Flashcards and Answers – Chapter 13 Review

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

In the past, marketing was focused on helping the seller sell. Today is is helping the buyer buy.

1) Websites that help buyers find the best price, identify product features, and question sellers.
2) Blogs and social networking sites that cultivate consumer relationships
3) Virtual tours that allow the consumer to experience what they are about to buy

The general philosophy was “Produce what you can because the market is limitless.”

After mass production, the focus turned from production to persuasion.

After WWII, a consumer spending boom developed. Businesses knew they needed to be responsive to consumers if they wanted their business.

Organizations seek to enhance customer satisfaction building long-term relationships.

Customer Orientation
Service Orientation
Profit Orientation

Finding out what customers want and then providing it.

Making sure everyone in an organization is committed to customer satisfaction.

Focusing on the goods and services that will earn the most profit.

Learning as much as you can about customers and doing what you can to satisfy or exceed their expectations. CRM allows companies to to enhance customer satisfaction and stimulate long-term customer loyalty (Ex. frequent flyer programs).

Social media, online communities and blogs

marketing to switch from being always “on” to “on demand.” Consumers are constantly demanding new information regarding products through searchable technology that allows consumers to compare different products

Now – Consumers want to be able to interact at any time
Can I? – Consumers want to know if they can actually purchase or perform something
For me? – Consumers data is stored to provide relevant advertisements or promotions
Simple – Consumers want this process to be easy

Build trust, emphasize the long term, listen, treat your customers like stars, show appreciation, and remember employees are customers too!

Fundraising, Public Relations, Special Campaigns, Ecological practices, Changing public opinions and attitudes, Increasing organizational membership

Determine the firm’s goals and objectives, Focus on long-term marketing, Find a competent board of directors, Exercise strategic planning, Train and develop long-term volunteers, and Carefully segment the target market

“Designing a want-satisfying product, setting a price for the product, putting the product in a place where people will buy it, and promoting the product”
Product, Price, Place, Promotion

A good, service, or idea that satisfies a consumer’s want or need

Pricing products depends on many factors:
• Competitors’ prices
• Production costs
• Distribution
• High or low price strategies

Middlemen are important in place strategies because getting a product to consumers is critical.

All the techniques sellers use to inform people about their products and motivate them to purchase those products. Get customers emotional about your product.
Includes: Advertising, Personal selling, Public relations, Word of mouth, Sales promotions (coupons and rebates)

Testing product concepts among potential product users.

A word, letter, or a group of words or letters that differentiates one seller’s goods from a competitor’s.

Analyzing markets to determine challenges and opportunities, and finding the information needed to make good decisions.

identify products consumers have used in the past and what they want in the future. It uncovers market trends and attitudes help by company insiders and shareholders

Defining the problem or opportunity and determining the present situation.
Collecting research data.
Analyzing the data.
Choosing the best solution and implementing it.

In-depth information gathered by marketers from their own research.
Ex) Telephone, online and mail surveys, personal interviews, and focus groups are ways to collect primary data.

Existing data that has previously been collected by sources like the government.
Pro – incurs no expense and easily accessible
Con – Doesn’t always provide all the needed info for marketers

1) turn data into useful info
2) use their analysts to plan strategies and recommendations
3) Must evaluate their actions and determine if further research is needed

1)Analyze customer needs and satisfaction.
2)Analyze current markets and opportunities.
3)Analyze the effectiveness of marketing strategies.
4)Analyze marketing process and tactics currently used.
5)Analyze the reasons for goal achievement or failure.

1)Conduct informal consumer surveys
2)Host a customer focus group
3)Listen to competitor’s customers
4)Survey your sales force
5)Become a phantom customer

process of identifying factors that affect marketing success.
1)global
2)technological
3)sociocultural
4)competitive
5)economic

All the individuals or households that want goods and services for personal use and have the resources to buy them

Individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others.

Manufacturers
Wholesalers and retailers
Hospitals, schools and charities
Government

true

false, exact opposite

true

Divides the total market into groups with similar characteristics.

Selecting which segments an organization can serve profitably.

Dividing the market by cities, counties, states, or regions.

Dividing the market by age, income, education (demographic variables).

Dividing the market by group values, attitudes, and interests.

Dividing the market according to product benefits the customer prefers.

Dividing the market by the volume of product use.

Identifies small but profitable market segments and designs or finds products for them.

Developing a unique mix of goods and services for each individual consumer.

Developing products and promotions to please large groups of people.

Rejects the idea of mass production and focuses toward custom-made goods and services for customers.

Open communication; Consistently reliable service
Staying in contact with customers
Trust, honesty, and ethical behavior

Learning
Reference Groups
Culture
Subcultures
Cognitive Dissonance