#1 Introduction to Marketing Flashcards
What is marketing?
Marketing is the process by which companies create value for customers and build strong relationships, in order to capture value from them in return.
What are the 5 key concepts?
- Needs, Wants and Demands
- Products and Services
- Value, Satisfaction and Quality
- Exchange, Transactions and Relationships
- Markets
- Needs, Wants and Demands
Needs = state of deprivation for basic items such as food and clothing
Wants = wants that are shaped by culture and individual personality
Demands = wants that are backed by buying power
- Products & Services
Products = anything that can be offered to a market, to satisfy a want or a need
- People
- Organisation
- Information
- Place
- Experience
- Idea
Services = activities/benefits offered that are intangible and do not lead to the ownership of anything
2.1 What is marketing myopia?
The failure to recognize the broad scope of their business where future growth is endangered due to the lack of market orientation (constant focus on just P&S)
- Losing sight of what the customer is looking for.
- Value, satisfaction and quality
Customers create expectations on value and satisfaction and buy accordingly.
Satisfied customers will buy again and tell others about their goof experiences. Dissatisfied customers will often switch to competitors and disparage the product to others.
- Exchange, Transactions and Relationships
Transaction = monetary exchange
Relationship marketing = when you know the stakeholders (marketing network) and build a relationship with them
- Markets
Markets in marketing refer to buyers where sellers are the industry.
These buyers share a particular need/want that can be satisfied through transaction/relationships.
- People who exhibit need
- Have resources to exchange
- Have willingness to exchange
5.1 3 Types of Marketing Management
- Marketing Management: implementation of programs to create exchanges with target buyers to achieve organizational goals
- Demand Management: finding and increasing demand, also changing/reducing demand (such as demarketing)
- Profitable Customer Relationship: attracting new customers and retaining/building relationships with current customers
5.2 5 Marketing Management Philosophies
- Production concept = consumers favour products that are available and highly affordable (about improving efficiency in production and distribution)
- Product concept = consumers favour products that are high quality, performance and innovative (continuous R&D)
- Selling concept = consumers will buy products only if the company promotes/sells them (pushing unwanted/undesirable products)
- Marketing concept = focus on the needs/wants of customers through market research and delivering better satisfaction than competitors
- customer driven
- customer driving - Societal marketing concept = focus on the needs/wants of target markets, and delivering superior value