Chapter#1 Q#1 Define marketing and outline the steps in the marketing process. (AACSB: Communication) Marketing: “Creating profit through customer satisfaction” Marketing process: 1. 2. 3. 4. 5. Understand the marketplace and customer needs and wants Design a customer value– driven marketing strategy Construct an integrated marketing program that delivers superior value Engage customers, build proﬁtable relationships, and create customer delight Capture value from customers to create proﬁts and customer equity. Q#2 What is marketing myopia? What are the short- and long-term implications for business in this situation? (AACSB: Communication; Reflective Thinking) Marketing myopia: The mistake of paying more attention to the company’s specific offerings than to the needs and wants of the customer. Implications: Companies with myopia may achieve short term sales as long as any competitor with more consideration of customer needs and wants do not offer a perfect solution to customer needs. So myopia is a hinder for company’s long term success. Q#3 Describe the five different competing marketing orientations that a business organization can adopt to drive its marketing strategy. (AACSB: Communication; Reflective Thinking) Marketing Management Orientations 1. Production concept: The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. 2. Product concept: The idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should make continuous product improvements. 3. Selling concept: To believe that customers will only buy the products with great selling and promotion efforts. 4. Marketing concept: A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. 5. Societal marketing concept: The idea that a company’s marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being. Q#4 Discuss the concept of customer relationship management. Why is it essential that a business incorporates this in its operations? (AACSB: Communication; Reflective Thinking) Customer relationship management (CRM) “The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.” Importance: Companies manage customer relationships carefully in order to satisfy and delight them because satisfied customers buy again and again and delighted customers create favorable word of mouth about the product. However the dissatisfied customers often switch to the competitors and share their negative experience of the product with others. Q#5 Why is marketing as important for not-for-profit organizations as profit-driven ones? (AACSB: Communication; Reflective Thinking) Marketing is also needed in not-for-profit organizations because they need people to be aware of and trust the organization in order to generate funds and get support from them to operate. Also these organizations are facing competition so they need promotion and trust-worthy image in the minds of the people. Chapter#2 Q#1 Define strategic planning and briefly describe the four steps that lead managers and the firm through the strategic planning process. Discuss the role marketing plays in this process. (AASCB: Communication) Strategic planning “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.” Steps in Strategic Planning Corporate level Step#1-Deﬁning the company mission-organization’s purpose-what it wants to accomplish in the larger environment. Step#2-Setting company objectives and goals (The company needs to turn its broad mission into detailed supporting objectives for each level of management). Step#3-Designing the business portfolio-The collection of businesses and products that make up the company. Business unit, product, and market level Step#4-Planning marketing and other functional strategies-within each business unit, more detailed planning takes place. The major functional departments in each unit must work together to accomplish strategic objectives. Marketing role in strategic planning: It suggests that the broader company strategy must be customer focused. It helps company identify attractive market opportunities and assessing the firm’s potential to take advantage of them. Within individual business units, marketing designs strategies for reaching the unit’s objectives. Q#2 Describe how a company’s mission statement and objectives affect the way management plans its business portfolio. (AACSB: Communication; Reflective Thinking) A mission statement is an “invisible hand” which gives direction to the organization. Objectives of an organization are also driven from the company’s broader mission so the business portfolio must be according to the company’s mission and objectives unless it would create a confusing image of the brand. Q#3 Describe the differences between a value chain and a value delivery network. (AACSB: Communication, Reflective Thinking) A value chain is a series of internal departments of the organization engaged in creating value for customers while value delivery network is the complete network which include suppliers, distributors and ultimately customers engaged in creating, distributing and consuming the value. Q#4 Discuss how a new brand manufacturer would go about defining their market segments and then begin to target them. (AACSB: Communication; Reflective Thinking) Any new brand first divides the market into different segments using the suitable segmentation techniques and would then target some segments which might have being ignored by the competitors or are not satisfied with the current offering of the competitors that type of segments are most likely to be served by the new brand.