CHAPTER 1 Flashcards
Marketing
narrow definition
The process by which companies
- engage customers
- build strong customer relationships
- create customer value
=> to capture value from customers in return.
The marketing Process
steps
- Understand the marketplace and customers needs and wants
- Design a customer value-driven mkt strategy
- Construct an integrated mkt program that delivers superior value
- Engage customers, build profitatble relationships, and create customer delights.
- **Capture value from customers ** to create profits and customer equity
5 core customer and marketplace concepts
- needs, wants, and demands
- market offerings (products, service and experiences)
- customer value and satisfaction
- exchanges and relationships
- markets
needs
states of felt deprivation
wants
the form human needs take as they are shaped by culture and individual personality
demands
human wants that are backed by buying power
market offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
marketing myopia
not used in modern world
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
mistake of products>experience
Exchange
the act of obtaining a desired object from someone by offering something in return
Market
the set of all actual and potential buyers of a product or service
marketing management
the art and science of choosing target markets and building profitable relationship with them
Key elements of a customer-driven marketing strategy
- select a customers to serve
- choose a value proposition
- prepare an integrated marketing plan
selecting customers to serve
- market segmentation: devide the market into segments of customers
- target marketing: select which segments to go after
Decide whom it will serve
choosing a value preposition
how to differentiate and position itself in the marketplace
value proposition
set of benefits/values it promises to deliver to consumers to satisfy their needs.
Production concept
Idea: consumers will favor products that are Available and Highly Affordable
=> the organization should focus on improving production and distribution efficiency
Product concept
Consumers will favor products that offer the most in quality, performance, and innovative features
Selling concept
Consumers won’t buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort
marketing concept
a
a philosophy in which achieving org. goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
The selling concept procedure
- starting point: factory
- Focus: Existing products
- means: selling and promoting
- ends: profits through sales volume
the selling concept takes an inside-ouut view that focuses on existing products and heavy selling. The aim is to sell what the company makes rather than making what the customer wants
societal marketing concept
the idea that a company’s marketing decisions should consider
- consumers’ wants,
- the company’s requirements,
- consumers’ long-run interests,
- societal long-run interests
concept of shared value
creating economic value in a way that also creates value for society
4 steps of strategic planning
- Defining the mission statement
- Setting company objectives and goals
- Collection of businesses and products that make up the company
- at market level, plan marketing strategies and tactics
mission statement
statement of the org’s purpose, and should be market-oriented, not product-oriented
marketing mix
collection of marketing tools and activities a company employs, and includes considerations of product, pricing, distribution (i.e. place/location), and promotion (i.e marketing communications and advertising)
marketing strategy
company’s top level decisions about how to employ tactics of each of the 4Ps - the marketing mix
