Chapter 1 - Defining Marketing for New Realities Flashcards
Marketing (AMA definition)
The 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 is about what?
Identifying and meeting human and social needs
What is Marketing Management
The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
How does marketing create value for organizations and society?
1) Builds demand for products & service which then creates jobs! (creates jobs)
2) Builds strong brands & loyal customer base, intangible assets that contribute heavily to the value of a firm (intangible assets, adds value)
What’s marketed?
- Goods • Services • Events • Experiences • Persons
- Places • Properties • Organizations • Information
- Ideas
Needs
Basic human requirements such as for air, food, water, clothing, and shelter
Wants
Specific objects that might satisfy the need
Demands
Wants for specific products backed by an ability
to pay
List the different types of needs (5)
- Stated (Customer wants an inexpensive car)
- Real (Customer wants a car whose operating costs are low, not initial price)
- Unstated (Customer expects good service)
- Delight (Cust. would like dealer to include GPS)
- Secret (Cust. wants friends to see him as savy)
Value proposition
Set of benefits that satisfy customer needs
Offerings
Combination of products, services, information, and experiences
- Intangible value made physical
Value
Combination of quality, service, and price
- Sum of tangible & intangible benefits and costs
Segmentation
Marketers find distinct segments of buyers by identifying demographic, psychographic, & behavioral differences between them… Then they choose which segment or segments present the greatest opportunities
Targeting
Marketers then target the segments they want to pursue.
Target market - the part of the qualified available market the company decides to pursue
Positioning
Putting a market offering in a target buyers mind as delivering some key benefits. (ex. volvo positions themselves as the safest cars)
Earned media
Word of mouth, buzz, or viral marketing
a communication option
Impression
Occur when consumers view a communication
- Useful for tracking the scope or breadth of a communication’s reach that can be compared across all communication types
- Downside, don’t provide any insight into results of viewing
Engagement
The extent of a customer’s attention and active involvement with a communication
- Reflects active responses, more likely to create value
- Ex. FB “likes”, shares, thumbs up
Satisfaction
A person’s judgment of a product’s perceived performance in relationship to expectations
Distribution channels
Help display, sell or deliver the physical product or service to the buyer or user
Service channels
Used to carry out transactions w/ potential buyers
- Includes warehouses, transportation companies, banks, insurance companies.
Service channels
Used to carry out transactions w/ potential buyers
- Includes warehouses, transportation companies, banks, insurance companies.
New consumer capabilities
– Use internet as a powerful purchasing aid
– Search, communicate, and purchase on the move
– Share opinions & express loyalty in social media
– Actively interact with companies
– Reject marketing they find inappropriate
New company capabilities
– Internet as a powerful information and sales channel
(ex. custumization)
– Collect richer information about markets
– Reach customers via social media and mobile
– Improve purchasing, recruiting, training, and internal and external communications
– Improve cost efficiency
