Marketing Test 1

What are the four types of customers ?

"Strangers" show low potential profitability and little projected loyalty. The relationship management strategy for these customers is simple: Don't invest anything in them. "Butterflies" are potentially profitable but not loyal. The company should use promotional blitzes to attract them, create satisfying and profitable transactions with them, and then cease investing in them until the next time around. "True friends" are both profitable and loyal. There is a strong fit between their needs and the company's offerings. The firm wants to make continuous relationship investments to delight these customers and retain and grow them. "Barnacles" are highly loyal but not very profitable. There is a limited fit between their needs and the company's offerings.

CHAPTER 2 YEET

(GOoD LucK lOl)

Five core customer and marketplace concepts

1) needs, wants, and demands; (2) market offerings (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets.

3 things marketing does in a companies strategic planning

1. Marketing provides a guiding philosophy—the marketing concept. 2. Marketing provides inputs to strategic planners. 3. Marketing designs strategies for reaching the unit's objectives.

What are the two steps of business portfolio planning?

1. The company must analyze its current business portfolio and decide which businesses should receive more, less, or no investment. 2. It must shape the future portfolio by developing strategies for growth and downsizing.

The Production Concept

1. The production concept holds that consumers will favor products that are available and highly affordable. 2. The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features.

What are the steps in portfolio analysis

1. To identify the strategic business units (SBU). An SBU is a separately managed unit of the company with its own missions and objectives. 2. To assess the attractiveness of its various SBUs and decide how much support each deserves. Most companies are well advised to "stick to their knitting" when designing their business portfolios.

What two important questions must a marketing manager answer?

1. What customers will we serve (what's our target market)? 2. How can we serve these customers best (what's our value proposition)?

five steps in the marketing process

1. understanding customer needs, 2. designing customer-driven marketing strategies, 3. integrate a marketing strategy, 4. building profitable customer relationships, 5. capturing value for the firm.

What is a Business portfolio?

A business portfolio is the collection of businesses and products that make up the company. The best business portfolio is the one that matches the company's strengths and weaknesses to opportunities in the environment.

Information about selecting Customers to serve (Can skip if u want)

A company must decide whom it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing). Marketing managers know they cannot serve all customers. By trying to do so, they end up not serving any well. Marketing management is customer management and demand management.

What is a company's marketing environment

A company's marketing environment consists of the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.

Information about choosing a value proposition (can skip if u want)

A company's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. (Facebook helps you "connect and share with the people in your life," whereas Twitter's Vine app gives you "the best way to see and share life in motion" through "short, beautiful, looping videos in a simple and fun way for your friends and family to see.") Such value propositions differentiate one brand from another.

A market is the set of ?

A market is the set of actual and potential buyers of a product. Marketing means managing markets to bring about profitable customer relationships.

What is a market segment?

A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.

What is a mission statement ?

A mission statement is a statement of the organization's purpose—what it wants to accomplish in the larger environment.

What is a CMO

Chief Marketing Officer

What is Customer Lifetime value?

Companies realize that losing a customer means losing the entire stream of purchases the customer would have made over a lifetime of patronage. This is known as customer lifetime value.

Who are companies partnering with

Companies today are partnering with the other members of the supply chain to improve the performance of the customer value delivery network.

What is Consumer-Generated marketing?

Consumer-Generated Marketing. A growing part of the new consumer dialogue is consumer-generated marketing, by which consumers themselves are playing a bigger role in shaping their own brand experiences and those of others.

How can customer satisfaction be achieved?

Customer Satisfaction. Customer satisfaction depends on the product's perceived performance relative to a buyer's expectations. If the product's performance falls short of expectations, the customer is dissatisfied. If performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted. Although the customer-centered firm seeks to deliver high customer satisfaction relative to competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its prices or increasing its services. But this may result in lower profits. The purpose of marketing is to generate customer value profitably.

What is Customer equity?

Customer equity is the total combined customer lifetime values of all of the company's current and potential customers. Clearly, the more loyal the firm's profitable customers, the higher the firm's customer equity. Customer equity may be a better measure of a firm's performance than current sales or market share.

What is the most important concept of modern marketing

Customer relationship management is the most important concept of modern marketing. It deals with all aspects of acquiring, keeping, and growing customers.

What is Customer Relationship Management?

Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

What is Customer-Perceived Value?

Customer-Perceived Value. This is 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.

Why is customer value and satisfaction important

Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly. Satisfied customers buy again and tell others about their good experiences. Dissatisfied customers switch to competitors and disparage the product to others. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships.

What is Diversification?

Diversification—starting up or buying businesses outside of its current products and markets.

Do only profitable companies have to preform marketing?

Every organization must perform marketing functions, not just for-profit companies.

What is exchange?

Exchange is the act of obtaining a desired object from someone by offering something in return. Marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences.

Are human needs states of felt deprivation? If so what do they include?

Human needs are states of felt deprivation. They include physical, social, and individuals needs. Marketers did not create these needs; they are a basic part of the human makeup.

marketers must do what in addition to customer relationship management

In addition to customer relationship management, marketers must also practice partner relationship management.

What is the strategic plan ?

In contrast, the strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing environment.

What are the four marketing management functions?

Managing the marketing process requires the four marketing management functions of analysis, planning, implementation, and control.

what is market development?

Market development—identifying and developing new markets for its current products?

What is market penetration?

Market penetration—making more sales to current customers without changing its products.

What is market segmentation?

Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing programs.

What is market targeting

Market targeting involves evaluating each market segment's attractiveness and selecting one or more segments to enter.

What is a marketing dashboard

Marketing dashboards—meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.

Marketing is defined as

Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others.

What is marketing management?

Marketing management is defined as the art and science of choosing target markets and building profitable relationships with them.

Marketing must do what?

Marketing must both attract new customers and grow the current customers.

When does Marketing myopia occur?

Marketing myopia occurs when a company becomes so taken with their own products that they lose sight of underlying customer needs.

What is the marketing strategy ?

Marketing strategy is next—this is the broad logic under which the company attempts to develop profitable relationships. Guided by the strategy, the company develops its marketing mix—product, price, place, and promotion.

what should a mission statement be?

Mission statements should be market oriented and defined in terms of customer needs.

What do most people think marketing is?

Most people think of marketing as selling and/or advertising—"telling and selling."

Is selling and advertising all marketing is comprised of?

NO! Selling and advertising are only part of a larger marketing mix—a set of marketing tools that work together to satisfy customer needs and build customer relationships.

Needs and wants are fulfilled through what ?

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 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.

Do customers often do not judge values and costs "accurately" or "objectively." ?

No, They act on perceived value.

What is portfolio analysis?

Portfolio analysis is where management evaluates the products and businesses making up the company.

What does positioning begin with ------- and what is the definition of ------.

Positioning begins with differentiation—differentiating the company's market offering so that it gives consumers more value.

What is positioning ?

Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

What is product development?

Product development—offering modified or new products to current markets.

What is product position?

Product position is the place the product occupies relative to competitors in consumers' minds.

What are the 4 p's?

Product, Place, Price, Promotion Product: the goods and services combination the company offers to the target market. Price: the amount of money customers have to pay to obtain the product. Place: the company activities that make the product available to target consumers. Promotion: the activities that communicate the merits of the product.

What is Marketing ROI or Return on investment

Return on marketing investment (or marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI measures the profits generated by investments in marketing activities.

What is Share of customer?

Share of customer is defined as the share the company gets of customers purchasing in their product categories. (Thus, banks want to increase "share of wallet.")

What is strategic planning?

Strategic planning is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. Strategic planning sets the stage for the rest of the planning in the firm. Companies usually prepare annual plans, long range plans, and strategic plans. The annual and long range plans deal with the company's current businesses and how to keep them going.

What is the aim of marketing?

The aim of marketing is to create value for customers and to capture value in return.

What is the macroenvironment?

The macroenvironment consists of larger societal forces that affect the microenvironment

What is the major activity in strategic planning?

The major activity in strategic planning is business portfolio analysis.

The Marketing Concept

The marketing 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. Under the marketing concept, customer focus and value are the paths to sales and profits. The job is not to find the right customers for your product but to find the right products for your customers. The selling concept takes an inside-out approach, whereas the marketing concept uses an outside-in perspective. (Figure 1.3) Customer-driven companies research current customers deeply to learn about their desires, gather new product and service ideas, and test proposed product improvements. Customer-driving marketing involves understanding customer needs even better than customers themselves do and creating products and services that meet existing and latent needs.

What is the Market mix?

The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.

What is the microenvironment?

The microenvironment consists of the actors close to the company that affect its ability to service its customers.

What is the most basic concept underlying marketing?

The most basic concept underlying marketing is that of human needs.

Additional info can skip of strategic planning

The purpose of strategic planning is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment. Most standard portfolio-analysis methods evaluate SBUs on two dimensions: 1. The attractiveness of the market or industry, and 2. The strength of the position in that market or industry.

The Selling Concept

The selling concept holds that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort. The concept is typically practiced with unsought goods - those that buyers do not normally think of buying, such as insurance or blood donations. These industries must be good at tracking down prospects and selling them on product benefits.

5) 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. This has been called Marketing 3.0 or purpose-driven marketing. The societal marketing concept holds that companies should balance three considerations in setting their marketing strategies: company profits, consumer wants, and society's interests. (Figure 1.4)

What is a want?

Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac.

What do we define marketing as ?

We define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

What is a demand?

When backed by buying power, wants become demands.

Do non profits like (colleges, hospitals, churches, etc.) have to preform marketing?

Yes! They must also must perform marketing.

A simple definition of marketing is

engaging customers and managing profitable customer relationships.

Marketing is ?

managing profitable customer relationships.

What is SWOT analysis

strengths, weaknesses, opportunities, threats

What are the five major developments

the digital age, the changing economic environment, the growth in not-for-profit marketing, rapid globalization, and the call for sustainable marketing practices.

What does the marketing control process include

• Operating control checks the ongoing performance of the marketing programs against the annual plan. • Strategic control looks at whether the company's basic strategies are matched to its opportunities.

What are the 4 p's from a consumers point of view

• Product = Acceptability • Price = Affordability • Place = Accessibility • Promotion = Awareness