marketing lecture 1 (marketing)

Question 1

value of marketing

Answer 1

some people think that marketing is common sense when usually they have never done marketing before

Question 2

why does every company need good marketing?

Answer 2

because marketing cannot be replaced by machines, tools, or technology. Changing environment –> consumers have more power than ever before, so doing business is hard. good marketing is important to sustain companies’ competitve advantages in the face of accelerating consumer change.

Question 3

5 scientific customer touchpoints

Answer 3

1. awareness
2. consideration
3. purchase
4. service
5. loyalty

Question 4

marketers need to

Answer 4

1. attract customers
2. keep and grow them by
   a. knowing their wants and needs
   b. satisfying them by
   - creating products and services that provides superior customer value
   - price, distribute, and promote them effectively
3. do a set of processes to create value for customers and strong customer relationships to capture value from them in return

Question 5

requirements for marketing

Answer 5

• two or more parties with unsatisfied needs
• a desire and ability to be satisfied
• a way for parties to communicate
• something to exchange

Question 6

how marketing discovers consumer needs

Answer 6

• a consumer may not know or cannot describe what they need or want
• so a comprehensive consumer analysis is a must

Question 7

customer needs and wants

Answer 7

needs :
- a customer’s basic necessity (clothes, food, safety, etc)

wants :
- a customer’s needs that is shaped by a person’s knowledge, culture, and personality

Question 8

effective marketing

Answer 8

• scrutinize consumers to understand their needs and wants
• formulate strategies to shape or satisfy their needs and wants

Question 9

customer needs and wants diagram

Answer 9

1. potential customers : the market (information about needs)
2. understanding customers’ needs by researching about what their needs are (organization’s marketing department) (concept for products)
3. satisfying their needs by creating a marketing program that is a good combination of 4 P : price, product, promotion, and place (products, services, and ideas)
4. potential customers (the market)

Question 10

delivering customer value is key to

Answer 10

maintain long-term relationships with existing customers and earn repeat business

Question 11

customer value

Answer 11

• how much a product/service is worth to a customer
• it is a measure of all the cost and benefits associated with a product/service (total customer benefit - total customer cost = customer value)
• it is subjective (what you are selling can be more used by a company than others)

Question 12

3 strategies used to deliver customer value

Answer 12

• best price
• best product
• best service

Question 13

customer loyalty

Answer 13

• refers to the willingness of a customer to return to your company in order to purchase your products/services
• the best way to do it is to build positive emotional relationship with them
• loyal customers don’t buy from you once, they don’t recommend you, they insist that their friends do business with you

Question 14

relationship marketing

Answer 14

• is a marketing approach that involves building relationships with customers
• it emphasizes on personalized interactions, open communication and mutual value creation
• its goal is to turn ordinary customers to loyal customers

Question 15

evolution of market orientation (strategic focus on understanding customer’s needs to define new products to be developed)

Answer 15

• production era
• sales era
• marketing concept era
• customer relationship era

Question 16

production era concept

Answer 16

• available goods were comparatively scarce and buyers would virtually accept any goods that were available
• consumers prefer goods that are highly affordable
• management focuses on improving production efficiency and distribution efficiency (how can we minimize production cost?)

Question 17

sales era concept

Answer 17

• firms produces more goods than their buyers can consume, competition grew, and firms hired salespeople to find more buyers for their product
• focuses on selling existing products
• believes that people will buy more products if aggresive sales techniques are used
• doesn’t understand the market

Question 18

marketing concept era

Answer 18

• strives to satisfy the needs of customers while also trying to achieve organization’s goals
• find the right customers for your products

Question 19

customer relationships era concept

Answer 19

• an organization that has a market orientation focuses its efforts on :
  a. continuously collecting information about customers’ needs
  b. using it to create customer value

Question 20

societal marketing concept

Answer 20

• questions whether pure marketing concept overlooks the possible conflicts between customers’ short run wants and customers’ long run welfare
• a company should make good marketing decisions by considering its social responsibility :
  1. social responsibility is an idea that an organization is a part of a bigger society and is accountable to that society for its actions
  2. the nature and scope of a social responsibility is hard to come by because of the diveristy of values in different societal and corporate cultures

Question 21

evolution of marketing orientation (organizations’ responsibilities)

Answer 21

1. societal responsibilities (public interest groups, general public, ecological environment) :
   - a responsibility that an organization has to meet today’s global needs without compromising the opportunities for future generations
2. stakeholder responsibility (suppliers/distributors, employees, and consumers) :
   - a responsibility that an organization has to those who has an effect towards the achievement of its objectives
3. profit responsibility (owner and stockholder) :
   - an organizations’ responsibility is to maximize profit for its owners and stakeholders