Chapter 1 Flashcards
marketing
activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
marketing simple definition
delivering value to customers
marketing focuses on or seeks to
1) discover the needs and wants of prospective customers
2) satisfy them
exchange
trade of things of value between a buyer and a seller so that each is better off after the trade
4 factors for marketing to occur
- Two or more parties (individuals/ orgs) with unsatisfied needs
- Desire and ability satisfy these needs
- A way for the parties to communicate
- Something to exchange
- two or more parties with unsatisfied needs
student wants Domino’s after studying for the their exam but doesn’t know that there is a Domino’s near them or that Domino’s has a mix-and-match offer waiting to be ordered.
There are two parties with unmet needs :
1. student (desires the meal)
2. dominos owner (need someone to place an order)
- A way for the parties to communicate
Domino’s location, website, store phone number
- desire & ability to satisfy these needs
Student has time/money to place an order
Domino’s has desire to sell products & the ability to do so, since items are easily made/delivered to you
marketing objectives
- discover needs of prospective customers
- satisfy consumer needs
how to prevent product failure
- find out what consumers need and want
- produce what they need and want and dont produce things they dont need and want
showstoppers
factors that might doom the product
need
person feels deprived of basic necessities (food, clothing, and shelter)
want
need that is shaped by a persons knowledge, culture, and personality
What can an organization do to reconcile the different interests of various groups impacting the organization?
strike a balance between the varying interests of the different groups
effective marketing research
Listening to your customers in order to develop a better product
According to Robert M. McMath, what two items will help marketers have a successful product launch?
- focus on what the customer benefit is
- learn from past mistakes
marketing manager that plans new products to meet consumer needs should
focus on how the new product will benefit consumers
primary interest of marketers when focusing on a target market is
concentrating on the needs of some potential consumer
place element of the marketing mix involves
the activities a firm undertakes to get a product to the consumer
Which of the four Ps represents the activities necessary to get a product to the customer where the customer wants it?
place
- something to exchange
Student exchanges money for food & Domino’s exchanged food for money
Discovering the needs of prospective customers
Challenge: meeting consumer needs with new products
Key suggestions: focus on what the consumer benefit is & learn from past mistakes
According to Robert M. McMath, what two items will help marketers have a successful product launch?
market
people with both the desire and the ability to buy a specific offering
Satisfying consumer needs is accomplished by
designing a marketing program & focuses on target market
target market
one or more specific groups of potential consumers toward which an organization directs its marketing program
marketing mix
The controllable factors (4P’s) that can be used by the marketing manager to solve a marketing problem
- price
- product
- place
- promotion
marketing mix (4 P’s)
- product
- price
- place
- promotion
product (marketing mix)
a good, service, or idea to satisfy the consumer’s needs
marketing mix
price
what is exchanged for the product
marketing mix
promotion
means of communication between the seller and buyer
marketing mix
place
a means of getting the product to the consumer
marketing mix
environmental forces
uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces
customer value
unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price
value formula
value = perceived benefits / price
three customer value strategies
- best price (target)
- best product (starbucks)
- best service (Nordstrom)
relationship marketing
links the org to its individual customer, employees, suppliers, and other partners for their mutual long-term benefit
marketing program
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
market share
ratio of the firm’s sales revenue to total industry sales revenue, including the firm
-key indicator of a successful marketing program
-how dominant you are in the industry
market share formula
sales of business / total sales in market * 100
market segments
relatively homogenous groups of prospective buyers that have (1) common needs and (2) will respond similarly to a marketing action
4 business orientations
- product orientation
- sales orientation
- marketing orientation
- market orientation
product orientation
places the emphasis upon the production process and the product itself
-what company has and sells it directly to customers
- producing and customers want it or not
Ex: Ford only producing a black car, you get the car or not, you get no choice
sales orientation
people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
Ex: Ford uses sales promotions & sells different cars in different colors
marketing orientation
considers the needs of customers when developing a marketing mix
- Within the MARKETING DEPT
Ex: marketing team thinks about the customer/what they want and sells it to them
market orientation
an organization wide commitment to researching and responding to customer needs
- The ENTIRE ORGANIZATION/COMPANY
-no matter what department you are in you’re thinking about the customer
Ex: McDonald’s CFO says they care about the customer
4 stages of evolution towards a market orientation
1st Stage: Production Era
2nd Stage: Sales Era
3rd Stage: Marketing Concept Era
4th Stage: Customer Relationship Era
1st stage : production era
Early years up until 1920s
Goods were comparatively scarce & buyers were willing to accept virtually any goods that were available & make due with them
2nd stage : sales era
1920s to 1960s
Manufacturers produced more goods than buyers could consume, competition grew, firms hired more salespeople to find new buyers
3rd stage : Marketing Concept Era
Late 1950s
Marketing became the motivating force among firms & introduced the marketing concept
4th stage : Customer Relationship Era
1980s & continues today
Firms seek to satisfy the high expectations of customers
New technologies increase value for customers/enhance customer relationships
Marketing concept
the idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization’s goals
marketing orientation
focuses its efforts on (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value
customer relationship management (CRM)
the process of 1) identifying prospective buyers, 2) understanding them intimately, and 3) developing favorable long-term perceptions of the organization and its offerings
buyers will choose them in the marketplace & become advocates after their purchase
customer experience
the internal response that customers have to all aspects of an organization and its offering
social responsibility
the idea that organizations are accountable to a larger society
societal marketing concept
the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being
ultimate consumers
the people who use the products and services purchased for a household
organizational buyers
manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale
product
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
utility
The benefits or customer value received by users of the product
4 types of utility
- form
- place
- time
- possession
form utility
the production of the product/way the product comes in
Ex: music industry- vinyl, cassettes, CDs, streaming
phones : going from big to small to big as more features were wanted
place utility
having the offering available where consumers need it
Ex: Target providing products where you want it- curbside, delivery, in-store
time utility
having the offering available when needed
Ex: Domino’s says if your pizza is not out in two minutes next pizza is free
possession utility
the value of making an item easy to purchase through the provision of credit cards or financial arrangements
Ex: payment method- cc, cash, buy now pay later
