Questions and Answers
Identify one example of a product (good or service) you purchased recently and explain how it satisfied a need, want, or demand.
Answers will vary. Students should describe a recent purchase and how it fulfilled a specific need, want, or demand.
Which of the following are elements of a marketing system? Choose all that apply.
The societal marketing concept emphasizes balancing consumer needs with company profits and societal interests.
True
Match the marketing concept with its description:
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What are the four Ps of marketing?
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Define customer relationship management (CRM).
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Higher levels of customer satisfaction do not lead to greater customer loyalty.
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The ultimate aim of customer relationship management is to produce high customer ___.
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Match the customer relationship groups with their characteristics:
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What percentage of the world's population is now online?
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Petco's Community site is a place where pet lovers can connect, share, and learn via a blog and discussion boards dedicated to only dogs and cats.
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What is the three-part mission of Ben & Jerry's?
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Today, almost every company, large or small, is touched in some way by ______________ competition.
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What is the primary goal of marketers in today's business environment?
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Not-for-profit organizations do not face stiff competition for support and membership.
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What is the significance of the growing number of people online?
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Ben & Jerry's and its products are 'Made of _______________.
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Match the organization with its marketing approach:
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Study Notes
Marketing Definition and Importance
- Marketing is about engaging customers and managing profitable customer relationships.
- The twofold goal of marketing is to attract new customers by promising superior value and grow current customers by delivering satisfaction.
- Sound marketing is critical to the success of every organization, including large for-profit firms, not-for-profit organizations, and personal interactions.
Human Needs and Wants
- Human needs include basic physical needs, social needs, and individual needs.
- Wants are the form human needs take when shaped by society and described in terms of objects that will satisfy those needs.
- When backed by buying power, wants become demands.
Market Offerings and Experiences
- Market offerings include entities such as persons, places, organizations, information, and ideas.
- Outstanding marketing companies go to great lengths to learn about and understand their customers' needs, wants, and demands.
- Marketing experiences involve creating brand experiences for consumers through orchestration of services and products.
Marketing and Exchange Relationships
- Marketing occurs when people decide to satisfy their needs and wants through exchange relationships.
- Exchange is the act of obtaining a desired object from someone by offering something in return.
- Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences.
Markets and Target Marketing
- A market is the set of actual and potential buyers of a product or service.
- Sellers must search for buyers, identify their needs, design good market offerings, set prices, promote, and store and deliver them.
- Companies must decide which customers to serve and how to bring them value.
Value Proposition
- A value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs.
- Value propositions differentiate one brand from another and answer the customer's question, "Why should I buy your brand rather than a competitor's?"
- Companies must design strong value propositions that give them the greatest advantage in their target markets.
Marketing Concepts
- There are five alternative concepts under which organizations design and carry out their marketing strategies: production, product, selling, marketing, and societal marketing concepts.
- The marketing concept is a customer-centered sense-and-respond philosophy that focuses on customer needs and wants.
- The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare.
Integrated Marketing Program
- The company's marketing strategy outlines which customers it will serve and how it will create value for these customers.
- The marketing program builds customer relationships by transforming the marketing strategy into action.
- The marketing program consists of the firm's marketing mix, including product, price, place, and promotion.
Customer Relationship Management
- Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
- The key to building lasting customer relationships is to create superior customer value and satisfaction.
- Satisfied customers are more likely to be loyal customers and give the company a larger share of their business.
Customer Engagement and Retention
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Delighted customers not only make repeat purchases but also become willing marketing partners and "customer evangelists" who spread the word about their good experiences to others.
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Customer-engagement marketing goes beyond just selling a brand to consumers and aims to make the brand a meaningful part of consumers' conversations and lives.
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Keeping customers loyal makes good economic sense, as it's five times cheaper to keep an old customer than acquire a new one.### Customer Equity and Performance Measurement
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Customer equity is a better measure of a firm's performance than current sales or market share because it suggests future potential.
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Marketers should focus on customer lifetime value and customer equity, rather than just current sales and market share.
Customer Segmentation and Relationship Management
- Customers can be classified into four relationship groups based on profitability and projected loyalty: Strangers, Butterflies, True Friends, and Barnacles.
- Each group requires a different relationship management strategy.
- The goal is to build the right relationships with the right customers.
Impact of Digital Technology
- The growth of digital technology has fundamentally changed the way people live, communicate, and shop.
- An estimated 3.3 billion people (46% of the world's population) are now online.
- 64% of American adults own smartphones, with 71% keeping them next to them while sleeping.
Digital Technology in Marketing
- Petco's Community site is an example of using digital technology to connect with customers and provide a platform for sharing and learning.
Marketing in Not-for-Profit Organizations
- Marketing is becoming increasingly important for not-for-profit organizations, such as colleges and hospitals, to attract members, funds, and support.
- Sound marketing can help not-for-profits compete for support and membership.
Social Responsibility and Sustainability
- Marketers are reexamining their relationships with social values and responsibilities and the environment.
- Companies like Ben & Jerry's are using sustainable marketing practices and socially responsible missions to make a positive impact.
- Today's marketers are being called upon to develop sustainable marketing practices that align with the worldwide consumerism and environmentalism movements.
The Marketing Process
- The marketing process involves understanding customer needs, creating a marketing mix, and building relationships with customers.
- An expanded model of the marketing process can help marketers pull all the steps together.
Marketing Definition and Goals
- Marketing is engaging customers and managing profitable customer relationships.
- The twofold goal of marketing is to:
- Attract new customers by promising superior value
- Grow current customers by delivering satisfaction
Understanding Customer Needs and Wants
- Human needs include basic physical needs, social needs, and individual needs.
- Wants are the form human needs take as they are shaped by one's society and are described in terms of objects that will satisfy those needs.
- When backed by buying power, wants become demands.
- Outstanding marketing companies go to great lengths to learn about and understand their customers' needs, wants, and demands.
Market offerings and Experiences
- Market offerings include products, services, persons, places, organizations, information, and ideas.
- Marketing experiences are more than just a product; they create a brand experience for consumers.
- Smart marketers orchestrate several services and products to create a brand experience.
Marketing and Exchange Relationships
- Marketing occurs when people decide to satisfy their needs and wants through exchange relationships.
- Exchange is the act of obtaining a desired object from someone by offering something in return.
- Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences.
The Market and Marketing System
- A market is the set of actual and potential buyers of a product or service.
- These buyers share a particular need or want that can be satisfied through exchange relationships.
- The marketing system includes consumer research, product development, communication, distribution, pricing, and service.
Customer Relationship Management
- Customer relationship management is the 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.
- The goal is to create superior customer value and satisfaction, which leads to customer loyalty and retention.
The Importance of Customer Satisfaction
- Satisfied customers are more likely to be loyal customers and give the company a larger share of their business.
- Customer satisfaction depends on the product's perceived performance relative to a buyer's expectations.
- Delighted customers become willing marketing partners and "customer evangelists" who spread the word about their good experiences to others.
Digital Technology and Marketing
- The explosive growth in digital technology has fundamentally changed the way we live and shop.
- An estimated 3.3 billion people are now online, and 64% of all American adults own smartphones.
- Digital technology has changed the way companies interact with customers and market their products.
Marketing in Non-Profit Organizations
- Marketing has also become a major part of the strategies of many not-for-profit organizations, such as colleges, hospitals, museums, and churches.
- Sound marketing can help them attract members, funds, and support.
- Not-for-profit organizations face stiff competition for support and membership.
Sustainability and Social Responsibility
- Marketers are reexamining their relationships with social values and responsibilities and with the environment.
- Today's marketers are being called on to develop sustainable marketing practices as worldwide consumerism and environmentalism movements mature.
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Description
This quiz assesses students' understanding of the definition of marketing and its twofold goals. It asks students to provide examples of companies that excel at marketing and how they reflect the definition.