chapter 1 Flashcards
marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. it is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals.
marketing management
the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating customer value.
marketer
someone who seeks a response (attention, purchase, vote, donation) from another party, which is the prospect. the marketer must properly manage all possible touchpoints, where customers directly or indirectly interact with the company (store layout, package designs, product function, shipping, etc.)
market
a collection of buyers and sellers who transact over a particular product or product class. the buyers and sellers are connected by four flows.
needs
the basic human requirements such as air, food, water, clothing, and shelter. also, humans have strong needs for recreation, education, and entertainment. marketers cannot create or influence needs. there are five types of needs: stated, real, unstated, delight, and secret.
wants
unknown desires of consumers when directed to specific objects that might satisfy the need. marketers have the ability to influence the wants of consumers.
demands
wants for specific products backed by an ability to pay.
value proposition
used by companies to address customer needs. it is a set of benefits that satisfy these needs.
offering
makes the intangible value proposition physical. it can be a combination of products, services, information, and experiences.
communication channels
kind of marketing channel that deliver and receive messages from target buyers and include newspapers, radio, internet, etc.
distribution channels
kind of marketing channel that help display, sell, or deliver the physical product or service to the buyer or user.
service channels
kind of marketing channel that carry out transactions with potential buyers.
paid media
category of group communication options. it allows marketers to show their ad or brand for a fee.
owned media
category of group communication options. communication channels marketers own.
earned media
category of group communication options. streams in which outsiders voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing methods.
impressions
occur when consumers view a communication and are a useful metric for tracking the scope of a communication’s reach that can also be compared across all communication types.
engagement
the extent of a customer’s attention and active involvement with a communication. it reflects a more active response than an impression and is more likely to create value for the firm.
value
the sum of tangible and intangible benefits and costs. the buyer chooses the offerings he or she perceives to deliver the most value.
customer value triad
the combination of quality, service, and price (QSP).
satisfaction
reflects a person’s judgement of a product’s perceived performance in relationship to expectations.
supply chain
a channel stretching from raw materials to components to finished products carried to final buyers.
competition
includes all the actual and potential rival offerings and substitutes a buyer might consider.
marketing environment
consists of the task environment and the broad environment.
task environment
includes the actors engaged in producing, distributing, and promoting the offering.
broad environment
consists of six components: demographic, economic, socio-cultural, natural, technological, and political-legal environment. marketers must pay close attention to the trends and developments in these and adjust their marketing strategies as needed.
reintermediation
traditional companies are becoming ‘brick-and-click’ retailers, adding online services to their offerings.
disintermediation
early dotcoms such as Amazon and others successfully created disintermediation in the delivery of products and services by intervening in the traditional flow of goods. in response, traditional companies engaged in intermediation.
production concept
hold that consumers prefer products that are widely available and inexpensive.
product concept
proposes that consumers favour products offering the most quality, performance or innovative features.
selling concept
holds that consumers, if left alone, won’t buy enough of the organisation’s products.
marketing concept
the job is to find the right product for the customer, instead of the right customer for your product.
holistic marketing concept
based on the development, design, and implementation of marketing programs, processes, and activities that recognise their breadth and interdependencies. this concept acknowledges that everything matters in marketing.
relationship marketing
aims to build mutually satisfying long-term relationships with key constituents to earn and retain their business. the ultimate outcome is a marketing network, consisting of the company and its supporting stakeholders with whom it has built mutually profitable business relationships.
key constituents
customers, employees, marketing partners, and members of the financial community.
internal marketing
the task of hiring, training, and motivating able employees who want to serve customers well.
performance marketing
requires understanding the financial and non-financial returns to business and society from marketing activities and programs. top marketers are increasingly going beyond sales revenue to examine the marketing scorecard and interpret what is happening to market share, customer loss rate, customer satisfaction, and product quality.
