IS-VNU_MKT101+May+'09+FE+Marking+Scheme+copy

IS-VNU_MKT101+May+'09+FE+Marking+Scheme+copy - MKT101...

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MKT101 Principles of Marketing ( Semester 2/December 2008 Intake- Final Examination) Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Marketing process refers to five simple steps. Firstly, understand the marketplace and customer wants and needs. Outstanding marketing companies go to great lengths to learn about and understand their customer’s needs, wants and demands. This understanding helps them to design want-satisfying market offerings and build value-laden customer relationships by which they can capture customer lifetime value and great share of customer. Secondly, design a customer-driven marketing strategy. To design a winning marketing strategy, the company must first decide who it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will cultivate (target marketing). Next, the company must decide how it will serve targeted customers (how it will differentiate and position itself in the marketplace). Thirdly, conduct an integrated marketing program that delivers superior value. The marketer develops an integrated marketing program that will actually deliver the intended value to target customers. The marketing program builds customer relationships by transforming the marketing strategy into action. Fourthly, build profitable relationships and create customer delight. Good customer relationship management creates customer delight. In turn, delight customers remain loyal and talk favorably to others about the company and its products. Finally, capture value from customers to create profit and customer equity. The only value the company will ever create is the value that come from customers —the ones you have now and the ones you will have in the future. Without customers, you don’t have a business”. Company wants not only profitable customers, but to “own” them for life, capture their customer lifetime value, and earn a greater share of their purchases. Demographics is the statistical data on the human race. It includes information such as sex, age, and income, and it is used by business to identify the target markets for their products or services. However, why is the study of customer demographics important to marketers? Demographics allow company to target a specific demographic group with their marketing. It also lets company know when things are changing which then allows you to make changes in your marketing. Demographic data can identify characteristics in the population to determine who their potential customer actually is, and to locate the geographic area where the most potential customers live. This information is then used in their marketing to identify which products to carry, how to use their advertising dollars, and
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IS-VNU_MKT101+May+'09+FE+Marking+Scheme+copy - MKT101...

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