1 - Marketing Flashcards
definition of marketing
process by which companies:
- create value for customers
- build strong customer relationships
in order to capture value from customers in return
two fold marketing goal
attract new customers by promising superior value
grow current customers by providing satisfaction
marketing process
1 - understand the marketplace and customer’s wants and needs
2 - design customer value-driven marketing strategy
3 -prepare an integrated marketing plan that delivers superior value
4 - build profitable relationships
5 - company reaps the rewards of strong customer relationships
why is creating value for customers important?
by creating value for customers, they in return capture value from consumers in the form of:
- sales
- profits
- long-term customer equity
market offerings
combinations of products, services, information, or experiences offered to a market to satisfy a need or want
marketing myopia
focusing only on existing wants and losing sight of underlying consumer needs
- not looking into the future
marketing myopia examples of failure and success
failure = Kodak film company
- didn’t see Sony as a potential competitor
success = Coca Cola
- diversification into the bottled water market
customer expectations
formed according to satisfaction obtained from market offerings
- customers will buy accordingly
market segmentation (+ approaches)
dividing the markets into segments of customers w/ different needs and behaviours
approaches:
- geographical
- demographic
- behavioural
- psychographic
market targeting
process of evaluating each market segment and selecting one or more segments to enter
market positioning
arranging for a product to occupy a distinctive place relative to competing products in the minds of customers
value proposition
set of benefits/values it promises to deliver to customers to satisfy their needs
marketing management orientations (5)
production concept product concept selling concept marketing concept social marketing concept
production concept
consumers will favor products that are available and affordable (eg. Primark)
- management will lean towards economies of scale
- can lead to marketing myopia.
product concept
consumers favor products that offer the most quality & performance (eg. apple, microsoft)
- focus is on continuous product improvements
- can lead to marketing myopia
selling concept
consumers will only buy if the firm undertakes a large-scale selling and promotion effort (eg. Avon)
- focus is on making transactions, not customer relationships
- usual with unsought goods.
marketing concept
know the needs and wants of the target markets and deliver the desired satisfactions better than competitors (eg. Nike, Samsung)
- customer-centered
social marketing concept
marketing decisions consider consumers’ wants, company requirements, consumers’/society’s long run interests (eg. Google, Tesla)
- calls for sustainable marketing
- realising societal needs are shaping markets
inside-out perspective
used by selling concept
- aim is to sell what the company makes rather than what the customer wants
- cost determines price
- converts product into cash
- fragmented selling approach
- buyer beware principle
outside-out perspective
used by marketing concept
- focuses on satisfying customer’s needs as a path to profits
- customers determine price -> price determines cost
- converts customer’s needs into products
- integrated marketing approach
- seller beware principle
marketing mix
set of tools the firm uses to implement its marketing strategy
tools: 4 Ps
- price
- place
- promotion
- product
integrated marketing program
communicates + delivers the intended value to chosen customer
customer relationship management
process of building and maintaining profitable customer relationships
- aims to manage customer touchpoint to maximize customers’ loyalty
customer’s satisfaction
extent to which perceived performance matches a buyer’s expectations
