Class 1- Introduction

Question 1

Marketing Management

Answer 1

• The art and science of choosing target markets and getting , keeping, and growing customer through creating , delivering and communication superior customer value

Question 2

Marketing

Answer 2

• Organizational function for creating, communicating, and delivering value to customers and for managing customer relationships in a way that benefits the org stakeholders

Question 3

Customer Value

Answer 3

Creating, appropriating, delivering, and communicating value

Question 4

Value components

Answer 4

1. Benefit customer gets
   o Not just tangible benefits
   o Ex: parking is free or ambiance of a restaurant
2. Cost
   o What customers are willing to pay
   o Most obvious is price
   o Lost so nonmonetary costs such as time effort, or risk incurred
   o Can reduce risk to customer by offering warranties

Result
- Benefit you are getting for the price you are paying (perceived benefit)
- Benefit out weighs cost then company is creating superior value
- If value is less then benefit then not competing at customer level

Question 5

Four types of customer value

Answer 5

Any company offering a product needs to have at least one of these

1. Social
    Ex: TEEMU (about online transactions can buy something for $10 but if you buy with a bunch of people can get it for $6)
2. Functional
    Ex: Volvo and safety or Toyota and reliability
3. Experiential
    Ex: Pineridge Hollow or the Leaf

4.Economic
- ex: Walmart and low prices

Question 6

The Value Proposition

Answer 6

: distinct combination of benefits and price we offer (propose) to customers
o A clear simple statement of the intended target market, the benefits the product or service should provide, and the price

Question 7

What should the Value proposition answer?

Answer 7

Should answer the question
 What benefits are we seeking to provide
 At what price
 To what target market

Question 8

How do we understand customers

Answer 8

• To understand the customers need to think like the customer and act like the customer
  o Can create value to customer when you solve their problem
  o Get in their shoes and see their problems

Question 9

What can be marketed?

Answer 9

• Anything of value to consumers

Question 10

Why Study Marketing

Answer 10

• Marketing drives future profitability
• Marketing is becoming the basis of global competition
• Marketing is not just a function it is everybody’s job

Question 11

Simple questions but hard answers

Answer 11

Who are our customers?
o How are they evolving

What are important benefits do we provide to them?

Can we provide those benefits at a price they can pay and we can make a profit?

Are these benefits sustainable?
o Ex: Kodak who invented photography but out of business as did not adapt to digital market