Exam 1: Marketing: Creating and Capturing Customer Value

Scenario Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years.Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months."But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" o Carol spent her first winter devising a new marketing plan.She put together a promotional package designed to attract business travelers year-round.Carol's plan, then, involved a seasonal promotional gimmick-to be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd.Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. We still have a long way to go," Carol admitted."Our delicatessen offers delicious entrees, but we'd like to expand that.We provide health club privileges off-site, but we'd like to eventually provide our own.These are goals I hope to achieve in a few years.Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend getaways throughout winter." Based on the marketing process, what are Carol Veldt's strengths?

The marketing team at Bead Beautiful, a line of jewelry targeted at pre-teenage girls, is meeting to formulate the products' value proposition.What should team members consider as they define a value proposition for Bead Beautiful?

Selling is managing profitable customer relationships.

The set of marketing tools a firm uses to implement its marketing strategy is called the ________. promotion mix product mix marketing mix TQM marketing effort

Customer-driven marketing is most likely to work well when ________ and when customers ________. a clear need exists; are difficult to identify customers do not know what they want; have limited budgets there are few competitors; are concerned about their long-run welfare a clear need exists; know what they want a want exists; cannot afford it

The first four steps of the marketing process focus on ________. understanding the market delivering customer service creating value for customers understanding customer demands and needs capturing value from customers

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. product production selling equity marketing

________ is the total combined customer lifetime values of all the company's current and potential customers. Share of customer Customer lifetime value Customer equity Profitability Share of market

The concept of "saving money by firing your customers" refers to which type of customer? customers that lay complaints unprofitable customers old customers new customers no customer should ever be fired

Segmenting customers into 4 categories (butterflies, true friends, strangers, and barnacles) essentially evaluates customers on which two dimensions? profitability and revenue revenue and customer loyalty profitability and customer loyalty revenue and communications costs profit and communications costs

Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization.

Before the marketing mix is developed, marketers need to understand the wants and needs of customers.

The ultimate aim of customer relationship management is to produce ________. customer delight customer satisfaction steady sales volume a reliable database sustainable business

Scenario Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years.Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months."But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" o Carol spent her first winter devising a new marketing plan.She put together a promotional package designed to attract business travelers year-round.Carol's plan, then, involved a seasonal promotional gimmick-to be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd.Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. We still have a long way to go," Carol admitted."Our delicatessen offers delicious entrees, but we'd like to expand that.We provide health club privileges off-site, but we'd like to eventually provide our own.These are goals I hope to achieve in a few years.Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend getaways throughout winter." Which social networks should Carol Veldt use to strengthen relationships with customers and attract new customers to Seagull Terrace?

As the economy emerges from the recent recession and heads into the post-recession era, one dominant consumer trend that has taken shape is _________. ultra-frugality sensible consumption purchase reticence "keeping up with the Jones'" consumption conspicuous consumption

The authors of the text would argue that __________ is the most fundamental concept of modern marketing. customer relationship management social media broadcast advertising properly trained sales people low prices

The difference between human needs and wants is that needs are not influenced by marketers.

A nineteenth-century street vendor in London sang, "Who will buy my fresh, red roses?" Did the vendor take an outside-in or inside-out perspective? Explain.

Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months.Greg's want now has become a ________. need necessity demand satisfier transaction

Discuss how the Internet and social networks have transformed business.