Chapter 1 - Marketing Fundamentals Flashcards
Marketing department is responsible for facilitating ____, _____, and _____ with the organization’s customers, shareholders, suppliers, and other organizations.
relationships
partnerships
alliances
A need occurs when…
a person feels deprived of basic necessities such as food, clothing, and shelter.
A want is a need…
shaped by a person’s knowledge, culture, and personality.
Successful marketing is…
focused on customer needs and wants.
Customer Value Proposition
unique combination of benefits received by target buyers that will satisfy their needs.
Benefits include: quality, price, convenience, delivery, and both before-sale and after-sale service.
Creating products with added value is achieved through a combo of:
Product design, pricing strategies, service elements
Target Market
specific group or segment(s) of existing and potential consumers to which marketers direct their marketing efforts
Elements of Marketing Mix
Product
Price
Place
Promotion
4P’s: Product
all attributes that make up a good/service/idea
- product design, features, colour, packaging, warranty, service levels
4P’s: Price
what is exchanged for a product, including expected regular retail or sale price
4P’s: Place
way in which product gets to the consumer, distribution channels, retail formats, and merchandising used to sell a product.
4P’s: Promotion
tools needed to communicate with consumers about the product
- advertising, public relations (PR), sales promo, direct response, event marketing, sponsorship, online approaches, personal selling
Marketing Process
- Identifying consumer needs
- Managing marketing mix to meet needs
- Realizing profits
Exchange
trade of things of value between buyers and sellers so that each benefit
A Good
tangible product, you can touch and own it
- example: a toy
A Service
intangible product you cannot touch or own
- example: tutoring
An Idea
concept that typically looks for support
- example: MADD, mothers against drunk driving
Market
potential consumers with both the willingness and ability to buy
Order of Business Philosophies
- Production Orientation
- Sales Orientation
- Marketing Orientation
- Relationship Marketing Orientation
Production Orientation Stage
Before the 1930’s
- focused on manufacturing
- goods tend to sell, regardless of quality because supply was so small
Sales Orientation Stage
1930’s - 1960’s
- focused on selling as many products as possible
Marketing Orientation Stage
1960’s
- focuses on idea that organizations should strive to satisfy the needs of consumers while also trying to achieve their goals
- focuses efforts on continuously collecting info about customer needs, sharing info across departments, and creating customer value
Relationship Marketing Stage
Now
- organizations considering the lifetime value of customers and striving to offer better services, higher-quality products
- encourage long-term relationships with customers
- greater use of CRM, CSR,
Customer Relationship Management (CRM)
overall process of building and maintaining profitable customer relationships by delivering customer value and satisfaction
Share of Wallet
% of customer’s purchases that a company has in a specific product category
Customer Lifetime Value
potential sales that will be generated by 1 customer that remains loyal to that company for a lifetime
Corporate Social Responsibility (CSR)
when organizations voluntarily consider the well-being of society
Greenwashing
deceptive use of marketing practice to give the impression that a good, service or organization is environmentally friendly
Societal Marketing Concept
marketing programs that focus on the customer and the well-being of society
Digital Marketing
using digital technology to reach consumers through computers, gaming devices, out-of-home electronic screens, or mobile devices
Content Marketing
creating/sharing expertise, info, or branded content designed to inform and engage with tools that can be readily found with search engines
Mobile Marketing
set of practices that enables organizations to communicate and engage with their audiences in an interactive and relevant manner through any mobile device/network
Social Media Marketing
reaching out to consumers online through social media networks
Experiential Marketing
creating opportunities for consumers to directly interact with brands
- create buzz, focal point for social media programs
Partnership Marketing
creation of formal associations between brands that result in increased business for both brands, could not be achieved separately
Strategic Alliance
long-term arrangement between companies with similar values/marketing objectives that extend betond short-term promo offers into long-term agreements
