Principles of Marketing Chapter 1 Quiz

What Is Marketing?

• Marketing is a process that creates value for customers and builds strong customer relationships to capture value from customers in return.

The Marketing Process

• The marketing process involves understanding the marketplace and customer needs, designing a customer value-driven marketing strategy, and preparing an integrated marketing plan and program.

Understanding the Marketplace and Customer Needs

• Customer needs are states of deprivation, while wants are needs with specific objects that will satisfy them.
• Demands are wants backed by buying power.
• Market offerings are combinations of products, services, information, or experiences that satisfy a need or want.
• Marketing myopia occurs when companies focus only on existing wants and lose sight of underlying consumer needs.

Customer Value and Satisfaction

• Customer value is the unique benefit that a company offers to its customers.
• Customer satisfaction is a function of the customer's expectation and perceived performance.

Exchanges and Relationships

• An exchange is the act of obtaining a desired object from someone by offering something in return.
• Marketing actions aim to create, maintain, and grow desirable exchange relationships.

Markets

• A market consists of all the potential customers sharing a particular need or want.

Designing a Customer Value-Driven Marketing Strategy

• Marketing management involves choosing target markets and building profitable relationships with them.
• Market segmentation divides markets into segments of customers, and target marketing involves selecting which segments to target.

Selecting Customers to Serve

• A company's value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs.

Marketing Management Orientations

• The production concept focuses on providing products that are available and affordable.
• The product concept focuses on continuous product improvements to offer the best quality, performance, and features.
• The selling concept focuses on large-scale selling and promotion efforts to convince customers to buy.
• The marketing concept involves knowing the needs and wants of target markets and delivering satisfaction better than competitors.
• The societal marketing concept considers consumers' wants, company requirements, and long-run societal interests.

Preparing an Integrated Marketing Plan and Program

• The marketing mix consists of the four Ps: product, price, promotion, and place.
• An integrated marketing program is a comprehensive plan that communicates and delivers intended value to chosen customers.