Marketing Test #1 (Chapter 1 & 2)

Production Concept

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

Product Concept

the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements

Marketing return on investment

the net return from a marketing investment divided by the costs of the marketing investment

Marketing

the process by which companies engage customers, build strong customer value in order to capture value from customers in return

Portfolio Analysis

the process by which management evaluates the products and businesses that make up the company

Strategic Planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

Value Chain

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

Customer equity

the total combined customer lifetime values of all of the company's customers

Marketing Implementation

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Partner relationship management

working closely with partners in other company departments and outside the company to jointly bring greater value to customers

Market segment

a group of consumers who respond in a similar way to a given set of marketing efforts

Value delivery network

a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

Marketing Concept

a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

Growth- share matrix

a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share

Mission Statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

Differentiation

actually differentiating the market offering to create superior customer value

Customer engagement marketing

making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community

Marketing control

measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved

Customer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Needs

states of felt deprivation

Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.

Broadly defined, customer relationship management is the process of engaging customers and building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Customer engagement marketing aims to make a brand a meaningful part of consumers conversations and lives through direct and continuous customer involvement in shaping brand conversations, experiences, and community. The aim of customer relationship management and customer engagement is to produce high customer equity, the total combined customer lifetime values of all the company's customers. The key to building lasting relationships is the creation of superior customer value and satisfaction. In return for creating value for targeted customers, the company captures value from customers in the form of profits and customer equity.

Explain the growing importance of digital and social media marketing?

Digital and social media marketing involves using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers anywhere anytime. At the most basic level, marketers set up company and brand websites that provide information and promote the company's products. Many companies also set up online brand community sites where customers can congregate and exchange brand related interests and information. Ex: Sephora and Sony

Market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Demands

Human wants that are backed by buying power

What are the outcomes of creating superior customer value? Why should companies pay attention to these outcomes?

The first four steps in the marketing process outlined involve engaging customers and building customer relationships by creating and delivering superior customer value. The final step involves capturing value in return in the form of sales, market share, and profits. By creating superior customer value, the firm creates satisfied customers who stay loyal, buy more, and advocate the brand to others. Outcomes: creating customer loyalty and retention, growing share of customer, and building customer equity.

Societal Marketing Concept

The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long- run interests, and society's long- run interests

What is a market offering? Give a recent example of a market offering that has satisfied your needs or want.

A Market offering is a combination of products, services, information, or experiences offered to a market to satisfy consumer needs or wants. Market offerings are not just limited to physical products they also include services such as intangible activities or benefits offered for sale, but have no ownership. A strong offering differentiates the products from competitors and creates value by meeting customers' wider needs better than other options already available. An example is of Mc Donald, they have very well planned and strategized their marketing by offering value meals to customers. In spite of facing intense competition it is still surviving and blooming as a whole.

SWOT Analysis

An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).

Positioning

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

Discuss the concept of customer satisfaction. How do customer relationship management and customer perceived value impact customer satisfaction?

Customer satisfaction is the extent to which a product's perceived performance matches a buyer's expectations. Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, engaging, and growing customers. They key to building lasting customer relationships is to create superior customer value and satisfaction. Satisfied customers are more likely to be loyal customers and give the company a larger share of their business. Attracting and retaining customers can be hard because customers buy from the firm that offers the highest customer- perceived value- the customers evaluation of the difference between all the benefits and all the costs of market offering relative to those of competing offers. Importantly, customers often do not judge value and costs accurately they act on perceived value

Describe the major trends and forces that are changing the marketing landscape in this age of relationships

Dramatic changes are occurring in the marketing arena. The digital age has created exciting new ways to learn about, engage, and relate to individual customers. As a result, advances in digital, social, and mobile media have taken the marketing world by storm. Online, mobile, and social media marketing offer exciting new opportunities to target customers more selectively and engage them more deeply. And todays bug data and improved marketing analytics; such as artificial intelligence, are enhancing how marketers learn about and interact with customers. The key is to blend the new digital technologies and approaches with traditional marketing to create a smoothly integrated marketing strategy and mix. In recent years, marketing has become a major part of the strategies for many not- for profit organizations, such as colleges, hospitals, museums, zoos, symphony orchestras, foundation, and even churches. Also, in an increasingly smaller world, many marketers are now connected globally with their customers, marketing partners, and competitors. Finally todays marketers are also reexamining their sustainability responsibilities. Marketers are being called on to take greater responsibility for the social and environmental impacts of their actions. Pulling it all together, as discussed throughout the chapter, the major new developments in marketing can be summed up in a single concept: engaging customers and creating and capturing customer value. Today marketers of all kinds are taking advantage of new opportunities for building value laden relationships with their customers, their marketing partners, and the world around them.

How does the marketing process create value for customers and the company?

Marketing is managing profitable customer relationships and satisfying customer needs. Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Define marketing and outline the steps in the marketing process

Marketing is the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return. The marketing process involves five steps. The first four steps create value for customers. First, marketers need to understand the marketplace and customer needs and wants. Next, marketers design a customer value- driven marketing strategy with the goal of getting, engaging, and growing target customers. In the third step, marketers construct a marketing program that actually delivers superior value. All of these steps from the basis for the fourth step: engaging customers, building profitable customer relationships, and creating customer delight. In the final step, the company reaps the rewards of strong customer relationships by capturing value from customers.

Define marketing management and explain how marketing managers design winning marketing strategies.

Marketing management is the art and science of choosing target markets and building profitable relationships with them. To design a winning marketing strategy, the marketing manager must answer two questions: what customers will we serve (whats out target market) and how can we serve these customers best (whats our value proposition).

Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.

Outstanding marketing companies go to great lengths to learn about and understand their customers needs, wants, and demands. This understanding helps them to design want- satisfying market offerings and build value laden customer relationships by which they can capture customer lifetime value and greater share of customer. The result is increased long term customer equity for the firm. The core marketplace concepts are needs, wants, and demands; market offerings (products, services, and experiences); value and satisfaction; exchange and relationships; and markets. Companies address needs, wants, and demands by putting forth a value proposition, a set of benefits that they promise to consumers to satisfy their needs. The value proposition is fulfilled through a market offering, which delivers customer value and satisfaction, resulting in long- term exchange relationships with customers.

Market Offerings

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Customer perceived value

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

Selling Concept

The idea that consumers will not buy enough of the firm's products unless the firm undertakes a large- scale selling and promotion effort

Identify the key elements of a customer value- driven marketing strategy and discuss the marketing management orientations that guide marketing strategy

To design a winning marketing strategy, the company must first decide whom it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will cultivate (target marketing). Next, the company must decide how it will serve targeted customers (how it will differentiate and position itself in the marketplace). Marketing management can adopt one of five competing market orientations. The production concept holds that management's task is to improve production efficiency and bring down prices. The product concept holds that consumers favor products that offer the most in quality, performance, and innovative features; thus, little promotional effort is required. The selling concept holds that consumers will not buy enough of selling and promotion effort. The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. The societal marketing concept holds that generating customer satisfaction and long run societal well being through sustainable marketing strategies is key to both achieving the company's goals and fulfilling its responsibilities.

Product/ market expansion

a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Consumer generated marketing

brand exchanges created by consumers themselves- both invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

Market development

company growth by identifying and developing new market segments for current company products

Market penetration

company growth by increasing sales of current products to current market segments without changing the product

Product development

company growth by offering modified or new products to current market segments

Diversification

company growth through starting up or acquiring businesses outside the company's current products and markets

Market targeting

evaluating each market segment's attractiveness and selecting one or more segments to enter

Exchange

the act of obtaining a desired object from someone by offering something in return

Marketing Management

the art and science of choosing target markets and building profitable relationships with them

Business Portfolio

the collection of businesses and products that make up the company

Customer satisfaction

the extent to which a product's perceived performance matches a buyer's expectations

Wants

the form human needs take as they are shaped by culture and individual personality

Marketing Strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Marketing Myopia

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

Share of customer

the portion of the customer's purchasing that a company gets in its product categories

Market

the set of all actual and potential buyers of a product or service

Marketing Mix

the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market

Customer lifetime value

the value of the entire stream of purchases a customer makes over a lifetime of patronage

Digital and social media marketing

using digital marketing tools such as websites, social media, mobile apps, and ads online, video, email, and blogs to engage consumer anywhere at any time, via their digital devices