Exercises Practice Chapters 1-3, Questions and answers.pdf PDF

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Exercises Practice Chapters 1-3, Questions and answers...

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CHAPTER 1 Define marketing and the marketing process Marketing is the process by which companies create value for customer and build strong customer relationship in order to capture value from customer in return. The marketing process involves five steps. The first four steps create value for customers. First, marketers need to understand the marketplace and customer needs and wants. Next, marketer designs a customer driven marketing strategy with goal of getting, keeping and growing customers. In the third step, marketer constructs a marketing program that actually delivers superior value. All of these steps form the basic for the fourth step, building profitable customer relationship and creating customer delight. In the last stage, the company reaps the reward of strong customer relationship and captures the value from customers. Explain the importance of understanding customer and the market place, and identify the 5 core-marketing concept. Companies understand the needs, wants and demand of the customers. This understanding helps them to design want satisfying market offering and build valueladen customer relationship by which they can capture customer lifetime value. The core marketing place concepts are needs, wants and demand, market offering (p&s), value and satisfaction, exchange and relationship and market. Wants are the form taken by human needs when shaped by culture and individual personality. When backed by buying power, want become demand, and companies addresses needs by putting fort value proposition; a set of benefits that they promise to customers to satisfy their needs. The value proposition is fulfilled through a market offering that delivers customer value and satisfaction, resulting in long term exchange of relationship with customers. Identify the key elements of a customer driven marketing strategy and discuss marketing management orientation that guide marketing strategy. To design a winning marketing strategy, the company must first decide whom it will serve. It does this by dividing markets into segments of customers (market segmentation) and decides which segment it will serve as targeted customers (how it will differentiate and position itself in the market). Marketing management can adopt one of five competing market orientations. The production concept, hold that management task is to improve production efficiency and bring down prices. The product concept, holds that consumers will favor products that offers the most quality, performance and innovation. Thus little promotion is required. The selling concept holds that consumers will not buy enough of their products unless it undertakes huge promotion effort. The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target market and delivering customer satisfaction more efficiently and effectively than competitors. The societal marketing concept holds that generating customers satisfaction and long run societal well-being are the keys to both achieving the company’s goals.

Discuss customer relationship management, and identify strategies for creating value for customers and capturing value from customers in return. CRM is the process of building and maintaining profitable customer relationship by delivering superior customer value and satisfaction. The aim of customer’s relationship management is to produce high customer equity, the total combined customer lifetime value of all the company’s customers. The key to building lasting relationship is the creation of superior customer value and satisfaction. Company not only want to acquire profitable relationship, but also build relationship that will help them grow their share of customers the marketer aim is to build the right relationship with the right customers. In return, creating capture value from customers in a form of profits and customer equity. CHAPTER 2 Explain company wide strategic planning and its four steps. Strategic planning is the process of developing and maintains a share fit between the organization’s goal capabilities and its changing marketing opportunity. It consist of 4 steps: defining the mission, setting objectives, building business portfolio and developing functional plans. Defining a clear company mission begin drafting a formal mission statement which is realistic, specific, motivating and consistent with market environment. The mission is then transformed into detailed supporting goals and objective to guide the company. The design of business portfolio, deciding which business should received more or less investment. In turn , the company must develop a detailed marketing plans in line with the company wide plans. Discuss how to design business portfolios and developing growth strategies. The firms want to produce a business portfolio that best fit its strength and weaknesses to opportunities in the environment. To do this, it must analyze and adjust its current business portfolio and develop growth and downsizing strategies for adjusting the future portfolio. The company might use a formal portfolio planning method. Many companies now designing a more customized portfolio planning approaches that better suit their unique situations, the product/market expansion grid suggest 4 possible growth paths: market penetration/ product development/ diversification/ market development

Describe the elements of a customer driven marketing strategy and mix, and the forces that influence it. Consumer value and relationships are at the center of marketing strategy and programs, through market segmentation, market targeting, differentiation and market positioning, the company divides the total market into smaller segments then select the segment it can serve and bring value to target consumers. It then design and integrate marketing mix to produce the response it wants in the target market. The marketing mix consists of product, price, place and promotion decisions.

List the marketing management functions, including the elements of marketing plan, and discuss the importance of measuring and managing return on marketing investment. To find the best strategy and mix and to put them into actions, the company engages in marketing analyze, planning, implementation and control. The main component of a marketing plan is situations, threats and opportunity, objective and issue, marketing strategy, action program, budget and control. To plan good strategies is often easier than to carry them out. To be successful, companies must also be effective at implementations – turning market strategies into marketing actions. Marketing mangers must ensure that their marketing dollars are well spend. Today’s marketer faces growing pressure to show that they are adding value in line with their cost. In response, marketers are developing better measures of return on investment. Increasingly, they are using customer-centered measures of the marketing impact as a key input into their strategic decision-making. CHAPTER 3 Describe the environmental forces that affect the company ability to serve its customers. The company’s microenvironment, are actors close to the company that affect its ability to serve the customers. It includes the company’s suppliers, marketing intermediaries, customers, market, competitors and publics. The company’s macroenvironment consists of larger societal forces that affect the entire microenvironment. The six forces making up the company’s macroenvironment consists of demographics, economics, natural, technological, political and cultural forces. These forces shape opportunities and pose threats to the company. Explain how changes in the demographic and economic environment affect marketing decision? Demography is the study of the characteristic of human population. Today’s demographic environment shows a changing age structure, shifting in family profiles, geographical population shifts, better educated family etc. The economic environment consists of factors that affect buying power and patterns. The economic environment is characterized by more consumer concern for value and shifting consumer-spending patterns. Today’s squeezed consumers are seeking greater value – with the combination of quality and service at a fair price. The distribution of income is also shifting. The rich have grown richer and the middle class has shrunk, and the poor remains poor. Many companies now tailor their marketing offering towards the affluent and the less affluent.

Identify the major trends in the firm’s natural and technological environment The natural environment shows 3 major trends: shortage of raw material, increasing in government intervention and increase in pollution. Environmental concerns create marketing opportunities for alert companies. The technological environment creates both opportunities and challenges. Companies that fail to keep up with technological change will miss out on new product and marketing opportunities. Explains the key changes in the political and cultural environment The political en consists of laws, agencies and groups that influence or limit marketing actions. The political environment had undergoes a few changes that affect marketing: increasing legislation, changing government agency enforcement, more socially responsible behaviors. The cultural environment is made up of institution and forces that affect a society values, perceptions and preferences. Discuss how companies can react to the marketing environment Companies can passively accept the marketing environment as an uncontrollable element to which they must adapt, avoiding threats and taking advantage of opportunities as they arise. Or they can take a proactive stance, working to change the environment rather than simply reacting to it, whenever possible, companies should try to be active rather than reactive....