Topic 1 - What is Marketing?

Question 1

What is marketing? (Simple)

Answer 1

Marketing is engaging customers and managing profitable customer relationships

Question 2

The twofold goal of marketing

Answer 2

attract new customers by promising superior value, and to keep and grow current customers by delivering satisfaction

Question 3

define marketing

Answer 3

the process by which marketing organisations engage customers, build strong customer relationships and create customer value in order to capture value from customers in return.3

Question 4

The marketing process

Answer 4

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

Question 5

five core customer and marketplace concepts

Answer 5

(1) customer needs, wants and demands; (2) market offerings – goods, services and experiences;
(3) customer value and satisfaction;
(4) exchanges and relationships; and
(5) markets.

Question 6

Human needs

Answer 6

are states of felt deprivation. Humans have many complex needs. These include basic physical needs for food, clothing, warmth and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression

Question 7

Want

Answer 7

are the form taken by human needs as they are shaped by culture and individual personality

Question 8

market offering

Answer 8

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

Question 9

market

Answer 9

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

Question 10

marketing management

Answer 10

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

Question 11

The marketing manager’s aim is to

Answer 11

to attract, engage, keep and grow target customers by creating, delivering and communicating superior customer value

Question 12

A marketing organisation’s value proposition

Answer 12

is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

Question 13

five alternative concepts under which organisations may conduct their marketing activities:

Answer 13

1) production,
(2) product,
(3) selling,
(4) marketing and
(5) societal marketing

Question 14

The production concept

Answer 14

The production concept holds that consumers will favour products that are available and highly affordable

Question 15

The product concept

Answer 15

holds that consumers will favour products that offer the most quality, performance and innovative features

Question 16

The selling concept

Answer 16

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

Question 17

The marketing concept

Answer 17

holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors do

Question 18

The societal marketing concept

Answer 18

questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare

Question 19

outcomes of creating customer value

Answer 19

customer loyalty and retention,
share of market,
share of customer and
customer equity

Question 20

Customer equity

Answer 20

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

Question 21

major trends and forces that are changing the marketing landscape and challenging marketing strategy. We look at six major developments

Answer 21

1) the digital age;
(2) the challenging economic environment;
(3) measuring marketing’s contribution to organisational performance;
(4) the growth of not-for-profit marketing; (5) rapid globalisation; and
(6) the call for more corporate social responsibility

Question 22

The core marketplace concepts are

Answer 22

needs,
wants and demands;
market offerings (products, services and experiences);
value and satisfaction;
exchange and relationships; and
markets

Question 23

The value proposition is fulfilled

Answer 23

through a market offering, which delivers customer value and satisfaction, resulting in long-term exchange relationships with customers

Question 24

To design a winning marketing strategy, the company must

Answer 24

first decide who it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will cultivate (target marketing). Next, the company must decide how it will serve targeted customers (how it will differentiate and position itself in the marketplace).