Ch 1 - Overview of Marketing Flashcards
Marketing
set of business practices designed to plan for and present an organization’s products or services that build effective customer relationships
How marketing provides value
- Build and maintain a loyal customer base
- Make a product that satisfies a variety of consumer demands
- Consumer positioning is important
- Good marketing can establish value
- Leveraging influencers to help promote a brand is critical
Key aspects of marketing
- Marketing helps create value
- Satisfying customer needs and wants
- Marketing entails an exchange
- Requires a product, place, price, and promotion decision
- Performed by both individuals and organizations
- Occurs in many settings
Exchange
the trade of things of value between the buyer and the seller so that each is better off as a result
- customers give money/information for problems
- producers give communications and delivery to consumers
need
basic necessity of life - food, clothing, shelter, or safety
Want
- particular way in which persons choose to fulfill their needs, shaped by their knowledge, culture, and personality
Market
the groups of people who need or want a company’s products or services and have the ability and willingness to buy them
Target market
the customer segment or group to whom the firm is interested in selling its products and services
Marketing Mix
4 P’s
- Product - create value
- price - capture/transaction value
- place - deliver value
- promotion - communicating value
Product
- creating value
- Purpose of marketing is to create value by developing a variety of offerings – including goods, services, and ideas - to satisfy customer needs
Brand, size, quality, features, packaging, warranty
Price
Capturing/Transaction Value - Price is everything the buyer gives up - money, time, energy - in exchange for the product
List price, discounts, allowances, costs, payment period, credit terms
Place:
Delivering Value -
- Place describes all the activities necessary to get the product from the manufacturer or producer to the right customer when that customer wants it
- Marketing channels, distribution intensity, location, supply chain, logistics
Promotion
- communicating value
- Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response
- Advertising, sales promotion, personal selling, public relations, direct marketing, digital media
Four Orientations of Marketing
- Product
- Sales
- Market
- Value-based
Product Orientation
- focus on developing and distributing innovative products with little concern about whether the products best satisfy customer’s needs
- Think about the product they want to build → sell it → understand customer need
Sales Orientation -
- view marketing as a selling function where companies try to sell as many of their products as possible rather than focus on making products consumers really want
- Profits generated from sales volume rather than repeat/satisfied customers
- Depend on personal selling/advertising to attract new customers
Market Orientation
- start out by focusing on what customers want and need before they design, make, or attempt to sell their products and services
Value-Based Orientation
- Provide their customers with greater value than their competitors
- To compete successfully, firms focus on the triple bottom line:
people (consumers wants and needs)
profits (long-term profitable relationships)
planet (social and environmental responsibility)
Value
reflects the relationship of benefits to costs, or what you get for what you give
Value co creation
customers act as collaborators with a manufacturer or retailer to create the product or service
Firms becoming value driven
- Gathering and Sharing Information
- Balancing Benefits with Costs
- Building Relationships with Customers
- Connecting With Customers via social/mobile media
Gathering and Sharing Information
- in a value-based, market-oriented firm, marketers gather and share information about customers and competitors
- Modern marketers rely on sophisticated data analytics to define and refine their approaches to their customers and their markets
Balancing Benefits with Costs -
value- oriented marketers constantly measure the benefits that customers perceive against the cost of their offering
Building Relationships With Customers -
marketers have developed a relational orientation
Relational orientation
a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship
Customer relationship management (CRM) -
a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers
Connecting With Customers Using Social and Mobile Media
Marketers embrace new technologies such as social and mobile and more recently artificial intelligence (AI), to allow the connect better with their customers and thereby serve their needs more effectively
Why is Marketing Important
Expands global presence, pervasive across organization/supply chain - firms do not work in isolation, makes life easier, enriches society, can be entrepreneurial
