Creating Customer Relationships

LEARNING OBJECTIVE 1:

1) When inventor David Windorski developed a new Post-it product, he first discovered consumer needs.

2) You are already a marketing expert because as a consumer, you do many marketing activities every day mainly on the buyer side.

3) Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing relationships in ways that benefit the organization and its stakeholders.

4) To serve both buyers and sellers, the marketing department seeks to discover the needs and wants of prospective customers and to satisfy them.

5) An organization's marketing department relates to many people, groups, and forces, including customers, other organizations, shareholders and suppliers.

6) In the field of marketing, exchange refers to the trade of things of value between buyer and seller so that each is better off.

7) Marketing departments work closely with a network of departments within an organization to assess and satisfy customer needs, like the finance, information systems, manufacturing and R&D departments.

8) As illustrated in figure 1-2(just read it >>Alaa), social economic, technological, competitive, and regulatory forces impact and are impacted by marketing activities.

9) The four groups that exert important direct influence on an organization consist of other organizations, suppliers, shareholders, and customers.

LEARNING OBJECTIVE 2:

10) Two central concerns of marketing are discovering the needs and wants of prospective customers, and to satisfy them.

11) The first task is to discover the needs of customers.

12) The second task is to satisfy the needs of customers.

13) 94% of launches of new consumable products are unsuccessful in the long run.

14 A marketer should make a careful study of product failures when preparing to launch a new product.

15) Needs occur when a person feels physiologically deprived of something, and wants are determined by a person's knowledge, culture, or personality.

16) Cell phone usage and other distracting behaviors while driving are just as dangerous as drunk driving. Facts: Drivers use cell phones on the road sometimes to be productive. Distracted drivers account for almost 30% of automobile accidents. Most European countries have enacted legislation to reduce or eliminate cell phone use while driving. Some states have created billboards to inform drivers of their moral obligation to drive attentively (just read>>Alaa).

17) A market is defined as people with both the desire to buy and the ability to buy a specific product.

18) All markets are ultimately composed of people.

19) One or more specific groups of potential consumers toward which an organization directs its marketing program is a target market.

LEARNING OBJECTIVE 3:

20) The four "P's" are commonly known as the marketing mix.

21) The four "P's" are product, price, promotion, and place.

22) A product is a good, service or idea to satisfy customer needs.

23) Promotion is a means of communication between the seller and buyer.

24) Price is what is exchanged for the product.

25) Place refers to the means of getting the product into the consumer's hands. Forces that are largely beyond the control of the marketing department and its organization are called environmental factors.

26) The five major environmental factors in marketing are social, economic, technological, competitive and regulatory.

LEARNING OBJECTIVE 4:

27) Customer value is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.

28) Best product, best price, and best service are strategies designed to create customer value.

26) Relationship marketing links an organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

27) In an ideal setting, relationship marketing is a personal, ongoing, long-term relationship.

28) The ever-increasing usage of the Internet for consumer purchases acts as a barrier to the development of relationship marketing.

29) A marketing program is a plan that integrates the marketing mix to provide a good, service or idea to prospective buyers.

30) By matching two 3M products to each of two key segments, 3M is building a marketing program (company Name>>>Alaa).

LEARNING OBJECTIVE 5:

31) The production era covers the early years of the U.S. up until the 1920"s, when goods were scarce and buyers were willing to accept virtually any goods that were available and make do with them.

32) In the sales era, manufacturers found they could produce more goods than buyers could consume. At the same time, competition grew and firms hired more salespeople to find new buyers.

33) In the 1960"s marketing became the motivating force among many American firms and the marketing concept era dawned.

34) Customer relationship management is the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose it in the marketplace.

35) Customer relationship management requires the commitment of managers and employees throughout the organization.

36) Today, the emphasis of marketing practice has shifted from emphasing producers' interests to consumers' interests.

37) Social responsibility is the idea that individuals and organizations are accountable to a larger society.

38) Every organization engages in marketing.

39) Ultimate consumers are individuals who use the goods or services purchased for the household.

40) Organizational buyers are most accurately described as manufacturers, retailers, or government agencies that buy goods and services for their own use or for resale.

41) The benefits or customer value received by users of a product is called utility. Marketing creates utility.

42) The four utilities created by marketing are form, place, time, and possession.

43) Form utility is the production of the good or service.

44) Place utility is having an offering available where consumers need it.

45) Time utility means having a good or service available when it is needed.

46) Possession utility is the value of making an item easy to purchase through the provision of credit cards or financial arrangements.