Chapter 1: Marketing Flashcards
What is marketing
listen to customer and you’ll get money in return
satisfy their needs
Creating value for customers and building strong relationships to capture value from customers in return
Managing profitable customer relationships
what are the goals of marketing
Attracting new customers
Keeping and growing current customer base
what is a target market?
who you wish to sell to
what are the five steps of marketing
- understand marketplace and customer needs and wants
- design customer driven market strategy
- construct an integrated marketing Programm
- build profitable relationships and customer delight
- capture value for customers to create profits and customer equity
- understand marketplace and customer needs and wants
name the five core concepts
- Needs, wants, and demands
- Market offerings
- Value and satisfaction
- Exchanges and relationships
- Markets
Demand: a want if you have money
- understand marketplace and customer needs and wants
core concept 1: what is a want
Needs influenced by culture and personality
Want: Sausage Egg McMuffin
- understand marketplace and customer needs and wants
CORE CONCEPT 1: what is a demand
Sum of wants and buying power
- understand marketplace and customer needs and wants
core concept 2: what are market offerings
Products, Services and Experiences that are available to satisfy a need or want
what is market myopia?
Marketing Myopia: paying more attention to the specifics of a product, rather than the benefits it can offer. Ex: Kod
- understand marketplace and customer needs and wants
core concept 3: customer satisfaction
satisfying dem customers
- understand marketplace and customer needs and wants
core concept 4: Exchange Relationships
what is an exchange?
act of obtaining a desired object from someone by offering something in return.
- understand marketplace and customer needs and wants
core concept 4: Exchange Relationships
what is a relationship?
expected result of marketing, but relationship building is a higher and more rewarding pursuit.
what is a market?
The set of all actual and potential buyers of a product or service
how is the greater market divided?
divided into segments comprised of consumers with similar needs
what are the major players of the modern marketing system?
suppliers
companies and their competitors
marketing intermediaries
consumers
- design customer driven market strategy, what does this mean?
Segment the market into different market
Differentiate your product
Winning marketing strategies are formed by considering what?
our target market
the value proposition
Value proposition
why should they buy my product over another (how you differentiate)
The benefits promised to deliver to consumers.
Example: BMW promises “the ultimate driving machine”
Differentiates brands within the marketplace
what is market segmentation?
Dividing the market into groups of customers
what is target marketing
Selecting one or more segments to serve based on the product or service that you offer
what are the five marketing orientations in the marketing strategy to consider?
- production concept
- product concept
- selling concept
- marketing concept
- societal marketing concept
- production concept
consumers will favour products that are available and affordable
organization should focus on improving production and distribution efficiency
how can you make it cheaper
how can the production concept (1) lead to marketing myopia?
focusing solely on operations
- product concept
consumers will favour products that offer the most quality, performance, and features
consumers will focus on quality and features and shit
how can the product concept lead to marketing myopia?
how is it flawed?
focusing only on products
flawed because does not look at customer
- selling concept
consumers will not buy enough of a company’s products unless it undertakes a large-scale selling and promotion effort
lets bombard with adds
why is the selling concept (3) flawed?
focuses on creating sales transactions rather than building long-term profitable consumer relationships
Focusses on selling existing products rather than focusing on customer needs
- marketing concept
lets focus on customer
achieving organizational goals depends on knowing the needs and wants of target markets
delivering the desired satisfaction better than competitors
- societal marketing concept
what does it result in
sustainable marketing
socially and environmentally responsible marketing that meets present needs while considering future interests
all while achieving profitability
what are the main concerns of societal marketing concept
(5)?
long-run interests
sustainability
Corporate Social Responsibility (CSR)
Being good” is not enough; ”doing good” is the new raising of the bar.
what is the Integrated Marketing Plan (third step of marketing)?
Analyzes firm’s current situation and transforms the marketing strategy into action
Describes the four P (marketing mix) strategies
what are the four P (marketing mix) strategies?
Product
Price
Place (Distribution)
Promotion
profitable customer relationships (fourth step of marketing)
Building and maintaining relationships
delivering superior customer value and satisfaction
Be nice to customer, keep and acquire others
Customer-Perceived Value
Make sure benefits justify the price
Customer’s evaluation of the difference between all benefits of a product or service minus the costs
he compares to those of the competitors
what is customer satisfaction
Extent to which the product’s perceived performance matches a buyer’s expectations
if you get customer loyalty, what does it mean your product or service achieved
it met expectations
if you get customer delight and advocacy, what does it mean your product or service achieved
Exceeded Expectations
They will talk about it which is gyu
what is customer engagement marketing
make a brand a meaningful part of consumers’ conversations and lives
direct and continual customer involvement
have your product on customers’ mind the whole time
Customer engagement and social media
engage customers in social media
what are the trends in marketing today
Targeting fewer, more profitable customers
Feedback directly from consumer with digital and social media
new opportunities to target customers more selectively and engage them more deeply online
Make people want to see your ads by going viral by Attracting, rather than intruding upon
Consumer-generated marketing
Partner-relationship marketing
Consumer-generated marketing
brand message exchanges created by consumers themselves
Example: blogs, review boards, forums, word of mouth
Partner-relationship marketing
working closely with internal partners in other departments (finance, accounting) and external partners (suppliers)
jointly bring greater value to customers
what does creating value for customers and building customer relationships lead to?
Customer loyalty and retentio.
Satisfied loyal customers buy more for a longer period of time
why would a company capture value from customers
create profits in the form of “customer lifetime value”
“share of customer”
“customer equity”.
customer lifetime value
value of the entire stream of purchases that the customer would make over a lifetime of patronage
share of customer
The portion of the customer’s purchasing that a company gets in their product categories
Example: A family has a $10,000 annual budget on groceries. The local grocery store would want to get all of that $10,000 to have 100% share of customer
customer equity
The total combined customer lifetime values of all the company’s current and potential customers
The more loyal the firm’s customers, the higher its customer equity
