mktg exam 1 textbook
A market orientation should recognize the need to create specific types of ________-creating capabilities that enhance organizational performance.
value
Consumers develop a concept of _______ through the integration of their perceptions of product quality and financial sacrifice
value
Each marketing activity has its own benefits and costs and must be adapted for its contribution to _________
value
a customer's subjective assessment of benefits relative to costs in determining the worth of a product
value
___________ ___________ __________(CRM) focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.
Customer relationship management
___________ can increase public awareness of the organization and of new or existing products.
Promotion
________ activities can inform customers about product features.
Promotional
___________ activities can also help to create image and prestige characteristics that customers consider in their assessment of a product's value.
Promotional
___________ that provides information, often in the mass media, is another form of promotion that firms try to manage.
Publicity
____________ marketing continually deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.
Relationship
Research has found a positive association between _________ satisfaction and shareholder value, and high levels of customer satisfaction also tend to attract and retain high-quality employees and managers
customer
The ability to identify individual customers allows marketers to shift their focus from targeting groups of similar customers to increasing their share of an individual customer's purchases. The emphasis changes from share of market to share of __________
customer
The focal point of all marketing activities is
customers
To build these long-term customer relationships, marketers are increasingly turning to marketing research and ______ analytics.
data
Through the use of ____________ strategies, companies can personalize customer relationships on a nearly one-on-one basis.
e-marketing
Marketing-mix variables—product, distribution, promotion, and price—are factors over which an organization has control; the forces of the ____________, however, are subject to far less control.
environment
Relationship marketing strives to build satisfying _________ relationships between buyers and sellers by gathering useful data at all customer contact points and analyzing that data to better understand customers' needs, desires, and habits.
exchange
The essence of marketing is to develop satisfying ____________ from which both customers and marketers benefit
exchanges
the provision or transfer of goods, services, or ideas in return for something of value
exchanges
Advances in technology, along with falling political and economic barriers and the universal desire for a higher standard of living, have made marketing across national borders commonplace while stimulating ________ economic growth.
global
a physical entity you can touch
good
a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment.
green marketing
Other marketers of _______ include political parties, churches, and animal protection groups.
ideas
The marketing-_____ variables—which include product, distribution, promotion, and price—are often viewed as controllable because they can be modified.
mix
Before marketers can develop an appropriate marketing mix, they must collect in-depth, up-to-date information about customer _______. Such information might include data about the age, income, ethnicity, gender, and educational level of people in the target market, their preferences for product features, their attitudes toward competitors' products, and the frequency with which they use the product.
needs
The most obvious cost is the monetary price of the product, but ______________ costs can be equally important in a customer's determination of value.
nonmonetary
In the private sector, ________ organizations also employ marketing activities to create, distribute, promote, and price programs that benefit particular segments of society.
nonprofit
Most flexible variable in the marketing mix
price
The ________ variable relates to decisions and actions associated with pricing objectives and policies and actual product prices.
price
Economic conditions, competitive structure, and government regulations may prevent a manager from adjusting ________ frequently or significantly.
prices
A bundle of satisfaction that provides value to the consumer. A _________ can be a good, a service, or an idea.
product
The ________ variable of the marketing mix deals with researching customers' needs and wants and designing a product that satisfies them.
product
The _________ variable also involves creating or modifying brand names and packaging and may include decisions regarding warranty and repair services
product
The marketing concept is based on the philosophy that consumers purchase the satisfaction and value they derive from a product not the ________ itself.
product
The evolution of marketing has gone through three time periods, including:
production, sales, and market orientation
The __________ mix focuses integrated marketing communication to inform and persuade consumers to purchase a product.
promotion
The __________ variable relates to activities used to inform and persuade to create a desired response.
promotion
To maintain an exchange ___________, buyers must be satisfied with the good, service, or idea obtained, and sellers must be satisfied with the financial reward or something else of value received.
relationship
"long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges."
relationship marketing
The customer relationship often endures over an extended time period, and ________ purchases are critical for the firm.
repeat
Although this is not an exact science, knowing a customer's potential lifetime value can help marketers determine how best to allocate _________ to marketing strategies to sustain that customer over a lifetime.
resources
a market orientation involves being _______ to ever-changing customer needs and wants.
responsive
Another nonmonetary cost is _______, which can be reduced by offering good basic warranties or extended warranties for an additional charge.
risk
Customer ___________ is the major focus of the marketing concept.
satisfaction
Organizations have to define their products not as what the companies make or produce but as what they do to _________ customers
satisfy
the application of human and mechanical efforts to people or objects to provide intangible benefits to customers
service
Customers and competitors are often considered to be core __________ in developing a marketing strategy
stakeholders
developing and maintaining favorable relations with __________ is crucial to the long-term growth of an organization and its products
stakeholders
true or false: Changes in the marketing environment produce uncertainty for marketers and at times hurt marketing efforts, but they also create opportunities.
true
true or false: Focusing on share of customer requires recognizing that all customers have different needs and that not all customers weigh the value of a company equally.
true
true or false: Government agencies at the federal, state, and local levels engage in marketing activities to fulfill their mission and goals. Universities and colleges engage in marketing activities to recruit new students, as well as to obtain donations from alumni and businesses.
true
true or false: In addition to retaining customers, companies also should focus on regaining and managing relationships with customers who have abandoned the firm
true
true or false: Marketing positions are among the most secure positions because of the need to manage customer relationships.
true
true or false: Nonprofits operate just like businesses in that they serve a client base and have to create revenue to meet their needs.
true
true or false: The concept of customer lifetime value (CLV) may include not only an individual's tendency to engage in purchases but also his or her strong word-of-mouth communication about the company's products.
true
true or false: The marketing concept is not a second definition of marketing. It is a management philosophy guiding an organization's overall activities.
true
true or false: To satisfy customers' objectives as well as its own, a company also must coordinate all of its activities.
true
true or false: Today the consumer has more power from information available through websites, social media, and required disclosure.
true
true or false: When unemployment is high, sales positions remain among the most attractive job opportunities.
true
true or false: Without an adequate information system, however, an organization cannot be market oriented.
true
true or false: marketing activities can occur even without an actual transaction or sale
true
____ is a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts. It can be calculated by taking the sum of the customer's present value contributions to profit margins over a specific time frame.
CLV
________ provides a strategic bridge between data analytics and marketing strategies aimed at long-term relationships.
CRM
____________ benefits include anything a buyer receives in an exchange.
Customer
customer benefits - customer costs
Customer Value =
________ _______ ________ (CLV) predicts the net value (profit or loss) for the future relationship with the customer.
Customer lifetime value
For an exchange to take place, four conditions must exist:
1. 2 or more individuals must participate and each must possess something of value that the other party desires 2. exchange should provide a benefit to both parties 3. each party must have confidence in the promise of something of 'value' held by the owner 4. the parties must meet expectations
At the most basic level, profits can be obtained through relationships in the following 3 ways:
1. by acquiring new customers 2. by enhancing the profitability of existing customers, 3. by extending the duration of customer relationships.
The forces of the marketing environment affect a marketer's ability to facilitate value-driven marketing exchanges in three general ways:
1. they influence customers by affecting their lifestyles, standards of living, and preferences and needs for products 2. marketing environment forces can determine whether and how a marketing manager can perform certain marketing activities 3. environmental forces may shape a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix
Although marketing history reveals that some firms have always produced products that consumers desired, by the _______, both businesses and academics developed new philosophies and terminology to explain why this approach is necessary for organizational success. This perspective emphasized that marketers first need to determine what customers want and then produce those products rather than making the products first and then trying to persuade customers that they need them.
1950s
during the first half of the _____th century competition increased and businesses realized that they would have to focus more on selling products to many buyers. Businesses viewed sales as the major means of increasing profits, and this period came to have a sales orientation.
20
The most basic application of this idea is the ________ rule: 80 percent of business profits come from 20 percent of customers.
80/20
The ____________ _____________ ____________ (AMA) defines marketing as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."
American Marketing Association
_________ is the business function responsible for creating revenue to sustain the operations of the organization and to provide financial returns to investors.
Marketing
_________ is a critical component of the marketing mix because customers are concerned about the value obtained in an exchange.
Price
_______ offers enterprise software to help clients manage their business operations and customer relationships.
SAP
__________ _______ ________ (SCM) involves maintaining a flow of products through physical distribution activities. This includes acquiring resources, inventory, and the interlinked networks that make products available to customers through purchasing, logistics, and operations.
Supply chain management
massive data files that can be obtained from both structured and unstructured databases.
big data
Competitive forces, economic conditions, political forces, laws and regulations, technology, and sociocultural forces shape the decision-making environment for ____________ variables.
controllable
Customer ___________ include anything a buyer must give up to obtain the benefits the product provides.
costs
The customer expects to gain a reward or benefit greater than the ________ incurred in a marketing transaction.
costs
Marketing is more than simply advertising or selling a product; it involves developing and managing a product that will satisfy _________ needs.
customer
A customer's value over a __________ represents an intangible asset to a marketer that can be augmented by addressing the customer's varying needs and preferences at different stages in his or her relationship with the firm
lifetime
A __________ orientation requires the "organizationwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organizationwide responsiveness to it."
market
Trust, openness, honoring promises, respect, collaboration, and listening are six values required by organizations striving to become more _______ oriented.
market
About one-half of a buyer's dollar goes toward ________ costs
marketing
Implementing the __________ concept means optimizing the exchange relationship, otherwise known as the relationship between a company's financial investment in customer relationships and the return generated by customers' loyalty and retention.
marketing
Listening and responding to consumers' frustrations and appreciation is the key in implementing the ________ concept.
marketing
The ___________ field offers a variety of interesting and challenging career opportunities throughout the world, such as personal selling, advertising, packaging, transportation, storage, marketing research, product development, social media management, wholesaling, and retailing.
marketing
Thus, the development of an effective __________ strategy requires understanding the needs and desires of customers and designing a marketing mix to satisfy them and provide the value they want
marketing
Thus, understanding how ___________ activities work can help you to be a better consumer, increase your ability to maximize value from purchases, and understand how marketing is a necessary function in all organizations.
marketing
the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
marketing
According to the ___________ __________, an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
marketing concept
The ____________ ____________, which includes competitive, economic, political, legal and regulatory, technological, and sociocultural forces, surrounds the customer and affects the marketing mix
marketing environment
Marketers refer to these activities—product, distribution, promotion, and pricing—as the __________ ______ because they decide what type of each variable to use and how to coordinate the variables.
marketing mix
those constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes; these include customers, employees, investors and shareholders, suppliers, governments, communities, competitors, and many others.
stakeholders
Marketing managers strive to develop a marketing mix that matches the needs of customers in the ________ _________
target market
Organizations generally focus their marketing efforts on a specific group of customers, called a __________ _________
target market
When was the production-oriented Era?
the industrial revolution (1850s)
Two nonmonetary costs are the ______ and _______ customers expend to find and purchase desired products.
time, effort