BUAD 332- Moon- EXAM 1

What is the simple definition of marketing? - Answer-managing profitable customer relationships goals of marketing activity - Answer-1. Attract new customers by promising superior value 2. Keep and grow current customers by delivering customer satisfaction Define Marketing - Answer-A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Simple Model of the Marketing Process - Answer-Create value for customers and build customer relationship. 1) Understand the marketplace and customer needs and wants 2) design a customer-driven marketing strategy 3) construct a marketing program that delivers superior value 4) build profitable relationships and create customer delight 5) Capture value from customers in return 6) Capture value from customers to create profits and customer equity What is an example customer equity? - Answer-Professor Terry Esper left UT to go Oho state. Terry loves apples products and bought the ipad the day it was introduced. He says "I don't know what it does but I'm getting one." And that is Customer Equity What is a need? - Answer-state of felt deprivation Needs can be - Answer-physical, social, individual What is a want? - Answer-A want is a form that a human need takes, as shaped by culture, individual personality, and (very importantly) MARKETING ACTIVITY Not all WANTS represent real Demand - Answer-wants + buying power = demand What is a marketing offer? - Answer-some combination of products, services, information, or experiences offered to a market to satisfy a need or want Marketing managers have to address two very fundamental questions before they do anything else: - Answer-1) What customers will we serve? (AKA "who is in our target market?") 2) How can we best serve these customers? (AKA "what is our value proposition?")