

Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs

Question 5

Explain the customer needs wants and demands

Answer 5

1)Needs:physical:food,clothing,
Warmth,safety
2)wants: forms that needs take as they are shaped by culture and individual personality
3)demands:wants backed by buying power

Question 6

Define exchange

Answer 6

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

Question 7

What’s marketing management?

Answer 7

Marketing management is the art and science of choosing target markets and building profitable relationships with them.

• what customers will we serve?
• how can we best serve these customers?

Question 8

What’s market segmentation?

Answer 8

Refers to dividing the markets into segments of customers

Question 9

What’s target marketing?

Answer 9

Refers to which segments do we go after

Question 10

What’s the value of proposition?

Answer 10

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

Question 11

Explain the marketing orientations:

Answer 11

1. production concept:the idea that consumers will favor products that are avail or highly affordable.
2. product concept: that idea that consumers will favor products that offer the most quality,performance & features.organization should consistently devote its energy to making continuous product improvement.
3. selling concept: that idea that consumers will not buy enough of the firm’s product unless it does a good selling and promotion effort
4. marketing concept:that idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do
5. societal marketing concept: that idea that companies should make good marketing decisions based on: a) consumer wants
   b) the company’s requirements
   c) consumers long term interest
   d) the society’s long term interest

Question 12

What’s the marketing mix?

Answer 12

The marketing mix is a set of tools (4p's) a company uses to apply its marketing strategy
(4p's): 
Product
Price
Promotion 
Place

Question 13

What’s an Integrated marketing program?

Answer 13

A comprehensive plan that communicates and delivers the intended value to chosen customers

Question 14

What’s customer relationship management (CRM)?

Answer 14

Customer relationship management is the overall process of building and maintaining profitable relationships by delivering superior customer value and satisfaction

Question 15

What’s customer perceived value?

Answer 15

The difference between the total customer value and total customer cost

Question 16

Explain the total customer cost and total customer value.

Answer 16

The total customer cost is the complete fees a customer expects to pay in the researching,buying and maintaining of a given product or service.
Meanwhile the total customer value is the perception(observation) of what a customer is getting from a given product or service in comparison to it’s price

Question 17

What’s “customer satisfaction” ?

Answer 17

Customer satisfaction is when a products performance matches the buyers expectation

Question 18

Explain the changing nature of customers relationships:

Answer 18

• relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers.
• relating more deeply and interactively by incorporating(include)more interactive two way relationships through blogs,websites,online communities and social networks

Question 19

Explain “customer managed relationships”

Answer 19

A marketing relationship by which customers are empowered by today’s digital technology interact with companies and with each other to shape their relationship with brands

Question 20

Explain “ Partner relationship management”

Answer 20

Involves working closely with partners in other company departments and outside the company to jointly(together) bring better value to customers.

• partners with inside the company are very functional area interacting with customers.(function area:teams of employees who have similar skills and expertise)electronically-cross functional teams.
• partners outside the company is how marketers connect with their suppliers,channel partners,and competitors by developing relationships.

Question 21

What’s the supply chain?

Answer 21

Supply chain is a channel that stretches from raw materials to components to final products to final buyers

Raw material ~components ~final product ~ final buyer

Question 22

What’s “customer lifetime value?

Answer 22

represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.

Question 23

What’s “share of customer”?

Answer 23

A portion of the customers purchasing that the company gets in its product

Question 24

What’s “customer equity”?

Answer 24

Customers equally is the total combined of customer lifetime value

Question 25

Explain what is needed to be done in order to build customer equity

Answer 25

• Right relationships with the right customers involves treating the customers as assets that needs to be managed and maximized
• different types of customers require different management strategies

Question 26

What’s “customer lifetime value?

Answer 26

represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.

Question 27

What’s “share of customer”?

Answer 27

A portion of the customers purchasing that the company gets in its product

Question 28

What’s “customer equity”?

Answer 28

Customers equally is the total combined of customer lifetime value

Question 29

Explain what is needed to be done in order to build customer equity

Answer 29

• Right relationships with the right customers involves treating the customers as assets that needs to be managed and maximized
• different types of customers require different management strategies

Question 30

What’s “customer lifetime value?

Answer 30

represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.

Question 31

What’s “share of customer”?

Answer 31

A portion of the customers purchasing that the company gets in its product

Question 32

What’s “customer equity”?

Answer 32

Customers equally is the total combined of customer lifetime value

Question 33

Explain what is needed to be done in order to build customer equity

Answer 33

• Right relationships with the right customers involves treating the customers as assets that needs to be managed and maximized
• different types of customers require different management strategies

Question 34

Explain the changing marketing landscape

Answer 34

1) uncertain economic environment:new customer frugality,marketers focus on the value for the customer.
2) Digital age:
- people the connected continuously to people and information worldwide.
- marketers have great new tools to communicate with customers “.
- internet+mobile communication devices creates an environment for online marketing.
3) rapid globalization:simple globalization that happen fast
4) sustainable marketing:the promotion of environmental and socially responsible products,practices,and brand values.
5) non profit marketing: the activities and strategies that spread the message of the organization

Question 35

What is marketing? Pulling it all up

Answer 35

Understand the market place and customer needs and wants : > > >

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.capture value from customers to create profits and customer equity.