Chapter 1 Flashcards
1
Q
What is marketing?
A
- Set of processes for creating, capturing, communicating, and delivering value to customers
- Managing customer relationships in ways that benefit organizations and their stakeholders
- Connects firm’s business decisions to customers’ needs and wants
- Not random: should do good for the world while benefitting the firm and its customers
2
Q
What is a marketing plan?
A
- Written document that analyzes current marketing situations, opportunities and threats for firms
- Specifies marketing activities for specific period of time
- Used to achieve long-term marketing goals
- Marketing objectives specified in terms of the four P’s
- Both parties to the transaction should be satisfied
3
Q
5 Core Aspects of Marketing
A
- Satisfying customer needs and wants
- Entails an exchange
- Creates value through product, price, place and promotion decisions
- Can be performed by individuals and organizations
- Affects various stakeholders
4
Q
Core Aspect of Marketing: Marketing is about satisfying customer needs and wants
A
- Marketplace can be divided into groups of people who are pertinent to an organization
— people use water bottles for different reasons (outdoor enthusiasts, health-conscious people, accessory-driven young people) - Identify most relevant sections of marketplace as the target market and build a marketing strategy that targets those groups
5
Q
Core Aspect of Marketing: Marketing entails an exchange
A
- Exchange
— the trade of things of value between the buyer and seller so that each is better off as a result - Sellers provide products or services and then communicate and facilitate that delivery of their offering to consumers
- Byers complete the exchange by giving money and info to sellers
6
Q
4 components of a marketing plan
A
- How the product or service is conceived or designed
- How much it should cost
- Where and how it should be promoted
- How it will get to the consumer
7
Q
Core Aspect of Marketing: Marketing can be performed by individuals and organizations
A
- Marketing intermediaries, such as retailers, accumulate merchandise from producers in large amounts and then sell it to people in smaller amounts
- Business-to-Consumer Marketing (B2C)
— businesses sell to consumers
— ex) when Keurig sells its machines and coffee to you on its website - Business-to-Business Marketing (B2B)
— businesses sell to other businesses
— ex) when Keurig sells its machines and coffee for office use - Consumer-to-Consumer Marketing (C2C)
— consumers sell to other consumers
— ex) eBay, Etsy and Craigslist
8
Q
Core Aspect of Marketing: Marketing affects various stakeholders
A
- Partners in the supply chain include wholesalers, retailers and other intermediaries like transportation or warehousing companies
- Manufacturers sell merchandise to retailers, but the retailers often have to convince manufacturers to sell to them
9
Q
What is the importance of marketing over time?
A
- Firms spend billions of dollars worldwide on marketing initiatives
— global economy would plummet otherwise
— ex) ad revenue allows companies to offer free services to consumers
10
Q
Marketing Evolution Milestones
A
- Production-Oriented Era
- Sales-Oriented Era
- Market-Oriented Era
- Value-Based Marketing Era
11
Q
Marketing Evolution Milestone: Production-Oriented Era
A
- Beginning of 20th century
- Belief that a good product would sell itself
- Manufacturers concerned with product innovation, not with satisfying the needs of individual consumers
- Retail stores typically were considered places to hold the merchandise until a consumer wanted it
12
Q
Marketing Evolution Milestone: Sales-Oriented Era
A
- 1920-1950
- Production and distribution techniques became more sophisticated
- Great Depression and WWII conditioned customers to consume less or manufacture items themselves
- Manufacturers had the capacity to produce more than customers really wanted or were able to buy
— depended on personal selling and advertising to solve this overproduction
13
Q
Marketing Evolution Milestone: Market-Oriented Era
A
- After WWII, soldiers returned home and got new jobs
- Manufacturers turned from focusing on the war effort to making consumer products
- Shopping centers began to replace cities’ central business districts as the hub of retail activity
- US entered a buyers’ market
— consumers had control and made purchasing decisions based on quality, convenience and price - Manufacturers focused on what customers wanted and needed when they designed, made and sold products
- Firms discovered marketing during this time
14
Q
Marketing Evolution Milestone: Value-Based Marketing Era
A
- Firms realized they should give their customers greater value than their competitors do
- Value
— reflects the relationship of benefits to costs, or what the consumer gets for what they give
— customers seek a fair return in goods and services for their hard-earned money
— good value doesn’t necessarily mean the product is inexpensive - Value cocreation
— creative way to provide value to customers
— customers act as collaborators with a manufacturer or retailer to create the product or service
— ex) clients work with investment advisers to cocreate their investment portfolios - Relational orientation
— value-increasing method of building a relationship with customers (long-term relationship between buyers and sellers)
— firms focus on lifetime profitability of relationships - Customer relationship management (CRM)
— set of strategies, programs and systems that focus on building loyalty among the firm’s most valued customers
— firms systematically collect info about customers’ needs
— use that info to target their best customers to increase chances of a sell
15
Q
4 main activities that value-driven marketers undertake to increase value
A
- Adding Value
- Marketing Analytics
- Social and Mobile Marketing
- Ethical and Societal Dilemma
