L1: Introduction to Marketing Management

Question 1

What is marketing?

Answer 1

• Create and retain profitable customer relationships
• Identifying and satisifying customer needs through offerings (goods, services, and hybrid offerings)
• Enable customer value creation and capturing customer value

Question 2

Basic elements of the market orientation

Answer 2

1. customer needs
2. potential market opportunities
3. marketing products and services
4. customers

Question 3

Basic elements of the production orientation

Answer 3

1. production capabilities
2. manufacture product
3. aggressive sales effort
4. customers

Question 4

Marketing concepts

Answer 4

1. Search for latent markets
   - On-demand Services
2. Customer orientation
   - Micro targeting through Google and Facebook
3. Integrated effort
   - Important touch points with human interaction (logistics and delivery)
4. Goal achievements
   - Marketing ROI easier to calculate via analytics (increasing pressure)

Question 5

Efficiency vs. effectiveness

Answer 5

• Efficiency = do things right
-> cost focused

• Effectiveness = do the right thing
-> customer focused

Question 6

Key aspects in marketing

Answer 6

• Customer value
• Customer satisfaction
• Customer loyalty
• Long-term customer relationships

Question 7

Customer Value

Answer 7

Customer value = perceived benefits – perceived sacrifices

Question 8

Long-term customer relationship

Answer 8

• Transaction versus relational exchange

• Attract and keep customers
• Build relationship over time

Question 9

Customer loyalty

Answer 9

• Longer time horizon (satisfied customers are committed to a firm/brand/product)
- Repeated purchase

• How to work with loyalty?
• 1) Enable passion-driven behavior (i.e. using the product)
• 2) Enable self-brand integration (i.e. customer sees product
as part of their identity)
• 3) Generate close emotional connection (i.e. customer has a dear relationship with product)

Question 10

Different levels of marketing

Answer 10

• strategic marketing
- overarching objectives (how, where, when to compete)

• tactical marketing
- the marketing mix

• marketing implementation
- the decision to use a particular marketing mix

Question 11

the dark side of marketing

Answer 11

• marketing as ideology
• marketing’s (potential) neglect of society at large
• too stronger customers focus hinders innovation and leads to dull offerings
• intrusiveness of marketing