Marketing362 Chapter One

What can marketers expect from individuals in the customer relationship group classified as “butterflies”?
“Butterflies” are profitable but not loyal. This relationship should be enjoyed “for the moment”. Butterflies are not loyal customers.
Which marketing management concept is most likely to lead to marketing myopia?
Product
When marketers set low expectations for a market offering, they are most likely to run the risk of what?
Failing to attract enough customers.
When the economy tightens, customer loyalty and customer retention become?
More important.
What is the total combined customer lifetime values of all the company’s current and potential customers?
Customer Equity
The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society’s interests, and?
Company Profits
Are large-Scale marketing approaches that foster two-way customer relationships made possible by new communication technologies?
Yes.
When backed by buying power, wants become?
Demands
Do product, price, place, and promotion make up the elements of a firm’s marketing mix?
Yes.
What concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer’s and society’s well being?
Societal Marketing
As part of the rapid globalization of today’s economy, companies are selling more locally produced goods in international markets and?
Purchasing more supplies abroad.
What is the marketing world embracing because consumers can wield greater power and control in the marketplace through communication technologies?
Customer-Managed Relationships
What are human needs as shaped by individual personality and culture?
Wants
A firm that uses the selling concept takes which approach?
Inside-out
Two important questions underlying marketing strategy are “Who is our target market?” and “What’s our value proposition?”
True.
New communication technologies create challenges as well as advantages for marketers.
True.
Frequent flyer programs offered by airlines are an example of a?
Frequency Marketing Program
What is the set of actual and potential buyers of a product?
A market.
Marketing Management is interested in serving all customers in every way to remain competitive in today’s markets.
False.
The difference between human needs and wants is that needs are not influenced by marketers.
True.
The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society’s interest.
True.
Customer-perceived value depends on the product’s perceived performance relative to a buyer’s expectations.
False.
Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using?
Customer Profitability Analysis
Selecting which segments of a population of customers to serve is called?
Target Marketing
The major difference between customer-driving marketing and customer-driven marketing is that the customer-driving marketing considers only existing needs.
False.
How is marketing being applied in the not-for-profit sector?
Firms in the not-for-profit sector may use marketing to enhance their images or to attract memberships and donors. Some organizations, such as government agencies, may design social marketing campaigns to encourage specific causes.
Consumer research, product development, communication, distribution, pricing, and service are all most accurately described as core _______activities?
marketing
Henry Ford’s philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the?
Production Concept
The social-responsibility and environmental movements are expected to what in the future?
Demand more from companies.
Which concept calls for aggressive selling and focuses on generation transactions to obtain profitable sales?
Selling Concept
Market Offerings are limited to physical products.
False.
Selling is managing profitable customer relationships.
False.
Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships.
True.
Which of the following has been the most common consumer response to the economic downturn that began in 2008?
Spending less and choosing products more carefully.
The ultimate aim of customer relationship management is to produce?
High customer equity
Customer-driven marketing is most likely to work well when _____and when customers____
a clear need exists; know what they want
What refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
Marketing Myopia
New communication technologies create challenges as well as advantages for marketers.
True.
Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization.
False.
“Build a better mousetrap and the world will beat a path to your door” reflects the what concept?
Product.
What is the simple definition of marketing?
Marketing is managing profitable customer relationships.
What are the two goals of marketing?
Attract new customers by promising superior value, and keep and grow current customer base by delivering satisfaction.
What is marketing defined?
Marketing is the process by which companies create value for customer and build strong customer relationships in order to capture value from customers in return.
What is the new view of marketing?
Satisfying customer needs.
What are the five steps of 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.
Marketers must understand five core customer and marketplace concepts which are?
1. Needs, wants, and demands
2. Market offerings
3. Value and satisfaction
4. Exchanges and relationships
5. Markets
What is a need?
State of felt deprivation including physical, social, and individual needs.
What is a Marketing Offer?
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
What is an exchange?
Act of obtaining a desired object from someone by offering something in return.
What is a market?
Is the set of actual and potential buyers of a product.
What do modern marketing systems include?
Suppliers, Company, Competitors, Marketing intermediaries, consumers
What is marketing management?
The art and science of choosing target markets and building profitable relationships with them.
What is the aim of marketing management?
Aim is to find, attract, keep, and grow customers by creating, delivering, and communicating superior value.
Which two questions does Marketing Management ask?
What is our target market? (what customers will we serve)
What is our value proposition? (how can we best serve these customers)
What is market segmentation?
Dividing the market into segments of customers.
What is target marketing?
Selecting one or more segments to cultivate.
What is a value proposition?
The set of benefits or values a company promises to deliver to consumers to satisfy their needs.
What is the marketing concept?
A marketing management philosophy holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors.
What are the four P’s of marketing?
Product
Price
Place
Promotion