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Marketing Chapter 1
Test banks and vocab for chapter 1
177
Marketing
02/19/2011

Additional Marketing Flashcards

 


 

Cards

Term
Marketing
Definition

 

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

 

Term
The Marketing Process
Definition

 

 

  •         Understand the marketplace and customer needs and wants. 
  • Design a customer-driven marketing strategy.
  •    Construct an integrated marketing program that delivers superior value.
  • Build profitable relationships and create customer delight.
  •      Capture value from customers to create profits and customer equity.

 

 

Term
Needs
Definition

 

States of felt deprivation

 

Term
Wants
Definition

 

-the form human needs take as shaped by culture and individual personality

 

Term
Demands
Definition

 

Human wants that are backed by buying power.

 

Term
Market offering
Definition

 

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

 

Term
Market Myopia
Definition

 

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

 

Term
Exchange
Definition

 

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

 

Term
Market
Definition

 

the set of all actual and potential buyers of a product or service.

 

Term
Product Concept
Definition

 

The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.

 

Term
Selling Concept
Definition

 

-the idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

 

Term
Marketing Concept
Definition

 

The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

 

Term
Societal Marketing Concept
Definition

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.

 

Term
Customer relationship management
Definition

 

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

 

Term
Customer Percieved Value
Definition

 

The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

 

Term
Customer Satisfaction
Definition

 

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

 

Term
Customer Generated Marketing
Definition

 

Marketing messages, ads, and other brand exchanges created by consumers themselves-both invited and uninvited.

 

Term
Partner relationship management
Definition

 

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

 

Term
Share of Customer
Definition

 

The portion of the customer’s purchasing that a company gets in its product categories.

Term
Customer Equity
Definition

 

The total combined customer lifetime values of all of the company’s customers.

 

Term
Customer Equity
Definition
The total combined customer lifetime values of all of the company's customers.
Term
Customer Lifetime Value
Definition

 

The value of the entire stream of purchases that the customer would make over a lifetime of patronage.

 

Term
Internet
Definition

 

A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large information repository.

 

Term

All of the following are accurate descriptions of modern marketing:

Definition

A) Marketing is the creation of value for customers.

B) Marketing is managing profitable customer relationships.

D) Marketing involves satisfying customers' needs.

E) Marketing is used by for-profit and not-for-profit organizations.

 

 

Term
According to the opening scenario, the Tide marketing team is MOST concerned about which of the following
Definition
Fostering Customers emotional connections with their product
Term
According to management guru Peter Drucker "The aim of marketing is to _____________.
Definition
Make selling unnecessary.
Term
____________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.
Definition
Marketing
Term
Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships?
Definition
The first four only.
Term
According to the simple five-step model of the marketing process, a company needs to _______ before designing a customer-driven marketing strategy.
Definition
Understand the marketplace and customer needs and wants.
Term
_________ are human needs as shaped by individual personality and culture.
Definition
Wants
Term
When backed by buying power, wants become __________.
Definition
Demands
Term
What do companies call a set of benefits that they promise to consumers to satisfy their needs?
Definition
Market offering
Term
Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
Definition
Marketing Myopia
Term
When marketers set low expectations for a market offering, the biggest risk they run is __________.
Definition
Failing to attract enough customers
Term
_______ is the act of obtaining a desired object from someone by offering somthing in return.
Definition
Exchange
Term
A(n) ___________ is the set of actual and potential buyers of a product.
Definition
Market
Term
Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.
Definition
marketing
Term
Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
Definition
Not all customers will be satisfied.
Term
In the case of excess demand, _________ may be required to reduce the number of customers or to shift demand temporarily or permanently.
Definition
demarketing
Term
The art and science of choosing target markets and building profitable relationships with them is called __________.
Definition
marketing management
Term
Selection of which segments of a population of customers to serve is called _________.
Definition
target marketing
Term
Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs?
Definition
a value proposition
Term
Which customer question is answered by a company's value proposition?
Definition
"Why should I buy your brand rather than a competitor's?"
Term
Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?
Definition
production concept
Term
Which of the following marketing management concepts is most likely to lead to marketing myopia?
Definition
production
Term
The ____________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.
Definition
product
Term
The product concept says that a company should do which of the following?
Definition
Focus on making continuous product improvements
Term
"Build a better mousetrap and the world will beat a path to your door" reflects the __________ concept.
Definition
product
Term
Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales?
Definition
selling
Term
Which concept holds that achieving organizational goals depends on knowing the needs and wants of target makets and delivering the desired satisfactions better than competitors do?
Definition
marketing 
Term
A firm that uses the selling concept takes a(n) ________ approach.
Definition
inside-out
Term
According to the production concept, consumers will favor products that are ________ and _________.
Definition
available; affordable
Term
 Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective.
Definition
outside-in
Term
Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products?
Definition
unsought
Term
Which of the following reflects the marketing concept philosophy?
Definition
"We don't have a marketing department; we have a customer department."
Term
Customer-driven marketing usually works well when _________ and when customers ________.
Definition
a clear need exists; know what they want
Term
Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing.
Definition
customer-driving
Term
When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.
Definition
customer-driving
Term
The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer __________.
Definition
long-run welfare
Term
Which concept holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being?
Definition
societal marketing
Term
The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.
Definition
company profits
Term
The set of marketing tools a firm uses to implement its marketing strategy is called the _______.
Definition
marketing mix
Term
Of the following, which is the most important concept of modern marketing?
Definition
customer relationship management
Term
Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________.
Definition
customer relationship management
Term
Customer-perceived value is determined by a customer's _________ of the benefits and costs of a marketing offering relative to those of competing offers.
Definition
personal assessment
Term
It is most accurate to say that customers buy from stores and firms that offer which of the following?
Definition
the highest customer-perceived value
Term
_________ is defined as the customer's evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers.
Definition
Customer-perceived value
Term
Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?
Definition
customer evangelists
Term
Which of the following strategies would a company most likely use to increase customer satisfaction?
Definition
lowering prices
Term
A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________.
Definition
frequency marketing program
Term
iRobot, the makers of Roomba, have involved their customers in product development, marketing, and technical support in an effort to foster which of the following?
Definition
customer delight
Term
In which of the following situations has a company most actively turned its consumers into marketing partners?
Definition
iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum.
Term
Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is referred to as ________.
Definition
selective relationship management
Term
Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true ________ and are instead turning to selective relationship management.
Definition
mass marketing
Term
The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following?
Definition
a club marketing program
Term
Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships?
Definition
traditional advertising
Term
Which of the following best explains why consumers have greater power and control in today's marketplace?
Definition
Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.
Term
Greater consumer control means that companies must rely more on marketing by ________ than by ________.
Definition
interaction; intrusion
Term
To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________.
Definition
partner relationship management
Term
In today's world, marketing should be done by ________ employees in an organization.
Definition
all
Term
Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.
Definition
supply chain management
Term
Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing?
Definition
) supply chain
Term
The final step in the marketing process is ________.
Definition
capturing value from customers
Term
Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration of which of the following?
Definition
customer lifetime value
Term
Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year award to ________.
Definition
the consumer
Term
Which of the following is an example of consumer-generated marketing?
Definition
MasterCard's use of "Priceless" commercials shot by customers
Term
When an airline goes after a "share of travel" from its customers, it is attempting to increase ________.
Definition
share of customer
Term
Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms?
Definition
Marketers want to increase the share they get of the customer's purchasing in their product categories.
Term
________ is one of the best ways to increase share of customer.
Definition
Cross-selling
Term
Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps Amazon.com capture a greater ________.
Definition
share of customer
Term
Which of the following is the total combined customer lifetime values of all a company's current and potential customers?
Definition
customer equity
Term
The ultimate aim of customer relationship management is to produce ________.
Definition
customer equity
Term
A potentially highly profitable, short-term customer is a ________.
Definition
butterfly
Term
Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty?
Definition
true friends
Term
Which of the following statements about the Internet is most accurate?
Definition
The Internet makes it easy for consumers to view, interact with, and create marketing content.
Term
Which of the following is currently the fastest-growing form of marketing?
Definition
online marketing
Term
Today almost every company, small and large, is affected in some way by which of the following?
Definition
global competition
Term
Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area's streams and water supply cleaner, it is involved in ________.
Definition
social marketing campaigns
Term
Selling is managing profitable customer relationships.
True/False
Definition
False
Term
Human needs are shaped by culture and individual personality.
True/False
Definition
False
Term
The difference between human needs and wants is that needs are not influenced by marketers.
True/False
Definition
True
Term
When backed by buying power, needs become demands.
True/False
Definition
False
Term
Market offerings are limited to physical products.
True/False
Definition
false
Term
An experience such as a vacation can be defined as a market offering.
True/False
Definition
true
Term
When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.
True/false
Definition
False
Term
Only sellers of products, services, and ideas practice marketing; buyers do not.
True/false
Definition
false
Term
Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only.
T/F
Definition
false
Term
Definition
Term
Demarketing is a marketing philosophy focused upon product differentiation and positioning.
T/F
Definition
False
Term
When it becomes necessary to reduce demand for a product or service, an organization may use demarketing to reduce or shift the number of customers.
T/F
Definition
true
Term
The production concept and product concept are orientations that can lead to marketing myopia.
T/F
Definition
Term
The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
T/F
Definition
true
Term
Amy's law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept.
T/F
Definition
false
Term
Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept.
T/F
Definition
False
Term
Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.
T/F
Definition
false
Term
The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests.
T/F
Definition
true
Term
For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management.
T/F
Definition
false
Term
The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing.
T/F
Definition
false
Term
Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
T/F
Definition
true
Term
With selective relationship management, companies use customer profitability analysis to eliminate losing customers and target winning ones.
T/F
Definition
true
Term
Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.
T/F
Definition
true
Term
Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force.
T/F
Definition
false
Term
To increase their "share of customer," a firm concentrates on retaining as many customers as possible over their lifetimes.
t/f
Definition
false
Term
) Web 2.0 is distinguished by its poorly conceived e-tailers and Web start-ups.
t/f
Definition
false
Term
Briefly compare and contrast the concepts of needs, wants, and demands, giving an example of each. Discuss how these concepts relate to marketing practices.
Definition
Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety; a basic social need for belonging and affection; and a basic individual need for knowledge and self-expression. Unlike needs, wants are not innate; instead, wants are needs shaped by culture, society, and individual personality. For example, an American needs food but wants a Big Mac and a soft drink. An American with ten dollars needs food, wants a Big Mac and soft drink, and demands lunch at McDonalds. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' wants and demands. They then attempt to fulfill customers' wants and demands through their market offerings.
Term
In a short essay, explain how and why marketers go beyond selling a product or service to create brand experiences.
Definition
: Sellers are most effective when they focus more on the benefits and experiences produced by their products and services than on the specific products and services themselves. Smart marketers focus on creating a brand experience, incorporating several products and services for their customers. By doing so, marketers hope to increase customer satisfaction, creating a body of customers who will repeatedly purchase their market offerings and recommend those offerings to friends.
Term
Compare the selling and marketing concepts, listing the key components of each philosophy.
Definition
The selling concept reflects an inside-out philosophy, while the marketing concept takes an outside-in perspective. The selling concept is typically practiced when an organization is marketing products or services that buyers do not normally think of purchasing, such as insurance or blood donation. Aggressive selling focuses on creating sales transactions rather than on building long-term relationships with customers, with the aim of selling what the company makes rather than making what the customer wants. The marketing concept, on the other hand, is based upon identifying the needs and wants of target markets and then satisfying those needs and wants better than competitors do. In contrast to the selling concept, marketing focuses on the customer, not the product, as the path to profits.
Term
Briefly explain the societal marketing concept. Give an example of an organization that has effectively used the societal marketing concept.
Definition
According to this concept, firms will succeed if they take underlying consumer needs and society's well being into account over the long term. A pure marketing concept can damage consumers' long-run welfare by focusing exclusively on satisfying consumers' short-run wants. Over a long period of time, this too-narrow focus can be damaging to the company. In setting their marketing strategies, marketers today need to balance company profits, consumer wants, and society's interests. Johnson & Johnson is an example of a company that has successfully implemented the societal marketing concept. The organization stresses honesty, integrity, and putting people before profits, an ethic that helped Johnson & Johnson quickly address and recover from the poisonous tampering of Tylenol capsules in 1982.
Term
Define customer relationship management and explain its associated tools and levels of relationships.
Definition
Customer Relationship Management (CRM) is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. A company with mostly low-margin customers is likely to seek basic relationships, using brand-building advertising and sales promotion. An organization with few customers and high margins, on the other hand, will work to create key partnerships with select customers. To create stronger bonds with customers, some marketers use tools such as financial benefits or rewards based on frequency of purchase. Other tools include social benefits, like offering key customers the opportunity to network and create communities through club marketing programs. Another approach adds structural ties to the aforementioned financial and social benefits. Hence, to retain current customers and remain profitable, companies today are going beyond transactional marketing to customer relationship management. The key is to create and sustain relationships for the long term.
Term
Explain why the aim of customer relationship management is to create not just customer satisfaction, but also customer delight.
Definition
Customer satisfaction cannot be taken for granted. Because brand loyalty is dependent upon strong customer satisfaction, companies strive to retain, satisfy, and even delight current customers. Firms create customer delight by promising only what they can deliver and then delivering more than what they promised. They also create emotional relationships with key customers. Delighted customers make repeated purchases and become customers for life. More importantly, they also essentially become an unpaid sales force for the firm as "customer evangelists" who tell other potential customers about their positive experiences with the product.
Term
In a short essay, discuss the challenges and advantages that new communication technologies have created for marketers.
Definition
Through the Internet and related technologies, people can now interact in direct and surprisingly personal ways with large groups of others, from neighbors within a local community to people across the world. With communication technologies such as e-mail, blogs, Web sites, online communities, and online social networks, today's marketers incorporate interactive approaches that help build targeted, two-way customer relationships. Marketers can create deeper consumer involvement and a sense of community surrounding a brand, making a brand a meaningful part of consumers' conversations and lives. However, while new communication tools create relationship-building opportunities for marketers, they also create challenges. They give consumers a greater voice, and therefore greater power and control in the marketplace. Today's consumers have more information about brands than ever before, and they have a wealth of platforms for airing and sharing their brand views with other consumers. This benefits companies when views of its products are positive, but can be damaging when customers share stories of negative experiences with a company's products.
Term
Definition
Term
Define customer equity and explain how a company can increase it.
Definition
Customer equity is the sum of the lifetime values of all a company's current and potential customers. Customer equity is dependent upon customer loyalty from a firm's profitable customers. Because customer equity is a reflection of a company's future, companies must manage it carefully, viewing customers as assets that need to be maximized. To increase customer equity, companies should work to delight their customers and establish full relationships with their most profitable customers.
Term
In a short essay, describe and compare the four types of customers classified by their potential profitability to an organization. Explain how an organization should manage each type of customer.
Definition
The four types of customers are strangers, butterflies, true friends, and barnacles. "Strangers" have low potential profitability and loyalty. A company's offerings do not fit well with a stranger's wants and demands. Companies should not invest in building a relationship with this type of customer. Another type of customer in which a company should not invest is the "barnacle." Barnacles are highly loyal but not very profitable because there is a limited fit between their needs and the company's offerings. The company might be able to improve barnacles' profitability by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be "fired." Like strangers, "butterflies" are not loyal. However, they are potentially profitable because there is a good fit between the company's offerings and their needs. Like real butterflies, this type of customer will come and go without becoming a permanent, loyal consumer of a company's products. Companies should use promotional blitzes to attract these customers, create satisfying and profitable transactions with them, and then cease investing in them until the next time around. The final type of customers is "true friends"; they are both profitable and loyal. There is a strong fit between their needs and the company's offerings, so the company should make continuous relationship investments in an effort to go beyond satisfying and to delight these customers. A company should try to convert true friends into customer evangelists who tell others about their good experiences with the company.
Term
Explain how the Internet has transformed the way in which we do business today.
Definition
The Internet links individuals and businesses of all types to each other. The Internet allows firms access to exciting new marketspaces. The Internet has spawned an entirely new breed of "click only" companies–the "dot-coms." The post-Internet frenzy of the late 1990s has introduced companies that are both savvy and face promising futures. These companies use a set of new Web technologies to reach customers, including blogs (web logs), vlogs (video-based logs), and social networking sites. "Brick-and-mortar" companies of the past are now "click-and-mortar" companies, with online presences aimed at attracting new customers and strengthening bonds with current customers. Approximately 65% of American Internet users now shop online, making a Web presence a necessity for any organization.
Term
Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a(n) ________.
Definition
demand
Term
To avoid traffic gridlock in large metro areas, a community might use ________ to discourage travelers from driving during peak commuting hours.
Definition
demarketing
Term
Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________.
Definition
target marketing
Term
Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing their future funeral needs, and she must somehow first get their attention. Jolene's firm is most likely practicing the ________.
Definition
selling concept
Term
Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.
Definition
production
Term
Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept.
Definition
product
Term
Which of the following reflects the marketing concept?
Definition
"This is what I want; won't you please make it?"
Term
Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.
Definition
societal marketing concept
Term
Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using ________.
Definition
selective relationship management
Term
You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following?
Definition
customer relationship management
Term
Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________.
Definition
customer satisfaction
Term
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________.
Definition
customer-perceived value
Term
Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match ________ with ________.
Definition
customer expectations; company performance
Term
Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected.
Definition
customer delight
Term
You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would it be most profitable for you to develop with these customers?
Definition
basic relationships
Term
Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.
Definition
consumer-generated marketing
Term
At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.
Definition
capturing customer lifetime value
Term
Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?
Definition
barnacles
Term
A church targeting different demographic groups to increase attendance is an example of ________.
Definition
not-for-profit marketing
Term
Definition
Term
Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________.
Definition
social responsibility
Term
Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign.
Definition
social marketing
Term
Refer to the scenario below to answer the following questions.

Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan, then, involved a seasonal promotional gimmickto be implemented from early winter to late spring–that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers–both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter."
Definition
Term
Which of the following groups is specifically part of Seagull Terrace's target market?
Definition
seasonal business travelers
Term
Carol Veldt's use of "promotional gimmicks" is an example of the ________ concept.
Definition
selling
Term
Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept.
Definition
product
Term
Carol Veldt has decided to ask selected guests to participate in an extensive survey about their experience at Seagull Terrace and about their most desired amenities and vacation experiences. By implementing the suggestions she receives from guests, Carol would be following the ________ concept.
Definition
marketing
Term
What should sellers consider if they wish to avoid marketing myopia?
Definition
Sellers should consider the particular benefits and experiences desired by their customers, and not just pay attention to the specific products they offer.
Term
You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might you go about creating brand experiences for your customers?
Definition
Such manufacturers should focus on the benefits enjoyed through the use of their products-access to the great outdoors, shared family experiences, and relived memories of the consumer's youth.
Term
Think about suppliers and other marketing partners. A modern marketing system relies on profitable relationships all along the way. How might Wal-Mart rely on their marketing partners in order to offer low prices?
Definition
Wal-Mart must rely on suppliers that will provide merchandise at low costs, a low-cost and efficient distribution system, an accurate and efficient customer relationship database system, and a strong partnership with each of the members of its supply chain.
Term
When demand for the latest talking Elmo was at its highest, it was suggested that manufacturers purposefully maintain strong demand by limiting supply, which would drive prices up. If this were the case, explain how such manufacturers were NOT carrying out the production concept.
Definition
The production concept holds that consumers favor products that are available and affordable. With this concept, manufacturers work to increase production and improve manufacturing efficiency, and thus eventually lower the price paid by the consumer.
Term
The marketing team at Bead Beautiful, a line of jewelry targeted at pre-teenage girls, is meeting to formulate the products' value proposition. What should team members consider as they define a value proposition for Bead Beautiful?
Definition
In considering Bead Beautiful's value proposition, the marketing team should identify the benefits and values the company promises to deliver to customers to satisfy their needs. The value proposition should differentiate Bead Beautiful from other similar products, answering the customer's question "Why should I buy this brand rather than a competitor's?"
Term
Company X carries organizational and office supplies and follows the selling concept. Explain how Company X may lose sight of customer relationships with their marketing orientation.
Definition
The company's aim is to sell its supplies rather than make what the market wants; such a strategy creates sales transactions but not long-term relationships. The company's likely faulty assumption is that customers who are persuaded to buy the product will like it or that they will buy the product again even if they weren't really initially satisfied. Company X will not foster customer loyalty with this approach.
Term
In nineteenth-century Dublin, Molly Malone sold cockles and mussels while shouting to passers by, "alive-alive-oh." Was Molly taking an outside-in or inside-out perspective? Explain.
Definition
: The vendor's approach was inside-out. The cockles and mussels are available. The vendor's job was then to attract willing buyers.
Term
) Explain why electronics and pharmaceuticals manufacturers may use customer-driving marketing.
Definition
In such industries, consumers do not know exactly what new products are available; therefore, consumers rely on such firms to tell them what they need.
Term
Explain how storing customer information in a database might better prepare car-maker Saturn in customer relationship management (CRM).
Definition
Managing detailed information about customers may allow Saturn to design new models around customer demographics and desires for specific features. These "touchpoints" can be the key to long-term customer loyalty.
Term
What determines whether sellers create basic relationships or full partnerships with customers?
Definition
The type of relationship a seller seeks to create with its customers is dependent on the number of customers and their profitability. A company with many low-margin customers develops basic relationships; a company with just a few high-margin customers invests resources to create full partnerships.
Term
How can a marketer increase "share of customer"?
Definition
The marketer can offer greater variety to customers; in addition, the marketer can train employees to cross-sell and up-sell in order to market more products and services to existing customers.
Term
Explain what marketers can expect from individuals in the customer relationship group classified as "butterflies."
Definition
"Butterflies" are profitable but not loyal. Marketers should enjoy this type of customer "for the moment" because they soon flutter off. Marketers should create profitable and satisfying transactions with "butterflies," then cease investing in them until the next time around. Marketers can expect transactions with butterflies when conditions are optimal for the customer, but they should not expect butterflies to become loyal customers.
Term
Able works in the marketing department of an international company. In what ways might Able use modern technologies to conduct market research in order to learn more about and better serve his company's customers?
Definition
Able could use videoconferencing to monitor customer focus groups discussing the company's products and services in various locations. Able could use online data services to learn more about the needs and wants of his customers, or he could create a customer database for the company to target individual customers with tailored offers.
Term
In what ways might even a local retailer find itself touched by global competition?
Definition
A local retailer might have global suppliers and customers. The retailer's goods may come from abroad, or components of those goods may be produced or assembled abroad. In addition, a local retailer may also sell goods over the Internet to international customers.
Term
How is marketing being applied in the not-for-profit sector?
Definition
Firms in the not-for-profit sector use marketing to enhance their images, to encourage donor marketing to attract memberships and donors, and to design social marketing campaigns to encourage specific causes.