The book puts heavy emphasis on marketers "creating value". In my definition of marketing, I suggest this isn't enough and that marketers need to focus on "creating profits".
The book puts heavy emphasis on marketers "creating value". In my definition of marketing, I suggest this isn't enough and that marketers need to focus on "creating profits".
Chapter7: Consumer Buying Behavior
Section: Chapter Questions
Problem 2DYMP
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The book puts heavy emphasis on marketers "creating value". In my definition of marketing, I suggest this isn't enough and that marketers need to focus on "creating profits".
Which of the following describes a situation where marketing delivered a value to customers but did not generate profits for the company.
Group of answer choices
A startup company spends $X per sale to lower the price of its product. As a result, a lot of people buy the product yet the company never generates a profit. In the end, it is clear that customers would never pay a high enough price for the company to become be profitable.
A company creates a product which consumers value, it sells well, and generates profit for the company.
A company invests huge marketing budget in a campaign offering a free prize to anyone who calls for information. Huge numbers of people call. The company is able to use direct marketing techniques to reach out to those who called and eventually generates enough business to become profitable.
A startup company creates a product it thinks is exceptional. But market research shows that it doesn't deliver enough value to customers for them to purchase the product. Sales are never very good and the company goes out of business.
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