1. CHAPTER 1 DISCUSSION QUESTIONS
1) Define "customer satisfaction."
2) In advanced economies, marketing costs how much of every consumer dollar?
3) Define "innovation."
4) Define "marketing."
5) What should marketing begin with?
6) Marketing doesn't occur unless 2 or more parties are willing to do what?
7) Define "macro-marketing."
8) Explain how "economies of scale" works?
9) What are the universal functions of marketing?
10) In what type of economy does government officials decide what & how much is to be produced
& distributed by whom, when, to whom, &why?
11) In what type of economy do the individual decisions of the many producers & consumers make
the macro-level decisions for the whole economy?
12) In what type of economy do consumer enjoy great freedom of choice?
13) What are the 5 stages in marketing evolution?
14) What is the "marketing concept?"
15) What are the 3 basic ideas of the marketing concept?
16) Define "customer value."
17) Why are low price & high customer value not always the same thing?
18) Should all consumer needs be satisfied? Explain.
2. AS A CURRENT, OR POTENTIAL CONSUMER OF
THE FOLLOWING COMPANIES, WHAT COMES TO
MIND ABOUT EACH OF THEM?
1) FACEBOOK & SAMUEL ADAMS
2) APPLE & REEBOK
3) NIKE & PATAGONIA
4) NORTH FACE & DELL
5) ANHEUSER BUSCH & TWITTER
9. MARKETING
“THE PERFORMANCE OF ACTIVITIES THAT SEEK TO ACCOMPLISH AN
ORGANIZATION’S OBJECTIVES BY ANTICIPATING CUSTOMER/CLIENT
NEEDS & DIRECTING A FLOW OF NEED SATISFYING GOODS &
SERVICES FROM PRODUCER TO CUSTOMER/CLIENT.”
-IT IS ABOUT FIGURING OUT WAYS TO DRUM UP SALES*.
*$, DONATIONS, MEMBERSHIPS, ETC.
3 MAIN PURPOSES
1) BUILD AWARENESS.
2) BUILD ADOPTION.
3) BUILD LOYALTY.
11. BRAND LOYALTY
-A CUSTOMER’S COMMITMENT TO REPURCHASE A
COMPANY’S PRODUCT/SERVICE.
-ACQUIRING A NEW CUSTOMER COSTS 5X MORE THAN
KEEPING AN EXISTING CUSTOMER.
FACTORS INFLUENCING BRAND LOYALTY
1) PERCEIVED VALUE
2) BRAND TRUST
3) SATISFACTION
12. MACROMARKETING
“A SOCIAL PROCESS THAT DIRECTS AN ECONOMY’S FLOW OF GOODS & SERVICES
FROM PRODUCTS TO CONSUMERS IN A WAY THAT EFFECTIVELY MATCHES SUPPLY &
DEMAND AND ACCOMPLISHES THE OBJECTIVES OF SOCIETY.”
-EMPHASIS IS ON HOW THE WHOLE MARKETING SYSTEM WORKS.
-LOOKS AT HOW MARKETING AFFECTS SOCIETY & VICE VERSA.
13. ECONOMIES OF SCALE
“AS A COMPANY PRODUCES LARGER NUMBERS OF A PARTICULAR
PRODUCT, THE COST OF EACH UNIT OF THE PRODUCT GOES DOWN.”
2.5 MILLION BARRELS/YEAR 100 MILLION BARRELS/YEAR
14. ECONOMIC SYSTEM
“THE WAY AN ECONOMY ORGANIZES TO USE SCARCE RESOURCES TO
PRODUCE GOODS & SERVICES AND DISTRIBUTE THEM FOR
CONSUMPTION BY VARIOUS PEOPLE & GROUPS IN THE SOCIETY.”
COMMAND ECONOMY
-GOVERNMENT OFFICIALS DECIDE WHAT & HOW MUCH IS TO BE
PRODUCED & DISTRIBUTED BY WHOM, WHEN, TO WHOM, & WHY.
-THE ASSORTMENT OF GOODS & SERVICES ARE USUALLY LIMITED.
MARKET-DIRECTED ECONOMY
-THE INDIVIDUAL DECISIONS OF THE MANY PRODUCERS &
CONSUMERS MAKE THE MACRO-LEVEL DECISIONS FOR THE WHOLE
ECONOMY.
-CONSUMERS ENJOY GREAT FREEDOM OF CHOICE.
15. STAGES IN MARKETING EVOLUTION
1) SIMPLE TRADE ERA
-FAMILIES TRADED OR SOLD THEIR “SURPLUS” OUTPUT TO LOCAL DISTRIBUTORS WHO
RESOLD THE GOODS TO CONSUMERS.
2) PRODUCTION ERA
-COMPANIES FOCUSED ON PRODUCTION OF A FEW SPECIFIC PRODUCTS.
3) SALES ERA
-COMPANIES EMPHASIZED SELLING BECAUSE OF INCREASED COMPETITION.
4) MARKETING DEPARTMENT ERA
-ALL MARKETING ACTIVITIES WERE BROUGHT UNDER THE CONTROL OF ONE DEPARTMENT TO
IMPROVE SHORT-RUN POLICY PLANNING..
5) MARKETING COMPANY ERA
-MARKETING PEOPLE DEVELOP LONGE-RANGE PLANS & THE WHOLE COMPANY EFFORT IS
GUIDED BY THE MARKETING CONCEPT.
