Exam 1: Marketing: Creating and Capturing Customer Value

When the economy tightens, customer loyalty and customer retention become ________ for marketers.

________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.

According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.

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

Marketers should look beyond the attributes of the products and services they sell to also create brand experiences for consumers.

The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being.

Which one marketing management concept, if the only one adopted, can lead manufacturers to develop marketing myopia?

Selecting which segments of a population of customers to serve is called ________.

Describe and compare the four types of customers classified by their potential profitability to an organization. Identify how an organization should manage each type of customer.

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 gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers—both 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 getaways throughout winter." -How is Carol Veldt attempting to create a brand experience for her visitors?

It is most accurate to say that today almost every company, small and large, is affected in some way by which of the following?

The management team at Big Burritos, a new fast-food restaurant, wants to develop a new marketing plan. What would a marketing manager tell Big Burritos' management team their twofold goal of marketing should be?

Shania works hard to foster an 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.

In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business.

When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.

The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships.

When backed by buying power, needs become wants.

The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

In what ways might even a local retailer find itself touched by global competition?

When demand for Beanie Babies was at its highest, manufacturers purposefully maintained strong demand by limiting supply, which drove the price of Beanie Babies up. These manufacturers were doing the opposite of what the production concept believes. Explain.