Chapter 1 Flashcards
What is marketing
Marketing is the activity, set of institutions, and processes for creating, capturing (PRICE), communicating (PROMOTION), delivering (PLACE), and exchanging offerings (PRODUCT) that have VALUE for customers, clients, partners, and society at large
What is value
Reflects the relationship of benefits to costs, or what the consumer gets for what they give.
What are the 4 P’s and what do they do
PRODUCT, PRICE, PROMOTION, PLACE are the 4 types of activities that constitute marketing\
Product (offering) -> goods, services, ideas
Price -> everything a buyer gives up (money, time, energy, information) i exchange for the product or service
Place -> all activities to get the product to the right customer when they want it
Promotion -> communication by a market that informs, persuades, and reminds potential buyers about an offering in order to influence their opinions and elicit a response
How can you be more value driven
Sharing information:
Companies collect massive amounts of data about how, when, why, where, and what people buy
Companies work together to gather this information
Balancing benefits with costs:
Value-oriented markets constantly measure the benefits that customers perceive against the cost of their offerings
Customers must perceive that they are getting more than they are giving up
Building relationships with customers:
Business philosophy and strategy, programs, and systems that focus on building loyalty among most valued customers
Companies need to keep track of touch points (building a relationship with the customer)
Connecting with customers on social media:
Social media is very important to marketing
Companies want to use social media to build relationships with customers
What was the production-oriented era
firms were production oriented and believed that a good product would sell itself. For example “customers can have any color they want so long as it’s black”
what was the sales-oriented era
Sell, sell, sell! Firms depended heavily on personal selling and advertising
What was the market-oriented era
All about choices- customers are able to make purchasing decisions bases on quality, convenience, and price. Focus shifted towards customer wants and needs
What was the value-bases marketing era
Firms attempt to discover and satisfy their customer’s needs and wants. Focus shifts to value
