CHAPTER 1

Q1: What is marketing?

A: Marketing is the process of engaging customers, building strong relationships, and creating value to capture value in return.

Q2: What is marketing myopia?

A: It's the mistake of focusing only on existing products rather than the underlying customer needs they satisfy. This limits innovation and creates vulnerability to competitors.

Q3: What are the five steps in the marketing process?

A:

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 value

4. Engage customers and build strong relationships

5. Capture value from customers to create profits and customer equity

Q4: What are needs, wants, and demands?

A:

• Needs: Basic human requirements (e.g., food, shelter)

• Wants: Needs shaped by culture and personality

• Demands: Wants backed by buying power

Q5: What are market offerings?

A: Products, services, and experiences offered to satisfy customer needs and wants.

Q6: What is customer value and satisfaction?

A: Customers form expectations; satisfaction occurs when performance meets or exceeds these expectations.

Q7: What is an exchange in marketing?

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

Q8: What defines a market?

A: A market is a set of all actual and potential buyers of a product or service.

Q9: What is marketing management?

A: The art and science of choosing target markets and building profitable relationships with them.

Q10: What are the two core questions in marketing strategy?

A:

1. What customers will we serve? (Target Market)

2. How can we best serve them? (Value Proposition)

Q11: What is the production concept?

A: Focuses on efficiency in production and wide distribution; assumes customers prefer affordable and available products.

Q12: What is the product concept?

A: Focuses on product quality, performance, and innovation.

Q13: What is the selling concept?

A: Emphasizes aggressive selling and promotion to generate sales, often used with unsought goods.

Q14: What is the marketing concept?

A: Focuses on knowing and satisfying the needs of target customers better than competitors.

Q15: What is the societal marketing concept?

A: Considers not only company profits and customer needs but also society’s long-term interests.

Q16: What is Customer Relationship Management (CRM)?

A: Building and maintaining profitable relationships by delivering superior customer value and satisfaction.

Q17: What is consumer-generated marketing?

A: When consumers create content or share experiences that influence others (e.g., reviews, social posts).

Q18: What is customer engagement marketing?

A: Directly engaging consumers in shaping brand conversations and building community.

Q19: What is partner relationship management?

A: Coordinating with internal teams and external partners to deliver superior value across the value delivery network.

Q20: What is customer lifetime value (CLV)?

A: The total value a customer provides to a brand over the entire relationship.

Q21: What is share of customer?

A: The portion of a customer’s total spending in a category that a company captures (e.g., more of their grocery budget).

Q22: What is customer equity?

A: The total combined lifetime values of all current and potential customers—a predictor of long-term profitability.

Q23: How has the marketing landscape changed in the digital age?

A: With the rise of online, mobile, and social media marketing, brands now engage with customers in real-time.

Q24: What role does Big Data and AI play in marketing?

A: They allow for deep personalization, trend prediction, and data-driven decision-making.

Q25: Why is not-for-profit marketing growing?

A: Organizations like schools, hospitals, and charities use marketing to gain support and deliver value to communities.

Q26: How does globalization affect marketing?

A: It connects companies and consumers worldwide, requiring brands to adapt to diverse markets and cultures.

Q27: Why is sustainability important in modern marketing?

A: Consumers increasingly demand that businesses act responsibly toward the environment and society.