Chapter 1 Flashcards
Marketing
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return.
Five core customer and marketplace concepts
Needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets
market offerings
are some combination of products, services, information, or experiences offered to a market to satisfy a need or a want.
marketing myopia
s focusing only on existing wants and losing sight of underlying consumer needs.
exchange
is the act of obtaining a desired object from someone by offering something in return.
market
is the set of actual and potential buyers of a product.
marketing management
is the art and science of choosing target markets and building profitable relationships with them.
What customers will we serve?
How can we best serve these customers?
market segmentation
refers to dividing the markets into segments of customers.
target market
refers to which segments to go after
Value propositon
is the set of benefits or values a company promises to deliver to customers to satisfy their needs.
Production concept
is the idea that consumers will favour products that are available or highly affordable.
Product concept
is the idea that consumers will favour products that offer the most quality, performance and features and that the organisation should therefore devote its energy to making continuous product improvements.
Selling concept
is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
Marketing concept
is the idea that achieving organisational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do.
Societal marketing
concept is the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-term interests and society’s long-run interests.