Chapter 1 Flashcards
What is marketing?
marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have VALUE for customers, clients, partners, and society at large
Value is in the eyes of the beholder:
what is valuable to me isn’t always valuable to others
What is marketing about?
satisfying customers needs and wants
What does marketing entail?
an exchange
What does marketing create?
value through product, price, place, and promotion decisions
Who can perform marketing?
individuals or organizations
Who does marketing affect?
various stakeholders
Marketing mix
the controllable set of decisions or activities that the firm uses to respond to the wants of its target markets
The 4 P’s of marketing mix
product, price, place, and promotion
Product:
a good, service, or idea
Product variable (and example)
creates value
ex: bike, doctor, poster warning of dangerous bike accidents
Price variable:
capturing value
-everything a buyer gives up (money, time, energy) in exchange for the product or service
Distribution variable (place):
-delivering the value proposition
-represents all the marketing processes necessary to get the product to the right customers when that customer wants it
What does distribution variables deal with specifically?
retailing and marketing channel management (supply chain management)
Promotion variable
communicating the value proposition
-communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their buying decisions and elicit a response
What does marketing build?
relationships with customers and other stakeholders
Exchange:
the trade of things of value between the buyer and the seller so that each is better off as a result (marketing depicts the exchange process)
Stakeholders:
constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcome (they all have different agendas)
Evolution: What occurred from the 1850s-1920s?
Product orientation
-industrial revolution improved speed and efficiency
-large increases in available products and most firms believed a good product would sell itself
Evolution: What occurred from the 1920s-1960s?
Sales orientation
-many products with not enough demand
-businesses viewed sales and selling as the main means of increasing profits
Evolution: What occurred from 1960s-1990s?
Marketing orientation
-an organization-wide commitment to researching and responding to customer needs
-determine what customers want and produce those products
Evolution: What occurred from 2000s-current?
Value-based marketing
-maintains the market orientation but includes a part on giving greater value than the competition
Value cocreation:
where customers act as collaborators to create a product or service that appeals mostly to them, such that it offers optimal value
Value
in a marketing context, customers see this as a fair return in goods and/or services for their hard-earned money and scarce time
