CH 1 -- Art & Science of Satisfying Customers Flashcards
Utility
Want-satisfying power of a good or service
4 Types of Utility
Form, Time, Place, Ownership
Form Utility
Created when company converts raw materials into finished goods and services
Time & Place Utility
Occurs when consumers find goods and services when and where they want them
Ownership Utility
Created by transfer of title to goods at the time of purchase
Marketing
An organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in way that benefit organization and stakeholders
Exchange Process
Activity in which two or more parties give something of value to each other to satisfy perceived needs
5 Eras in history of marketing
Production Era
1st Era
Business philosophy stressing efficiency in producing a quality product
Attitude: A great product will sell itself
Sales Era
2nd Era
Consumers will resist purchasing goods and services that are nonessential
Attitude: creative advertising and personal selling can overcome consumers resistance and persuade them to buy
Marketing Concept
Companywide consumer orientation with the objective of achieving long-term success
** Crucial change in concept came from shift from a seller’s market to a buyer’s market**
Sellers Market
more buyers for fewer goods and services
Buyers Market
More goods and services for less willing to buy.
More competition- need for consumer orientation
Consumer orientation
Business philosophy incorporating marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them
Relationship Era
4th Era
Attitude: long- term relationships with customers and other partners will lead to success
Social Era
5th Era
Social media the most popular outlet for customer contact.
Marketing Myopia
Management’s failure to recognize the scope of its business
Non-Traditional Marketing
5 Types: Person Marketing Place Marketing Cause Marketing Event Marking Organization Marketing
Person Marketing
Marketing Efforts designed to cultivate attention, interest, and preferences of a target market toward a person
Ex: Celebrity Endorsement
Place Marketing
Marketing Efforts to attract people and organizations to a particular geographic area
Ex: City & States tourism ads
Cause Marketing
Identification and marketing of a social issue, cause or idea to a selected target markets
Event Marketing
Marketing of a sporting, cultural, and charitable activities to a selected market
Organization Marketing
Marketing by mutual benefit organizations, service organizations or government organizations intended to persuade other to accept their goals or receive their services
Transaction Based Marketin
Buyers and seller exchanges characterized by limited communication and little or no ongoing relationship between parties.
Shifting from this to relationship/social marketing
Interactive Marketing
Buyer-seller communications in which the customer controls the amount and type of communication received through marketers channels
Social Marketing
Use of social media for marketing messages
Strategic Alliances
Partnerships in which companies combine resources and capital to create competitive advantages in a new market
Wholesalers
Intermediaries that operate between producers and resellers
Exchange Functions
Buying and Selling
Social Responsibility
Marketing philosophies, policies, procedures and actions that have the enhancement of society’s welfare as a primary objective
Marketing Ethics
Moral standards of behavior expected by society
Sustainable Products
Products that can be produced, used and disposed of with minimal impacts on the environment
