COM 250 - Fundamentals of Marketing - Quiz 1 - Chapters 1

What are the two main goals of marketing?

1) Attracting new customers 2) Keeping and growing current customer base.

What are the three main need types described in Maslow's Hierarchy of Needs?

1) Basic needs 2) Psychological needs 3) Self-fulfullment needs

What are the three customer relationship levels and tools?

1) Basic relationships - low-margin customers 2) Full partnerships - high-margin customers 3) Frequency marketing programs - reward customers

What are the two main needs that comprise psychological needs in Maslow's Hierarchy of Needs?

1) Belongingness and love needs 2) Esteem needs

What three things can be Strategic Business Units (SBUs)?

1) Company divisions 2) Product lines within a division 3) Single products or brands

What three aspects of exchange relationships does marketing actions focus on?

1) Creation of exchange relationships 2) Maintenance of exchange relationships 3) Growth of exchange relationships

What are the four steps in strategic planning?

1) Defining the company mission 2) Setting company objectives and goals 3) Designing the business portfolio 4) Planning marketing and other functional strategies.

What are four examples of engagement building tools?

1) Facebook 2) Twitter 3) LinkedIn 4) YouTube

What are the three stages in analyzing a current business portfolio?

1) Identify strategic business units (SBUs) 2) Assess the attractiveness of its various SBUs 3) Decide how much support each SBU deserves

The marketing concept recognizes that achieving an organization's goals depends on what two things?

1) Knowing the needs and wants of target markets 2) Delivering the desired satisfaction better than competitors.

What are the two main overarching activities of marketing?

1) Managing profitable customer relationships 2) Discovering and satisfying customer needs.

What are the five main things that the marketing process must account for?

1) Needs, wants, and demands 2) Market offerings 3) Value and satisfaction 4) Exchanges and relationship 5) Markets

What are the two main needs the comprise basic needs in Maslow's Hierarchy of Needs?

1) Physiological needs 2) Safety needs

What four marketing tools (P's) form the marketing mix?

1) Product 2) Price 3) Promotion 4) Place

What are the five main marketing management orientations?

1) Production concept 2) Product concept 3) Selling concept 4) Marketing concept 5) Societal Marketing concept.

What are the three things that make up marketing offerings?

1) Products 2) Services 3) Experiences

What are the three things that need to be balanced in the societal marketing concept?

1) Society (Human welfare) 2) Consumers (Want satisfaction) 3) Company (Profits)

What are the four categories in the growth-share matrix?

1) Star 2) Cash Cow 3) Question Mark 4) Dog

What are the four key players in the general marketing system?

1) Suppliers 2) Companies 3) Marketing intermediaries 4) Consumers

Marketing is considered both a process and a cycle. What does the process involve and what does the cycle involve?

1) The process involves identifying customer needs and developing products to satisfy those needs 2) The cycle involves the mutual value generated between buyer and seller.

What are the 5 steps of the marketing process?

1) Understanding the marketplace and customer needs and wants 2) Design a customer value-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

What are the three things that a mission statement answers?

1) Who 2) How 3) Where

What is a value proposition?

A brand's value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs.

What is a business portfolio?

A business portfolio is the collection of businesses and products that make up a company.

When considering customer relationship groups what does the title True Friends refer to?

A customer relationship group that has high profitability and are long-term loyal customers. There is a good fit between the company's offerings and the customers needs; highest profit potential.

When considering customer relationship groups what does the title Strangers refer to?

A customer relationship group that has low profitability and are loyal only for a short-term. There is little fit between the company's offerings and the customer's needs; lowest profit potential.

When considering customer relationship groups what does the title Barnacles refer to?

A customer relationship group that has low profitability but are long-term loyal customers. There is limited fit between the company's offerings and the customer's needs; low profit potential.

When considering customer relationship groups what does the title Butterflies refer to?

A customer relationship group that is highly profitable but are loyal only for a short-term. They are a good fit between company's offerings and customer's needs; high profit potential.

What is a growth-share matrix?

A growth-share matrix is a portfolio-planning method that evaluates a company's strategic business units (SBUs) in terms of market growth rate and relative market share.

What is a market?

A market is the set of actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through an exchange relationship

What is a companies mission statement?

A mission statement is a statement of the organization's purpose - what it wants to accomplish in the larger environment, the value it offers, and for whom.

What is a portfolio analysis?

A portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company and then decides which should receive more, loss, or no investment.

What is an integrated marketing program?

An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers.

How do companies often use cash cow strategic business units?

As they have high relative market share but low market growth rates they are typically used to generate income for investment into other ventures that have higher market growth rate.

How is Customer Lifetime Value (CLV) calculated?

Average Monthly Revenue per Customer multiplied by their Repeat Monthly Purchase Rate multiplied by the Customer Purchasing Lifetime

Why are butterflied and true friends the best customer relationship groups for marketers?

Both have high profit potential. Butterflies loyalty can be gained and true friends can become advocates for the company.

What is 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

What is market segmentation?

Dividing the market into groups of customers

What marketing aspect answers the question "why should I buy your brand rather than a competitor's?"

Value proposition.

When do needs transform into wants?

When needs are influenced by culture and personality.

What four things are involved in marketing management?

Finding, attracting, keeping, and increasing the number of customers by providing value.

What can the product concept lead to?

Focusing only on products can lead to marketing myopia from shifting customer expectations.

In the growth-share matrix what is the star associated with?

High market growth rate and high relative market share

In the growth-share matrix what is the question mark associated with?

High market growth rate but low relative market share

In the growth-share matrix what is the cash cow associated with?

High market share but low market growth rate

What is customer-perceived value?

It is the customers evaluation of the difference between all benefits and costs of marketing offer relative to those of a competitor.

What does customer-engagement marking do?

It makes the brand a meaningful part of a consumers' conversation and lives by fostering direct and continuous customer involvement in shaping brand conversations, experience, and community.

What does Customer Equity measure?

It's a measure of the future value of the company's customer base.

Why is the loss of one customer such a substantial loss to a company?

Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.

In the growth-share matrix what is the dog associated with?

Low market growth rate and low relative market share.

What are market offerings?

Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

What is the textbook definition of marketing?

Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

What is marketing management?

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

What can the production concept lead to?

Marketing myopia due to a reduction of focus on consumer relationships.

What is marketing myopia?

Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs.

What is the definition of a want in marketing?

Needs influenced by culture and personality

Do exchanges require money to function?

No, exchanges can occur in many forms with monetary exchange being only one of them.

What step in strategic planning is associated with the business unit,product, and market level?

The fourth and final step - Planning marketing and other functional strategies.

A customer buys from the firm that offers what?

The highest customer-perceived value

What must balance between the marketer and the customer in order to create customer value and satisfaction?

The marketer has to set the right levels of expectations in order to balance with the customers value and satisfaction.

What is the marketing mix?

The marketing mix is the set of tools (four P's) the firm uses to implement its marketing strategy.

What step in strategic planning is associated with the corporate level?

The second step - setting company objectives and goals

When is the selling concept most often practiced?

The selling concept is typically practiced with unsought goods - those that buyers do not normally thing of buying, such as life insurance or blood donations.

What is customer equity?

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

How are uninvited consumer-to-consumer exchanges occuring?

Through blogs, video-sharing sites, social media, and other digital forums

How is customer advocacy achieved?

By exceeding the customer's expectations.

How is customer equity increased?

By increasing the number of profitable customers that are loyal to the company.

How is customer loyalty achieved?

By meeting the customer's expectations.

How do companies mediate consumer-generated marketing?

Companies are increasingly inviting consumers to play a more active role in shaping products and their brand experiences through new product and service ideas from consumers.

What is the theory behind the societal marketing concepts?

Consider society's long-run interests to result in sustainable marketing, socially and environmentally responsible marketing that meets present needs while considering future interest to achieve profitability.

What is the theory behind the selling concept?

Consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort.

What is the key to building lasting customer relationships?

Create superior customer values and customer satisfaction.

What is the aim of the marketing process?

Creating and capturing customer value

What is the theory behind the marketing concept?

Customer focus and value are the paths to sales and profits.

What is Customer Lifetime Value (CLV)?

Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

What is the theory behind the production concept?

Customers will favor products and services that are widely available and are of low cost, marketing focuses on improving production and distribution efficiency.

What is the theory behind the product concept?

Customers will favor products that offer the most quality, performance, and features. The focus is on continuous product improvement.

What is an exchange?

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

Marketing occurs when people decide to satisfy their needs and wants through what?

Exchange relationships.

What does partner relationship management involve?

Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

How are profitable customer relationships built and maintained?

Profitable customer relationships are built and maintained by delivering superior customer value and satisfaction and deals with all aspects of acquiring, keeping, and increasing customer base.

How do smart companies aim to delight customers?

Promising only what they can deliver, then delivering more than promised.

What is a target marketing?

Selecting one or more market segments to serve.

What is the need that comprises self-fulfullment needs in Maslow's Hierarchy of Needs?

Self-actualization

What does the selling concept focus on instead of building long-term, profitable customer relationships?

Selling often focuses on creating sales transactions.

What is the share of customer?

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

Of the four categories in a growth share matrix - cash cow, dog, star, and question mark - which has the greatest potential?

Star

What is the definition of a need in marketing?

States of deprivation

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.

What is the definition of a demand in marketing?

Sum of wants and buying power.

What does the broad mission statement of a company lead to?

The broad mission leads to a hierarchy of objectives, including business and marketing objectives.

What is the major trend/force that is changing the marketing landscape today?

The explosive growth in digital technology has fundamentally changed the way we live - how we communicate, share information, access entertainment, and shop.

What is customer satisfaction based on?

The extent to which perceived performance of a product matches a buyer's expectations. If the product's performance falls short of expectations, the customer is dissatisfied, where as if the performance matches expectations the customer is satisfied.

What is the first step in the process of portfolio analysis?

The first step is to identify the company's key businesses, called the Strategic Business Units (SBUs).