Chapter 1 - Marketing: creating & capturing customer value Flashcards
What is the simplest definition of marketing?
Managing profitable customer relationships
What is the two-fold goal of marketing?
1) Attract new customers by promising superior value
2) Keep & grow current customers by delivering satisfaction
What is more detailed definition of marketing?
The process by which companies create value for customers and build strong customer relationships to capture value from customers in return
What is a need?
States of felt deprivation
What is a ‘want’?
The form human needs take as they are shaped by culture and individual personality
What are demands?
Human wants that are backed by buying power
What are market offerings?
Some combination of products, services, information or experiences offered to a market to satisfy a need or want
What is marketing myopia?
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
Focus only on existing wants, losing sight of underlying customer needs
What is ‘exchange’ & how is this used in marketing?
The act of obtaining a desired object from someone by offering something in return
Marketer tries to bring about a response to some market offering
Marketing consists of actions taken to build & maintain desirable exchange relationship with target audiences involving a product/service/idea/object
What is a market?
A set of all actual and potential buyers of a product or service
What is marketing management?
The art and science of choosing target markets and building profitable relationships with them
Find, attract, keep, grow THROUGH creating, delivering & communicating superior value
(FAKG BY CDC)
To design a winning marketing strategy, what two important questions must be answered?
What customers will we serve? (target market)
How can we serve these customers best? (value proposition)
What is the marketing concept?
Achieving organisational goals depends on knowing needs and wants of target markets
and delivering the desired satisfactions better than competitors do
What is the selling concept?
Consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort
What is the product concept?
Consumers favour products that offer most quality, performance and features
Organisation should devote energy to making continuous product improvements
