Marketing Test 1

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

Company strategy should create customer value and build profitable relationships

Marketing concept

Statement of an organizations purpose. Market orientated- defines in terms of satisfying basic customer needs. Emphasize the company's strengths. Focus on customers and the customer experience.

Mission Statement

high potential profitability, long term loyalty

True friends

Company departments are links in the company's internal

Value chain

_______ is composed of the company, it's suppliers, it's distributors, and it's customers

Value delivery network

A brand's ______ is the set of benefits that it promises to deliver to consumers to satisfy their needs

Value proposition

JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their

Value proposition

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

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

exchange

Consumers' needs and wants are fulfilled through

market offerings

Existing product, existing market

market penetration

Dividing a market into several sections of customers is known as

market segmentation

Dividing a market into several sections of customers is known as ________.

market segmentation

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

Step 2 of Strategic Planning

setting company objectives and goals

refers to the portion of the customer's purchase that a company gets in its product categories

share of customer

Various government agencies have launched campaigns to encourage energy conservation and concern for the environment as well as discourage smoking, illegal drug use, and obesity. This illustrates ________ marketing.

social

In which of the following customer relationship groups do organizations generally avoid investing in?

strangers

are customers who show low potential profitability and little projected loyalty

strangers

Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as

target marketing

Customers who are classified as true believers

tell others about their good experiences with a company

Which of the following concepts is based on a customer-centered philosophy?

the marketing concept

A customer is both loyal and profitable is referred to as a

true believer

Amazon Prime strives to convert casual shoppers into loyal customers. An Amazon Prime customer can be classified as a

true believer

According to the five step model of the marketing process, the first step in marketing is

understanding the marketplace and customer needs and wants

Steps in business portfolio planning:

- analyze the firm's current business portfolio - develop strategies for growth and downsizing to shape the future portfolio

Extent to which a product's perceived performance matches a buyer's expectations

Customer Satisfaction

Marketing logic by which the company creates customer value and achieves profitable customer relationships

Customer Value-Driven Marketing Strategy

Customer's evaluation of a marketing offer relative to those of competing offers

Customer-percieved value

Step 1 of Strategic Planning

Defining the company mission

Human wants that are backed by buying power

Demands

Goals of Marketing

1. Attract new customers by promising superior value 2. Keep and grow current customers by delivering satisfaction

The Marketing Process

1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

Buyers perspective would emphasize the four A's:

Acceptability, affordabiltig, accessibility, awareness

Low potential profitabilty, long term loyalty

Barnacles

the company most decide how it will differentiate and position itself in the marketplace

Choosing a value proposition

Step 3 of Strategic Planning

Designing the business portfolio

The market offering to create superior customer value

Differentiating

Engaging consumers via their digital devices using digital marketing tools and social media

Digital and social media marketing

New products, new market

Diversification

low market growth, low market share (BCG)

Dog

Products or business units that are unprofitable or no longer fit the company's overall strategy

Downsizing

Existing product, new markets

Market development

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives. Addresses the who, where, when, and how do the marketing activities

Market implementation

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

Market segmentation

states of felt deprivation; physical, social, and individual

Needs

Step 4 of Strategic Planning

Planning marketing and other functional strategies

Management's evaluation of the products and businesses that make up the company -identify the strategic business units (SBUs) -assess SBUs attractiveness and decide on the level of support SBU deserves

Portfolio Analysis

The product to occupy a clear, distinctive, and desirable place relative to competing prouducts

Positioning

4 p's of the marketing mix

Product, price, promotion, place

high market growth, low market share (BCG)

Question mark or problem child

Portion of the customer's purchasing in their product categories

Share of Customer

High Market Growth Rate & High Relative Market Share (BCG)

Star

Low potential profitability, short term loyalty

Strangers

Game plan for long run survival growth. Helps to maintain a strategic fit between its goals and capabilities and changing marketing opportunities

Strategic Planning

Internal, positive

Strengths

Which of the following is the difference between the marketing concept and the selling concept?

The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.

external, negative

Threats

-making a sale -abundance of products in the nearby shopping centers -television, magazine, and direct-mail ads

Traditional Marketing

Form taken by human needs when shaped by culture and individual personality

Wants

Internal, negative

Weaknesses

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

Collection of businesses and products that make up the company.

business portfolio

Efforts to convert _______ into loyal customers are rarely successful

butterflies

high potential profitabilty, short term projected loyalty

butterflies

A consumer who is potentially profitable but not loyal to a firm's offerings is referred to as a

butterfly

Low market growth rate and high relative market share (BCG)

cash cow

The selling concept knows that

consumers will not buy enough of a firm's products unless the firm undertakes large-scale persuasion and promotions efforts

is the total combined customer lifetime values of all the company's current and potential customers

customer equity

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

customer lifetime value

Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a

demand

Marketing mix tools should be blended into a comprehensive _________

integrated marketing program

Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter is called:

market targeting

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

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

marketing control

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

marketing management

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

marketing myopia

Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience

mobile marketing

are defined as states of felt deprivation

needs

External, positive

opportunities

The ultimate aim of customer relationship management is to produce

produce high customer equity

New products, existing market

product development