Marketing Exam 1: Professor Coupland CHAPTER 1

Marketing Exam 1: Professor Coupland
CHAPTER 1: INTRO/WHAT IS MARKETING?
 What is marketing?
o The process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in
return.

 The marketing concept
o Achieving organizational goals depends on knowing the needs and wants
of target markets and delivering the desired satisfactions better than
competitors do
o This is a more customer-centered sense and respond philosophy
o Outside-in view that focuses on satisfying customer needs as path to
profits – example: Southwest Airlines has a customer department
o Types of products
 Create value through the “products”  physical objects, people,
organizations, places, information, ideas
 Example– Papa John’s Peyton Manning Commercial, they’re not
just selling the product, they’re selling the brand, the organization
(NFL)
o Types of customers

 Sales concept
o The idea that consumers will not buy enough of the firm’s products unless
the firm undertakes a large-scale selling and promotion effort.
o Usually with unsought goods, usually what buyers don’t normally think of
buying, such as insurance or blood donations
o This is an inside-out view that focuses on existing products and heavy
selling. Focuses on selling what the company makes rather than making
what the customer wants.

 Production concept
o Mass production that is cheap, focuses on making continuous product
improvements
o Consumers will favor products that are available and highly affordable

 Product concept
o High quality product
o Consumers will favor products that offer the most in quality, performance,
and innovative features.

 Marketing myopia
o The mistake of paying more attention to the specific products a company
offers than to the benefits and experiences produced by these products.
o Example– BIC only focused on what they’re good at, they tried perfume
and it wasn’t successful

 Societal marketing concept


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o The idea that a company’s marketing decisions should consider
consumers’ wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests
o Marketing strategy should focus on delivering value to customers in a way
that will maintain or improve both the consumer and society’s well being.
o Triangle society (human welfare)consumers (want
satisfactions)company (profits)
o Example– Starbucks, McDonald’s changing the image of their brand
(emotional with commercials)

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o The idea that a company’s marketing decisions should consider
consumers’ wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests
o Marketing strategy should focus on delivering value to customers in a way
that will maintain or improve both the consumer and society’s well being.
o Triangle society (human welfare)consumers (want
satisfactions)company (profits)
o Example– Starbucks, McDonald’s changing the image of their brand
(emotional with commercials)

 The marketing mix
o The set of marketing tools the firm uses to implement its marketing
strategy.
o The 4 P’s: Product, Price, Placement, Promotion
o Product– deliver on its value to create a need-satisfying market
o Price– decide how much it will charge for offering
o Place– how it will make the offering available to target consumers
o Promotion– communicate with target customers about the offering and
persuade them of its merits

 Marketing process model
o Steps in the process
o Consumer touch points

 Building and capturing customer value
Customer loyalty and retention
o Customer relationship management
 Overall process of building and maintaining profitable customer
relationships by delivering superior customer value and
satisfaction
o Customer Perceived-Value
 Customer’s evaluation of the difference between all the benefits
and all the costs of a marketing offer relative to those of competing
offers
o Customer Satisfaction
 The extent to which a product’s perceived performance matches a
buyers expectations
o Customer engagement marketing
 Making the brand a meaningful part of consumers’ conversations
and lives by fostering direct and continuous customer involvement
in shaping brand conversations, experiences, and community
o Customer equity
 The total combined customer lifetime values of all of the
company’s customers
o Consumer generated marketing
 Brand exchanges created by consumers themselves– both invited
and uninvited by which consumers are playing an increasing role
in shaping their own brand experiences and those of other
consumers



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Customer relationship groups
o Partner relationship management
 Working closely with partners in other company departments and
outside the company to jointly bring greater value to customers
o Customer lifetime value
 Value of the entire stream of purchases a customer makes over a
lifetime of patronage
Sh f t

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Customer relationship groups
o Partner relationship management
 Working closely with partners in other company departments and
outside the company to jointly bring greater value to customers
o Customer lifetime value
 Value of the entire stream of purchases a customer makes over a
lifetime of patronage
o Share of customer
 The portion of the customer’s purchasing that a company get in its
product categories
o Superior customer value results in:
 Customer loyalty and retention, customer referrals, more
customers, customer equity (total of all individual values), higher
profits

Loyalty/Profitability Chart
 Strangers– low potential profitability, little loyalty (don’t fly a lot, not loyal)
 Butterflies– potentially profitable, but not loyal (fly a lot, not loyal)
 True Friends– both profitable and loyal (fly a lot, very loyal)
 Barnacles– highly loyal, not profitable (don’t fly a lot, very loyal)
 Goal: build right relationships with right customers, example– coke vs. pepsi
o Customer evangelists: an advanced form of word-of-mouth marketing
(WOMM) in which companies develop customers who believe so strongly
in a particular product or service that they freely try to convince others to
buy and use it.




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CHAPTER 3: MARKETING ENVIRONMENT
 What is the marketing environment; why is it important
o Marketing Environment
 The actors and forces outside marketing that affect marketing
management’s ability to build and maintain successful