Week One

Question 1

Explain the 5 steps of the marketing process

Answer 1

1) understand the marketplace and customer needs and wants
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 2

what are NEEDS?

Answer 2

NEEDS are physical social and individual needs (think Maslows hierarchy)

Question 3

what are WANTS?

Answer 3

WANTS are things we want based on culture and individual personality

Question 4

what are DEMANDS?

Answer 4

DEMANDS are wants backed by buying power

Question 5

What is MARKET SEGMENTATION?

Answer 5

the process of dividing the markets into segments of customers

Question 6

what is TARGET MARKETING?

Answer 6

TARGET MARKETING refers to selecting which segments to target

Question 7

what is the VALUE PROPOSITION?

Answer 7

the set of benefits or values a company promises to deliver to customers to satisfy their needs

Question 8

Explain the PRODUCTION CONCEPT

Answer 8

Consumers will favor products that are available and affordable; the firm focuses on making more. (THINK FORD PREFECT)

Question 9

explain the PRODUCT CONCEPT

Answer 9

Consumers will favor products that offer the most quality, performance, and features; the firm focuses on making continuous product improvements. (THINK SAMSUNG)

Question 10

explain the SELLING CONCEPT

Answer 10

Consumers will not buy without a large-scale selling and promotion effort; the firm focuses on selling. (THINK cheesy salesman)

Question 11

explain the MARKETING CONCEPT

Answer 11

Achieving organisational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do; the focus is on knowing and understanding your customers.

Question 12

explain the SOCIETAL CONCEPT

Answer 12

Make good marketing decisions by considering

Consumers’ wants, Company requirements, Consumers’ long-term interests, And Society’s long term interests

Question 13

What is MARKETING MYOPIA and when can it occur?

Answer 13

A company can become so focused on their own products that they lose sight of underlying customer needs
Define their business / market too narrowly

Eg
We are in the railway business
We are in the movie business

occurs in product concept

Question 14

what is an integrated marketing program?

Answer 14

an Integrated marketing program is a comprehesive plan that communicates and delivers the intended value to chosen customers

Question 15

what is customer relationship management?

Answer 15

Customer Relationship Management (CRM) is the overall provess of building and maintaining profitible customer relationships by delivering superior customer value and satisfaction

Question 16

what is customer perceived value?

Answer 16

Customer perceived value is the difference between total customer value and total customer cost

Question 17

what is customer satisfaction?

Answer 17

Customer Satisfaction is the extent to which a product’s perceived performance matches or exeeds a buyer’s expectations.

Question 18

what is a BASIC RELATIONSHIP?

Answer 18

where a company builds relationships through brand-building advertising sales promotions and its web site

Question 19

what is a FULL PARTNERSHIP?

Answer 19

used in markets with few customers and high margins such as b2b sellers want to create full partnerships with key customers
e.g. P&G working closely with large retailers

Question 20

explain customer relationship today

Answer 20

Relate with fewer, more carefully selected (more profitable) customers
Relating more deeply and interactively through social media blogs websites online communities.

Question 21

how can you bring greater value to customers through partner relationship management?

Answer 21

by working closely with:

Partners in other departments
Every function area interacting with customers electronically and through cross-functional teams
AND
Partners outside the company
Develop partnerships with suppliers, channel partners, and competitors

Question 22

what is CUSTOMER LIFETIME VALUE?

Answer 22

Customer Lifetime Value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage

Question 23

what is SHARE OF CUSTOMER?

Answer 23

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

Question 24

what is CUSTOMER EQUITY?

Answer 24

customer equity is the total combined customer lifetime values of all of the company’s customers