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Midterm Review - Mktg 396 questions and answers
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Midterm Review - Mktg 396 questions and answers
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Midterm Review - Mktg 396questions and answers
What is marketing and why is it important? - answer Marketing is a
set of business practices designed to plan for and present an
organization's products or services in ways that build effective
customer relationships. Marketing is important because it helps
create value for firms.
Is the marketing mix (four Ps) enough to guarantee successful
marketing? Explain. - answer The Marketing Mix (Product, Price,
Place, Promotion) is central to all marketing activities. However,
they can never guarantee successful marketing. Making the right
marketing decisions and executing them properly can simply
maximize a product or company's potential for success. Marketers
can increase their chances for success if they have a deep
understanding of their environment + competition; build strong
relationships with suppliers, customers, and other marketing
intermediaries; establish a corporate culture that places the
customer at the center of the firm's marketing activities; and offers
customer products + services that satisfy their needs and wants
Explain how the following would influence the company's marketing
efforts:
a) labour strike at one of the company's suppliers
b) a new technology - answer Marketing is shaped by external
forces and players.
A supplier strike or a new technology might change how the
company delivers value to its customers.
A) a strike at a supplier may lead to a shortage of inputs - raw
material or parts - that could restrict the ability of the company to
product sufficient quantity of products to meet demand.
B) Some types of technology may render a company's existing
technology obsolete while creating opportunities for companies with
new technology
,Discuss the main elements of value-based marketing. List four ways
in which marketing helps to create value. - answer 2 Main
Elements: VALUE and COST
GOAL: provide consumers with value or benefits that are perceived
to be much greater than their costs.
Ways in which marketing can help create value inclide:
1) coordination across the organization
2) coordination across the supply chain
3) expanding a firm's global presence
4) making life easier
5) providing employment opportunities
6) enriching society
Explain the relationship between customer value and customer
satisfaction. - answer Customers naturally see options that provide
the greatest benefits at the lowest cost. A satisfied customer is one
who has received greater value than costs incurred.
Value is derived from the 4 Ps: Product, Place, Price, Promotion
Product -> creates value
Price -> transacts value
Place -> delivers value
Promotion -> communicates value
Customer satisfaction is when a customer's expectations of value or
benefits are met - usually when costs are less than benefits derived,
in a fair way.
,Customer satisfaction: satisfaction with individual transaction, or
satisfaction derived over a period of time
Generally, all companies are in business to generate profits and
increase shareholder value. Yet, the Canadian Marketing Association
definition of marketing does not explicitly mention profits or
shareholder value. Why do you think these are not included in the
definition? Should they be included? - answer profit and value to
the shareholder are not included because they define success too
narrowly as monetary profits and do not account for all aspects of
value. The marketing function can create value that is not reflected
in dollars and cents, such as building strong, trust based
relationships with loyal customers, or performing detailed market
research
marketing - cost center
sales - profit center
Therefore, profit need not be included as part of the definition of
marketing
Today, many marketers are not interested in selling their products
and services to everyone who wants it, but only to selected target
markets. What do you think the main reasons are for targeting
specific market segments? - answer To plan and execute marketing
communications that reach and attract every single consumer, one
would require a budget so large it would not be feasible. Although
marketers would prefer to sell their products and services to
everyone, it is not practical to do so. Companies identify target
groups who they expect to respond to their marketing efforts
similarly. By targeting specific market segments, a company can
develop marketing programs that specifically address the needs and
wants of each chosen segment, and thereby increase the chance of
success of their marketing programs. This also means marketers can
ensure their scarce resources are allocated and used maximally.
Explain why understanding customer needs and wants is
fundamental to marketing success. How can marketers go about
, understanding customer needs and wants? - answer Customer
needs and wants are fundamental to marketing success because
they are the primary motivator for action. When an unsatisfied need
is recognized, the customer desire is to go from their actual, needy
state to a different, desired state.
Understanding customer needs helps marketers develop marketing
mixes to satisfy those needs in ways customers prefer. Building
strong relationships with customers is important to obtaining
information and creating value and is the central concept of the
relational orientation. This is known as customer relationship
management (CRM), and it maximizes the long-term value of the
buyer-seller relationship rather than trying to maximize the profit
from each transaction. CRM often includes collecting customer
information to target specific promotions or offers to customers who
would benefit most. Generally, market research describes the range
of methods marketers use to better understand customer needs and
deliver strong value when trying to satisfy those
Which marketing orientation would most likely help a company build
strong customer relationships that are profitable? Why? - answer
Value-based marketing allows for the strongest relationships to be
built with customers. This is because it starts with understanding
what customers need and want and delivering strong value to
satisfy those needs/wants. In this respect, the value-based
orientation encourages the collection and organization-wide sharing
of customer information, balancing benefits with costs, and
developing strong customer relationships. Keeping close contact
with customers in an attempt to encourage customer-marketer
dialogue, customer satisfaction, and customer loyalties are
fundamental to the value-based orientation. The value-based
orientation does not view each customer-marketer contact as a
series of individual transactions where the marketer must maximize
profits. Rather, each customer-marketer contact is an opportunity to
satisfy the customer and strengthen their relationships, which over
the long term will generate customer loyalty and ultimately
increased profitability.
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