BUSML 3250 Exam 1
What is marketing? - Answer-The process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return
Marketing Process - Answer-1st 4 steps create value for customers, last step captures value from
customers
Understand 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
Customer Needs - Answer-states of deprivation
Physical- food, clothing, warmth and safety
Social- belonging and affection
Individual- knowledge and self-expression
Customer Wants - Answer-form that needs take as they are shaped by culture and individual personality
Customer Demands - Answer-wants backed by buying power
Marketing Myopia - Answer-Focusing only on existing wants and losing sight of underlying consumer
needs
Customer Satisfaction - Answer-product's perceived performance matches the buyer's expectations
,Customer Dissatisfaction - Answer-product's performance falls short of expectations
Customer Delight - Answer-performance exceeds expectation
Customer Equity - Answer-the total combined customer lifetime values of all of the company's
customers
Customer Lifetime Value - Answer-value of the entire stream of purchases a customer makes over a
lifetime of patronage
Production Concept - Answer-idea that consumers will favor products that are available and highly
affordable
Company should focus on improving production and distribution efficiency
Product Concept - Answer-consumers will favor products that offer the most quality, performance, and
features
Selling Concept - Answer-consumers won't buy enough of the firm's products unless the firm undertakes
a large-scale selling and promotion effort
Marketing Concept - Answer-philosophy in which achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions better than the
competitors do
Societal Marketing Concept - Answer-company's marketing decisions should consider consumers' wants,
the company's requirements, consumers' long-run interests, and society's long-run interests
, Customer-Driven Marketing - Answer-o Find, attract, keep, and grow target customers by creating,
delivering, and communicating superior customer value
o Who will company serve?
Market segmentation
Target marketing
o How will it serve targeted customers?
Differentiation
Positioning
Steps in Strategic Planning - Answer-o Define company mission
o Set company goals and objectives
o Design business portfolio
o Plan marketing and other functional strategies
Mission Statement - Answer-o A statement of the organization's purpose- what it wants to accomplish in
the larger environment
o Organization's purpose: what it wants to accomplish in the larger environment
o What business are we in? What customers should we serve? How should we develop the firm's
capabilities and focus its efforts?
How do an organization's goals relate to its mission? - Answer-o Goals measure how well the
organization's mission is being accomplished
o Organizations set their goals/ objectives from their mission statement. "The company needs to turn its
mission statement into detailed supporting objectives for each level of management. Each manager
should have objectives and be responsible for reaching them" (42).
Boston Consulting Group (BCG) Matrix - Answer-A portfolio-planning method that evaluates a
company's SBU's (strategic business unit) in terms of market growth rate and relative market share
What is marketing? - Answer-The process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return
Marketing Process - Answer-1st 4 steps create value for customers, last step captures value from
customers
Understand 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
Customer Needs - Answer-states of deprivation
Physical- food, clothing, warmth and safety
Social- belonging and affection
Individual- knowledge and self-expression
Customer Wants - Answer-form that needs take as they are shaped by culture and individual personality
Customer Demands - Answer-wants backed by buying power
Marketing Myopia - Answer-Focusing only on existing wants and losing sight of underlying consumer
needs
Customer Satisfaction - Answer-product's perceived performance matches the buyer's expectations
,Customer Dissatisfaction - Answer-product's performance falls short of expectations
Customer Delight - Answer-performance exceeds expectation
Customer Equity - Answer-the total combined customer lifetime values of all of the company's
customers
Customer Lifetime Value - Answer-value of the entire stream of purchases a customer makes over a
lifetime of patronage
Production Concept - Answer-idea that consumers will favor products that are available and highly
affordable
Company should focus on improving production and distribution efficiency
Product Concept - Answer-consumers will favor products that offer the most quality, performance, and
features
Selling Concept - Answer-consumers won't buy enough of the firm's products unless the firm undertakes
a large-scale selling and promotion effort
Marketing Concept - Answer-philosophy in which achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions better than the
competitors do
Societal Marketing Concept - Answer-company's marketing decisions should consider consumers' wants,
the company's requirements, consumers' long-run interests, and society's long-run interests
, Customer-Driven Marketing - Answer-o Find, attract, keep, and grow target customers by creating,
delivering, and communicating superior customer value
o Who will company serve?
Market segmentation
Target marketing
o How will it serve targeted customers?
Differentiation
Positioning
Steps in Strategic Planning - Answer-o Define company mission
o Set company goals and objectives
o Design business portfolio
o Plan marketing and other functional strategies
Mission Statement - Answer-o A statement of the organization's purpose- what it wants to accomplish in
the larger environment
o Organization's purpose: what it wants to accomplish in the larger environment
o What business are we in? What customers should we serve? How should we develop the firm's
capabilities and focus its efforts?
How do an organization's goals relate to its mission? - Answer-o Goals measure how well the
organization's mission is being accomplished
o Organizations set their goals/ objectives from their mission statement. "The company needs to turn its
mission statement into detailed supporting objectives for each level of management. Each manager
should have objectives and be responsible for reaching them" (42).
Boston Consulting Group (BCG) Matrix - Answer-A portfolio-planning method that evaluates a
company's SBU's (strategic business unit) in terms of market growth rate and relative market share
