Chapter 13: Marketing – Building Customer Relationships
1. What is the marketing concept?
A three-part business philosophy:
1. A customer orientation: Find out what customers want and provide.
2. A service orientation: Make sure everyone in the organization has the
same objective; Customer satisfaction.
3. A profit orientation: Focus on those goods and services that will learn the
most profit and enable the organization to survive and expand to serve
more consumer wants and needs.
2. Trace the evolution of marketing. (History)
In the United States it involved 4 eras.
1.
The Production Era: The general philosophy of business was “Produce as
much as you can because there is limitless market.” Such a philosophy was
both logical and profitable.
The Selling Era: By the 1920s, business had developed mass-production
techniques and production capacity often exceeded the immediate market
demand.
The Marketing Concept Era: After WWII ended in 1945, there was a
tremendous demand for goods and services among the returning soldiers
who were starting new careers and beginning families.
The Customer Relationship Era: The process of learning as much as possible
about customers and doing everything you can to satisfy them or even
exceeded their expectations with goods and services overtime.
2.
3.
4.
4. What are the steps in product development? Explain.

Idea Development
o Screening New Ideas
 Business Analysis
 Product Development
o Test Marketing
 Commercialization
Introduction
Growth
Maturity
Decline
Time
7. What are the factors in the marketing environment?
Page 359, Only points.
8. What are the sources for doing market research?
Primary Sources: Interviews, surveys, observation, focus groups, online
surveys, questionnaires, customer comments, letters from customers.
Secondary Sources:
1. Government Publications (Statistical Abstract of the U.S)
2. Commercial Publications (ACNielsen Company studies on retailing
and media marketing research corporation of America studies on
consumer purchases selling areas – Marketing Inc. reports on food
sales)
3. Magazines (Business Week, Forbes)
4. Newspaper (The Wall Street Journal)
5. Internal Sources (Company Records)
6. General Sources (Internet Searches)
9. What are the types of market segmentation?
1.
2.
3.
4.
5.
Geographic Segmentation (Region, city or country size, density)
Demographic Segmentation (Gender, age, education)
Psychographic Segmentation (Personality, values)
Benefit Segmentation (Comfort, convenience, health)
Volume Segmentation (Usage, loyalty, status)
10. What makes B2B market different from B2C market?
1. The number of customers in the B2B market is small but the number of
customers in the consumer market is large.
2. B2B tends to be geographically and industrial buyers and more rational than
ultimate consumers in their goods and services.
3. B2B markets are more emphasis on personal selling than in consumer
markets.