Ch 1 Flashcards
What is the point of Marketing
Analyzing markets to understand the consumer needs & creating solutions
The Marketing Process (5 steps)
Creating value & build relationships:
1) Understand the Market Place & customer Needs & Wants
2) Design a customer driven Marketing Strategy
3) Construct an Integrated Marketing Program that delivers Superior Value
4) Build profitable relationships & create customer delight
Capture value from customers in return:
5) Capture value from customers to create profits & customer equity
1) Understand the Market Place & customer Needs & Wants
Needs
Wants
Demands
Market Offering
The product/service offered
Marketing Myopia
Business strategy that focuses on selling products & services instead of understanding what consumers want
- Lose sight on future, focused on what you have
Mass Marketing
Reaching out to a large, broad customer base
Market Segmentation VS Target Market
Market Segmentation: Divide market into different segments
Target Market: Select which segments to serve
Value Proposition
Set of benefits or values a company promises to deliver to customers to satisfy their needs
The Marketing Management Orientations (5)
1) Production Concept
2) Product Concept
3) Selling Concept
4) Marketing Concept
5) Societal Marketing Concept
Production Concept
Consumers favour available & affordable products
Product Concept
Consumers will favour products that offer quality, performance & innovative features
Selling Concept
Customers will buy when the company undertakes large sales & promotion efforts
Marketing Concept
Customer centered (knowing needs & wants of target markets)
Societal Marketing Concept
Delivers values to the customer in a way that maintain or improves customers and society’s well being
Customer Relationship Management (CRM)
Building & maintaining profitable customer relationships by delivering superior value & satisfaction
Selective Relationship Management
Goal: Retain current customers (Profitable ones)
- New customers are more costly
Strangers, Butterflies, True Friends, Barnacles
Strangers: Low or limited need fore what we have to offer
Butterflies: Variety seeking consumer, will pay good $
True Friends: Loyal, high $$$ customers
Barnacles: Loyal, budget customers
