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
Company orientation toward the marketplace (4)
Production concept
Product concept
Selling concept
Marketing concept
Production concept
One of the oldest concepts in business. Consumers prefer products that are widely available an inexpensive. Production oriented businesses concentrate on:
• High production efficiency, low cost, mass distribution
• Works good to expand the market, and developing countries (China)
Product concept
Proposes that consumers favor offering the most quality, performance or innovative features.
Quality, performance, innovative features
• May fall under “better mousetrap” policy, which they think that a better product will lead to consumer going to them which isn’t always the case. Success will have to depend on how it’s priced, distributed, sold, & advertised
Selling concept
Believes if consumers and businesses are left alone won’t buy enough of the organization’s products.
Selling oriented businesses aim to sell what firm makes, rather that what the market wants (ex. cemetery plots, insurance)
• Unsought products, such as insurance or cemetery services
- NEEDS OF SELLER
Marketing concept
Customer-centered, sense and respond philosophy
• Focus on not finding the right customer for your product, but rather the right product for the customer
(ex. Dell)
- Key to achieving organizational goals is being more effective than competitors by creating/delivering/ communicating superior customer value to target market
- NEEDS OF BUYER
Marketing Mix (4 P’s)
Product
Price
Promotion
Place
Product tasks/decisions
Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns
Price tasks/decisions
List price Discounts Allowances Payment periods Credit terms
Promotion task/decisions
Sales promotion Advertising Sales force Public relations Direct marketing
Place task/decisions
Channels Coverage Assortments Locations Inventory Transport
What are the 4p’s in marketing?
A model for enhancing the components of your ‘marketing mix’ – the way in which you take a new product or service to market.
Helps you to define your marketing options in terms of price, product, promotion, and place so that your offering meets a specific customer need or demand.
Price definition in 4p’s
The monetary value of a product or service and it’s impact on the company’s profit margins, supply, demand and marketing strategy.
Product definition in 4p’s
Intangible service or tangible product that satisfies the needs of the target consumer
Promotion definition in 4p’s
How and when you get your message across to your target market
Place definition in 4p’s
The place buyers/users will look for your product or service
