marketing exam 1 ch 1
in which following circumstance is an organization likely to engage in full partnerships with key customers
when the market has FEW customers and HIGH margins
T/F marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships
FALSE
T/F since less than 10% of smartphone owners use their phones for shopping related activities, mobile marketing is a slow growing platform
FALSE
Explain, with examples, the different types of relationships that a company can build with its customers.
***
discuss the opportunities and challenges that new communication technologies have created for marketers
***
explain how the internet has transformed the way in which we do business today
***
Compare and contrast customer-managed relationships and consumer-generated marketing.
****
marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus on
consumers existing wants
the selling concept holds that ___
consumers will not buy enough of a firm's products unless the firm undertakes LARGE SCALE promotion efforts
imaginative websites, smartphone apps and social media allow marketers to deliver messages that are direct and personal so consumers can
live the brand
concumers needs and wants are fulfilled through
market offerings
dividing a market into several sections of customers is known as
market segmentation
_____ is the art and science of choosing target markets and building profitable relationships with them
marketing management
____ marketing is perhaps the fastest growing marketing platform
mobile
a customer who is both loyal and profitable is a
true believer
the amazon prime program strives to convert casual shoppers into loyal customers. an amazon prime customer can be classified as a
true believer
Describe and compare the four types of customers classified by their potential profitability to an organization. Identify how an organization should manage each type of customer.
****
Compare the selling and marketing concepts, and list the key components of each concept.
*****
abel now has the buying power to purchase the computer that he wanted to buy six months ago. abels want. has most likely become a
demand
____ is the act of obtaining a desired object from someone by offering something in return
exchange
____ are customers who show low potential profitability but and little projected loyalty
strangers
in which of the following customer relationship groups do organizations generally avoid investing
strangers
____ marketing is defined as socially and environmentally responsible marketing that meets.....
sustainable
dollar general profitably appeals to families with more modest means. the retailers approach is most likely referred to as
target marketing
customers whoa re classified as true believers
tell others about their good experiences with a company
which of the following transforms marketing strategies into real values for consumers
the 4 P's of marketing
define customer perceived value
the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers
various gov't agencies have launched campaigners to encourage energy conservation and concern for the environment as well as discourage smoking, illegal drug use, and obesity. this illustrates ____ marketing
social
many leading business and marketing thinkers are now preaching the concept of "shared value" which recognizes that ______ needs, not just economic needs define markets
societal
Cosmetic retailer Lush knows that doing what's right benefits both customers and the company. Their premium beauty products are made by hand from the freshest possible natural ingredients. This is an example of the ________ concept
societal marketing
which of the following concepts is based on consumer centered philosophy
the marketing concept
which of the following is a difference between the marketing concept and the selling concept
the marketing concept focuses on customer NEEDS, the selling concept focuses on EXISTING products
customer evangelists are those who
spread the word about their good experience with the brand
according to the 5 step model of the marketing process, the first step in marketing is
understand market place needs and wants
a brand's _____ is the set of benefits that it promises to deliver to consumers to satisfy their needs
value proposition
jet blues promise to put "you above all by "bringing humanity back to travel" is their ____
value proposition
____ are the form human needs as they are shaped by culture and individual personality
wants
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is referred to as
customer relationship management
T/F customer relationship management focuses on retaining existing customers but not on acquiring new ones
FALSE
Why do companies generally divide a market into segments of customers?
A company decides who it will serve by dividing the market into segments of customers and selecting which segments it will go after. By trying to serve all customers, they may not serve any customer well. so, companies usually want to select only customers that they can serve well and profitably.
T/F in markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships
FALSE
T/F customer equity is a measure of the past value of a company's customer case
FALSE
Using suitable examples, briefly compare and contrast the concepts of needs, wants, and demands. Discuss how these concepts relate to marketing practices.
Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety, a basic social need for belonging and affection, and a basic individual need for knowledge and self-expression. Unlike needs, wants are not innate. Instead, wants are needs shaped by culture, society, and individual personality.
T/F a brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs
TRUE
T/F a market is a segment of potential consumers who share a common need or want
TRUE
T/F companies like coke and facebook deliver customer satisfaction by spreading happiness and connecting individuals thru shared experiences
TRUE
T/F customer perceived value is defined as a customer's evaluation of the perceived difference between all the benefits and all the costs of a market offering relative to those of competing offers
TRUE
T/F in the final step of marketing process, a company reaps the rewards of its strong customer relationships by capturing value from customers
TRUE
T/F market offerings include entities such as people, places, info, and ideas
TRUE
T/F organizations that follow the societal marketing concept most likely practice socially and environmentally responsible marketing
TRUE
T/F product, price, place, and promotion make up the elements of a firm's marketing mix
TRUE
T/F success at delivering customer value resets on how well a company's entire supply chain performs against competitors supply chains
TRUE
T/F the marketing concept is a consumer centered, sense and respond philosophy
TRUE
T/F the product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features
TRUE
T/F thru consumer generated marketing, consumers themselves are playing a bigger role in shaping their own brand experiences and those of others
TRUE
Explain market offerings and marketing myopia.
-Consumers' needs and wants are fulfilled through market offerings — some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. Market offerings are not limited to physical products. They also include services — activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services. -Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. These sellers suffer from marketing myopia. They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs. They forget that a product is only a tool to solve a consumer problem.
marketing
-engaging customers and managing profitable customer relationships -Goal is to attract new customers by promising superior value and to keep and grow current customers by delivering value and satisfaction
steps of marketing process
1. understand customer needs and wants 2. design customer driven marketing strategy 3. construct integrated marketing program that delivers superior value 4. build profitable relationships 5. capture value from customers and create customer equity
Define customer equity, and explain why it is important to a company.
Customer equity is the sum of the lifetime values of all the current and potential customers of a company. Customer equity is dependent upon customer loyalty from a firm's profitable customers. Because customer equity is a reflection of a company's future, companies must manage it carefully, viewing customers as assets that need to be maximized. It is important that companies not only acquire customers but also keep and grow them. When companies create profitable customers, they earn a greater share of their purchases, and capture their customer lifetime value.
Aim of customer relationship management is to create not just customer satisfaction, but customer delight as well. explain.
Customer satisfaction cannot be taken for granted. Since brand loyalty is dependent upon strong customer satisfaction, companies strive to retain, satisfy, and even delight current customers. Firms create customer delight by promising only what they can deliver and then delivering more than what they promise. Delighted customers make repeated purchases and become customers for life.
T/F a greater focus on underlying customer needs than on existing customer wants leads to marketing myopia
FALSE
T/F barnacles are customers who are potentially profitable but not loyal
FALSE
T/F club marketing programs reward customers who bu frequently or in large amounts
FALSE
T/F market offerings are limited to physical products
FALSE
T/F the more loyal a firm's profitable customers, the lower its customer equity
FALSE
T/F when backed by buying power, wants become needs
FALSE
T/F when sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia
FALSE
T/F xenon corp releases frequent updates to improve its expensive software products. this marketing approach used by the firm is most likely based on the production concept
FALSE
compare and contrast the product and production concepts
The production concept: holds that consumers will favor products that are available and highly affordable. Therefore, it dictates that management should focus on improving production and distribution efficiency The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Under this concept, marketing strategy focuses on making continuous product improvements. Product quality and improvement are important parts of most marketing strategies.
briefly explain the societal marketing concept
The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare. Is a firm that satisfies the immediate needs and wants of target markets always doing what's best for its consumers in the long run? The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being. It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
the societal marketing concept holds that
a company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment
____ refers to a channel stretching from raw materials to components to final products that. are carried to final buyers
a supply chain
companies that practice marketing by _____ create offerings and messages that engage consumers rather than interupt them
attraction
Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?
barnacles
Procter & Gamble's Tide detergent does not phone or call on all of its consumers to get to know them personally. Instead, Tide creates engagement and relationships through brand-building advertising, Web sites, and social media presence. Which of the following types of associations would be most profitable for the firm to develop with these customers?
basic relationships
mattel's american girl doll special _____ between the dolls and the girls who adore them
brand experiences
efforts to convert ____ int loyal customers are rarely succesful
butterflies
a consumer who is potentially profitable but not loyal is referred to as a
butterfly
Stew Leonard's has created what has been the "Disneyland of Dairy Stores," complete with costumed characters, scheduled entertainment, and a petting zoo.... Instead of focusing on individual transactions, Stew and his staff are putting a priority on ________.
capturing customer lifetime value
the final step in the marketing process is
capturing value from customers
_____ refers to working closely with people inside and outside the company to jointly bring more value to customers
channel value proposition
customer driven marketing is most effective when
clear needs exist and customers know what they want
apple encourages customers to form local apple user groups. this is an example of
club marketing program
for the past 9 years, pepsico's doritos brand has held a "crash the super bowl" contest in which it invites 30 second ads from consumers and runs the best ones. this is an example of
consumer generated marketing
Ritz-Carlton is fervently dedicated to anticipating customers' slightest needs. Without ever asking, they seem to know when customers want a king-size bed, non-allergenic pillow, extra body gel or the blinds open upon arrival. An amazing 95 percent of departing guests report that their stay has been a truly memorable experience. This is an example of ________.
customer delight
Cylog, a leading provider of personal computer systems, began manufacturing tablet devices after predicting a future consumer need for portability. Which of the following was most likely implemented by Cylog?
customer driving market
____ is the total combined customer lifetime values of all the company's current and potential customers
customer equity
which term refers to a customers evaluation of the differences between all the benefits and all the costs of a market offering relative to those of competing offers
customer perceived value
which of the following is an example of consumer generated marketing
fun and run...
______ companies research customers deeply to learn about their desired, gather new product ideas, and test product improvements
functional
the "stop the texts. stop the wrecks" campaign co sponsored by the ad council and the nat highway traffic safety admin is an example of a market place offering for a
idea
the ____ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
marketing
________ refers to the portion of the customer's purchase that a company gets in its product categories.
share of customer
which of the following is most likely a consequence of the great recession
more sensible and mindful consumption
___ are defined as states of felt depreciation
needs
the ultimate aim of customer relationship mngmt is to
produce high customer equity
the ____ concept holds that consumers will favor goods and services that offer the most in quality, performance, and innovative features
product
PC Manufacturer, lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. lenovo most likely follows the
production concept
henry ford's philosophy was to perfect the model T so that its cost could be reduced further for increased consumer affordability. this most likely reflects the ____
production concept
Sally purchased a newly introduced moisturizing lotion. By attempting to find out if the lotion's perceived performance matched her expectations, Sally was measuring her level of customer ________.
satisfaction
what is marketing
the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
which of the following concepts calls for sustainable marketing
the societal marketing concept