Marketing Concepts Quiz

Marketing Fundamentals

• Marketing is the process of creating value for customers and building strong relationships with them to capture value in return.
• The key goal of marketing is to attract new customers with superior value and grow current customers by delivering satisfaction.
• Marketing encompasses various forms, including traditional methods, websites, mobile apps, online videos, and social media.
• Marketing is an integrated process of understanding the marketplace, creating customer value, constructing marketing programs, engaging customers, and capturing value from customers in return.

Learning Objectives

• Define marketing and outline the marketing process.
• Explain the significance of understanding the marketplace and customers and identify five core marketplace concepts.
• Identify key elements of a customer value-driven marketing strategy and discuss management orientations that guide marketing strategy.
• Briefly explain the marketing environment concept.
• Describe significant trends and forces that are changing the marketing landscape.

Understanding the Marketplace and Customer Needs

• Needs are states of felt deprivation.
• Wants take the form of human needs and are shaped by culture and individual personality.
• Demands are human wants that are backed by buying power.
• Market offerings are some combination of products, services, information, or experiences offered to satisfy needs or wants.
• Marketing myopia is the focus on specific products over the benefits and experiences they produce, potentially missing opportunities for growth.
• Customers form expectations about value and satisfaction related to market offerings. Satisfied customers repurchase and recommend, while dissatisfied customers switch to competitors.
• Exchange is obtaining a desired object from someone by offering something in return. Marketing aims to create, maintain, and grow desirable exchange relationships.
• A market is the set of actual and potential buyers who share a particular need or want and can be satisfied through exchanges.

Designing a Customer Value-Driven Marketing Strategy

• Marketing management is the art and science of choosing target markets and building profitable relationships with them..
• Target markets are specific customers a company wants to serve. Market segmentation divides the market into segments of consumers and target marketing selects which segments to target.
• A brand's value proposition is the set of benefits or values a brand promises to deliver to satisfy customer needs and differentiate it from competitors.
• Marketing management orientations include the Production concept (favoring available and affordable products), Product concept, Selling concept (necessity of extensive selling and promotion for unsought products), and the Marketing concept (achieving organizational goals by understanding target markets and delivering satisfaction). Societal concept incorporates consumer wants, company requirements, consumers' long-run interests, and societal long-run interests.
• The marketing mix (4Ps): product, price, promotion, and place.
• An integrated marketing program is a comprehensive plan to communicate and deliver intended value.

A Company's Marketing Environment

• The marketing environment consists of actors and forces outside of marketing that affect the ability to build and maintain relationships with target customers.
• The microenvironment includes actors close to the company that affect its ability to serve customers (the company itself, suppliers, marketing intermediaries, customer markets, competitors, and publics).
• The macroenvironment includes larger societal forces that influence the microenvironment (demographic, economic, natural, technological, political, and cultural).
• The organization, along with suppliers, marketing intermediaries, customers, competitors, and publics interact to deliver value to the final consumers.
• Different company departments, such as top management, finance, research and development, purchasing, operations, human resources and accounting affect the overall goal of customer satisfaction.
• Publics, such as financial, media, government, citizen-action, local, and general publics impact the organization. Customer markets include consumer, business, reseller, government, and international markets.
• The changing aspects, such as the American family, geographic shifts in population, a more diverse population, and educational achievements impact the company.

The Macroenvironment

• Demographic factors like size, density, location, age, gender, race, and occupation of human populations are relevant to understanding a company's market. Demographic trends reflect changing family structures, population shifts, educational profiles, and diversity.
• Economic factors impact consumer spending, lifestyles, and purchasing patterns.
• Natural factors concern the physical environment, resource availability, pollution, and societal concerns about environmental sustainability.
• Technological factors include new products, opportunities through technological advancements, and the need to address safety concerns about new products.
• Political factors involve government regulations, legal requirements, and the interests of society.
• Cultural factors encompass the society's fundamental values, perceptions, and behaviors.