MKT 300 Chapter One: Overview of Marketing

Production-Oriented Era

"A good product would sell itself". Manufacturers were concerned with product innovation not with satisfying the needs of individual consumers and retail stores typically were considered places to hold the merchandise until a consumer wanted it .

Importance of Marketing

1. Can be entrepreneurial 2. Expands global presence 3. Enriches society 4. Pervasive across channel members

How do marketing firms become more value driven?

1. Market analysis. 2.Balance benefits with costs 3. Building relationships with customers 4. Connects with customers using social and mobile media

The core aspects of marketing

1. Marketing helps create value. 2. Marketing is about satisfying customer needs and wants 3. Marketing entails an exchange 4. Marketing requires product price place and promotion decisions 5. Marketing can be performed by both individuals and organizations 6. Marketing occurs in many settings.

Customer Relationship Management (CRM)

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers

In a marketing context, what do customers seek in return for their money and scarce time?

A fair return in goods/services

Relational Orientation

A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

Sales-Oriented Era

Between 1920-1950, with overproduction they depended on heavy doses of personal selling and advertising.

Business-to-business (B2B)

Businesses selling to other businesses

Which of the following is an example of both goods and services received in combination?

Buying new tires and having them installed.

Like Hershey's and Mars, Godiva makes chocolate. How does Godiva add unique value to its products?

By offering individualized customer service in boutique shops, using fresh, original, high-quality ingredients, and providing signature gold boxes on some of its products.

Firms that practice value-based marketing typically use a process known as _____ which includes a set of strategies, programs, and systems that focus on building loyalty among the firm's most valued customers.

Customer relationship management

True or false: Businesses should avoid using social and mobile media technologies.

False

Why do Godiva and Hershey's divide their customer base into differing categories?

In order to better understand specific customers' wants and needs.

Services

Intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

Ideas

Intellectual concepts—thoughts, opinions, and philosophies.

Goods

Items that you can physically touch.

A product can be broken down into services, ideas, and goods. What are goods?

Items you can touch

Connecting with Customers Using Social and Mobile Media

Marketers are steadily embracing new technologies such as social and mobile media to allow them to connect better with their customers and thereby serve their needs more effectively

Building Relationships with Customers

Marketers devolped a relational orientation and they have realized they need to think about customers in terms of relationships rather than transactions. To build relationships, firms focus on the lifetime profitability of the relationship, not how much money is made during each transaction.

A cell phone company offers a sweepstakes at a local street fair. Participants register for the sweepstakes by completing a card with their name, email address, and phone number, which the company can use to contact them. In turn, each participant receives a small dispenser with hand sanitizer and the chance to win one year of free service. The sweepstakes is an example of the core aspects of marketing?

Marketing entails exchange of benefits between buyer (or potential buyer) and seller.

Value-Based Marketing Era

Marketing that focuses on providing customers with benefits that far exceed the cost (money, time, effort) or acquiring and using a product or service while providing a reasonable return for the firm.

Entrepreneurs

People who organize, operate, and assume the risk of a business venture.

______ is one of the elements of the four Ps that embodies all activities needed to get the product to the right customer when and where he or she wants it.

Place

______ is the component of the four Ps that aims to capture value.

Price

In the marketing mix, which element of the four Ps communicates value to the consumer?

Promotion

Market-Oriented Era

Started around the mid-1950s. Instead of just trying to persuade consumers to buy the products they were making, companies focused on making products that customers wanted to buy. Went from "filling a hole in the factory" to "filling a hole in the market"

Which of the following is the most helpful to a firm in ensuring that its merchandise will be readily and efficiently available in stores, so that consumers are not disappointed and the firm's profits do not suffer?

Supply chain management

Supply chain, or a marketing channel

The group of firms that make and deliver a given set of goods and services (i.e. raw material > manufacturer > retailer > consumer)

Which of the following is true of services?

They cannot be separated from the producer.

True or false: During the market-oriented era, companies invested in market research to offer customers choices based on quality, convenience, and price.

True

True or false: In the marketing mix, place attempts to deliver value by making the product or service when and where the consumer needs or wants it.

True

True or false: Value-oriented marketers constantly measures the benefits that customers perceive against the cost of their offerings.

True

How do marketers inform, persuade, and remind potential buyers about a product or service to influence their opinion and elicit a response?

Using promotion

____ reflects the relationship of benefits to costs, or what you get for what you give.

Value

_______ reflects the relationship of benefits to costs, or "what you get for what you give."

Value

Nike allows customers to design their own sneakers, which improves the value customers see in the brand. This is an example of _____.

Value cocreation

When a firm has moved beyond a production or selling orientation and attempts to discover and satisfy its customers' needs and wants, the firm is _______.

Value orientated

Some successful airlines create value by offering _______. (Select all that apply.) a. many flights to destinations the consumer wants. b. in-flight WiFi shopping opportunities c. locally targeted marketing campaigns d. employee membership in unions

a, b

When Fritto-Lay makes snacks, the company creates value, and an essential part of this created value is the product's _______. (Select all that apply.) a. taste b. brand identity c. hidden flaws d. similarity to other products

a, b

Who tends to be most directly affected by business-to-business marketing? (Select all that apply) a. Partners in the supply chain of the businesses involved in that marketing effort b. Customers of the businesses involved in that marketing effort c. Employees of the businesses involved in that marketing effort d. Businesses in that community but operating in a different market segment

a, b, c

Value-oriented marketers outperform their competition by: a. developing loyalty b. charging the highest possible prices c. satisfying needs d. paying higher salaries

a, c

Which of these would be good features for a budget hotel to implement to build a value-based marketing strategy? (Check all that apply) a. Fast check-in kiosk b. A spa and salon c. Affordable rates d. 24-hour room service

a, c

Firms become value driven by focusing on which of the following activities? (Select all that apply) a. Sharing information b. Using existing technologies c. Building relationships d. Balancing customer benefits and costs e. Good hiring prices

a, c, d

Most marketers carefully seek customers who have interest in the product they are selling as well as a(n) ______ to buy the product.

ability

When a consumer gives up money (or something of value) in order to receive something else of value, this is called _______.

an exchange

What are examples of C2C marketing? (Check all that apply) a. Buying a Nook e-reader from Barnes & Noble b. Buying an iron from a neighbor's yard sale c. Buying a lamp from an individual on Craigslist.org d. Selling your old laptop through eBay.com

b, c, d

Which of the following are components of price? (Select all that apply.) a. Cultural imperialism b. Time c. Ethical climate d. Money e. Energy

b, d, e

Firms marketing directly to each other are participating in business-to-_______ marketing.

buiness

Business-to-consumer (B2C)

businesses sell to consumers

Which of the following are buying-related activities, in contrast to an activity related to selling a service? (Select all the apply) a. Giving a client a haircut b. Presenting a three-course meal to diners at a set price c. Using a credit card at a grocery checkout counter d. Giving a barista cash for a cup of coffee e. Purchasing MP3s from an online retailer

c, d, e

One challenge for companies is to provide products that meet customers' needs and wants while providing greater value than their ______.

competitors

Consumer-to-consumer (C2C)

consumer selling to other consumers

The four Ps, or marketing mix, are the ______ set of activities that a firm uses to respond to the wants of its target market.

controllable

Firms use _______ to find opportunities to better satisfy their customers' needs, keep costs down, and in turn, develop long-term loyalties.

customer data

In a value-based, marketing-oriented firm, marketers share information about _____ and competitors, and then integrate and distribute it across the firm's various departments.

customers

Value-based marketing firms implement their strategies according to what ______ believe is a good value.

customers

Value Cocreation

customers act as collaborators with a manufacturer or retailer to create the product or service

Marketing is the activity, set of institutions, and processes that create, capture, communicate and ____ value.

deliver

Each of the four Ps plays a distinct role in adding value for customers and firms. Products, the first of the four Ps, is responsible for _____.

developing goods and services.

A core aspect of marketing, borrowed from economics, includes a(n) _______, which is a transaction in which things of value are traded by buyers and sellers.

exchange

Products include goods and services as well as __________, which are thoughts, opinions, and philosophies. Intellectual concepts such as these can be marketed, just as goods and services can.

ideas

Customer relationship management (CRM) can help marketers compete by collecting data about their customers' needs and then _____.

identifying their best customers for targeted products, services and promotions

Marketing

is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

A strategy developed by companies that specifies marketing activities for a specific period of time is known as a(n) ______.

marketing plan

During the sales-oriented era between 1920 and 1950, firms found an answer to their ________ by focusing on selling.

overproduction

Marketers must determine prices of products on the basis of _____.

potential buyers' beliefs about a product's value

Henry Ford once said, "Customer can have any color they want so long as it's black." This remark exemplifies attitudes toward marketing in the ____ orientation era.

production

Manufacturers in the production-oriented era at the turn of the 20th century were concerned with efficient _______, not with satisfying needs of consumers.

production

Within the marketing mix, when a company offers many alternatives, the ___________ element of the 4Ps create(s) value by satisfying customer needs.

products, services, or ideas

Value

reflects the relationship of benefits to costs, or what you get for what you give.

If a consumer electronics firm acts on the philosophy that its new products should be compatible with existing products to develop long-term relationships with customers, then the firm is on the basis of a(n) ______ orientation,

relational

In a(n) _____ orientation, lifetime profitability is more important than the amount of money made during each transaction.

relational

To build relationships, a home builder allows customers to change upgrades until the last possible moment during construction. It is using a _____ strategy.

relational orientation

When a toothpaste manufacturer divides the marketplace int smaller targets based on consumers' ages and habits, this is an example of market ______.

segmentation

If you decide to list merchandise on eBay for someone to buy, you can best be described as a:

seller

Getting cash from an ATM is considered a(n) _________ transaction.

service

Good _____ management creates a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing system-wide costs and maximizing satisfaction of the value required by customers.

supply chain

Marketing success begins with a strong understanding of ______.

the desires and requirements of the marketplace consumer

Market analysis

the process of locating and describing potential customers--collecting massive amounts of data about how, when, why, where, and what people buy and then analyze those data to inform their choices.

Exchange

the trade of things of value between the buyer and the seller so that each is better off as a result.

If you decide at the last minute to go skiing between Christmas and New Year's Day, you will probably pay a relatively higher price for an airplane ticket to the ski area. This is an example of _____.

trading off price and convenience

When firms provide customers an opportunity to act as collaborators in creating the product or service, it is called ____.

value cocreation

Balancing Benefits with Costs

value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offerings. They use available customer data to find opportunities to better satisfy their customers' needs, keep costs down, and develop long-term loyalties.