CHAPTER 1 Flashcards
What are the Five Core Marketplace Concepts
*Understanding the Marketplace and Customer Needs
*Designing a Customer Value-Driven Marketing Strategy
*Preparing an Integrated Marketing Plan and Program
*Building Customer Relationships
*Capturing Value from Customers
What is Marketing?
is a process by which companies create value for customers (and build strong customer relationships) in order to capture value from customers in return
What is a need ?
A human need is a state of felt deprivation
What is a want ?
A want is the specific form a need takes as shaped by culture and individual personality
What are demands?
Demands are wants backed by buying power
Market offerings
are some combination of products, services or experiences offered to a market to satisfy a need or want
Marketing myopia
is paying more attention to the specific products than to the benefits and experiences produced
Exchange
is the act of obtaining a desired object from someone by offering something in return
Why do companies deliver superior customer value?
Marketing actions aim to create, maintain and grow desirable exchange relationships by delivering superior customer value
Customer-managed activities
*Searching for products
*Interacting with companies to get information
*Making recommendations & posting comments
*Purchasing products or services
Marketing management
is the art and science of choosing target markets and building profitable relationships with them
Market segmentation
refers to dividing the markets into segments of customers
Target marketing
refers to which segments to go after
Demarketing
is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it
brand’s value proposition
is the set of benefits or values it promises to deliver to customers to satisfy their needs
Marketing concept
Achieving organizational goals depends on knowing the needs & wants of the target markets and delivering the desired satisfactions better than competitors do
Customer-driving marketing
is understanding customer needs even better than they themselves do and creating products that meet their existing & subconscious needs
Societal marketing concept
Company decisions should consider not only consumers’ wants and the company requirements, but also consumers’ and society’s long-run interests
The marketing mix
is a set of tools (the four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place
Integrated marketing program
is a comprehensive plan that communicates and delivers the intended value to chosen customers
Customer Relationship Management (CRM)
*Involves building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
*Smart companies delight customers by promising only what they can deliver, then delivering more than they promise
Customer-Engagement Marketing
encourages direct and continuous customer involvement in shaping brand conversations, experiences, and community
Consumer-Generated Marketing
involves brand exchanges created by consumers themselves. Consumers are playing an increasing role in shaping brand experiences
The Changing Nature of Customer Relationships
*Relating with more carefully selected customers: Targeting fewer, more profitable customers (not all customers are equal)
*Relating more deeply and interactively: Using websites and social networks for more interactive, two-way relationships
*Relating for the long term: To retain current customers and build profitable, long-term relationships
