Briefly compare & contrast the concepts of needs, wants, & dem&s, giving an example of each.

how these
concepts relate to MA practices. 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, & safety; a
basic social need for belonging & affection; & a basic individual need for knowledge & self-expression. needs,
wants are not innate; instead, wants are needs shaped by culture, society, & individual personality. Wants become
dem&s when they are backed by consumers' buying power. Marketers conduct extensive research to underst&
Custom' wants & dem&s. They then attempt to fulfill Custom' wants & dem&s through their market offerings.
In a short essay, how & why marketers go beyond selling a product or service to create br& experiences. Sellers
are most effective when they focus more on the benefits & experiences produced by their Prd & services than on
the specific Prd & services themselves. Smart marketers focus on creating a br& experience, incorporating several
Prd & services for their Custom. By doing so, marketers hope to increase custo satisfaction, creating a body of
Custom who will repeatedly purchase their market offerings & recommend those offerings to friends.
Compare the selling & MA concepts, listing the key components of each philosophy. The selling concept reflects
an inside-out philosophy, while the MA concept takes an outside-in perspective. The selling concept is typically
practiced when an organiz is MA Prd 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 relat-
ps with Custom, with the aim of selling what the company makes rather than making what the custo wants. The
MA concept, on the other h&, is based upon identifying the needs & wants of target markets & then satisfying
those needs & wants better than competitors do. In contrast to the selling concept, MA focuses on the custo, not the
product, as the path to profits.
Briefly explain the societal MA concept. Give an example of an organiz that has effectively used the societal MA
concept. firms will succeed if they take underlying consumer needs & society's well being into account over the
long term. A pure MA 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 MA strategies, marketers today need to balance company profits, consumer wants, & society's
interests. Johnson & J is an example of a company that has successfully implemented the societal MA concept. The
organiz stresses honesty, integrity, & putting people before profits.
Define custo relat-p mngt & explain its associated tools & levels of relat-ps. Custo Relat-p Mngt (CRM) is the
process of building & maintaining profitable custo relat-ps by delivering superior custo value & satisfaction. A
company with mostly low-margin Custom is likely to seek basic relat-ps, using br&-building advertising & sales
promotion. An organiz with few Custom & high margins, on the other h&, will work to create key partnerships
with select Custom. To create stronger bonds with Custom, some marketers use tools such as financial benefits or
rewards based on frequency of purchase. Other tools include social benefits, like offering key Custom the
opportunity to network & create communities through club MA programs. Another approach adds structural ties to
the aforementioned financial & social benefits. Hence, to retain current Custom & remain profitable, companies
today are going beyond transactional MA to custo relat-p mngt. The key is to create & sustain relat-ps for the long
term.
Explain why the aim of custo relat-p mngt is to create not just custo satisfaction, but also custo delight. Custo
satisfaction cannot be taken for granted. Because br& loyalty is dependent upon strong custo satisfaction,
companies strive to retain, satisfy, & even delight current Custom. Firms create custo delight by promising only
what they can deliver & then delivering more than what they promised. They also create emotional relat-ps with
key Custom. Delighted Custom make repeated purchases & become Custom for life. More importantly, they also
essentially become an unpaid sales force for the firm as "custo evangelists" who tell other potential Custom about
their positive experiences with the product.
In a short essay, discuss the challenges & advantages that new communication technologies have created for
marketers. Through the Internet & related technologies, people can now interact in direct & 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, & online social networks,
today's marketers incorporate interactive approaches that help build targeted, two-way custo relat-ps.However,
while new communication tools create relat-p-building opportunities for marketers, they also create challenges.
They give consumers a greater voice, & therefore greater power & control in the marketp. Today's consumers have
more information about br&s .This benefits companies when views of its Prd are positive, but can be damaging
when Custom share stories of negative experiences with a company's Prd.
Define custo equity & explain how a company can increase it. Custo equity is the sum of the lifetime values of all
a company's current & potential Custom. Custo equity is dependent upon custo loyalty from a firm's profitable
Custom. Because custo equity is a reflection of a company's future, companies must manage it carefully, viewing
Custom as assets that need to be maximized. To increase custo equity, companies should work to delight their
Custom & establish full relat-ps with their most profitable Custom.
In a short essay, describe & compare the four types of Custom classified by their potential profitability to an
organiz. Explain how an organiz should manage each type of custo. The four types of Custom are strangers,
butterflies, true friends, & barnacles. "Strangers" have low potential profitability & loyalty. A company's
offerings do not fit well with a stranger's wants & dem&s. Another type of custo 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 & 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. if they cannot be made profitable, they should be "fired."
"butterflies" are not loyal. However, they are potentially profitable because there is a good fit between the
company's offerings & their needs. Like real butterflies, this type of custo will come & go without becoming a
permanent, loyal consumer of a company's Prd. Companies should use promotional blitzes to attract these Custom,
create satisfying & profitable transactions with them, & then cease investing in them until the next time around.
"true friends"; they are both profitable & loyal. There is a strong fit between their needs & the company's offerings,
so the company should make continuous relat-p investments in an effort to go beyond satisfying & to delight these
Custom. A company should try to convert true friends into custo evangelists who tell others about their good
experiences with the company.
Explain how the Internet has transformed the way in which we do business todayThe Internet links individuals &
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 & face promising futures. These companies use a set of new
Web technologies to reach Custom, including blogs (web logs), vlogs (video-based logs), & social networking
sites. "Brick-&-mortar" companies of the past are now "click-&-mortar" companies, with online presences aimed at
attracting new Custom & strengthening bonds with current Custom. Approximately 65% of American Internet
users now shop online, making a Web presence a necessity for any organiz.
Define strat planning. Discuss the steps involved. The process of developing & maintaining a strat fit between the
organiz's goals & capabilities & its MA opportunities is called strat planning. At the outset, beginning at the
corporate level, each company must define its overall purpose & mission. What is our business? Who is the custo?
What do our Custom value? Answers to these questions are crucial in writing a clear mission statement. Mission
statements need to be carefully defined in terms of custo needs. Missions should be realistic, motivating, & fit the
market environment. Missions then lead to setting business & MA objectives/goals in the planning process. each
business & product develops detailed MA & other functional strategies. In this step, plans are drawn at the business
unit, product, & market levels in support of company wide plans.
What is business portfolio planning? how a company might use the Boston Consulting Group's product portfolio
analysis method. A business portfolio is the collection of businesses & Prd that make up a company. Business
portfolio planning entails two steps. First, there is an analysis of the company's current business portfolio, followed
by decisions about what businesses should receive more, less, or no investment. , planners must shape the future
portfolio by developing strategies for growth &/or downsizing. Boston Consulting Group matrix evaluates SBUs
on two important dimensions: the attractiveness of the SBU's market or industry growth rate & the strength of the
SBU's position or relative market share in that market or industry. The growth-share matrix defines four types of
SBUs: stars, cash cows, question marks, & dogs. Once each SBU has been defined, a company can determine what
role each will play in the firm's future, using strategies of building, holding, harvesting, or divesting each SBU.
Describe some of the problems with matrix approaches. The BCG & other portfolio planning approaches can be
difficult to execute, time consuming, & also costly to implement. Defining SBUs & the measurement of relative
market share & growth can be a difficult task as well. A serious flaw with these approaches is that, while they are
helpful for classifying current businesses, they offer little or no advice for future planning.
The BCG is a useful approach to evaluate current businesses. Describe a device that a firm could use to identify
future growth opportunities. The product/market expansion grid is a useful device for identifying growth
opportunities in the future. There are four strategies available to companies: market penetration, market developm,
product developm, & diversification. Market penetration entails making more sales to current Custom without
changing Prd. Market developm involves identifying & developing new markets for a company's Prd. New markets
include demographic groups & geographic regions, among others. Companies can also consider product developm,
offering modified or new Prd to current markets. Diversifying companies might consider acquiring or starting new
businesses unrelated to their core competencies. However, diversifying too broadly can be detrimental in the long
run.
What does the term "value-delivery network" mean? For decades, marketers have traditionally created value to
satisfy custo needs & wants. Today, the manufacturer or retailer needs to look beyond its own value chain & into
the value chains of suppliers & distributors to create value throughout the entire supply chain. More companies are
partnering with other members of the supply chain to improve the performance of the custo value-delivery network.
In fact, today competition takes place between entire value delivery networks instead of between individual
competitors.
Define MA strat. Discuss the steps in formulating MA strat. The MA logic by which a company hopes to achieve
profitable relat-ps is called its MA strat. MA strat formulation entails four specific steps: market segmentation,
market targeting, differentiation, & Positi. The process of dividing a market into distinct groups of buyers with
different needs, characteristics, or behavior is called market segmentation. Market targeting involves evaluating
each market segment's attractiveness & selecting one or more segments to enter. A company should target
segments in which it can profitably generate the greatest custo value & sustain that value over time. Effective Positi
begins with actually differentiating the company's MA offer so that it gives consumers greater value. Positi is
defined as creating a distinct image of a product in the eyes of target consumers. A product's Positi should take
advantage of a competitive advantage within the market target.
Explain why, according to the authors of your text, the four Ps concept of the MA mix takes a seller's view of the
market, not the buyer's view. How should marketers consider the buyer's view? In today's day & age of custo relat-
p MA, the four Ps can be described as the four Cs from the custo's point of view. In lieu of product, there is custo
solution; that is, Custom buy solutions to their problems or look for value in Prd. Custom are more interested in the
total costs of obtaining, using, & disposing of a product. That is, custo cost replaces price in custo relat-ps. The
place element of the MA mix focuses on convenience. Convenience in availability is the central focus of Custom.
Finally, Custom & marketers want two-way communication. Marketers should use the four Cs as a base for the
four Ps of their MA mix.
Define MA planning. Briefly outline the major steps in a MA plan. MA planning involves deciding on MA
strategies that will help the company achieve its overall strat objectives. A detailed MA plan is needed at the
business, product, or br& level. An executive summary is the first step in the plan. It contains a brief summary of
the main goals & recommendations of the plan for mngt review. The main section of the plan presents a detailed
SWOT analysis of the current MA situation, along with potential threats & opportunities. The plan then states
major objectives for the br& & outlines the specifics of a MA strat for achieving them. In addition, action programs
for implementing the MA strat along with the details of a supporting MA budget are presented. The final section
outlines the controls used to monitor progress & corrective action.
MA depart are organized in several ways. the most common forms of MA organizs. Some common forms of
MA department organiz include functional organiz, geographical organiz, product mngt organiz & market mngt
organiz. Under a functional department organiz, a functional specialist, such as a sales manager, advertising
manager, or market research manager, is responsible for all MA activities. Under a geographic organiz, sales &
MA people are assigned to specific countries, regions, & districts. Under this approach, a product manager
develops & implements a complete strat & MA program for a specific product or br&. Under a market or custo
mngt organiz, the company is organized around the needs of specific custo segments. In firms that use this organiz,
one product line is sold to many different types of markets & Custom that have different needs & preferences.
Finally, large companies that produce many Prd sold in many geographic areas typically use some combination of
these organizal forms.
Briefly discuss how marketers measure return on MA investment, explaining why this figure can be difficult to
assess. MA ROI (return on investment) is the net return from a MA investment divided by the costs of the MA
investment. In other words, ROI is a measure of the profits generated by investments in a MA activity. MA ROI
can be difficult to assess because the benefits of MA are not always easily translated in dollar amounts. However,
MA ROI can be assessed in terms of br& awareness, sales, or market share. Some companies are now using MA
dashboards, which are single displays showing several sets of MA performance measures. & beyond st&ard
performance measures, many marketers are using custo-centered measures such as custo acquisition, retention, &
lifetime value.
Define MA & outline the steps in the MA process. is the process by which companies create value for Custom &
build strong custo relat-ps in order to capture value from Custom in return. The MA process involves five steps.
The first four steps create value for Custom. First, marketers need to underst& the marketp & custo needs & wants.
Next, marketers design a custo-driven MA strat with the goal of getting, keeping, & growing target Custom. In the
third step, marketers construct a MA program that actually delivers superior value. All of these steps form the basis
for the fourth step, building profitable custo relat-ps & creating custo delight. In the final step, the company reaps
the rewards of strong custo relat-ps by capturing value from Custom.
Explain the importance of underst&ing the marketp & Custom & identify the five core marketp concepts.
MA companies go to great lengths to learn about & underst& their Custom' needs, wants, & dem&s. This
underst&ing helps them to design want-satisfying market offerings & build value-laden custo relat-ps by which
they can capture custo lifetime value & greater share of custo. The result is increased long-term custo equity for the
firm. The core marketp concepts are needs, wants, & dem&s; market offerings (Prd, services, & experiences);
value & satisfaction; exchange & relat-ps; & markets. Wants are the form taken by human needs when shaped by
culture & individual personality. When backed by buying power, wants become dem&s. Companies address needs
by putting forth a value proposition, a set of benefits that they promise to consumers to satisfy their needs. The
value proposition is fulfilled through a market offering, which delivers custo value & satisfaction, resulting in long-
term exchange relat-ps with Custom.
Identify the key elements of a custo-driven MA strat & discuss the MA mngt orientations that guide MA
strat. To design a winning MA strat, the company must first decide whom it will serve. It does this by dividing the
market into segments of Custom (market segmentation) & selecting which segments it will cultivate (target MA).
Next, the company must decide how it will serve targeted Custom (how it will differentiate & position itself in the
marketp). MA mngt can adopt one of five competing market orientations. The production concept holds that mngt's
task is to improve production efficiency & bring down prices. The product concept holds that consumers favor Prd
that offer the most in quality, performance, & innovative features; thus, little promotional effort is required. The
selling concept holds that consumers will not buy enough of an organiz's Prd unless it undertakes a large-scale
selling & promotion effort. The MA concept holds that achieving organizal goals depends on determining the needs
& wants of target markets & delivering the desired satisfactions more effectively & efficiently than competitors do.
The societal MA concept holds that generating custo satisfaction & long-run societal well-being through
sustainable MA strategies is key to both achieving the company's goals & fulfilling its responsibilities.
Discuss custo relat-p mngt & identify strategies for creating value for Custom & capturing value from
Custom in return. custo relat-p mngt is the process of building & maintaining profitable custo relat-ps by
delivering superior custo value & satisfaction. Custo engagement MA aims to make a br& a meaningful part of
consumers' conversations & lives through direct & continuous custo involvement in shaping br& conversations,
experiences, & community. The marketer's aim is to build the right relat-ps with the right Custom. In return for
creating value for targeted Custom, the company captures value from Custom in the form of profits & custo equity.
In building custo relat-ps, good marketers realize that they cannot go it alone. They must work closely with MA
partners inside & outside the company. The aim of custo relat-p mngt & custo engagement is to produce high custo
equity, the total combined custo lifetime values of all of the company's Custom. The key to building lasting relat-ps
is the creation of superior custo value & satisfaction. Companies want to not only acquire profitable Custom but
also build relat-ps that will keep them & grow "share of custo." Different types of Custom require different custo
relat-p mngt strategies.
Describe the major trends & forces that are changing the MA l&scape in this age of relat-ps. Dramatic
changes are occurring in the MA arena. The digital age has created exciting new ways to learn about & relate to
individual Custom. As a result, advances in digital & social media have taken the MA world by storm. Online,
mobile, & social media MA offer exciting new opportunities to target Custom more selectively & engage them
more deeply. Although the new digital & social media offer huge potential, most marketers are still learning how to
use them effectively. The key is to blend the new digital approaches with traditional MA to create a smoothly
integrated MA strat & mix. In recent years, MA has become a major part of the strategies for many not-for-profit
organizs, such as colleges, hospitals, churches. Also, in an increasingly smaller world, many marketers are now
connected globally with their Custom & MA partners. Today, almost every company, large or small, is touched in
some way by global competition. today's marketers are also reexamining their ethical & societal responsibilities.
Explain company-wide strat planning & its four steps. Strat planning sets the stage for the rest of the company's
planning. MA contributes to strat planning, & the overall plan defines MA's role in the company. Strat planning
involves developing a strat for long-run survival & growth. It consists of four steps. Defining the company's
mission; Setting objectives & goals; Designing a business portfolio; Developing functional plans. The company's
mission should be market oriented, realistic, specific, motivating, & consistent with the market environment. The
mission is then transformed into detailed supporting goals & objectives, which in turn guide decisions about the
business portfolio. Then, each business & product unit must develop detailed MA plans in line with the company-
wide plan.
Discuss how to design business portfolios & develop growth strategies. Guided by the company's mission
statement & objectives, mngt plans its business portfolio, or the collection of businesses & Prd that make up the
company. The firm wants to produce a business portfolio that best fits its strengths & weaknesses to opportunities
in the environment. To do this, it must analyze & adjust its current business portfolio & develop growth &
downsizing strategies for adjusting the future portfolio. The company might use a formal portfolio-planning
method. But many companies are now designing more customized portfolio-planning approaches that better suit
their unique situations.
Explain MA’s role in strat planning & how MA works with its partners to create & deliver custo value.
Under the strat plan, the major functional depart— MA, finance, accounting, purchasing, operations, information
systems, human resources, & others—must work together to accomplish strat objectives. MA plays a key role in
the company's strat planning by providing a MA concept philosophy & inputs regarding attractive market
opportunities. Within individual business units, MA designs strategies for reaching the unit's objectives & helps to
carry them out profitably. Marketers alone cannot produce superior value for Custom. Marketers must practice
partner relat-p mngt, working closely with partners in other depart to form an effective value chain that serves the
custo.
Describe the elements of a custo value-driven MA strat & mix, & the forces that influence it. Custo value &
relat-ps are at the center of MA strat & programs. Through market segmentation, targeting, differentiation, &
Positi, the company divides the total market into smaller segments, selects segments it can best serve, & decides
how it wants to bring value to target consumers in the selected segments. It then designs an integrated MA mix to
produce the response it wants in the target market. The MA mix consists of product, price, place, & promotion
decisions (the four Ps).
List the MA mngt functions, including the elements of a MA plan, & discuss the importance of measuring &
managing MA return on investment. To find the best strat & mix & to put them into action, the company
engages in MA analysis, planning, implementation, & control. The main components of a MA plan are the
executive summary, the current MA situation, threats & opportunities, objectives & issues, MA strategies, action
programs, budgets, & controls. Planning good strategies is often easier than carrying them out. To be successful,
companies must also be effective at implementation—turning MA strategies into MA actions. MA depart can be
organized in one way or a combination of ways: functional MA organiz, geographic organiz, product mngt organiz,
market mngt organiz or custo mngt organiz. In this age of custo relat-ps, more & more companies are now
changing their organizal focus from product or territory mngt to custo relat-p mngt. MA organizs carry out MA
control, both operating control & strat control. More than ever, MA accountability is the top MA concern. In a
tighter economy, today's marketers face growing pressures to show that they are adding value in line with their
costs. Increasingly, they are using custo-centered measures of MA impact as a key input into their strat decision
making.