Chapter 1

Question 1

What is marketing?

Answer 1

Process by which companies create value for customers and build strong customer relationships to capture value from customers in return.

• Happens all around us.
• Very Technology Oriented.
• Wants to build strong relationships. (Coke commercial)
• Marketing helps shapes your wants.

Question 2

What are the FIVE steps of the marketing process?

Answer 2

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

Question 3

What are the FIVE concepts of Marketing Orientation?

Answer 3

1- Production Concept. (Improve product efficiency and bring down prices).
2- Product Concept (High in quality performance, no need for promo).
3- Selling Concept (Consumers won’t buy if theres no promo).
4- Marketing Concept (Determine the needs and wants of target markets and deliver the desired satisfaction)
5- Societal (All about what consumers want & society long-run interests).

Question 4

What is Customer Relationship Management (CRM)?

Answer 4

• Building and painting profitable customer relationships.
• Want to create a superior customer value and satisfac.
• Customers should invest in a company for a lifetime.
• Works with marketing partners inside and outside the company.
• Must ACQUIRE, KEEP AND GROW.

Question 5

What is Partner Relationship Management?

Answer 5

• Work closely with partners in other companies departments and outside to bring more value to customers.

Question 6

What are the FIVE concepts of the changing marketing landscape?

Answer 6

1- Uncertain Economic Environment.
2- The Digital Age (SHOP FROM HOME)
3- Rapid Globalization 
4- Sustainable Marketing
5- Growth for non-for-profit marketing.

Question 7

A target can be marketed by…

Answer 7

• AGE
• GENDER
• SOCIAL CLASS
• Can you sell a canada goose to ppl in florida? CLIMATE
• Not everyone has the same needs so you must segment your market.

Question 8

SHARE OF CUSTOMER vs. CUSTOMER EQUITY…

Answer 8

Share of customer:

• Market Share.
• Having customer spend more money on other products.
• Bank (Sell clients as many things as possible).
• Get more in my store.

Customer Equity:

• Owning a customer for life.
• Opening youth accounts for the child to be a future clients.
• Lifetime value.
• Buy from our company for life.