1: Principles of Marketing Flashcards
What is Marketing?
“Marketing is a customer focus that permeates organizational functions and processes and is geared towards..
- making promises through value proposition,
- enabling the fulfillment of individual expectations created by such promises and
- fulfilling such expectations through support to customers’ value-generating processes,
… thereby supporting value creation in the firm, customers and stakeholders.
(Gronroos 2006)”
What is the aim of marketing?
To know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.
What is Marketing Management?
The art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.
Mention some examples of Marketing Management in the technology and innovation sector.
1) Shaping products and services by bridging the gap between R&D and the needs of customers.
2) Building strong brands that make the company unique compared to competitors from the perspective of stakeholders.
3) Identifying target groups for well-designed products and services, and knowing trends in these groups of customers.
What do we mean with Service-dominant logic?
Products often go along with services (i.e. the application of knowledge and skills); blurring boundaries between the two.
Events, experiences, persons, places and ideas shape the behavior of customers today.
What happens in the “outer loop” between the industry and the market?
The outer loop is the marketing and advertising-part where you exchange information in order to reduce information asymmetry. Maybe with a homepage. In return, the customer also provides information to the industry. Maybe the company tracks your online actives, or observe your use of a bonus card etc.
What is the difference between “needs”, “wants” and “demands”?
- Needs are basic human requirements.
- Needs become wants when directed to objects that might satisfy the needs.
- Demands are wants for products and services backed by an ability to pay.
What different kinds of demands do we have?
- Negative: When you pay to avoid certain services.
- Nonexistent: People are not interested in the product.
- Latent: existent products don’t satisfy the demand. Like the demand for SMS-texting. (“Latent”=”Skjult”).
- Declining: the demand decreases. Som faks-maskinen.
- Irregular: Products that are consumed seasonly. Like Soft-is.
- Full: The customers buy all of the products and services available. I.e. when a football game is sold out.
- Overfull: more persons demanding the product than can be provided.
- Unwholesome: like smoking.
What three types of markets do we have?
- Consumer market (individual decision making)
- Business market (industry decision making)
- Non-profit markets: Uses marketing to serve the purpose of the non-profit organization.
What are the differences between a marketplace, a marketspace, a metamarket and metamediaries?
- A marketplace is physical, and can be like a store.
- Marketspace is digital, like the internet.
- A metamarket is a cluster of complementary products and services that are related, but spread across industries. F.eks. if you purchase a car and banking or financing is connected to purchase the car.
- Metamediaries: Intermediaries that bring together collections and people. (www.autotrader.com)
What are the major societal forces on marketing?
- Recession and economic recovery; effects around the globe. (We have low oil price -> many companies struggles)
- Heightened competition (e.g., brand extensions) (Cigarette/toothpaste industry -> very competitive, hard to come up with a new brand.)
- Technological developments (e.g., self-serving technologies) (Self check-in at airports, baggage drop, electronic airplane ticket on mobile)
- Industry convergence (e.g., Nike and Apple iPod)
- Retail transformation (e.g., owl-label brands) (Many products are developed by the retailer (Rewe has Ja!) themselves. Ja! is the cheapest, you can see it easily with the blue letters on the white background.)
What are the changing consumption patterns, that companies should respond to?
- Consumer sophistication as regards both marketing and technology knowledge
- Hybrid consumption behavior
- Importance of health and sustainability
- Local (vs. global) values
- Aging consumers (baby boomers)
What are the three philosophies in marketing, and which one is the “right” one?
- Production philosophy
- Selling philosophy
- Marketing philosophy (The “right” one. Focuses on the customers needs.)
What are the key principles in the Marketing Philosophy?
- Customer-centered perspective; design the “right” products and services for a certain target group.
- The goal is to be more effective than competitors in understanding the target group’s needs; to create, deliver and communicate superior value to target groups; to increase customer value.
What are the three interpretations of how marketing functions?
- Goal (i.e., to direct all entrepreneurial decisions towards increasing customer value)
- Means (i.e., the use of marketing mix instruments)
- Methods (i.e., the support of decisions via market research findings)
