Marketing Pearson 14th Edition Chapter 1-14

Question 1

Marketing is the process by which companies do 3 things:

Answer 1

1. engage customers
2. build strong customer relationships
3. create customer value

Question 2

what are the 2 goals of marketing?

Answer 2

1. attract new customers

2. keep and grow current customers

Question 3

The 5 steps in the marketing process for creating and capturing customer value are:

Answer 3

1. Understanding the marketplace (customer needs and wants)
2. Make a marketing strategy (customer value driven)
3. Make a marketing program that delivers superior value
4. Engage customers and build relationships
5. Capture value from customers to create profit

Question 4

The 5 core customer and marketplace concepts are:

Answer 4

1. Customer needs, wants, and demands
2. Market offerings (products, services and experiences)
3. Customer value and satisfaction
4. Exchanges and relationships
5. Markets

Question 5

the definition of customer needs:

Answer 5

States of felt deprivation.

Physical needs: food, clothing, warmth and safety.
Social needs: belonging and affection.
Individual needs: knowledge and self-expression.

(Marketers did not create these needs, they are a basic part of the human makeup.)

Question 6

the definition of customer wants:

Answer 6

The form human needs take as they are shaped by culture and individual personality.

(Ex. An American needs food but wants a Big Mac.)

Question 7

the definition of customer demands:

Answer 7

Human wants that are backed by buying power.

Question 8

what are market offerings?

Answer 8

Some combination of products, services, information or experiences offered to
a market to satisfy a need or want.

(Marketing offerings are not limited to physical products. They also include services, activities,
persons, places, organizations, information and ideas.)

Question 9

what is Marketing myopia?

Answer 9

Marketing Myopia is when an organization adopts a narrow-minded marketing strategy and focuses primarily on one aspect rather than all of them.

Question 10

why is customer value and satisfaction important to keep in mind for marketers?

Answer 10

Customers form expectations about the value and satisfaction that various market offerings will
deliver and buy accordingly.

Marketers must be careful to set the right level of expectations.
If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers.
If they set expectations too high, buyers will be disappointed.

Question 11

what is the definition of superior customer value?

Answer 11

to continually create business experiences that exceed customer expectations

Question 12

How do companies build strong relationships?

Answer 12

Companies build strong relationships by consistently delivering superior customer value.

Marketing consists of actions taken to create, maintain and grow desirable exchange relationships
with target audiences, involving a product, service, idea or other object.

Question 13

what is the definition of a market, in terms of marketing?

Answer 13

The set of all actual and potential buyers of a product or service.

These buyers share a particular need or want that can be satisfied through exchange relationships.

Question 14

what are exchange relationships?

Answer 14

relationships based on the act of obtaining something desired from someone, by offering something in return.

(Ex, relationship between store owner and customer, customer pays the store owner in return for a product. the relationship between employer and employee is also an exchange relationship, exchanging labor for money.)

Question 15

what is the definition of marketing management?

Answer 15

The art and science of choosing target markets and building profitable
relationships with them

Question 16

what is the aim of marketing management?

Answer 16

It’s aim is to engage, keep and grow target customers by creating, delivering
and communicating superior customer value.

Question 17

when a company decides whom it will service by dividing the market into segments of customers this is called?

Answer 17

market segmentation

Question 18

when a company selects which segments it will go after this is called?

Answer 18

target marketing

Question 19

the definition of value proposition is:

Answer 19

the set of benefits or values a brand promises to deliver to consumers to satisfy
their needs.

(Ex. Facebook helps you “connect and share with the people in your life”.)

Question 20

The 5 concepts under which organizations design and carry out their marketing strategies are:

Answer 20

1. the production concept
2. the product concept
3. the selling concept
4. the marketing concept
5. the societal marketing concept

Question 21

what is the production concept?

Answer 21

The idea that consumers will favour products that are available and highly affordable.

therefore, the organization should focus on improving production and distribution efficiency.

Question 22

what is the product concept?

Answer 22

The idea that consumers will favour products that offer the most quality, performance and features.

therefore, the organization should devote its energy to making continuous product improvements.

Question 23

what is the selling concept?

Answer 23

The idea that consumers will not buy enough products unless the firm undertakes a
large-scale selling and promotion effort.

Question 24

what is the marketing concept?

Answer 24

the idea that achieving organizational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions better than competitors do.

The job is not to find the right customers for your product, but the right product for your customers.

Question 25

what is the societal marketing concept?

Answer 25

The idea that a company’s marketing decisions should consider:
consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

Question 26

what is the marketing mix?

Answer 26

the set of marketing tools the firm uses to implement its marketing strategy

Question 27

The major marketing mix tools are classified into four broad groups:

Answer 27

1. Product (the firm must first create a need-satisfying market offering)
2. Price (it must then decide how much it will charge for the offering)
3. Place (how it will make the offering available to target consumers)
4. Promotion (the firm must engage target consumers, communicate about the offering, and
   persuade consumers of the offer’s merits)

Question 28

what is customer relationship management?

Answer 28

the overall process of building and maintaining profitable

customer relationships by delivering superior customer value and satisfaction.

Question 29

what is customer-perceived value?

Answer 29

the customer’s evaluation of the difference between all the benefits and
all the costs of a market offering relative to those of competing offers.

Question 30

what is customer satisfaction?

Answer 30

the extent to which a product’s perceived performance matches a buyer’s
expectations.

Question 31

what is customer-engagement marketing?

Answer 31

making the brand a meaningful part of consumers’ conversations
and lives by fostering direct and continuous customer involvement in shaping brand conversations,
experiences, and community

Question 32

what is consumer-generated marketing?

Answer 32

brand exchanges created by consumers themselves – both invited
and uninvited- by which consumers are playing an increasing role in shaping their own brand
experiences and those of other consumers.

Question 33

what is partner relationship management?

Answer 33

working closely with partners in other company departments and
outside the company to jointly bring greater value to customers.

Question 34

what is a customers lifetime value?

Answer 34

the value of the entire stream of purchases a customer makes over a
lifetime of patronage.

Question 35

what is the share of customer?

Answer 35

the portion of the customer’s purchasing that a company gets in its product
categories.

Question 36

what is the customer equity?

Answer 36

the total combined customer lifetime values of all of the company’s current and
potential customers.

(The more loyal the customers, the higher the customer equity.)

Question 37

what are the 5 major trends and forces that are changing the marketing landscape and challenging
marketing strategy?

Answer 37

1. The digital age: digital and social media marketing
2. The changing economic environment
3. The growth of not-for-profit marketing
4. Rapid globalization
5. Sustainable marketing

Question 38

how would you explain the trend/force called, the digital age: digital and social media marketing?

Answer 38

using digital marketing tools such as Websites, social media, mobile apps and ads, online video, email, and blogs to engage
consumers anywhere, at any time, via their digital divices

Question 39

what is an example of The changing economic environment having an impact on marketing strategies?

Answer 39

Ex. after the great recession people bought less.

Question 40

what is sustainable marketing

Answer 40

the call for more environmental and social responsibility

corporate ethics and social responsibility have become hot topics for almost every business

Question 41

what is strategic planning?

Answer 41

the process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities.

Question 42

the 3 steps in strategic planning are:

Answer 42

1. Defining a market-oriented mission, using a mission statement.
2. Setting company objectives and goals. (the company turns its broad mission into detailed objectives for each level of management)
3. Designing the business portfolio

Question 43

what is a mission statement?

Answer 43

a statement of the organization’s purpose, what it wants to accomplish in the larger environment.

(A mission statement shouldn’t be product-oriented but market oriented)

Question 44

what is a business portfolio?

Answer 44

the collection of businesses and products that make up the company.

Question 45

what is a portfolio analysis?

Answer 45

the process by which management evaluates the products and businesses that make up the company.

Question 46

what are strategic business units (SBU’s) ?

Answer 46

the key businesses that make up the company.

Management’s first step in strategic planning is to identify these SBU’s

Question 47

What are the 4 types of SBU’s called?

Answer 47

1. Stars
2. Cash cows
3. Question marks
4. Dogs

Question 48

what is the growth-share matrix method?

Answer 48

a portfolio-planning method that evaluates a company’s SBUs in terms of
market growth rate and relative market share.

Question 49

what are the stars SBU’s?

Answer 49

stars are high-growth, high-share businesses or products.

They often need heavy investments to finance their rapid growth

Question 50

what are cash cows SBU’s?

Answer 50

cash cows are low-growth, high-share businesses or products.

(These established and successful SBUs need less investment to hold their market share)

Question 51

what are the question marks SBU’s?

Answer 51

question marks are low-share business units in high-growth markets.

(They require a lot of cash to hold their share or increase it)

Question 52

What are the dogs SBU’s?

Answer 52

dogs are low-growth, low-share businesses and products.

They may generate enough cash to maintain themselves but do not promise to be large sources of cash

Question 53

what is the product/market expansion grid?

Answer 53

a portfolio-planning tool for identifying company growth opportunities

Question 54

what are the 4 types of company growth opportunities?

Answer 54

1. market penetration
2. market development
3. product development
4. diversification.

Question 55

what is market penetration?

Answer 55

company growth by increasing sales of current products to current market segments without changing the product.

Question 56

what is market development?

Answer 56

company growth by identifying and developing new market segments for current company products.

Question 57

what is product development?

Answer 57

company growth by offering modified or new products to current market segments.

Question 58

what is diversification?

Answer 58

company growth through starting up or acquiring businesses outside the company’s current products and markets.