Marketing Midterm Chapter 1

What is marketing?

The strategies and actions used to engage customers, build relationships, and deliver customer value to capture value in return.

What is the selling concept?

Focuses on existing products and persuading customers to buy through selling and promotion.

What is the marketing concept?

Focuses on customer needs and satisfaction to create profits.

Selling concept vs. marketing concept?

Selling focuses on the product and sales volume; marketing focuses on customer needs and satisfaction.

What is the production concept?

Consumers favor available, affordable products; improve production and distribution efficiency.

What is the product concept?

Consumers favor quality, performance, and innovative features; continually improve products.

What is the societal marketing concept?

Considers conflicts between consumers’ short-term wants and long-term welfare.

What are the five steps of the marketing process?

Understand customers; design strategy; build the marketing mix; build relationships and delight; capture customer value.

What is a need?

A state of felt deprivation.

What is a want?

The form a human need takes, shaped by culture and personality.

What is a demand?

A want backed by buying power.

What is a market?

A set of actual and potential buyers.

What is marketing management?

Choosing target markets and building profitable relationships with them.

What are the 4 Ps of marketing?

Product, price, place, and promotion.

What does product mean in the 4 Ps?

The product’s physical features and what is offered to customers.

What does price mean in the 4 Ps?

What customers pay for the product.

What does place mean in the 4 Ps?

Where and how customers can obtain the product.

What does promotion mean in the 4 Ps?

How a company communicates and advertises its offering.

What is customer-generated content?

Content in which consumers actively participate in brand experiences.

What is partner relationship management?

Working with internal departments and external partners to deliver greater customer value.

What is customer lifetime value (CLV)?

The value of all purchases a customer makes over their lifetime of patronage.

What are butterflies?

Customers who are profitable but not loyal.

What are strangers?

Customers who are neither profitable nor loyal.

What are barnacles?

Customers who are loyal but not profitable.

What are true friends?

Customers who are both profitable and loyal.

Which customer relationship group is most desirable?

True friends, because they are profitable and loyal.

What is the goal of the modern marketing system?

Manage relationships among participants to create customer value, engagement, and profitable relationships.