Marketing Concepts Quiz

Study Notes

Marketing Definition and Goals

Marketing is the process of continuously and profitably targeting consumer needs.
The two-fold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

Interacting Components of Marketing

There are two interacting components of marketing: Company and Market.
The two interacting components of the Market are Customer and Competition.

Marketing Approaches

Traditional Marketing focuses on what the company wants and is company-focused.
Contemporary Marketing focuses on what the target market wants and is customer-focused.

Relationship Marketing

Relationship Marketing refers to building mutually satisfying long-term relationships with key parties to earn and retain their business.
There are five different levels of relationship marketing:
- Basic: does not follow up in any way.
- Reactive: encourages the customer to call whenever they have questions or problems.
- Accountable: phones the customer a short time after sale to check if the product meets their expectations.
- Proactive: phones the customer with suggestions about improved product use or helpful new products.
- Partnership: works continuously with the customer to discover ways to deliver better value.

Characteristics of Relationship Marketing

Focuses on the long-term rather than the short-term.
Focuses on partners and customers rather than on the company's products.
Puts more emphasis on customer retention and growth than on customer acquisition.
Relies on cross-functional teams rather than on departmental-level work.
Relies more on listening and learning than on talking.

Customer Satisfaction and Loyalty

Customer satisfaction comes after the trial of the product/service, while customer loyalty comes after the repeat purchase.
A good indicator of customer satisfaction is their willingness to buy again and recommend to others.
A good indicator for customer loyalty is the unwillingness to switch brands when there is an out-of-stock situation.

Four Brand Benefits

Functional Benefits: removes pain points of customers by creating features or attributes.
Emotional Benefits: creates an emotional connection with customers.
Social Benefits: takes into consideration how customers want to be perceived by others when using a product or service.
Economic Benefits: provides the right price, which is no more than the perceived value, with a surplus being the difference between customer value and customer cost.

The Value of Customers

The concept of Customer Lifetime Value (CLTV) allows firms to look at customers in a relationship mode rather than transactional mode.

Relationship Development Strategies

Technology: can be used to create a unique customer experience, such as using Facial Recognition to detect passengers' mood and allergies.
Value Chain Excellence: employees in any company must realize that customer satisfaction is the job of everybody, and that a chain is as strong as its weakest link.
Frontline Excellence: happy and empowered employees make happy customers, so there is a need to look internal people, processes, policies, and practices while formulating plans for external customers.
Under promise - Over deliver: never overpromise, and focus on delivering more than what is promised.

Description

Test your knowledge on marketing concepts including goals, components, and approaches. Learn about the two-fold goal of marketing, interacting components of marketing, traditional marketing, and contemporary marketing.