Marketing: Managing Customer Relationships
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Questions and Answers

What is Marketing?

Marketing is managing profitable customer relationships by attracting new customers and retaining and growing current customers.

The term "Marketing" is synonymous with "sales" or "advertising".

False

Which of these is NOT a core marketing concept?

  • Value and satisfaction
  • Needs, wants, and demands
  • Exchange, transactions, and relationships
  • Markets
  • Competitors (correct)

    • What is a "need" in the context of marketing?

    <p>A need is a state of felt deprivation, it is a basic requirement for human survival or well-being.</p> Signup and view all the answers

    What is "demand" in the context of marketing?

    <p>Demand is a human want backed by the ability and willingness to pay.</p> Signup and view all the answers

    Which of these is NOT a core marketing function?

    <p>Operations Management</p> Signup and view all the answers

    It is more expensive to attract a new customer than it is to retain a current customer.

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

    What is NOT a key concept of Customer Relationship Management (CRM)?

    <p>Product development</p> Signup and view all the answers

    Which of these is NOT a key component of the Marketing Mix?

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

    The marketing mix can also be referred to as the 4Cs.

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

    How has the economic environment affected marketing strategies?

    <p>Marketers are prioritizing value for the customer.</p> Signup and view all the answers

    What technological advancement has significantly influenced marketing communications?

    <p>Internet and mobile communication devices</p> Signup and view all the answers

    What is a significant aspect of sustainable marketing?

    <p>Ensuring long-term consumer loyalty through ethical practices</p> Signup and view all the answers

    Which factor does NOT reflect trends in the changing marketing landscape?

    <p>Increased reliance on traditional media</p> Signup and view all the answers

    Which marketing approach directly relates to non-profit organizations?

    <p>Not-for-profit marketing</p> Signup and view all the answers

    What does customer lifetime value represent?

    <p>The total revenue a company receives from a customer over their lifetime</p> Signup and view all the answers

    How is 'share of customer' defined?

    <p>The percentage of a customer's total spending that a company captures</p> Signup and view all the answers

    What is customer equity?

    <p>The total combined lifetime values of all customers of a company</p> Signup and view all the answers

    Why does Stew Leonard highlight the loss of a sulking customer?

    <p>Because it represents potential lost sales of $50,000</p> Signup and view all the answers

    What is necessary for managing customer relationships effectively?

    <p>Tailoring strategies based on customer types</p> Signup and view all the answers

    In the context of customer relationship management, treating customers as assets means what?

    <p>Managing customer interactions to enhance long-term value</p> Signup and view all the answers

    What best describes the concept of capturing value from customers?

    <p>Understanding and maximizing the total value from customers over time</p> Signup and view all the answers

    What is a significant factor influencing a customer's lifetime value?

    <p>The duration of their relationship with the company</p> Signup and view all the answers

    What does market segmentation involve?

    <p>Dividing the market into distinct groups of customers</p> Signup and view all the answers

    Which concept focuses on which customer segments to target?

    <p>Target marketing</p> Signup and view all the answers

    What is a value proposition?

    <p>The benefits that a company promises to deliver to customers</p> Signup and view all the answers

    What is the primary idea behind the production concept in marketing management?

    <p>Consumers are inclined to buy products that are affordable and available</p> Signup and view all the answers

    What does the product concept emphasize?

    <p>Products with high levels of quality, performance, and features</p> Signup and view all the answers

    Which marketing management orientation focuses on finding and solving customer problems?

    <p>Marketing concept</p> Signup and view all the answers

    Which of the following is NOT a marketing management orientation mentioned?

    <p>Market positioning concept</p> Signup and view all the answers

    Which option best describes target marketing?

    <p>Selecting specific segments of customers to focus marketing efforts on</p> Signup and view all the answers

    What is the primary focus of the selling concept in marketing?

    <p>Large scale selling and promotion</p> Signup and view all the answers

    Which concept focuses on delivering customer satisfaction better than competitors?

    <p>Marketing concept</p> Signup and view all the answers

    What does the societal marketing concept consider in its decision-making process?

    <p>Consumers' long-term interests and societal needs</p> Signup and view all the answers

    Which of the following is NOT part of the marketing mix?

    <p>Public relations</p> Signup and view all the answers

    What is the purpose of an integrated marketing program?

    <p>To communicate and deliver intended value</p> Signup and view all the answers

    Which aspect is included in the marketing mix?

    <p>Pricing strategies</p> Signup and view all the answers

    What does the marketing concept prioritize in relation to organizational goals?

    <p>Customer needs and wants</p> Signup and view all the answers

    How does the societal marketing concept view profit generation?

    <p>Profit should align with societal welfare</p> Signup and view all the answers

    What are market offerings composed of?

    <p>Goods, services, information, or experiences</p> Signup and view all the answers

    What is marketing myopia?

    <p>A narrow focus on existing wants that neglects underlying needs</p> Signup and view all the answers

    What is the purpose of setting customer expectations in marketing?

    <p>To maintain a balance between high and low expectations</p> Signup and view all the answers

    What does the act of exchange in marketing refer to?

    <p>Obtaining a desired object by offering something in return</p> Signup and view all the answers

    Which of the following best describes the concept of 'markets' in marketing?

    <p>The set of actual and potential buyers of a product</p> Signup and view all the answers

    What is the role of marketing management?

    <p>To select target markets and cultivate profitable relationships</p> Signup and view all the answers

    Why is it important to understand customer needs in marketing?

    <p>It prevents marketing myopia and fosters long-term success</p> Signup and view all the answers

    In marketing, what does it mean to maintain desirable exchange relationships?

    <p>To build and sustain connections with target audiences over time</p> Signup and view all the answers

    What is the main purpose of the marketing process?

    <p>To create value for customers and build strong relationships</p> Signup and view all the answers

    Which of the following best describes 'wants' in a marketing context?

    <p>Personal desires shaped by culture and personality</p> Signup and view all the answers

    In the marketing process, what does 'demands' refer to?

    <p>Wants that are supported by purchasing power</p> Signup and view all the answers

    Which component is essential in designing a customer-driven marketing strategy?

    <p>Understanding customer needs and preferences</p> Signup and view all the answers

    What is a key outcome of building strong customer relationships?

    <p>Higher customer retention and loyalty</p> Signup and view all the answers

    Which of the following reflects the changing marketing landscape?

    <p>Emergence of digital marketing and social media</p> Signup and view all the answers

    What is a critical first step in the marketing process?

    <p>Understanding the marketplace and customer needs</p> Signup and view all the answers

    Which aspect of customer needs typically involves a social component?

    <p>Social needs</p> Signup and view all the answers

    Study Notes

    Marketing: Managing Profitable Customer Relationships

    • Marketing is a social and managerial process where individuals and groups obtain what they need and want through creating and exchanging products and value with others.
    • Marketing involves managing profitable customer relationships.
    • This includes attracting new customers and retaining/growing current customers.
    • Marketing is not synonymous with sales or advertising.

    Objectives

    • Understand marketing and its core concepts.
    • Define marketing management and compare different marketing management orientations.
    • Understand customer relationship management (CRM) and strategies.
    • Gain exposure to marketing mix variables and functions.

    What is Marketing?

    • Kotler's social definition: "Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others."
    • Marketing is managing profitable customer relationships.
    • Key actions include attracting new customers and retaining/growing current customers.

    The Marketing Process

    • Understand and satisfy customer needs and wants.
    • Create value for customers. Build customer relationships.
    • Design a customer-driven marketing strategy.
    • Construct an integrated marketing program that delivers superior value
    • Build profitable relationships and create customer delight.
    • Capture value from customers to create profits and customer equity.

    Marketing Management

    • Marketing management is the art and science of choosing target markets and building profitable relationships with them.
    • Creating, delivering, and communicating superior customer value is key.
    • Customer management: Marketers select customers that can be served well and profitably.
    • Demand management: Marketers must deal with different demand states, ranging from no demand to too much demand.

    Marketing Management Orientations

    • Five main orientations exist: Production, Product, Selling, Marketing, and Societal Marketing.

    • Production Concept (1900): Consumers favor products that are widely available and affordable.

    • Product Concept (1910): Consumers favor products that offer the best quality, performance, and innovative features.

    • Selling Concept (1930): Consumers will not buy enough of a product unless aggressively promoted/sold.

    • Marketing Concept (1950): Achieving organizational goals by determining target market needs and wants and delivering desired satisfactions more efficiently than competitors.

    • Societal Marketing Concept: Satisfying customer needs in a way that maintains or improves the customer's and society's well-being.

    Marketing Myopia

    • Marketing myopia occurs when a company focuses only on its product, failing to meet customer needs or consider the broader societal context of its goods or services.
    • It's about losing sight of underlying consumer needs.

    Core Marketing Concepts

    • Needs: States of felt deprivation (e.g., physical, social, individual)
    • Wants: Needs shaped by culture and personality (e.g., a specific type of food)
    • Demands: Wants backed by buying power
    • Markets: A set of actual and potential buyers
    • Marketing Offers: Products, services, or experiences to satisfy a need or want.
    • Customer Value: Difference between benefit and cost.
    • Customer Satisfaction: Extent to which a product's performance matches a buyer's expectations.
    • Exchange: The act of obtaining a desired object from someone by offering something in return.
    • Relationships: Building and maintaining desirable exchanges.
    • Transactions: A trade of values between two parties.
    • Production, Product, Selling, Marketing, and Societal Marketing are the marketing concepts.

    CRM (Customer Relationship Management)

    • Customer Lifetime Value: The stream of income generated by a single loyal customer.
    • Customer equity: Total combined customer lifetime values of all customers.
    • CRM is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction.
    • Key concepts include attracting, retaining, and growing customers, customer value, loyalty, and many other factors.

    Marketing Mix

    • A set of controllable tactical marketing tools (Product, Price, Place, Promotion).

    • Product/Customer Solution: goods/services combination offered to the market (Variety, Quality, Features, Brand name, Packaging, Services, Returns Warranties).

    • Price/Cost: Amount customers pay (List price, Discounts, Allowances, Payment period, Credit terms).

    • Place/Convenience: Company activities to make products available (Channels, Coverage, Assortments, Locations, Logistics).

    • Promotion/Communication: Communication merits and persuading buyers (Advertising, Personal selling, Sales promotion, Public relations, Direct marketing).

    Marketing Functions

    • Marketing Planning
    • Marketing Research
    • Marketing Information/Intelligence Analysis
    • Environmental Analysis
    • Marketing Administration and Support
    • Pricing
    • Advertising and Sales Promotion
    • Sales and Distribution
    • Product/Service Development
    • Marketing Human Resources Development
    • Procurement, Negotiations
    • Stakeholder Relationship Management.

    What's Next!

    • Tutorial: Review concepts, prepare tutorial questions, case application.
    • Lecture: Marketing Environment.

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    Related Documents

    Chapter 1 Marketing: Creating and Capturing Customer Value PDF
    Marketing Management Lecture 1 - Introduction to Marketing Process PDF

    Description

    This quiz covers the fundamental concepts of marketing, focusing on managing profitable customer relationships. It explores marketing management strategies, customer relationship management (CRM), and the marketing mix. Perfect for anyone looking to deepen their understanding of marketing principles.

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