Chapter 1 - Marketing: Creating & Capturing Customer Value

Question 1

Define value

Answer 1

what you get (benefits) for what you give (costs)

Question 2

What is the AMA definition of marketing?

Answer 2

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

Question 3

What is the book definition of marketing?

Answer 3

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Question 4

What are the 5 core aspects of marketing?

Answer 4

1. Marketing occurs in many settings
2. Marketing creates value
3. Marketing is about satisfying customer needs and wants
4. Marketing entails an exchange
5. Marketing requires product, price, place, and promotion decisions

Question 5

What is fundamental to marketing success?

Answer 5

Understanding customer needs and wants

Question 6

Define exchange

Answer 6

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

Question 7

What are the 4 P’s of marketing?

Answer 7

Product
Price
Place
Promotion

Question 8

What is the value of each of 4 P’s?

Answer 8

Product - Creating
Price - Capturing
Place - Delivering
Promotion - Communicating

Question 9

Define product.

Answer 9

good, service, and idea

Question 10

Define price.

Answer 10

everything a buyer gives up in exchange for the product

Question 11

Define place.

Answer 11

activities necessary to get the product to the right customer when the customer needs it

Question 12

Define promotion

Answer 12

communication that informs, persuades, and reminds potential buyers about a product to elicit a response

Question 13

What are 3 ways to offer superior value?

Answer 13

1. Use data to understand customer’s benefits and costs
2. Manage customer satisfaction (performance vs. expectation)
3. Build relationships with customers and partners

Question 14

Define the 80/20 principle.

Answer 14

80% of revenue usually comes from 20% of customers

Question 15

What is the overall definition of marketing? (combination of AMA and book)

Answer 15

Marketing is a set of processes:

• for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large, and
• for building strong customer relationships