Chapter 1 Flashcards
Marketing
is an organizational function and a set of processes for creating, communicating,
and delivering value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders. The aim of marketing is to know and
understand the customer so well that the product or service fits him and sells itself
Marketing management
is the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating superior
customer value.
A marketer
someone who seeks a response from another party
Prospect
The aim of marketing is to know and understand the customer so well that the product or service
fits him and sells itself.
What can be marketed (10)
- Goods
- Services
- Events
- Experiences
- People
- Idea
- Information
- Places
- Property
- Organizations
Latent demand
consumers share need for non-existing product
Unwholesome demand
consumers are attracted to undesired products (e.g.
tobacco
Negative demand
Consumers dislike product, may pay to avoid it
Nonexistent demand
Consumers may be unaware or uninterested in product
Declining demand
consumers begin to buy product less frequently
Irregular demand
Consumer purchases vary on seasonal, monthly, weekly daily or
hourly basis
Full demand
Consumers are adequately buying all products put into marketplace
Overfull demand
More consumers would buy product than can be satisfied
Key customer markets:
Consumer markets
Selling mass consumer goods and services such as juices,
cosmetics, shoes etc.
Key customer markets:
Business markets
Selling goods and services to make profit, selling to
professionals with knowledge. Reputation is important
Key customer markets:
Global markets
Navigate cultural, language, legal and political differences while
deciding which country to enter
Key customer markets:
Nonprofit
Companies selling to no-n profit orgs with limited purchasing power, need
to price carefully
Needs are the basic human requirements
- Stated needs (explicitly mentioned by customer)
- Real needs (customer wants something that is useful, ow-cost operating car for example)
- Unstated needs (not mentioned by customer)
- Delight needs (Needs that make it easier)
- Secret needs (consumer is reluctant or unwilling to explicitly verbalize)
Wants
are directed to specific objects that might satisfy the need.
Key functions for CMO
(1) strengthening the brand
(2) measuring market effectiveness
(3) driving new product development based on customer needs
(4) gathering meaningful
customer insights
(5) utilizing new market technology
Demands
are wants for specific products backed by an ability to pay
Marketplace
is a physical place (e.g. store)
Marketspace
is digital (internet)
Meta market
is a cluster of complementary products and services that are closely linked
Value
is the sum of the perceived tangible and intangible benefits and costs to customers.
Customer value triad
quality, service and price
Value Proposition
is a set of benefits companies offer customers to satisfy their needs
A Brand
is an offering from a known source
Marketing channels
(1) communication channels (e.g. telephone)
(2) distribution channels (e.g. internet displays)
(3) service channels (e.g. delivery companies)
Media:
Paid: TV, magazine and display ads, paying third-party channels
Owned: media is when you leverage a channel you create and control. This could
be your company blog, YouTube channel, your website, or even your Facebook Even though you don’t strictly “own” your YouTube channel or your Facebook
page, you do control them and don’t have to pay for basic usage
Earned: Customers, press or public share your content, speak and discuss about
your brand.
The marketing environment
exists of the task environment (producing, distributing,
promoting) and the broad environment (PESTEL)
Satisfaction
is a person’s comparative judgment of a products perceived performance (or
outcome) in relation to his or her expectations.
New Consumer capabilities:
- Consumers can search, communicate and purchase on the move
- Consumers can tap into social media to share opinions and express loyalty
- Consumers can actively interact with companies
- Consumers can reject marketing they find inappropriate
Changing channels:
- Retail transformation: Store-based retailers face competition from newspaper,
magazine and tv ads. - Disintermediation: In the delivery of products by intervening in the traditional flow of
goods. Removing the middleman in the supply chain. - Reintermediation: Traditional companies adding online services as a response to
disintermediation.
Heightened Competition:
- Private labels: Own-store brands
- Mega-brands: Brands spreading into multiple product categories, e.g. apple
(watches, tvs, laptops) - Deregulation: Laws restricting companies growing have been loosened to create
better competition - Privatization: Converting public companies to private to increase efficiency.
Marketing ideas:
Production concept
Consumers prefer products that are widely available and cheap
Product concept
Consumers prefer products with high quality and features
Selling Concept
The more aggressive selling and promotion effort will lead to more
Marketing Concept
Find the right product for your consumer, focus on needs buyer
Holistic Marketing Concept
Everything matters in marketing and abroad,
integrated perspective is (often) necessary. It consists of:
- Internal Marketing -> Make sure employees have the same view on corporate marketing
- Performance Marketing -> Financial accountability and CSR Marketing
- Integrated Marketing -> See next item
- Relationship Marketing -> Build up good relationships with suppliers, customers and
distribution channels
Consumer values 4 A’s:
- Acceptability
- Affordability
- Awareness
- Accessibility
The 4 P’s of Integrated Marketing
product
price
promotion
place
Modern Marketing management
People, programs, process and performance
Marketing Management Tasks
Developing marketing strategies and plans, capturing
marketing insights, connecting with customers, building strong brands, shaping market
offerings, delivering value, communicating value and creating long-term growth
