Introduction to Marketing (Objective 1-1)
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Questions and Answers

Which of the following companies targets affluent professionals?

  • JetBlue
  • Nordstrom (correct)
  • Spirit Airlines
  • Dollar General

Dollar General serves budget-conscious families.

True (A)

What is the primary focus of the Marketing Concept?

Customer needs and delivering superior value

Which of the following is NOT considered a tool for consumer engagement?

<p>Television commercials (A)</p> Signup and view all the answers

The value proposition for JetBlue emphasizes ___.

<p>customer comfort</p> Signup and view all the answers

Consumer-generated marketing can enhance brand advocacy when managed well.

<p>True (A)</p> Signup and view all the answers

What is a key insight regarding successful consumer engagement?

<p>Creating genuine, relevant contributions to customers' lives.</p> Signup and view all the answers

Which marketing management orientation emphasizes aggressive promotion and selling?

<p>Selling Concept (C)</p> Signup and view all the answers

Match the following companies with their respective marketing concepts:

<p>Lenovo = Production Concept Spirit Airlines = Selling Concept Southwest Airlines = Marketing Concept Jeni's Splendid Ice Creams = Societal Marketing Concept</p> Signup and view all the answers

Companies like Walmart and Ford rely on well-coordinated _____ to deliver value effectively.

<p>supply chains</p> Signup and view all the answers

Match the following marketing concepts to their descriptions:

<p>Social Media = For conversations and feedback Loyalty Programs = Rewards frequent customers Consumer-Generated Marketing = Empowers customers to shape brand experiences Full Partnerships = Close collaboration with high-margin customers</p> Signup and view all the answers

The Production Concept focuses on superior quality and innovation.

<p>False (B)</p> Signup and view all the answers

What risk is associated with the Product Concept?

<p>Ignoring other factors like pricing, distribution, or better solutions</p> Signup and view all the answers

What is the main benefit of consumer empowerment in marketing?

<p>Strengthened brand-consumer relationships (D)</p> Signup and view all the answers

All consumer participation is beneficial and should be encouraged without limits.

<p>False (B)</p> Signup and view all the answers

What is an example of a loyalty program mentioned in the content?

<p>Hilton's HHonors program</p> Signup and view all the answers

What percentage of its sales does Amazon influence through personalized recommendations?

<p>35% (A)</p> Signup and view all the answers

What is the primary purpose of brand engagement platforms?

<p>To connect companies with consumers (B)</p> Signup and view all the answers

Building customer equity only focuses on attracting customers and not on retaining them.

<p>False (B)</p> Signup and view all the answers

What is customer equity?

<p>The total combined lifetime values of all current and potential customers.</p> Signup and view all the answers

The Fitbit Community consists of over 1 million enthusiasts.

<p>False (B)</p> Signup and view all the answers

Companies should avoid investing in customers categorized as __________.

<p>strangers</p> Signup and view all the answers

Name one of the largest social media platforms mentioned in the content.

<p>Facebook</p> Signup and view all the answers

Which customer group is characterized by high profitability but low loyalty?

<p>Butterflies (A)</p> Signup and view all the answers

The Snickers Hungerithm campaign adjusted product pricing based on internet ______.

<p>anger</p> Signup and view all the answers

Match the customer relationship groups with their respective strategies:

<p>Strangers = Focus on transactional profits Butterflies = Maximize short-term gains True Friends = Invest heavily to nurture Barnacles = Increase profitability through upselling or cutting costs</p> Signup and view all the answers

Match the following platforms with their primary user demographics:

<p>CafeMom = Mothers Newgrounds = Gamers Ravelry = Knitters and crocheters Instagram = General social media users</p> Signup and view all the answers

Which mobile marketing characteristic suggests that advertising is tailored specifically for individuals?

<p>Precisely targeted (B)</p> Signup and view all the answers

Satisfied customers often become brand advocates who strengthen market position.

<p>True (A)</p> Signup and view all the answers

80% of consumers use smartphones for shopping.

<p>True (A)</p> Signup and view all the answers

What should companies do with 'barnacle' customers if they are unprofitable?

<p>Consider ending the relationship.</p> Signup and view all the answers

What advantage does modern marketing have by integrating digital approaches?

<p>Creating seamless strategies</p> Signup and view all the answers

What is the primary mission of corporations engaging in Corporate Social Responsibility (CSR)?

<p>Aligning operations with societal values (C)</p> Signup and view all the answers

Patagonia is an example of a company that emphasizes sustainability and civic responsibility in its business model.

<p>True (A)</p> Signup and view all the answers

What is the first step of the marketing process?

<p>Understand the Marketplace</p> Signup and view all the answers

The four Ps of marketing are Product, Price, Place, and _____ .

<p>Promotion</p> Signup and view all the answers

Which company has a program that distributes glasses to those in need?

<p>Warby Parker (A)</p> Signup and view all the answers

Sustainable marketing is only important for large corporations.

<p>False (B)</p> Signup and view all the answers

What do companies aim to capture from customers through sustainable marketing?

<p>Value</p> Signup and view all the answers

Match the companies with their sustainability initiatives:

<p>Warby Parker = Buy a Pair, Give a Pair Patagonia = Environmental Campaigns Ben &amp; Jerry's = Sourcing Ethical Ingredients Nike = Renewable Materials Initiatives</p> Signup and view all the answers

What does Customer Lifetime Value (CLV) measure?

<p>The total value a customer brings to a company over their lifetime. (A)</p> Signup and view all the answers

Customer equity represents the combined lifetime value of all a company's customers.

<p>True (A)</p> Signup and view all the answers

Name one benefit of customer loyalty and retention.

<p>Loyal customers cost less to retain compared to acquiring new customers.</p> Signup and view all the answers

The __________ of a customer refers to the portion of their total spending in a product category actually captured by the brand.

<p>share</p> Signup and view all the answers

What is a strategy to grow the share of customer?

<p>Offer variety in products/services. (C)</p> Signup and view all the answers

Match the following concepts with their definitions:

<p>Customer Lifetime Value (CLV) = The value a customer brings over their lifetime Share of Customer = The portion of total spending captured by the brand Customer Equity = Combined CLV of all customers Customer Loyalty = Commitment to repeatedly purchase a brand's products</p> Signup and view all the answers

Emotional relationships with customers are less important than customer satisfaction.

<p>False (B)</p> Signup and view all the answers

Provide an example of a brand that generates significant CLV through unique customer experiences.

<p>Stew Leonard's Dairy Stores.</p> Signup and view all the answers

Flashcards

Target Marketing

The process of identifying and selecting specific customer segments that a company will focus on, ensuring it can serve them well and profitably.

Value Proposition

The unique value a company promises to deliver to its target customers, answering the question "Why should they choose us?"

Marketing Management Orientation

The core belief guiding a company's marketing strategy, balancing customer needs, organizational goals, and societal well-being.

Production Concept

Focuses on producing and distributing products that are accessible and affordable to a broad market.

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Product Concept

Focuses on offering a superior product, believing that customers will favor quality and innovation.

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Selling Concept

Emphasizes aggressive promotion and selling techniques to persuade customers to buy products.

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Marketing Concept

Focuses on understanding and meeting customer needs, delivering superior value, and building lasting relationships.

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Societal Marketing Concept

Prioritizes delivering value to customers while considering the well-being of society and the environment.

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Engagement Marketing

Creating marketing campaigns that are an integrated part of a customer's real life, not just advertisements.

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Engagement Tools

Using social media, apps, and blogs to directly connect with customers and foster brand loyalty.

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Consumer-Generated Marketing

Empowering customers to participate in shaping brand experiences through social media, reviews, and campaigns.

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Risks of Consumer-Generated Marketing

The risks of negative impacts when customer-generated content is not managed effectively.

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Partner Relationship Management

Collaborating with internal departments and external partners to ensure seamless value delivery to customers.

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Customer Relationship Levels and Tools

Building relationships based on customer value, from basic interactions to full partnerships, often using loyalty programs.

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Loyalty Programs

Rewarding frequent or high-value customers with points, personalized services, and exclusive offers to encourage repeat business.

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Maximizing Customer Engagement

Tailoring relationship tools to different customer groups to maximize engagement and achieve business goals.

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Customer Lifetime Value (CLV)

The total value a customer brings to a company over their entire relationship with them.

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Share of Customer

The portion of a customer's spending in a product category that a company captures.

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Customer Equity

The combined Customer Lifetime Value of all a company's customers. It represents a company's future earning potential.

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Customer Loyalty

Loyal customers are valuable because they spend more over time, cost less to retain, and spread positive word-of-mouth.

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Growing Share of Customer

Strategies to grow share of customer include offering a wider range of products or services to meet more customer needs.

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Customer Defection

Customer defection (leaving your brand) is costly because not only do you lose that sale, but the total value of all future sales from that customer.

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Emotional Relationships

Emotional connections with customers, beyond simple satisfaction, lead to stronger loyalty and higher lifetime value.

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Capturing Value from Customers

Building profitable relationships with customers requires actively engaging them, valuing their contributions, collaborating effectively, and focusing on long-term value.

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Cross-Sell & Up-Sell

Offering additional or premium products or services to existing customers to increase their spending.

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Building Customer Equity

Focusing on building long-term, valuable relationships with customers to maximize their lifetime value.

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Customer Relationship Groups

Categorizing customers based on their profitability and loyalty to tailor marketing strategies.

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True Friends (Customer Relationship Group)

Customers with high profitability and high loyalty, considered the most valuable segment.

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Barnacles (Customer Relationship Group)

Customers with low profitability and high loyalty, often requiring strategic management.

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Brand Advocates

Satisfied customers who recommend your brand to others, amplifying marketing efforts and strengthening market position.

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Building the Right Relationships

Focusing resources on 'True Friends' while managing or shedding less profitable customer groups.

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Corporate Social Responsibility (CSR)

Companies integrating social and environmental responsibility into their missions. Aligning operations with societal values. Examples: Warby Parker, Patagonia, Ben & Jerry's.

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Sustainable Marketing

A marketing approach that prioritizes long-term value for customers and communities by considering social and environmental impacts. It's both responsible & profitable.

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Benefits of Sustainable Marketing

Building trust and loyalty with environmentally conscious consumers. Enhances long-term customer equity.

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Global Impact of Sustainable Marketing

Companies must adapt to global opportunities and challenges, including environmental sustainability. It's a key factor in long-term success.

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Engaging Customers

Engaging customers and creating a strong brand experience through superior customer service and interactions. It aims to strengthen brand loyalty and advocacy.

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Partner with Others

Collaborating with internal teams and external partners to ensure seamless value delivery to customers. Creates a unified experience across various touchpoints.

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Online Brand Communities

Companies create dedicated online spaces where fans and customers can interact, share experiences, and build a stronger brand connection. These communities can be brand-specific websites or sections within broader social media platforms.

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Real-Time Marketing

This powerful approach uses real-time data to tailor marketing messages and adjust strategies on the fly. It allows brands to respond quickly to current events, trending topics, and consumer sentiment.

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Mobile Marketing

Mobile marketing leverages the constant connection of smartphones and mobile apps to reach consumers anytime, anywhere. It utilizes highly personalized messages based on location, behavior, and interests.

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Integrated Marketing

This refers to the blend of traditional marketing techniques with digital tools and strategies to create integrated campaigns that reach customers across different touchpoints.

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Social Media Landscape

Social media platforms offer a wide range of possibilities for brands to connect with potential customers, build brand awareness, and drive sales. These platforms can be categorized from general use to niche communities catering to specific interests.

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Brand Engagement

This strategic approach uses marketing tactics to engage consumers with the brand in ways that go beyond simply buying a product. It aims to cultivate a lasting relationship based on shared values, experiences, and emotions.

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Digital Marketing

Leveraging technology, modern marketers use digital tools and strategies to reach customers more effectively and efficiently. They analyze data, track results, and constantly adapt their campaigns to stay ahead in a rapidly changing digital world.

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Successful Online Communities

Successful online communities provide a space for users to connect, share their experiences, and build a sense of belonging. It helps brands foster loyalty, generate valuable insights, and create a strong brand advocate network.

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Study Notes

What Is Marketing? (Objective 1-1)

  • Marketing is more than just advertising, it's about engaging customers, and building relationships.
  • Marketing is a social and managerial process where individuals and organizations create and exchange value in order to fulfill their wants and needs.
  • The simplest definition is the process of engaging customers and managing profitable customer relationships.
  • Core purpose is to attract new customers and encourage retention by offering superior customer satisfaction.
  • Key insight: Marketing focuses on fulfilling customer needs, not just selling.

Why Is Marketing Important?

  • For organizations, marketing drives customer engagement, loyalty and profitability.
  • Examples include Amazon, Facebook, and Starbucks as examples.
  • For society, marketing isn't just for for-profit businesses; many non-profit institutions like museums, colleges also use marketing to attract and serve stakeholders.

The Marketing Process

  • The marketing process consists of five steps to create and capture customer value.
  • Step 1: Understanding the Marketplace and Customer needs. Includes needs, wants, demands, and market research.
  • Step 2: Designing a Customer Value Driven Marketing Strategy. Includes deciding whom to serve, and defining the value proposition
  • Step 3: Constructing an Integrated Marketing Program. Using the concept of the 4Ps: product, pricing, placements, and promotions.
  • Step 4: Engaging Customers and Building Relationships. Focuses on customer engagement and relationship marketing.
  • Step 5: Capturing Value from Customer. This stage focuses on customer loyalty, and maximizing lifetime value
  • Key insight: The first four steps focus on creating value for customers; the final step ensures companies capture value in return.

Customer Equity

  • Customer equity is the combined lifetime value of all a company's customers, and represents its long-term profitability.
  • Key insight: Companies should focus on high-value customers to maximize CLV and customer equity.

Customer-Centric Marketing

  • Companies must stay close to customers through research, and interaction
  • Build relationships based on trust and consistent value delivery
  • Example: Companies like Amazon and Airbnb actively engage with customers

Modern Marketing System

  • Marketing is part of a larger system, including:
  • The company, customers, competitors, marketing intermediaries, environmental forces.
  • Parts of the system must work together.

Designing a Customer Value-Driven Marketing Strategy and Plan

  • To create value and build relationships, companies must develop a strategy that answers two questions:
    • What customers will we serve? (Target Market)
    • How will we serve them best? (Value Proposition)
  • Selecting Customers to Serve: Involves identifying the right audience - includes market segmentation.
  • Choosing a Value Proposition: Explains how a company differentiates itself from its competitors. Includes value proposition examples.

Marketing Management Orientations

  • This refers to the philosophies guiding marketing strategies, and companies must balance the interests of customers, the organization, and society.
  • Five main orientations:
  • Production concept, Product Concept, Selling Concept, Marketing Concept, Societal Marketing Concept.

Preparing an Integrated Marketing Plan and Program

  • Once a strategy is defined, implementation is critical, and an integrated program is developed. This involves the 4Ps: product, pricing, place, and promotion.

Customer Loyalty and Retention

  • Loyal customers spend more over time.
  • Loyal customers are less costly to retain than attracting new customers
  • Loyal customers act as strong brand advocates

Capturing Customer Value

  • This crucial step involves increasing superior customer value, which translates to increased loyalty, share of customer, and customer equity.

Global Marketing

  • Companies must be able to adapt to the global opportunities and challenges
  • Customer-centricity is critical for success

Sustainable Marketing

  • Consumer expectations often demand that companies deliver value in an environmentally and socially responsible way.
  • Companies integrate CSR (Corporate Social Responsibility) into their missions.
  • Examples include Warby Parker, Patagonia, and Ben & Jerry's.
  • Companies must strategically integrate social and environmental responsibilities into their strategies in order for them to be sustainable.

Digital Transformation

  • Digital, social, and mobile media facilitate targeted and interactive engagement.
  • Big data and AI enhance understanding of customer behavior and preferences.
  • Global Marketing: Companies interconnected worldwide.
  • Sustainability: Businesses are rethinking environmental and social responsibilities to address societal concerns.

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What Is Marketing? - Session 1-1 - PDF

Description

Explore the fundamental concepts of marketing, including the process of engaging customers and maintaining profitable relationships. This quiz discusses the importance of marketing for organizations and society, alongside real-world examples of successful marketing practices. Test your knowledge on how marketing meets customer needs and drives value creation.

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