Chapter_01 Flashcards
What is Marketing?
creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society
core of marketing is identifying unfilled needs and delivering products and services that satisfy these needs.
What is Consumer Behavior?
the study of consumers ́ actions during searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
Consumer behavior explains how individuals make decisions to spend their available resources (i.e., time, money, effort) on goods that marketers offer for sale.
Consumer behavior describes:
• What products and brands do consumers buy?
• Why do they buy them?
• When do they buy them?
• Where do they buy them?
• How often do they buy them?
• How often do they use them?
• How do they evaluate them after the purchase?
• Do they buy them repeatedly?
What are the steps of the development of a marketing concept?
- Production Concept
- Product concept
- Selling concept
- Marketing concept
What are the requirements for creating a marketing concept?
• Consumer Research
• Market Segmentation, Targeting and
Positioning
• The Marketing Mix (4 Ps) – Product or service
– Price
– Place
– Promotion
How does technology affect the Marketing Mix?
- Interactive and novel communication channels
- Customizing products and promotional messages
- Better prices and distribution
Explain the following terms:
- Customer value
- Customer satisfaction
- Customer retention
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What are the customer groups based on loyalty?
Loyalists:
Completely satisfied customers who keep purchasing.
Defectors:
Feel neutral or merely satisfied with the company, likely to switch to another company that offers customer a lower price.
Terrorists
Customers who have had negative experiences with the company and spread negative word-of-mouth.
Hostages
Unhappy customers who stay with the company because of a monopolistic environment or low prices; difficult and costly to deal with because of frequent complaints
Mercenaries
Very satisfied customers who have no real loyalty to the company; may defect due to lower price elsewhere/ on impulse, defying satisfaction-loyalty rationale
What is the objective of providing value to the customer?
To retain highly satisfied customers.
Loyal customers are key because:
– They buy more products
– They are less price sensitive
– Servicing them is cheaper
– They spread positive word of mouth
Provide two examples where brands used technology to engage consumers/enhance customer relationships.
• Provide two examples where technology was used to add value to the consumer.
What is Customer Profitability-Focused Marketing?
tracks costs and revenues of individual customers and then categorizes those consumers into tiers based on consumption behaviors that are specific to the company’s offerings
What are the 5 Emotional bonds?
Adaptation
Adaptation means to purchase goods of matching one’s needs. Clearly, it is the order of an individual and a tailor is ready to make this. It may the tastes and preferences of the particular individual. Sometimes, it will be for the valued customer.
Nurturing
The marketers receive reminders from making customer’s purchases. However, they provide relevant information for one’s purchases. Besides, it is the acknowledgment of the appreciating one’s business. Moreover, it is an effort to maintaining business with customers. It is also called cultivating the relationship with customers.
Network
Networking means sharing experiences about a particular product on the merchant website. These websites are really useful for customers. Besides, shoppers also benefit from the community of prospects and customers sponsored.
Engagement
The merchant websites are designed so attractively for customer’s capturing attention. However, they also provide an enjoyable shopping experience. Moreover, consumers feel comfortable shopping at the site.
Trust
Trust is the count of purchasing transactions of customers successfully. Trust defines the successful performance of the merchant websites. Besides, the trust provides that the merchant is reliable and honest.
What are the four transactional bonds?
Interactivity
Interactivity is the ability to view merchandise offerings from different perspectives. This enables an individual to quickly locate products. However, this may be useful for differentiating one product from another.
Assortment
Online purchase provides one-stop shopping for customers. The merchant carries wide varieties of product assortment for customers. However, the merchant displays these products in different segments.
Transaction Ease
The online transaction provides a useful way for customer purchase. A new buyer can easily purchase goods from websites without much bothering. Moreover, merchant websites are much more user-friendly. Besides, it allows for quick transactions.
Inertia
Dissatisfied customers are less willing to buy goods from a particular merchant site. These customers are easily switched to competitors. However, it is hard to stop them from shopping at that site.
What are the Emotional and Transactional bonds?
Commitment
Commitment means delivering goods on time to the customers. Besides, marketers are always ready for the response of customer’s problems. However, the company should adopt a fair customer returns policy. Moreover, the company should take good care of the customer at any cost.
loyalty
Loyalty depends on customer satisfaction. It defines how much a merchant satisfy a customer through their offering. If the customers are much more satisfied, they are hardly switching to other products.
What is internal marketing and why is it important?
Internal marketing is the promotion of a company’s objectives, mission, products and services to its own employees.
The purpose is to improve employee engagement within, increase overall brand reach, and also that employees can now provide value to potential customers because they believe in and understand the company’s goals and vision themselves.
What is Marketing myopia?
Marketing myopia is a situation when a company has a narrow-minded marketing approach and it focuses mainly on only one aspect out of many possible marketing attributes.
For example, a brand focusing on development of high-quality products for a customer base that disregard quality and only focuses on the price is a classic example of marketing myopia.
Examples:
Kodak lost much of its share to Sony cameras when digital cameras boomed and Kodak didn’t plan for it.
Nokia losing its marketing share to android and IOS.