BMGT 350 Exam 1 Review with Complete Solutions

Define marketing - ANSWER-Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return What is the goal of marketing? - ANSWER-To attract new customers by promising superior value and to keep and grow current customers by delivering value and satisfaction How old is marketing? - ANSWER-As old as when people formed tribes What is the Federal entity that regulates marketers the most? - ANSWER-Consumer Product Safety Commission What does marketing encompass? - ANSWER-The 4 P's (the market mix; pricing, place/distribution, promotion, product) What are the steps to the Marketing Process? - ANSWER-1) Understand the marketplace and customer needs and wants 2) Design a customer value-driven marketing strategy 3) Construct an integrated marketing program that delivers superior value 4) engage customers, build profitable relationships, and create customer delight 5) Capture value from customers in return What are the key building blocks for developing and managing customer relationships? - ANSWER-customer value and customer satisfaction What are the 2 approaches to managing the Market Mix? - ANSWER-Traditional approach and Modern approach Describe the traditional approach - ANSWER-the focus is on the product only; the objective is to maximize profit; short-term approach; promotions are sparse and/or spike; customer retention view is transactional (customers view you as only trying to make the sale) Describe the modern approach - ANSWER-focus is on consumer wants and demands; objective is customer satisfaction; long-term approach (relationships with customers is key); promotions are sustained; customer retention builds RM The first step of the marketing process is to ___________________. - ANSWER-Understand the marketplace, which includes customer needs and wants