Topic 1 Introduction, Marketing definition, marketing process

Question 1

What is marketing? (few definitions)

Answer 1

• Marketing is engaging customers and managing profitable customer relationships.
• The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers.
• Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.

Question 2

Old and new sense of marketing

Answer 2

Old sense - “telling
and selling”
New sense - satisfying customer needs

Question 3

5 steps of the marketing process: creating and capturing customer value

Answer 3

1. Understand the
   marketplace and
   customer needs
   and wants
2. Design a
   customer value–
   driven marketing
   strategy
3. Construct an
   integrated
   marketing program
   that delivers
   superior value
4. Engage customers,
   build profitable
   relationships, and
   create customer
   delight
5. Capture value
   from customers to
   create profits and
   customer equity

Question 4

Needs, Wants and demands

Answer 4

Needs - states of felt deprivation

Wants - the form human needs take as they shaped by culture and individual personality

Demands - human wants that are backed by buying power

Question 5

Market offerings

Answer 5

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

Question 6

Marketing myopia

Answer 6

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

Question 7

Exchange

Answer 7

The act of obtaining a desired object from someone by offering something in return.
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 8

Market

Answer 8

The set of actual and potential buyers of a product or service.
Marketing means managing markets to bring about profitable customer relationships.

Question 9

Marketing management

Answer 9

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

Question 10

Market segment

Answer 10

Dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing).

Question 11

Value proposition

Answer 11

How the company differentiates and positions itself in the marketplace.
A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

Question 12

5 alternative concepts under which organizations design and carry out
their marketing strategies

Answer 12

The production, product, selling, marketing, and societal marketing concepts.

Question 13

Production concept

Answer 13

The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

Question 14

Product concept

Answer 14

The idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements

Question 15

Selling concept

Answer 15

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

Question 16

Marketing concept

Answer 16

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors

Question 17

Societal marketing concept

Answer 17

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 18

Marketing mix

Answer 18

The set of marketing tools the firm uses to implement its marketing strategy (4Ps)

Question 19

Customer relationship management

Answer 19

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Question 20

Customer-perceived value

Answer 20

The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

Question 21

Customer satisfaction

Answer 21

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

Question 22

Customer-engagement marketing

Answer 22

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 23

Consumer-generated marketing

Answer 23

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 24

Partner relationship management

Answer 24

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

Question 25

Customer lifetime value

Answer 25

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

Question 26

Share of customer

Answer 26

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

Question 27

Customer equity

Answer 27

The total combined customer lifetime values of all of the company’s customers.

Question 28

Digital and social media marketing

Answer 28

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 devices