exercise for essay - Chapter 1 Marketing: Managing...

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Chapter 1 Marketing: Managing Profitable Customer Relationships 1. How do marketers differentiate between needs, wants, and demands? Marketers realize that humans have needs when they are in a state of felt deprivation. These needs take on the form of wants as they are shaped by culture and individual personality. When backed by buying power, wants become demands. Companies research demands and supply the needs that drive them. (Easy; p. 5) 2. Explain marketing management in today’s terms. Marketing management is the art and science of choosing target markets and building profitable relationships with them. This involves getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. Thus, marketing management involves managing demand, which in turn involves managing customer relationships. (Moderate; p 10) 3. Describe the five marketing management orientations. The production concept holds that consumers will favor products that are available and highly affordable. The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Those who follow the selling concept hold that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort. Using the marketing concept means that achieving organizational goals depends on knowing the needs and wants of target markets and delivering satisfactions better than competitors do. The societal marketing concept holds that the firm should determine the needs, wants, and interests of target markets. (Challenging: pp. 10 - 12) Chapter 2 Company and Marketing Strategy: Partnering to Build Customer Relationships 1. Describe what goes into a market-oriented mission statement. A market-oriented mission statement should describe the organization’s purpose or what it wants to accomplish in the larger environment. It will be both realistic and specific in its scope. Missions should fit the market environment and be motivating. (Easy; pp. 33 and 34)
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2. Explain the purpose of the Boston Consulting Group approach to business planning, and briefly describe each of the four types of SBUs. The purpose is to provide a measure of market attractiveness and a measure of company strength in the market. The four types of SBUs are start, cash cows, question marks, and dogs. Stars are high-growth, high-share businesses or products. They often need heavy investment to finance their rapid growth. Cash cows are low-growth, high-share businesses or products. They need less investment and produce a lot of cash to pay bills and support other SBUs. Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share. Management must decide whether to build them into stars or phase them out. Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash. (Challenging; p. 36 and 37)
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exercise for essay - Chapter 1 Marketing: Managing...

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