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Cards

Term Definition
Marketing

the process by which companies create


value for customers and build strong
customer relationships in order to
capture value from customers in return.

Term Definition
The Marketing Process

Understand the
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.

Term Definition
Needs

States of felt deprivation


Term Definition
Wants

-the form human needs take as shaped


by culture and individual personality

Term Definition
Demands

Human wants that are backed by


buying power.

Term Definition
Market offering

Some combination of products, services,


information, or experiences offered to a
market to satisfy a need or want.

Term Definition
Market Myopia

The mistake of paying more attention to


the specific products a company offers
than to the benefits and experiences
produced by these products.

Term Definition
Exchange

The act of obtaining a desired object


from someone by offering something in
return.

Term Definition
Market

the set of all actual and potential buyers


of a product or service.

Term Definition
Product Concept

The idea that consumers will favor


products that offer the most quality,
performance, and features and that the
organization should therefore devote its
energy to making continuous product
improvements.

Term Definition
Selling Concept

-the idea that consumers will not buy


enough of the firms products unless it
undertakes a large-scale selling and
promotion effort.

Term Definition
Marketing Concept

The marketing management philosophy


that holds that achieving organizational
goals depends on knowing the needs
and wants of target markets and
delivering the desired satisfactions
better than competitors do.
Term Definition
Societal Marketing Concept the idea that a companys marketing
decisions should consider:

consumers wants,

the companys requirements,

consumers long-run interests,

and societys long-run interests.

Term Definition
Customer relationship management

the overall process of building and


maintaining profitable customer
relationships by delivering superior
customer value and satisfaction.

Term Definition
Customer Percieved Value

The customers evaluation of the


difference between all the benefits and
all the costs of a marketing offer
relative to those of competing offers.

Term Definition
Customer Satisfaction

The extent to which a products


perceived performance matches a
buyers expectations.
Term Definition
Customer Generated Marketing

Marketing messages, ads, and other


brand exchanges created by consumers
themselves-both invited and uninvited.

Term Definition
Partner relationship management

Working closely with partners in other


company departments and outside the
company to jointly bring greater value
to customers.

Term Definition
Share of Customer

The portion of the customers


purchasing that a company gets in its
product categories.

Term Definition
Customer Equity

The total combined customer lifetime


values of all of the companys
customers.

Term Definition
Customer Equity The total combined customer lifetime
values of all of the company's
customers.

Term Definition
Customer Lifetime Value

The value of the entire stream of


purchases that the customer would
make over a lifetime of patronage.

Term Definition
Internet

A vast public web of computer


networks that connects users of all
types all around the world to each other
and to an amazingly large information
repository.

Term Definition
All of the following are accurate A) Marketing is the creation of value
descriptions of modern marketing: for customers.

B) Marketing is managing profitable


customer relationships.

D) Marketing involves satisfying


customers' needs.

E) Marketing is used by for-profit and


not-for-profit organizations.

Term Definition
According to the opening scenario, the Fostering Customers emotional
Tide marketing team is MOST connections with their product
concerned about which of the following

Term Definition
According to management guru Peter Make selling unnecessary.
Drucker "The aim of marketing is to
_____________.
Term Definition
____________ is defined as a social and Marketing
managerial process by which
individuals and organizations obtain
what they need and want through value
creation and exchange.

Term Definition
Which steps of the five-step marketing The first four only.
process are about understanding
customers, creating customer value,
and building strong customer
relationships?

Term Definition
According to the simple five-step model Understand the marketplace and
of the marketing process, a company customer needs and wants.
needs to _______ before designing a
customer-driven marketing strategy.

Term Definition
_________ are human needs as shaped Wants
by individual personality and culture.

Term Definition
When backed by buying power, wants Demands
become __________.

Term Definition
What do companies call a set of benefits Market offering
that they promise to consumers to
satisfy their needs?

Term Definition
Which of the following refers to sellers Marketing Myopia
being preoccupied with their own
products and losing sight of underlying
consumer needs?

Term Definition
When marketers set low expectations Failing to attract enough customers
for a market offering, the biggest risk
they run is __________.

Term Definition
_______ is the act of obtaining a desired Exchange
object from someone by offering
somthing in return.

Term Definition
A(n) ___________ is the set of actual Market
and potential buyers of a product.

Term Definition
Consumer research, product marketing
development, communication,
distribution, pricing, and service are all
core ________ activities.

Term Definition
Which of the following is the most likely Not all customers will be satisfied.
result of a marketing strategy that
attempts to serve all potential
customers?

Term Definition
In the case of excess demand, demarketing
_________ may be required to reduce
the number of customers or to shift
demand temporarily or permanently.

Term Definition
The art and science of choosing target marketing management
markets and building profitable
relationships with them is called
__________.

Term Definition
Selection of which segments of a target marketing
population of customers to serve is
called _________.

Term Definition
Which of the following is the set of a value proposition
benefits a company promises to deliver
the customer to satisfy their needs?

Term Definition
Which customer question is answered "Why should I buy your brand rather
by a company's value proposition? than a competitor's?"

Term Definition
Which of the following marketing production concept
management orientations focuses
primarily on improving efficiencies
along the supply chain?

Term Definition
Which of the following marketing production
management concepts is most likely to
lead to marketing myopia?

Term Definition
The ____________ concept is aligned product
with the philosophy of continuous
product improvement and the belief
that customers will choose products
that offer the most in quality,
performance, and innovative features.

Term Definition
The product concept says that a Focus on making continuous product
company should do which of the improvements
following?

Term Definition
"Build a better mousetrap and the product
world will beat a path to your door"
reflects the __________ concept.

Term Definition
Which concept calls for aggressive selling
selling and focuses on generating
transactions to obtain profitable sales?

Term Definition
Which concept holds that achieving marketing
organizational goals depends on
knowing the needs and wants of target
makets and delivering the desired
satisfactions better than competitors
do?

Term Definition
A firm that uses the selling concept inside-out
takes a(n) ________ approach.

Term Definition
According to the production concept, available; affordable
consumers will favor products that are
________ and _________.

Term Definition
Herb Kelleher of Southwest Airlines outside-in
used the marketing concept in his
successful organization. Having a
customer department rather than a
marketing department, as suggested by
Kelleher, is an example of a(n)
________ perspective.

Term Definition
Though often criticized, the selling unsought
concept is particularly appropriate and
effective with which of the following
types of products?

Term Definition
Which of the following reflects the "We don't have a marketing
marketing concept philosophy? department; we have a customer
department."

Term Definition
Customer-driven marketing usually a clear need exists; know what they
works well when _________ and when want
customers ________.

Term Definition
Marie Ortiz enjoys her work at customer-driving
Futuristic Designs, Inc. Her
organization understands and
anticipates customer needs even better
than customers themselves do and
creates products and services to meet
current and future wants and demands.
Marie's firm practices ________
marketing.

Term Definition
When customers don't know what they customer-driving
want or don't even know what's
possible, the most effective strategy is
________ marketing.

Term Definition
The societal marketing concept seeks to long-run welfare
establish a balance between consumer
short-run wants and consumer
__________.

Term Definition
Which concept holds that firms must societal marketing
strive to deliver value to customers in a
way that maintains or improves the
consumer's and society's well-being?

Term Definition
The three areas of consideration that company profits
should be balanced in the societal
marketing concept are consumer wants,
society's interests, and ________.

Term Definition
The set of marketing tools a firm uses marketing mix
to implement its marketing strategy is
called the _______.

Term Definition
Of the following, which is the most customer relationship management
important concept of modern
marketing?

Term Definition
Building, keeping, and growing customer relationship management
profitable relationships by delivering
customer value and satisfaction is called
________.

Term Definition
Customer-perceived value is personal assessment
determined by a customer's _________
of the benefits and costs of a marketing
offering relative to those of competing
offers.

Term Definition
It is most accurate to say that the highest customer-perceived value
customers buy from stores and firms
that offer which of the following?

Term Definition
_________ is defined as the customer's Customer-perceived value
evaluation of the differences between all
the benefits and all the costs of a
marketing offer relative to those of
competing offers.

Term Definition
Which of the following is the term for customer evangelists
customers who make repeat purchases
and tell others about their positive
experiences with a product or service?

Term Definition
Which of the following strategies would lowering prices
a company most likely use to increase
customer satisfaction?

Term Definition
A room upgrade offered by a hotel to a frequency marketing program
guest who often stays in the hotel is an
example of a ________.

Term Definition
iRobot, the makers of Roomba, have customer delight
involved their customers in product
development, marketing, and technical
support in an effort to foster which of
the following?

Term Definition
In which of the following situations has iRobot invites enthusiastic Roomba
a company most actively turned its owners to develop and share their own
consumers into marketing partners? programs and uses for the company's
robotic vacuum.

Term Definition
Using customer profitability analysis to selective relationship management
weed out unprofitable customers and
target winning ones for pampering is
referred to as ________.

Term Definition
Pete Sanchez, a recent graduate of mass marketing
business school, has a different
approach than his marketing manager,
who believes in keeping customers at
arm's length and using mass media
advertising. Pete knows that today few
successful firms still practice true
________ and are instead turning to
selective relationship management.

Term Definition
The Niketown running club that a club marketing program
organizes twice weekly evening runs
and follow-up meetings in the Nike
Store is an example of which of the
following?

Term Definition
Which of the following has NOT traditional advertising
contributed to the deeper, more
interactive nature of today's customer
relationships?

Term Definition
Which of the following best explains Through new communication
why consumers have greater power and technologies, customers have more
control in today's marketplace? access to information and more
methods of sharing their opinions with
other customers.

Term Definition
Greater consumer control means that interaction; intrusion
companies must rely more on
marketing by ________ than by
________.

Term Definition
To create customer value and build partner relationship management
strong customer relationships,
marketers know they cannot go it
alone; therefore, they practice
________.

Term Definition
In today's world, marketing should be all
done by ________ employees in an
organization.

Term Definition
Through ________, many companies supply chain management
today are strengthening their
connections to all partners, from
providers of raw materials to
components to final products that are
delivered to final buyers.
Term Definition
Suzie Chan strengthens her company's ) supply chain
connections by treating suppliers of raw
materials, vendors, and distributors as
partners in delivering customer value.
What type of management is she
practicing?

Term Definition
The final step in the marketing process capturing value from customers
is ________.

Term Definition
Stew Leonard, the owner of a highly customer lifetime value
successful regional supermarket chain,
reacts adversely to losing a single
customer sale. He feels that this
amounts to losing the entire stream of
future purchases that a customer is
likely to make if he or she remains in
the area. Stew Leonard's concern is an
illustration of which of the following?

Term Definition
Advertising Age, a magazine for the consumer
advertising professionals, recently gave
its Ad Agency of the Year award to
________.

Term Definition
Which of the following is an example of MasterCard's use of "Priceless"
consumer-generated marketing? commercials shot by customers

Term Definition
When an airline goes after a "share of share of customer
travel" from its customers, it is
attempting to increase ________.

Term Definition
Beyond simply retaining good Marketers want to increase the share
customers, marketers want to they get of the customer's purchasing in
constantly increase their "share of their product categories.
customer." What does this mean in
marketing terms?

Term Definition
________ is one of the best ways to Cross-selling
increase share of customer.

Term Definition
Amazon.com leverages relationships share of customer
with its 35 million customers by
offering them music, videos, gifts, toys,
consumer electronics, and office
products, among other items. Based on
previous purchase history, the company
recommends related CDs, books,
videos, or other products that might
interest a customer. This most directly
helps Amazon.com capture a greater
________.

Term Definition
Which of the following is the total customer equity
combined customer lifetime values of
all a company's current and potential
customers?

Term Definition
The ultimate aim of customer customer equity
relationship management is to produce
________.

Term Definition
A potentially highly profitable, short- butterfly
term customer is a ________.

Term Definition
Customers can be classified into four true friends
relationship groups, according to their
profitability and projected loyalty.
Which type of customers have the
highest profit potential and strong
loyalty?

Term Definition
Which of the following statements The Internet makes it easy for
about the Internet is most accurate? consumers to view, interact with, and
create marketing content.

Term Definition
Which of the following is currently the online marketing
fastest-growing form of marketing?
Term Definition
Today almost every company, small and global competition
large, is affected in some way by which
of the following?

Term Definition
Governmental agencies are becoming social marketing campaigns
more involved in marketing as the years
pass. When a local government
advertises keeping the area's streams
and water supply cleaner, it is involved
in ________.

Term Definition
Selling is managing profitable customer False
relationships.
True/False

Term Definition
Human needs are shaped by culture False
and individual personality.
True/False

Term Definition
The difference between human needs True
and wants is that needs are not
influenced by marketers.
True/False

Term Definition
When backed by buying power, needs False
become demands.
True/False

Term Definition
Market offerings are limited to physical false
products.
True/False

Term Definition
An experience such as a vacation can be true
defined as a market offering.
True/False

Term Definition
When sellers focus on existing needs False
and lose sight of underlying customer
wants, they suffer from marketing
myopia.
True/false

Term Definition
Only sellers of products, services, and false
ideas practice marketing; buyers do
not.
True/false

Term Definition
Market segmentation is the process of false
seeking fewer customers and reduced
demand for profit maximization only.
T/F

Term Definition
Demarketing is a marketing philosophy False
focused upon product differentiation
and positioning.
T/F

Term Definition
When it becomes necessary to reduce true
demand for a product or service, an
organization may use demarketing to
reduce or shift the number of
customers.
T/F

Term Definition
The production concept and product
concept are orientations that can lead to
marketing myopia.
T/F

Term Definition
The selling concept holds that true
consumers will not buy enough of the
firm's products unless it undertakes a
large-scale selling and promotion effort.
T/F

Term Definition
Amy's law office has developed a new false
format and wording for wills. The staff
believes they offer the most in quality,
performance, and innovative features.
Her law office is practicing the
production concept.
T/F

Term Definition
Your department holds that achieving False
organizational goals depends on
knowing the needs and wants of target
markets and delivering the desired
satisfaction better than competitors do.
Your department is practicing the
selling concept.
T/F

Term Definition
Fast Food, Inc. views marketing as the false
science and art of finding, retaining,
and growing profitable customers by
providing them with the food they
want. Fast Food, Inc. practices societal
marketing.
T/F

Term Definition
The societal marketing concept calls on true
marketers to balance consumer wants
and desires, company profits, and
society's interests.
T/F

Term Definition
For most marketers, customer false
relationship management (CRM) is
exclusively a matter of customer data
management.
T/F

Term Definition
The marketing mix includes false
production, price, promotion, and
packaging; this is known as the four Ps
of marketing.
T/F

Term Definition
Customer-perceived value is defined as true
the customer's evaluation of the
perceived difference between all the
benefits and all the costs of a marketing
offer relative to those of competing
offers.
T/F

Term Definition
With selective relationship true
management, companies use customer
profitability analysis to eliminate losing
customers and target winning ones.
T/F

Term Definition
Large-scale marketing approaches that true
foster two-way customer relationships
are made possible by new
communication technologies.
T/F

Term Definition
Consumer-generated marketing, a false
relatively new phenomenon, has so far
had little impact as a marketing force.
T/F

Term Definition
To increase their "share of customer," a false
firm concentrates on retaining as many
customers as possible over their
lifetimes.
t/f

Term Definition
) Web 2.0 is distinguished by its poorly false
conceived e-tailers and Web start-ups.
t/f

Term Definition
Briefly compare and contrast the Human needs are states of felt
concepts of needs, wants, and demands, deprivation. Needs are part of the
giving an example of each. Discuss how human make-up; they are not created
these concepts relate to marketing by external forces. Humans have a
practices. basic physical need for food, clothing,
warmth, and safety; a basic social need
for belonging and affection; and a basic
individual need for knowledge and self-
expression. Unlike needs, wants are not
innate; instead, wants are needs shaped
by culture, society, and individual
personality. For example, an American
needs food but wants a Big Mac and a
soft drink. An American with ten
dollars needs food, wants a Big Mac
and soft drink, and demands lunch at
McDonalds. Wants become demands
when they are backed by consumers'
buying power. Marketers conduct
extensive research to understand
customers' wants and demands. They
then attempt to fulfill customers' wants
and demands through their market
offerings.

Term Definition
In a short essay, explain how and why : Sellers are most effective when they
marketers go beyond selling a product focus more on the benefits and
or service to create brand experiences. experiences produced by their products
and services than on the specific
products and services themselves.
Smart marketers focus on creating a
brand experience, incorporating several
products and services for their
customers. By doing so, marketers hope
to increase customer satisfaction,
creating a body of customers who will
repeatedly purchase their market
offerings and recommend those
offerings to friends.

Term Definition
Compare the selling and marketing The selling concept reflects an inside-
concepts, listing the key components of out philosophy, while the marketing
each philosophy. concept takes an outside-in perspective.
The selling concept is typically
practiced when an organization is
marketing products 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 relationships
with customers, with the aim of selling
what the company makes rather than
making what the customer wants. The
marketing concept, on the other hand,
is based upon identifying the needs and
wants of target markets and then
satisfying those needs and wants better
than competitors do. In contrast to the
selling concept, marketing focuses on
the customer, not the product, as the
path to profits.

Term Definition
Briefly explain the societal marketing According to this concept, firms will
concept. Give an example of an succeed if they take underlying
organization that has effectively used consumer needs and society's well being
the societal marketing concept. into account over the long term. A pure
marketing 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 marketing strategies,
marketers today need to balance
company profits, consumer wants, and
society's interests. Johnson & Johnson
is an example of a company that has
successfully implemented the societal
marketing concept. The organization
stresses honesty, integrity, and putting
people before profits, an ethic that
helped Johnson & Johnson quickly
address and recover from the poisonous
tampering of Tylenol capsules in 1982.

Term Definition
Define customer relationship Customer Relationship Management
management and explain its associated (CRM) is the process of building and
tools and levels of relationships. maintaining profitable customer
relationships by delivering superior
customer value and satisfaction. A
company with mostly low-margin
customers is likely to seek basic
relationships, using brand-building
advertising and sales promotion. An
organization with few customers and
high margins, on the other hand, will
work to create key partnerships with
select customers. To create stronger
bonds with customers, some marketers
use tools such as financial benefits or
rewards based on frequency of
purchase. Other tools include social
benefits, like offering key customers the
opportunity to network and create
communities through club marketing
programs. Another approach adds
structural ties to the aforementioned
financial and social benefits. Hence, to
retain current customers and remain
profitable, companies today are going
beyond transactional marketing to
customer relationship management.
The key is to create and sustain
relationships for the long term.

Term Definition
Explain why the aim of customer Customer satisfaction cannot be taken
relationship management is to create for granted. Because brand loyalty is
not just customer satisfaction, but also dependent upon strong customer
customer delight. satisfaction, companies strive to retain,
satisfy, and even delight current
customers. Firms create customer
delight by promising only what they can
deliver and then delivering more than
what they promised. They also create
emotional relationships with key
customers. Delighted customers make
repeated purchases and become
customers for life. More importantly,
they also essentially become an unpaid
sales force for the firm as "customer
evangelists" who tell other potential
customers about their positive
experiences with the product.

Term Definition
In a short essay, discuss the challenges Through the Internet and related
and advantages that new technologies, people can now interact in
communication technologies have direct and surprisingly personal ways
created for marketers. 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, and online social
networks, today's marketers
incorporate interactive approaches that
help build targeted, two-way customer
relationships. Marketers can create
deeper consumer involvement and a
sense of community surrounding a
brand, making a brand a meaningful
part of consumers' conversations and
lives. However, while new
communication tools create
relationship-building opportunities for
marketers, they also create challenges.
They give consumers a greater voice,
and therefore greater power and
control in the marketplace. Today's
consumers have more information
about brands than ever before, and
they have a wealth of platforms for
airing and sharing their brand views
with other consumers. This benefits
companies when views of its products
are positive, but can be damaging when
customers share stories of negative
experiences with a company's products.

Term Definition
Define customer equity and explain Customer equity is the sum of the
how a company can increase it. lifetime values of all a company's
current and potential customers.
Customer equity is dependent upon
customer loyalty from a firm's
profitable customers. Because customer
equity is a reflection of a company's
future, companies must manage it
carefully, viewing customers as assets
that need to be maximized. To increase
customer equity, companies should
work to delight their customers and
establish full relationships with their
most profitable customers.
Term Definition
In a short essay, describe and compare The four types of customers are
the four types of customers classified by strangers, butterflies, true friends, and
their potential profitability to an barnacles. "Strangers" have low
organization. Explain how an potential profitability and loyalty. A
organization should manage each type company's offerings do not fit well with
of customer. a stranger's wants and demands.
Companies should not invest in
building a relationship with this type of
customer. Another type of customer 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
and 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. However, if they cannot
be made profitable, they should be
"fired." Like strangers, "butterflies"
are not loyal. However, they are
potentially profitable because there is a
good fit between the company's
offerings and their needs. Like real
butterflies, this type of customer will
come and go without becoming a
permanent, loyal consumer of a
company's products. Companies should
use promotional blitzes to attract these
customers, create satisfying and
profitable transactions with them, and
then cease investing in them until the
next time around. The final type of
customers is "true friends"; they are
both profitable and loyal. There is a
strong fit between their needs and the
company's offerings, so the company
should make continuous relationship
investments in an effort to go beyond
satisfying and to delight these
customers. A company should try to
convert true friends into customer
evangelists who tell others about their
good experiences with the company.
Term Definition
Explain how the Internet has The Internet links individuals and
transformed the way in which we do businesses of all types to each other.
business today. The Internet allows firms access to
exciting new marketspaces. The
Internet has spawned an entirely new
breed of "click only" companiesthe
"dot-coms." The post-Internet frenzy of
the late 1990s has introduced
companies that are both savvy and face
promising futures. These companies use
a set of new Web technologies to reach
customers, including blogs (web logs),
vlogs (video-based logs), and social
networking sites. "Brick-and-mortar"
companies of the past are now "click-
and-mortar" companies, with online
presences aimed at attracting new
customers and strengthening bonds
with current customers. Approximately
65% of American Internet users now
shop online, making a Web presence a
necessity for any organization.

Term Definition
Greg Williams now has the buying demand
power to purchase the computer system
he has wanted for the last six months.
Greg's want now has become a(n)
________.

Term Definition
To avoid traffic gridlock in large metro demarketing
areas, a community might use ________
to discourage travelers from driving
during peak commuting hours.

Term Definition
Cathy's Clothes is a small retail chain target marketing
successfully selling women's clothing
and accessories with a profitable focus
on buyers who have relatively modest
means. This is an example of ________.

Term Definition
Jolene's firm markets preplanning selling concept
services for a mortician. She finds that
most of her target market wants to
avoid discussing their future funeral
needs, and she must somehow first get
their attention. Jolene's firm is most
likely practicing the ________.

Term Definition
Henry Ford's philosophy was to perfect production
the Model-T so that its cost could be
reduced further for increased consumer
affordability. This reflects the ________
concept.

Term Definition
Railroads were once operated based on product
the thinking that users wanted trains
rather than transportation, overlooking
the challenge of other modes of
transportation. This reflects the
________ concept.

Term Definition
Which of the following reflects the "This is what I want; won't you please
marketing concept? make it?"

Term Definition
Some fast-food restaurants offer tasty societal marketing concept
and convenient food at affordable
prices, but in doing so they contribute
to a national obesity epidemic and
environmental problems. These fast-
food restaurants overlook the ________
philosophy.

Term Definition
Members of the sales team at Dekko selective relationship management
International visit only prospective
customers who purchase a minimum of
$50,000 of insulated wire per year.
Dekko is using ________.

Term Definition
You have just taken a new position in customer relationship management
an organization and you're learning
about the job functions of your new
colleagues. You observe that your
marketing manager is heavily involved
in the process of building and
maintaining profitable customer
relationships. Your marketing manager
frequently speaks about the need to
deliver superior customer value and
satisfaction. Your manager is concerned
with which one of the following?

Term Definition
Sally purchased Brand X lotion. In customer satisfaction
comparing her perception of how the
lotion made her skin feel and look to
her expectations for Brand X lotion,
Sally was measuring her level of
________.

Term Definition
FedEx offers its customers fast and customer-perceived value
reliable package delivery. When FedEx
customers weigh these benefits against
the monetary cost of using FedEx along
with any other costs of using the
service, they are acting upon ________.

Term Definition
Tommy Gray attempts to deliver customer expectations; company
customer satisfaction every day in his performance
Audio Expressions installation business.
He is a smart operator who knows that
the key to this goal is to match
________ with ________.

Term Definition
Shania works hard to foster an customer delight
emotional relationship between her
Internet customers and the beauty
products and services that she and her
staff sell. By promoting a company
culture that values exceptional value
and service, Shania aims to create
________ by going beyond the expected.

Term Definition
You are an assistant marketing director basic relationships
for a firm in a market with many low-
margin customers. What type of
relationship would it be most profitable
for you to develop with these
customers?

Term Definition
Elisandra, a marketing manager at a consumer-generated marketing
regional chain restaurant, has decided
to sponsor a contest calling for
customers to create commercials for the
restaurant. Winning entries will be
posted on the organization's home page.
Elisandra's plan is an example of
________.

Term Definition
At Gina's Nails, the posted policy is capturing customer lifetime value
"Without our customers, we don't
exist." Gina and her staff aim to delight
each customer, and they are quick to
offer discounts or extra services
whenever a customer is anything less
than satisfied. Gina and her staff strive
to make every customer a repeat
customer. It is most accurate to say that
instead of focusing on each individual
transaction, Gina and her staff put a
priority on ________.

Term Definition
Afia, a team leader in charge of barnacles
customer relationship management, is
planning strategies for improving the
profitability of her firm's least
profitable but loyal customers. She is
also examining methods for "firing"
customers in this group who cannot be
made profitable. To which of the
following customer relationship groups
do these customers belong?

Term Definition
A church targeting different not-for-profit marketing
demographic groups to increase
attendance is an example of ________.

Term Definition
Ben & Jerry's challenges all social responsibility
stakeholders, including employees, top
management, and even ice cream
scoopers in their stores, to consider
individual and community welfare in
their day-to-day decisions. Actions such
as this by companies seizing the
opportunity to do well by doing good
reflects ________.

Term Definition
Your state's department of education social marketing
has budgeted a significant amount of
money for a radio, print, television, and
online advertising campaign
emphasizing the long-term benefits,
both educationally and professionally,
of reading every day. This is an example
of a(n) ________ campaign.

Term Definition
Refer to the scenario below to answer
the following questions.

Carol Veldt, owner of Seagull Terrace,


watched her investment grow from a
small, seaside motel to a thriving year-
round resort in just a few years. Atop a
bluff overlooking the Maine coast,
Seagull Terrace had attracted
thousands of visits during the summer
months, but then faced a tremendous
downturn in business during the winter
months. "But, given the industry in the
nearby towns, very little year-round
competition, and our close proximity to
Portland," Carol added, "I couldn't
understand why seasonality had to hit
Seagull Terrace so hard!"
So Carol spent her first winter devising
a new marketing plan. She put together
a promotional package designed to
attract business travelers year-round.
Carol's plan, then, involved a seasonal
promotional gimmickto be
implemented from early winter to late
springthat would attract the same
numbers as the large summer crowd.
Her idea worked! During her second
winter, Carol greeted numerous
business travelersboth satisfied repeat
guests as well as new guests who had
been snagged by her promotional
appeals.
"We still have a long way to go," Carol
admitted. "Our delicatessen offers
delicious entrees, but we'd like to
expand that. We provide health club
privileges off-site, but we'd like to
eventually provide our own. These are
goals I hope to achieve in a few years.
Our first project, however, included a
renovation of our guest rooms and I'm
quite proud of the results." Carol then
added, "Actually there are so many
possibilities! With an indoor pool area,
I will eventually offer weekend get-
aways throughout winter."

Term Definition
Which of the following groups is seasonal business travelers
specifically part of Seagull Terrace's
target market?

Term Definition
Carol Veldt's use of "promotional selling
gimmicks" is an example of the
________ concept.

Term Definition
Renovations of the guest rooms at the product
Seagull Terrace and plans to add an
indoor pool area are examples of the
________ concept.

Term Definition
Carol Veldt has decided to ask selected marketing
guests to participate in an extensive
survey about their experience at Seagull
Terrace and about their most desired
amenities and vacation experiences. By
implementing the suggestions she
receives from guests, Carol would be
following the ________ concept.

Term Definition
What should sellers consider if they Sellers should consider the particular
wish to avoid marketing myopia? benefits and experiences desired by
their customers, and not just pay
attention to the specific products they
offer.

Term Definition
You are a manufacturer of tents, Such manufacturers should focus on
sleeping bags, and outdoor cooking the benefits enjoyed through the use of
equipment. How might you go about their products-access to the great
creating brand experiences for your outdoors, shared family experiences,
customers? and relived memories of the consumer's
youth.

Term Definition
Think about suppliers and other Wal-Mart must rely on suppliers that
marketing partners. A modern will provide merchandise at low costs, a
marketing system relies on profitable low-cost and efficient distribution
relationships all along the way. How system, an accurate and efficient
might Wal-Mart rely on their customer relationship database system,
marketing partners in order to offer and a strong partnership with each of
low prices? the members of its supply chain.

Term Definition
When demand for the latest talking The production concept holds that
Elmo was at its highest, it was consumers favor products that are
suggested that manufacturers available and affordable. With this
purposefully maintain strong demand concept, manufacturers work to
by limiting supply, which would drive increase production and improve
prices up. If this were the case, explain manufacturing efficiency, and thus
how such manufacturers were NOT eventually lower the price paid by the
carrying out the production concept. consumer.

Term Definition
The marketing team at Bead Beautiful, In considering Bead Beautiful's value
a line of jewelry targeted at pre-teenage proposition, the marketing team should
girls, is meeting to formulate the identify the benefits and values the
products' value proposition. What company promises to deliver to
should team members consider as they customers to satisfy their needs. The
define a value proposition for Bead value proposition should differentiate
Beautiful? Bead Beautiful from other similar
products, answering the customer's
question "Why should I buy this brand
rather than a competitor's?"

Term Definition
Company X carries organizational and The company's aim is to sell its supplies
office supplies and follows the selling rather than make what the market
concept. Explain how Company X may wants; such a strategy creates sales
lose sight of customer relationships with transactions but not long-term
their marketing orientation. relationships. The company's likely
faulty assumption is that customers
who are persuaded to buy the product
will like it or that they will buy the
product again even if they weren't
really initially satisfied. Company X
will not foster customer loyalty with
this approach.

Term Definition
In nineteenth-century Dublin, Molly : The vendor's approach was inside-out.
Malone sold cockles and mussels while The cockles and mussels are available.
shouting to passers by, "alive-alive-oh." The vendor's job was then to attract
Was Molly taking an outside-in or willing buyers.
inside-out perspective? Explain.

Term Definition
) Explain why electronics and In such industries, consumers do not
pharmaceuticals manufacturers may know exactly what new products are
use customer-driving marketing. available; therefore, consumers rely on
such firms to tell them what they need.

Term Definition
Explain how storing customer Managing detailed information about
information in a database might better customers may allow Saturn to design
prepare car-maker Saturn in customer new models around customer
relationship management (CRM). demographics and desires for specific
features. These "touchpoints" can be
the key to long-term customer loyalty.

Term Definition
What determines whether sellers create The type of relationship a seller seeks to
basic relationships or full partnerships create with its customers is dependent
with customers? on the number of customers and their
profitability. A company with many
low-margin customers develops basic
relationships; a company with just a
few high-margin customers invests
resources to create full partnerships.

Term Definition
How can a marketer increase "share of The marketer can offer greater variety
customer"? to customers; in addition, the marketer
can train employees to cross-sell and
up-sell in order to market more
products and services to existing
customers.

Term Definition
Explain what marketers can expect "Butterflies" are profitable but not
from individuals in the customer loyal. Marketers should enjoy this type
relationship group classified as of customer "for the moment" because
"butterflies." they soon flutter off. Marketers should
create profitable and satisfying
transactions with "butterflies," then
cease investing in them until the next
time around. Marketers can expect
transactions with butterflies when
conditions are optimal for the customer,
but they should not expect butterflies to
become loyal customers.

Term Definition
Able works in the marketing Able could use videoconferencing to
department of an international monitor customer focus groups
company. In what ways might Able use discussing the company's products and
modern technologies to conduct market services in various locations. Able could
research in order to learn more about use online data services to learn more
and better serve his company's about the needs and wants of his
customers? customers, or he could create a
customer database for the company to
target individual customers with
tailored offers.

Term Definition
In what ways might even a local retailer A local retailer might have global
find itself touched by global suppliers and customers. The retailer's
competition? goods may come from abroad, or
components of those goods may be
produced or assembled abroad. In
addition, a local retailer may also sell
goods over the Internet to international
customers.

Term Definition
How is marketing being applied in the Firms in the not-for-profit sector use
not-for-profit sector? marketing to enhance their images, to
encourage donor marketing to attract
memberships and donors, and to design
social marketing campaigns to
encourage specific causes.