Chapter 01 Flashcards
The four Ps make up a marketing mix
product;
place;
promotion;
and price.
The customer is not part of the marketing mix. Why?
The four Ps are things that the marketer can control, but the marketer cannot directly control the customer’s behavior.
What is the Place Element of the Marketing Mix?
The objective for the place, or distribution, is to get the right product, to the right consumer, in the right place, at the right time, in the right quantity, and in the right condition.
Channel of distribution
any series of firms or persons used to move goods from producers to final users. Channels can be:
very long or very short;
simple or complex.
What do marketers do?
find the best kinds and types of channels for the product;
effectively manage the channel.
aspects of place
logistics or physical distribution;
roles of middlemen, such as wholesalers and retailers
The Promotion Element of the Marketing Mix
telling the target market about the product and selling the product
Promotion involves
telling the target market about the product and selling the product to the target customer
Personal selling-
direct communication between sellers and potential customers
customer service
a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase
Mass selling-
communicates with large numbers of customers at the same time
Advertising
any paid form of nonpersonal presentation of ideas, goods, and services by an identified sponsor
Publicity
unpaid, nonpersonal presentation of ideas, goods, or services.
Sales promotion-
promotion activities, other than advertising, publicity, and personal selling, that stimulate interest, trial, or purchase
Price is the ? of the marketing mix?
revenue-generating function
Pricing policies
price flexibility;
how price changes over the product life cycle;
various allowances, discounts, and geographic terms that affect the final price.
Other aspects of price include:
cost structure and demand;
price sensitivity; competition, available substitutes;
impact of the price of one product on any other products offered by the organization.
The Price Element of the Marketing Mix
Pricing Objectives Price Flexibility Price Changes Over the Life Cycle Discounts and Allowances Geographic Pricing Terms Legal Environment Cost and Demand Price Sensitivity Competition and Substitutes Price of Other Products In the Line
Which of the 4 P’s have an impact on satisfying the needs of consumers in the target market?
All of the four Ps–product, place, promotion and price- No single area is more important than the others–they are all interconnected.
Uncontrollable Environmental Forces
Social Economic Technological Competitive Regulatory
Stores with Customer Value Strategies
Best Price: Target
Best Service: Nordstrom
Best Product: Starbucks
Customer value
the difference between the benefits a customer sees from a marketing offering and the costs of obtaining those benefits.
Customer value
builds relationships
4 Eras is American business
Production era
Sales era
Marketing Concept era
Customer Relationship era
Relationship Marketing
Easy to Understand,
Hard to Do
Marketing
the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large
Exchange
the trade of thingsof value between a buyer and a seller so that each is better off after the trade
Market
people with both the desire and the ability to buy a specific offering.
target market
one or more specific groups of potential consumers toward which an organization directs its marketing program.
marketing mix
the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.
Market orientation focuses on
(1) continuously collecting information about customers’ needs,
(2) sharing this information across departments, and
(3) using it to create customer value.
Customer value proposition
the cluster of benefits that an organization promises customers to satisfy their needs.
Environmental forces
the uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.
Customer value
the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
Relationship marketing
links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.
marketing program
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
Market segments
the relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.
marketing concept
the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.
market orientation
occurs when an organization focuses its efforts on
(1) continuously collecting information about customers’needs,
(2) sharing this information across departments, and
(3) using it to create customer value.
Customer relationship management (CRM)
the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
Customer experience
the internal response that customers have to all aspects of an organization and its offering.
Societal marketing concept
the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.
