Marketing Process & Pricing Strategy Quiz

Marketing Process

• The marketing process is a series of steps that companies take to identify customer needs, create value, and build strong and long customer relationships.
• The process starts with conducting surveys and observations to gather market insights and define the target market and its preferences.

Understanding the Market and Customer Needs

• Companies need to understand customer needs, wants, and market offerings to create value for customers.
• Market myopia refers to the narrow-minded approach of companies becoming too focused on their products rather than seeing the broader perspective of what customers need and want.
• Demand is backed by the purchasing power to buy what is wanted or needed.

Exchange and Relationships

• Exchange and relationship-building typically occur across various customer touchpoints, both online and offline.
• Pricing products competitively and engaging with customers through marketing campaigns, social media, and community events can help build a great relationship.
• Implementing loyalty programs or promotions can foster long-term relationships by rewarding repeat purchases.

Markets

• Markets refer to the groups of actual and potential customers who have a particular need or want that can be satisfied through exchange relationships.
• Markets are not just physical spaces; they represent the environment in which businesses operate, including customer demographics, behaviors, competitors, and cultural trends.
• Marketers are no longer asking only “How can we influence our customers?” but also “How can our customers influence us?” and even “How can our customers influence each other?”

Designing a Customer Value-Driven Marketing Strategy

• A customer value-driven marketing strategy is based on understanding customer needs, wants, and market offerings.
• The strategy involves identifying a target market and creating a value proposition that meets customer needs.
• Value proposition is a statement of the unique benefits or values a company promises to deliver to meet customer needs.
• Examples of value propositions include JetBlue’s “you above all” and Spirit Airlines’ “less money more go”.

The Production Orientation

• The production orientation/ concept believes that consumers will favor readily available products at reasonable prices.
• Improvement in production and distribution efficiency will be the focus for management under this concept.