What is marketing

Question 1

What is marketing

Answer 1

Process of creating and capturing customer value through exchange and managing profitable customer relationships through customer satisfaction

Question 2

Outline the steps in the marketing process

Answer 2

1. understand marketplace and customer needs, wants, demands
2. design customer value-driven marketing strategy
3. construct integrated marketing program that delivers value
4. engage customers, provide value, build profitable relationships
5. capture customer value to create profits and customer equity

Question 3

5 core marketplace concepts

Answer 3

1. needs, wants, demands
2. market offerings: goods, services, experiences
3. value and satisfaction from customer expectation
4. exchange, transactions, relationships
5. markets

Question 3

Explain the importance of understanding the marketplace

Answer 3

To know how to provide and create value for customers that is superior to competitors, and in turn create customer equity and loyalty

Question 4

Maslow’s needs hierarchy

Answer 4

1. physiological
2. safety
3. belonging
4. self esteem
5. self actualisation

Question 5

Wants

Answer 5

objects that satisfy needs

Question 6

Demands

Answer 6

wants with buying power

Question 7

Myopia

Answer 7

the business no longer recognises their broad scope, they’ve lost sight of the bigger picture and what the consumer really needs

Question 8

Why do consumers need value and satisfaction

Answer 8

unlimited needs but limited resources

Question 9

Exchange

Answer 9

obtaining a desired object for something in return

Question 10

Transaction

Answer 10

trade of values between two parties

Question 11

Markets

Answer 11

set of actual and potential buyers for a product

Question 12

Marketing system

Answer 12

Suppliers > Company + Competitors > Marketing intermediaries > Final consumers

Question 13

Identify key elements of a customer driven marketing strategy

Answer 13

Who is the target market and what is the value proposition

Question 14

Who is the target market

Answer 14

segmenting market where product naturally falls
customers that business can serve well and profitably
handling demand with marketing management

Question 15

Demand management ready reckoner

Answer 15

Negative
None
Latent (not yet)
Declining
Irregular
Full
Overfull
Unwholesome

Question 16

What is the value proposition

Answer 16

benefits and values promised to customers that create expectation. why should customers by one brand over another

Question 17

Marketing orientations

Answer 17

Production - availability + affordability, production + distribution
Product - quality, performance, innovative features
Selling - large scale selling and promotion not of what market needs
Marketing - target market needs and wants, satisfaction
Societal marketing - sustainability, economic and societal welfare

Question 18

Extended marketing mix

Answer 18

Product - need satisfying market offering
Price - transaction for offering
Place - availability
Promotion - communication and persuasion
People - relationships
Physical evidence - quality and expectations met
Process - delivery of customer satisfaction

Question 19

How to create and capture value

Answer 19

Blending marketing mix together well

Question 20

Customer relationship management

Answer 20

Acquiring, retaining and growing of customers and customer loyalty by engaging customers with consumer generated marketing and then capturing customer value.

Question 21

Customer engagement management

Answer 21

Being more than a brand that just sells goods, being meaningful and empowering. Being relevant, genuine and engaging in customers’ lives.

Question 22

Partner relationship management

Answer 22

Partnering with all people in an organisation and the supply chain, working together to provide value.

Question 23

Capturing value

Answer 23

customer loyalty and retention, growing share of customers, building customer equity, right relationships with right customers

Question 24

Building customer equity

Answer 24

total combined customer lifetime values of current and potential customers. more loyalty = more equity

Question 25

Types of relationships

Answer 25

Customers = assets
Strangers = low profit, low loyalty - make money, don’t invest
Butterflies = potential profit, low loyalty - make money, don’t invest
True friends = profitable, loyal - convert to believer
Barnacles = low profit, high loyalty - fire

Question 26

Changing marketing landscape

Answer 26

Digital age: social media and mobile marketing, big data, AI, not-for-profit marketing.
Rapid globalisation: supply and buy from countries, sustainability, complex environments