Questions and Answers
Which stage of the marketing process involves engaging customers, building profitable relationships, and creating customer delight?
Brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs in a superior way.
True
What is the concept where a company should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests?
Societal marketing concept
A company's marketing management focuses on knowing the needs and wants of target markets and delivering the desired __________ better than competitors.
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What are the ways to increase 'Share of customer'?
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What is the total combined customer lifetime values of all of the company's current and potential customers called?
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Strangers are typically highly profitable customers with projected loyalty.
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What are 'Butterflies' characterized by? Potentially profitable / not ________.
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Match the marketing tools with their descriptions:
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Study Notes
Marketing Overview
- Marketing is the process of creating customer value and engagement, and managing profitable customer relationships.
- The goal of marketing is to attract new customers by promising superior value, and keep and grow current customers by delivering value and satisfaction.
5 Stages of the Marketing Process
- Stage 1: Understand the marketplace and customer wants and needs
- Stage 2: Design a customer value-driven marketing strategy
- Stage 3: Construct an integrated marketing program that delivers superior value
- Stage 4: Engage customers, build profitable relationships, and create customer delight
- Stage 5: Capture value from customers to create profits and customer equity
5 Core Customer and Marketplace Concepts
- Needs, wants, and demands
- Needs: stages of felt deprivation (e.g., physical, social, individual)
- Wants: forms taken by human needs when shaped by culture and individual personality
- Demands: when backed by buying power, wants become demands
- Market offering: products, services, information, or experiences offered to satisfy a need or want
- Marketing myopia: sellers paying more attention to the specific products than to the benefits and experiences produced by these products
- Customer value and satisfaction
- Customers form expectations about the value and satisfaction that market offerings will deliver
- Satisfied customers will buy again and tell others, while dissatisfied customers will switch to other competitors and disparage the product
- Exchanges and relationships
- Exchange: the act of obtaining a desired object from someone by offering something in return
- Marketing consists of actions to create, maintain, and grow desirable exchange relationships with target audiences
Modern Marketing Process
- Suppliers → Company/Competitors → Marketing Intermediaries → Final Consumers
- Designing a customer value-driven marketing strategy and plan
- Identifying target markets and building profitable relationships with them
Marketing Management Orientations
- Production concept: focus on improving production and distribution efficiency to reduce costs
- Product concept: focus on continuous product improvements to innovate and differentiate
- Selling concept: focus on selling and promoting products to increase sales volume
- Marketing concept: focus on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors
- Societal marketing concept: consider consumers' wants, company's requirements, consumers' long-run interests, and society's long-run interests
Preparing an Integrated Marketing Plan and Program
- Integrate marketing mix tools (4 Ps) to deliver the intended value to target customers
- Product: create a need-satisfying market offering
- Price: decide how much to charge for the offering
- Place: decide how to make the offering available to target consumers
- Promotion: engage target consumers, communicate about the offering, and persuade them of the offer's merits
Managing Customer Relationships and Capturing Customer Value
- Engaging customers and managing customer relationships
- Customer relationship management: delivering superior customer value and satisfaction to build and maintain profitable customer relationships
- Customer-perceived value: customer's evaluation of the difference between all the benefits and all the costs of a market offering
- Customer satisfaction: extent to which a product's perceived performance matches a buyer's expectations
- Customer delight: companies aim to delight customers by promising only what they can deliver and then delivering more than they promise
Changing Marketing Landscape
- Digital age: engaging consumers via digital devices using digital marketing tools
- Big data and artificial intelligence: using big data to gain deep customer insights and AI to analyze data and apply insights in real-time
- Growth of not-for-profit marketing: sound marketing can help not-for-profits attract membership, funds, and support
- Rapid globalization: managers taking both local and global views of the company
- Sustainable marketing: building social and environmental responsibility into company value and mission statements
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Description
This quiz covers the basics of marketing, including the definition and goals of marketing, as well as the 5 stages of the marketing process.