Chapter One
Discussing the Issues
1. Explain the goal of marketing and how companies achieve it.
 The goal of marketing is to grasp the value of a customer and maintain a relationship
with them to keep them going back to a company. Companies achieve marketing by
understanding the marketplace and the customer’s wants and needs.
2. Compare and contrast a costumer’s needs, wants and demands.
 The difference between a costumer’s wants and needs is that needs are the basic
necessities for life, and a want is something and person desires but has no need for. For
example, a person may need a car to get from point “A” to “B” but they want to get a
Ferrari. A simple Honda accord wills the job because that is practical and a Ferrari is a
want.
3. Why is target marketing important for a customer driven marketing strategy? How might
target market impact customer satisfaction?
 Target marketing is important for customer driven marketing because a company can
market a certain product for a select group of people who will buy the product. Target
marketing might impact customer satisfaction because if the product is marketed more
towards a certain type of person, they will probably be more likely to enjoy the product
and gain their support for future purchases.
4. Explain the difference between share of a customer and customer equity.
 Customer equity is the total customer life time value. Essentially, meaning how long a
customer would stay with the company. The share of a customer is the percentage of
customers that buy a product within the products category.
5. How does internet impact marketing?
 The internet impacts marketing based on the fact that ever where you go on the
internet some company is marketing their product. When you watch TV or even go
shopping online, there is always a link or ad on the side of the page.
Application Question
1. If I bought a automobile from the same manufactuer every time I bought a new vehicle ,
I would be very profitable to that company. I would probably be a lifetime valued
customer because I wouldn’t purchase a car any place else. Therefore , my money
would be going soley to them and they would be gaining my loyalty for as long as I was
available to purchase a vehicle.