Lecture 1

Question 1

Why study marketing?

Answer 1

• Firms exist to serve customers & compete in the market.
• Important component of business strategy.

Question 2

What is marketing?

Answer 2

Process by which companies engage customers, create relationships with them, and create customer value to capture value from customers in return.

Question 3

Name the five-step marketing framework process.

Answer 3

(1) Understand customer needs & wants.
(2) Develop a customer-value driven strategy.
(3) Create a marketing program that delivers superior value.
(4) Engage customers & build profitable relationships.
(5) Capture value from customers from.

Question 4

What are needs?

Answer 4

• Includes physical, social, individual.
• Marketing cannot create needs.

Question 5

What are desires?

Answer 5

• Form of needs shaped by culture & the individual.

Question 6

What are demands?

Answer 6

• Wants backed by purchasing power.

Question 7

What does marketing offer? (2 things to mention)

Answer 7

• Marketing offers products or services to satisfy a need or want.
• Should focus on providing a solution.

Question 8

In marketing, what is value?

Answer 8

• Customers form expectations regarding value of the p/s and marketers must deliver value to customers.
• Satisfied customers will buy again & tell others to buy.

Question 9

In marketing, what is exchange?

Answer 9

• The act of obtaining something desired by offering something in return.
• A single exchange is not the goal, but multiple exchanges.

Question 10

True or false: Marketing consists of creating, maintaining and growing desirable exchange relationships with the target audience involving a product, service, idea, …

Answer 10

True.

Question 11

What is a market?

Answer 11

Set of actual and potential buyers of a product.

Question 12

What do marketers seek?

Answer 12

Marketers seek profitable buyers.

Question 13

Define marketing management.

Answer 13

Art & science of choosing profitable target markets and building profitable relationships with them.

Question 14

True or false: marketing management includes activities such as searching for buyers, understanding their needs, designing offerings, setting prices, promotions & distribution.

Answer 14

True.

Question 15

Define value proposition.

Answer 15

Set of benefits/values a company promises to deliver to its customers to satisfy their needs.

Question 16

How can customers be served best?

Answer 16

By defining a value proposition that will differentiate & position the brand in the marketplace.

Question 17

True or false: consumers favor affordable/available products.

Answer 17

True.

Question 18

Companies should not focus on improving production/distribution efficiency.

Answer 18

False.

Question 19

What is the product concept?

Answer 19

• Consumers favor products with the best quality, performance, and features.
• Focus on continuous product improvements.
• Can lead to product myopia: Focusing too much on improving the product instead of focusing on the customer’s needs/wants.

Question 20

What is the production concept?

Answer 20

• Consumers will favor available/affordable products.
• Focus on improving production/ distribution efficiency.
• Still useful when demand exceeds supply.
• Can lead to marketing myopia: focusing too much on improving operations instead of customers needs and wants.

Question 21

What is the production process?