Chapter 1: Marketing Creating and Capturing Customer Value (Adaptive Learning)

The first ___ steps of the marketing process create ___ for customers.
the first -FOUR- steps of the marketing process create -VALUE- for customers
understanding the marketing place and customer needs and wants … designing a customer-driven marketing strategy … constructing an integrated marketing program that delivers superior value … building profitable relationships and create customer value … capturing value from customers to create profit and customer equity…… these are the steps in what?
the marketing process
___ ___ is the total combined customer lifetime values of all of the company’s current and potential customers.
-CUSTOMER EQUITY- is the total combined customer lifetime values of all the company’s current and potential customers
the ___ step of the marketing process is understanding customer needs and wants
the -FIRST- step of the marketing process is understand customer needs and wants
Marketing is the ___ by which companies ___ ___ for customers and build strong ___ ___ in order to capture value from ____ in return
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
In the third step of the marketing process, ___ construct a ___ program that actually ___ superior ___
in the third step of the marketing process, -MARKETERS- construct a -MARKETING- program that actually -DELIVERS- superior -VALUE-
the ___ step of the marketing process is to design a customer driven marketing strategy with the goal of getting, keeping and growing target customers.
the -SECOND- step of the marketing process is to design a customer driven marketing strategy with the goal of getting, keeping, and growing target customers
How do the first three steps of the marketing process form a basis for the fourth step? (just answer with the summary but be sure to read it!)
The first 3 steps of the marketing process form a basis for the fourth step because through understanding the marketplace and customer needs and wants (1st step), a company is able to design a customer-driven marketing strategy (2nd). This is developed by selecting who to serve through segmentation and targeting, and, choosing a value proposition by deciding how it will serve the targeted customers, in other words, how it will differentiate and position itself, in the marketplace. Then, with an idea in mind, the company is ready to construct an integrated marketing program that delivers the four Ps with superior value (3rd). In summary, the first 3 steps form the basis for the fourth step by having positive the idea that they must build profitable relationships and create customer delight in mind.
A ___ ___ is the set of benefits or values a company promises to deliver to consumers to satisfy their needs
a VALUE PROPOSITION is the set of benefits or values a company promises to deliver to consumers to satisfy their needs
In four words, what is marketing?
marketing is MANAGING PROFITABLE CUSTOMER RELATIONSHIPS
As a result of the first four steps, the fifth step does what in return?
the fifth step captures value from customers in return.
The fifth step of the marketing process ___ ___ from customers to create ___ and customer ____
the 5th step of the marketing process CREATES VALUE from customers to create VALUE and customer EQUITY
customer equity is the total combined ___ ___ __ of all of the company’s current and potential ___.
customer equity is the total combined -CUSTOMER LIFETIME VALUES- of all of the company’s current and potential -CUSTOMERS-
The underlying concept of marketing is that …
marketing creates value for customers in order to capture value from customers in return.
needs
states of felt deprivation
___ & managing marketing ___ are how a company first gains some understanding of the marketplace
RESEARCH and managing marketing INFORMATION are how a company first gains some understanding of the marketing place
Based on the answers to these two questions, a company then (2nd step) designs a customer-driven marketing strategy
What customers will we serve? – targeting and segmentation – … How can we best serve targeted customers?… differentiation and positioning
___ superior customer value creates ___ customers, who will __ __ __. Therefore helping the company capture ___ ___ ___ and greater ___ of customer, resulting in increased ___-__ customer equity.
DELIVERING superior customer value creates SATISFIED customers, who will BUY BUY BUY. Therefore helping the company capture CUSTOMER LIFETIME VALUE, resulting in increased LONG-TERM customer equity
Needs, wants, and demands; market offerings (products, services, and experiences); value and satisfaction; exchange and relationships; and markets … are the what?
the 5 (12pts) core marketplace concepts
the core marketplace concepts: ___, ____, and demands; market offerings (products, ____, and experiences), value and satisfaction; ___ and relationships; and ____.
needs, wants, demands; market offerings (products, services, and experiences); value and satisfaction; exchange and relationships; and markets
Why would the fourth step perhaps be the most important in the marketing process?
The fourth step involving building value-laden & profitable relationships with target customers, has marketers practice customer relationship management to create customer satisfaction and delight throughout the process. In other words, it involves making valuable relationships through good communication.
managing profitable customer relationships is what?
marketing
Wants is the form human ___ take as they are ____ by culture and individual ____
wants is the form human NEEDS take as they are SHAPED by culture and individual PERSONALITY
wants
the form human needs take as they are shaped by culture and individual personality
Demands are human ___ that are backed by ____ ____
demands are human WANTS that are backed by BUYING POWER
demands
human wants that are backed by buying power
Market offerings are some ___ of products, services, ___, or ___ offered to a ____ to satisfy a need of want
market offerings are some COMBINATION of products, services, INFORMATION, or EXPERIENCES offered to a MARKET to satisfy a need or want
market offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
marketing myopia is the ____ of paying more attention to the specific products a company offers than to the ___ and ___ produced by these products
marketing myopia is the MISTAKE of paying more attention to the specif products a company offers than to the BENEFITS and EXPERIENCES produced by these products
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
____ is the act of obtaining a desired object from someone by offering something in return
exchange
exchange
the act of obtaining a desired object from someone by offering something in return
wants
the form human needs take as they are shaped by culture and individual personality
a market is the set of all ____ and ___ ___ of a product or ____
a market is the set of all ACTUAL/CURRENT & POTENTIAL BUYERS of a product or SERVICE
market
the set of all actual and potential buyers of a product or service
marketing management
the art and science of choosing target markets and building profitable relationships with them
a – production concept
b – product concept
c – selling concept
d – marketing concept
e – 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.
e – 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.
a – production concept
b – product concept
c – selling concept
d – marketing concept
e – societal marketing 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
B – 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
a – production concept
b – product concept
c – selling concept
d – marketing concept
e – societal marketing 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
c – the idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort
a – production concept
b – product concept
c – selling concept
d – marketing concept
e – societal marketing concept –
a philosophy in which achieving organizational goals depends on knowing the needs & wants of target markets and delivering the desired satisfactions better than competitors do.
d – a philosophy in which achieving organizational goals depends on knowing the needs & wants of target markets and delivering the desired satisfactions better than competitors do.
a – production concept
b – product concept
c – selling concept
d – marketing concept
e – societal marketing 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
a – the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency
marketing
the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
customer relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
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.
customer satisfaction
the extent to which a product’s perceived performance matches a buyer’s expectations
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
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
partner relationship management
working closely with partners in other company departments and outside the company to jointly bring greater value to customers
customer lifetime value
the value of the entire stream of purchases a customer makes over a lifetime of patronage.
share of customer
the portion of the customer”s purchasing that a company gets in its product categories
customer equity
the total combined customer lifetime values of all the company’s customers
digital and social media marketing
using digital marketing tools such as websites, social media, mobile apps, and ads, online video, email, and blogs that engage consumers anywhere, at any time, via their digital devices
What is marketing?
the process of building profitable customer relationships by creating value for customers and capturing value in return
First four steps in the marketing process focus on: 1pt
creating value for customers
First step in the marketing process 3pts
the company first gains a full understanding of the marketplace by researching customer needs and managing marketing information
Second step in the marketing process: 7pts
Design a customer-driven marketing strategy by selecting customers to serve thru market segmentation and targeting (what custos will we serve?) and deciding on a proposition through differentiation and positioning (how can we best serve the targeted customers?)
Here (step 2) the marketer outlines a value proposition that….
spells out what values the company will deliver to win target customers
Step 3 in the marketing process: 9pts
construct an integrated marketing program that delivers superior value by the four ps. Product and service design: build strong brands; pricing: create real value; distribution: manage demand and supply chains; promotion: communicate the value proposition and persuade them to act on the market offering.
Step 4 in the marketing process: 5pts (large points)
build profitable relationships and create customer delight. Throughout the process marketers must use customer relationship management to create a satisfied customer – they engage custos in the process of creating brand conversations, experiences, and community. When creating customer value and relationships the company must work closely with marketing partners both inside the company and thruout its marketing system.
The fifth step in the marketing process reaps the rewards of its ___ ___ ____ by creating ___ from customers
strong customer relationships; value
The final step in the marketing process captures ___ from ___ in return
value; customers
The fifth step in the marketing process: 4pts
capture value from customers to create profits and customer equity by creating satisfied, loyal customers, capturing customer lifetime value, and increasing share of market and share of customer
Which step can be viewed as the most important in the marketing process? why?
Step four: build profitable relationships & create customer delight; marketers must engage customers and also partners in a way that leaves them satisfied by building good customer relationships and partner relationships
What is the result of step five in the marketing process (capture value from custos to create profits and customer equity)?
long-tern customer equity for the firm
While executing all the 5 steps in the marketing process, what three things must companies take into account?
In building custo and partner relationships they must «harness marketing technologies» in the new digital age; take advantage of and «manage global markets»; & «ensure environmental and social responsibility»
What is the key for marketers to the new digital and social media marketing?
The key is to blend the new digital approaches with traditional marketing to create a smoothly integrated marketing strategy and mix.
What has the Great Recession done to the minds of consumers?
It’s made them more frugal and causes them to rethink their buying priorities and bring their consumption back in line with their incomes.
What does the effect of the Great Recession on consumers mean for marketers? What is the challenge of this?
Marketers must emphasize value in their value propositions; the challenge is to balance a brand’s value proposition with current times while also enhancing its long-term equity.
What two responsibilities have marketers been reexamining today?
ethical and societal responsibilities
T/F almost every company, large or small, is touched in some way by global competition
true
Marketers are being called on to take greater responsibility for the ___and ___impacts of their actions
social & environmental impacts
Into what single concept can the new major developments in marketing be summed up?
creating and capturing customer value
What does it mean to create and capture customer value for marketers?
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.
When does marketing occur?
When people decide to satisfy their needs and wants thru exchange relationships.
___ is the act of obtaining a desired object from someone by offering something in return
exchange
Marketing consists of actions taken to ___, ___, and grow desirable ___ relationships with ___ ___ involving a product, service, idea, or other object.
create, maintain; exchange (relationships); target audience
A ___ is the set of actual and potential buyers of a product or service
market
What do buyers in a market have in common? 2pts
the buyers in a market share a particular need or want that can be satisfied thru exchange relationships
Marketing means ___ ___ to bring about ___ customer relationships.
managing markets; profitable
… is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
customer relationship management
CRM deals with all aspects of ___, ___, & ___ customers
acquiring, keeping, and growing
T/F Buyers don’t carry out marketing
false
In addition to customer relationship management, marketers today must also deal with ___-___ ___
customer-managed relationships.
What is customer-managed relationships?
basically when marketers ask “how can out custos influence us/influence each other?”
Two goals of marketing:
The dual goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.
Marketers need to understand customer needs and wants and the marketplace in which they operate…these five core customer and marketplace concepts help understand them: 12pts
The five core customer and marketplace concepts are needs, wants, and demands, market offerings that include products, services, and experiences, value and satisfaction, exchanges and relationships, and markets.
What are customer needs and what do they include? 3pts-more
Customer needs are the states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression.
What are human wants?
Wants are the form human needs take as they are shaped by culture and individual personality.
How do wants differ from needs?
Wants are what are derived from needs. For example, you may need to be fed, but you want to be fed with some sweet and fattening twinkie.
___ are human wants that are backed by buying power
demands
Given their ___ and resources, people ___ products and services with benefits that add up to the most value & satisfaction
wants; demand
How do marketing companies try to learn about and understand their customers’ needs, wants, and demands? 3-4pts
consumer research; analyze custo data; observe custos as they shop and interact, offline and online.
Through what are consumers’ needs and wants fulfilled?
Market offerings