Marketing Chapter 1: Customer Value and Engagement

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Questions and Answers

What is the primary goal of marketing?

To increase manufacturing efficiency

To restrict consumer choice

To reduce competition in the marketplace

To create value for customers (correct)

Which step is NOT part of the marketing process?

Setting production quotas (correct)

Capturing value from consumers

Understanding consumer needs

Building strong customer relationships

What is one of the key elements of a customer-driven marketing strategy?

Focusing solely on profits

Ignoring market trends

Minimizing customer service interactions

Understanding customer needs (correct)

What follows after companies create customer value in the marketing process?

Capture value from consumers Signup and view all the answers

Understanding the marketplace is crucial for which of the following reasons?

To tailor strategies to customer needs Signup and view all the answers

Which of these is NOT considered a core marketplace concept?

Production efficiency Signup and view all the answers

What does customer relationship management aim to achieve?

Create value for customers Signup and view all the answers

Which of the following trends is impacting the marketing landscape?

Shift towards digital communication Signup and view all the answers

What is the primary goal of societal marketing in decision-making?

Balancing consumers’ wants with the company’s and society’s long-run interests Signup and view all the answers

Which elements are part of the marketing mix known as the four Ps?

Product, Price, Promotion, Place Signup and view all the answers

What is the focus of customer relationship management?

Building and maintaining profitable customer relationships Signup and view all the answers

What does customer-perceived value refer to?

The difference between total customer perceived benefits and customer cost Signup and view all the answers

How does customer-engagement marketing differ from traditional marketing?

It fosters direct consumer involvement in brand conversations and experiences Signup and view all the answers

What is the role of consumer-generated marketing?

Allowing consumers to significantly influence brand exchanges and experiences Signup and view all the answers

Which aspect is NOT part of customer relationship management?

Acquiring new customers through aggressive sales tactics Signup and view all the answers

What is an integrated marketing program intended to achieve?

A comprehensive plan that communicates and delivers intended value Signup and view all the answers

What is the primary focus of marketing management?

Choosing target markets and building relationships Signup and view all the answers

Which concept emphasizes that consumers will prefer products that are widely available and affordable?

Production concept Signup and view all the answers

What does a brand's value proposition entail?

The benefits it promises to deliver to customers Signup and view all the answers

In which marketing concept do consumers expect the highest quality, performance, and features?

Product concept Signup and view all the answers

What does the societal marketing concept require companies to consider?

The company's requirements, consumer wants, and societal interests Signup and view all the answers

What is the key principle of the selling concept?

Consumers will not purchase without significant promotion Signup and view all the answers

Which marketing concept focuses on understanding and meeting the needs of target markets better than competitors?

Marketing concept Signup and view all the answers

Which of the following best describes the production concept's belief about consumer behavior?

Consumers tend to favor products that are available and affordable Signup and view all the answers

What defines 'needs' in the context of marketing?

States of felt deprivation Signup and view all the answers

Which of the following best describes 'demands'?

Wants that are backed by buying power Signup and view all the answers

What is marketing myopia?

Neglecting underlying consumer needs while prioritizing current wants Signup and view all the answers

Which statement about customer satisfaction is true?

Dissatisfied customers often share negative feedback with others Signup and view all the answers

How can marketers create desirable exchange relationships?

By offering products that meet consumers' perceived needs Signup and view all the answers

What does a 'market' consist of?

Actual and potential buyers who search for and purchase goods Signup and view all the answers

What is an effective approach to manage customer value?

By ensuring customer needs and wants are prioritized in offerings Signup and view all the answers

What role do exchanges play in marketing?

They are necessary for obtaining a desired object or service Signup and view all the answers

What is the primary goal of partner relationship management?

To collaborate with partners for enhanced customer value Signup and view all the answers

What does customer lifetime value represent?

The total revenue from a customer over their entire relationship with a company Signup and view all the answers

Which strategy can help a business increase its share of customer?

Offering a variety of products and creating cross-sell programs Signup and view all the answers

What does customer equity refer to?

The combined customer lifetime values of all of a company’s customers Signup and view all the answers

Which of the following methods is included in digital and social media marketing?

Engagement through web sites and social media Signup and view all the answers

What was the impact of Mountain Dew’s user-generated content campaign?

It increased online chatter by 170 percent. Signup and view all the answers

What is one way Cadillac is attempting to increase customer equity?

Making classic cars appealing to younger consumers Signup and view all the answers

Which of the following is NOT a component of customer equity?

Customer acquisition costs Signup and view all the answers

Study Notes

Chapter 1: Marketing: Creating Customer Value and Engagement

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value in return.
The marketing process has five steps:
- understanding the marketplace and customer needs
- creating value for customers
- building customer relationships
- engaging customers
- capturing value from customers
Needs are states of felt deprivation.
Wants are the form human needs take, shaped by culture and individual personality.
Demands are human wants that are backed by buying power.
Market offerings are products, services, information, or experiences offered in a market to satisfy a need or want.
Marketing myopia occurs when focusing only on existing wants, losing sight of underlying consumer needs.
Customer value and satisfaction are key for building relationships.
Customer relationship management (CRM) is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
- It deals with all aspects of acquiring, engaging, and growing customers.
Customer lifetime value is the total value of purchases a customer makes over their lifetime of patronage.
Share of customer is the portion of a customer's purchasing a company gets within its product categories.
- Encouraging variety and upselling/cross-selling to increase share.
Customer equity is the total combined customer lifetime values of all a company's customers.
- Companies increase equity by offering value and creating lifetime customers.

Learning Objectives

Learning Objective 1: Define marketing and outline the steps in the marketing process.
Learning Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
Learning Objective 3: Identify the key elements of a customer-driven marketing strategy and discuss marketing management orientations that guide marketing strategy.
Learning Objective 4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Learning Objective 5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships.

Marketing Concepts

Production concept: Consumers favor readily available and inexpensive products.
Product concept: Consumers favor products with high quality and features.
Selling concept: Consumers are unlikely to buy unless presented with a large-scale selling and promoting effort.
Marketing concept: Companies must know customer needs and deliver superior value compared to competitors.
Societal concept: Companies must incorporate consumer wants, company requirements, consumer long-term interests, and society's long-term interests.

The Changing Marketing Landscape

Digital and social media marketing: Using digital tools like websites, social media, mobile ads, online videos, email, and blogs to engage consumers anywhere.
Growth of not-for-profit marketing
Rapid globalisation
Sustainable marketing

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Description

This quiz covers the key concepts from Chapter 1 of Marketing, focusing on how companies create customer value and build lasting relationships. You'll explore the marketing process, customer needs, market offerings, and the importance of customer relationship management (CRM). Test your understanding of these foundational marketing principles.