Chapter 1: Intro. To Marketing Flashcards
Define Marketing
Marketing is a set of business practices designed to plan for, and present a company’s products or service. It is the understanding of customers wants and needs.
Define a “need”
Basic necessities (water, basic foods)
Define a “want”
Desired needs; to fulfill the needs (sparkling water, high end products)
Define the Marketing Concept
The focus on customer wants and needs so that the company can distinguish its offerings vs their competitors
- Being able to satisfy customers based on their needs and wants
- Longterm goal is to make money (profit) in a legal and responsible way
Why is it important to know the Evolution of Marketing
To provide better understandings of how marketing is perceived today
Define Product Orientation (stage)
Here lets the customers know about the products. But at this time there was a lack of product options, so whatever the company made, was what the customers wanted
- The actual manufacturing and producing of the product
Define Sales Orientation (stage)
Focused on just the advertising and selling of products and services
- Customer choice existed, and was hard to sell at this time.
Define Marketing Company Orientation (stage)
Customers are grouped into segments (groups) to help the company and marketers better understand their customers and how to target each group in different ways
Define Societal Marketing Orientation (stage)
Products that customers want but that can be bad for them and/or the society.
- This led to movements like Recycling, Awareness of dietary and safety issues
- Ex. MacDonalds Happy Meals were unhealthy so they added apple slices instead, and/or small books instead of toys to help make them “better”
What does Marketing need to concentrate most on?
Engaging their customers and creating long lasting loyalty with them
Define Customer Satisfaction
The customers evaluation of whether the good or service met their expectation.
Define Relationship Marketing
Keeping and improving relationships with customers; customer preference keeps a longstanding relationship (long term customers)
Define Customer Relationship Management (CRM)
A strong relationship between Customer and Seller
- Creating TRUST with customer
- Companies listening the customers
- Engaging, talking about personal things
Define Exchange
People giving up one thing to receive another thing they would rather have
Define Customer Value
The relationship between benefits and the sacrifice necessary to obtain those benefits
- The expected quality, price
- What customers are willing to pay
- Trust (giving customers honest facts about products)
Define Marketing Segments
Groups of individuals that share similar needs. This helps marketers better understand how to target different groups based on needs
- Age, Families, Income, Religion
Define Building Relationships with Customers
Always look to attract new customers, not just the old ones. Always develop long term relationships
Define the Marketing Mix
Known as the 4 P’s. Under the control of the company and is designed to appeal to a group of potential buyers
Define Product
Related to the tangible and intangible aspects of a company’s offering
- The actual product, quality of it
Define Price
Relates to the quantifying of a value in exchange for a company’s offering. Competition is a significant customer perception and economic factors
Define Place
Relates to the “behind the scenes” activities of making an offering available to the customer
- Production
- Manufacturing
- Producing
Define Promotion
Relates to what most people believe marketing is about. It is the most visible activities of Marketing (ADVERTISING)