Marketing: Creating Customer Value and Engagement

Comprehensive flashcards covering the introductory concepts of marketing, the marketing process, strategy, and customer relationship management based on Chapter 01 of the Kotler/Armstrong/Balasubramanian text.

What is the definition of marketing as stated in the notes?

Marketing is engaging customers and managing profitable customer relationships.

What are the two primary goals of marketing?

To attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

How does 'Contemporary Marketing' differ from 'Traditional Marketing' regarding customer reach?

Traditional marketing relies on television, magazine, and direct-mail ads to make a sale, whereas contemporary marketing reaches customers directly, personally, and interactively through websites, mobile apps, blogs, and social media.

What are the five steps in the marketing process for creating and capturing customer value?

1. Understand the marketplace and customer needs and wants; 2. Design a customer value-driven marketing strategy; 3. Construct an integrated marketing program that delivers superior value; 4. Engage customers, build profitable relationships, and create customer delight; 5. Capture value from customers to create profits and customer equity.

What are the three categories of customer needs according to the lecture?

Physical needs (food, clothing, warmth, and safety), social needs (belonging and affection), and individual needs (knowledge and self-expression).

How are 'wants' distinguished from 'demands'?

Wants are the form taken by human needs when shaped by culture and individual personality, while demands are human wants that are backed by buying power.

What is 'marketing myopia'?

Paying more attention to the specific products a company offers than to the benefits and experiences produced by those products.

In marketing terms, what is an 'exchange'?

The act of obtaining a desired object by offering something in return.

What is a 'market'?

The set of all actual and potential buyers of a product.

What is the difference between market segmentation and target marketing?

Market segmentation refers to dividing the markets into segments of customers, while target marketing refers to deciding which segments to go after.

How does the 'selling concept' differ from the 'marketing concept'?

The selling concept takes an inside-out view, starting from the factory and focusing on existing products and heavy promotion to achieve profits through sales volume. The marketing concept takes an outside-in view, starting from the market and focusing on customer needs to achieve profits through customer satisfaction.

Name the three considerations underlying the societal marketing concept.

Society (human welfare), Consumers (want satisfaction), and Company (profits).

What are the 'Four Ps' of the marketing mix?

Product, Price, Place, and Promotion.

What is 'customer-perceived value'?

The customer’s evaluation of a marketing offer relative to those of competing offers.

Define 'customer satisfaction'.

The extent to which a product’s perceived performance matches a buyer’s expectations.

What is 'customer lifetime value'?

The value of the entire stream of purchases a customer makes over a lifetime of patronage.

What is 'share of customer' and how is it increased?

The portion of the customer’s purchasing in their product categories; it is increased through good customer relationship management, offering greater variety, and cross-selling or up-selling to existing customers.

What is 'customer equity'?

The total combined customer lifetime values of all of the company’s customers, measuring the future value of the firm's customer base.

According to the Customer Relationship Groups matrix, how are 'True friends' categorized?

Customers with high potential profitability and long-term projected loyalty.

According to the Customer Relationship Groups matrix, how are 'Barnacles' categorized?

Customers with low potential profitability and long-term projected loyalty.

What major trends are currently changing the marketing landscape?

The Digital Age, changing economic environments, growth of not-for-profit marketing, rapid globalization, and sustainable marketing.

How can brands use 'Big Data' and 'Artificial Intelligence (AI)'?

To gain deep customer insights, personalize marketing offers, and improve customer engagements and service.