Ch 1 Flashcards
What is Marketing?
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What is Marketing?
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
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.
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.
Social definition of Marketing
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
What is marketed?
10 types of entities: goods, services, events, experiences, persons, places, properties, orga- nizations, information, and ideas.
What is marketed?
10 types of entities: goods, services, events, experiences, persons, places, properties, orga- nizations, information, and ideas.
What’s a marketer and a prospect?
A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect.
If two parties are seeking to sell something to each other, we call them both marketers.
What’s a marketer and a prospect?
A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect.
If two parties are seeking to sell something to each other, we call them both marketers.
8 demand states
negative, nonexistent, latent, declining, irregular, full, overfull, unwholesome
What’s a M arket?
A collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market).
4 types of Markets
Consumer, business, global, and nonprofit.
4 types of Markets
Consumer, business, global, and nonprofit.
What are needs, wants and demands?
• Needs: the basic human
requirements such as for air, food,
water, clothing, and shelter
• Wants: specific objects that might
satisfy the need
• Demands: wants for specific
products backed by an ability to pay
What are needs, wants and demands?
• Needs: the basic human
requirements such as for air, food,
water, clothing, and shelter
• Wants: specific objects that might
satisfy the need
• Demands: wants for specific
products backed by an ability to pay
What are 5 types of needs?
States, unstated, real, delight, secret
Value proposition
A set of benefits that satisfy customer needs. Made physical with an offering.
Value proposition
A set of benefits that satisfy customer needs. Made physical with an offering.
Offering
A combination of products, services, information, and experiences
Offering
A combination of products, services, information, and experiences
Brand
Offering from a known source
3 Marketing Channels
Communication, distribution, service
Communication marketing channels
Deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, smart phone, billboards, posters, fliers, CDs, audiotapes, and the Internet.
Distribution Channels
Help display, sell, or deliver the physical product or service(s) to the buyer or user.
These channels may be direct via the Internet, mail, or mobile phone or telephone or indirect with distributors, wholesal- ers, retailers, and agents as intermediaries.
Service Channels
Carry out transactions with potential buyers.
Include warehouses, transportation companies, banks, and insurance companies.
Paid Media
Paid media include TV, magazine and display ads, paid search, and sponsorships, all of which allow marketers to show their ad or brand for a fee.
Owned media
Owned media are communication channels marketers actually own, like a company or brand brochure, Web site, blog, Facebook page, or Twitter account.
Earned media
Earned media are streams in which consumers, the press, or other outsid- ers voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing meth- ods.
The emergence of earned media has allowed some companies, such as Chipotle, to reduce paid media expenditures.
Impressions
Occur when consumers view a communication.
Tracks the scope or breadth of a communication’s reach.
The downside is that impressions don’t provide any insight into the results of viewing the communication.
Engagement
The extent of a customer’s attention and active involvement with a communication.
Reflects a much more active response than a mere impression and is more likely to create value for the firm.
Some online measures of engagements are Facebook “likes,” Twitter tweets, comments on a blog or Web site, and sharing of video or other content. Engagement can extend to personal experiences that augment or transform a firm’s products and services.
Value
Combination of quality, service, and price (qsp), called the customer value triad. Value perceptions increase with quality and service but decrease with price.
We can think of marketing as the identification, creation, communication, delivery, and monitoring of customer value.
Satisfaction
Judgment of a product’s performance in relationship to expectations.
Supply Chain
A channel stretching from raw materials to components to finished products carried to final buyers
Task Marketing environment
Includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers.
In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transpor- tation companies, and telecommunications companies.
Distributors and dealers include agents, brokers, manufac- turer representatives, and others who facilitate finding and selling to customers.
Broad Marketing environment
Consists of six components: demographic, economic, social-cultural, natural, technological, and political-legal environment.
3 transformation forces
Technology, globalization and social responsibility
New Consumer capabilities
- Can use the Internet as a powerful information and purchasing aid
- Can search, communicate, and purchase on the move
- Can tap into social media to share opinions and express loyalty
- Can actively interact with companies
- Can reject marketing they find inappropriate
New Company capabilities
- Can use the Internet as a powerful information and sales channel, including for individually differentiated goods
- Can collect fuller and richer information about markets, customers, prospects, and competitors
- Can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information
- Can improve purchasing, recruiting, training, and internal and external communications
- Can improve cost efficiency
Changing Channels
One of the reasons consumers have more choices is that channels of distribution have changed as a result of:
– Retail transformation
– Disintermediation
Heightened Competition
While globalization has created intense competition among domestic and foreign brands, the rise of private labels and mega-brands and a trend toward deregulation and privatization have also increased competition.
– Private brands
– Mega-brands
– Deregulation
– Privatization
Marketing in practice
• Marketing balance
• Marketing accountability
• Marketing in the organization
Production Concept
Consumers prefer products that are widely available and inexpensive. Good for market expansion.
Concentrate on achieving high production efficiency, low costs, and mass distribution. China (Legend, Haier)
Product Concept
Consumers favor products offering the most quality, performance, or innovative features.
Selling Concept
Consumers and businesses, if left alone, won’t buy enough of the organization’s products.
It is practiced most aggressively with unsought goods—goods buyers don’t normally think of buying such as insurance and cemetery plots—and when firms with overcapacity aim to sell what they make, rather than make what the market wants.
Marketing based on hard selling assumes customers coaxed into buying a product not only won’t return or bad-mouth it or complain to consumer organizations but might even buy it again.
Marketing Concept
Emerged in 1950s as a customer-centered, sense-and-respond philosophy.
The job is to find not the right customers for your products, but the right products for your customers.
The marketing concept holds that the key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets.
Selling focuses on the needs of the seller; marketing on the needs of the buyer.
Holistic Concept
Based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.
Holistic marketing acknowledges that everything matters in marketing—and that a broad, integrated perspective is often necessary.
Relationship Marketing
Aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business.
4 key parts for relationship marketing are customers, employees, marketing partners (channels, sup- pliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts).
IBM.
Integrated Marketing
Occurs when the marketer devises marketing activities and assembles marketing programs to create, communicate, and deliver value for consumers such that “the whole is greater than the sum of its parts.”
Two key themes are that
(1) many different marketing activities can create, communicate, and deliver value and
(2) marketers should design and implement any one marketing activity with all other activities in mind.
Internal Marketing
The task of hiring, training, and motivating able employees who want to serve customers well.
Airlines.
Internal marketing requires vertical alignment with senior management and horizontal alignment with other departments.
Performance Marketing
Requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs.
Ben & Jerry’s.
Modern 4 P’s
People, processes, programs, performance
Each P explained
People reflect internal marketing and the fact that employees are critical to marketing success.
Processes reflects all the creativity, discipline, and structure brought to marketing management.
Programs reflects all the firm’s consumer-directed activities. It encompasses the old four Ps as well as a range of other marketing activities that might not fit as neatly into the old view of marketing.
We define performance as in holistic marketing, to capture the range of possible outcome measures that have financial and nonfinancial implications (profitability as well as brand and customer equity) and implications beyond the company itself (social responsibility, legal, ethical, and the environment).
Marketing Management tasks
• Developing market strategies and
plans
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Creating value
• Delivering value
• Communicating value
• Creating successful long-term growth
