Chapter 1: Marketing Overview Flashcards
What activities does marketing involve?
Creating
Communicating
Delivering
Exchanging offerings
What is marketing?
It is an activity
Marketing is about
Delivering benefits
Who benefits in marketing?
Customers
Organisation
Stakeholders
Society
Why is marketing an activity?
It is a conscious effort
Requires both
Art (creativity and innovation)
Science (logic and processes)
What is created?
Value
How is value created?
By matching consumers with products and services
Marketers need to communicate to
Raise awareness
Let consumers know about P&S offered to them
Marketers need to deliver
Value
How do marketers deliver value?
Ensure P&S are as useful as promised
What does exchanging involve?
Physically meeting with consumers
Exchanging things of value
Pass products or services
Get payment
What are offerings?
P&S that will be valuable to the consumer
Offerings satisfy
The needs that the consumer has
How do customers benefit?
Satisfaction of needs
How does the organisation benefit?
P&S sold in return for cash
Increase company profits
Who are stakeholders?
Government
Public
Shareholders
How do stakeholders benefit?
Government:
Taxes
Public:
Profits given to needy
Shareholders:
Profits
How does the society benefit?
Research and development brings knowledge
Operations will add more employment
Revenues earned contribute to economy
Marketing is all about
Discovering and satisfying needs
A need occurs when an individual is
Deprived of basic necessities
A want is a
Preference for specific objects to satisfy want
Marketing is limited to shaping wants it cannot
Create need
What are the requirements for marketing to occur?
2 or more parties with unsatisfied needs
Both parties have desire and ability
There is a way for communication
Both parties can make an exchange
Challenges of marketing include
Consumer not knowing what he wants or needs
Meet consumer needs and earn profit at same time
To find out about what consumes need or want, marketers conduct
Market research
What is a market?
Made up of potential consumer
Having desire and ability to buy a specific product
People who do not make the market include
People who do not have time, authority and money
Those unaware of their needs
Those who are unaware of product
What is a target market?
One or more specific groups of potential consumers towards which
An organisation directs its marketing program
Why do companies need to target?
Different consumers have different needs
Company does not have enough resources to satisfy all
What are the 4Ps in marketing?
Product
Price
Place
Promotion
What is product?
Good service idea
satisfy consumer need
Price is what is
Exchanged for the product
Promotion is the
Means of communication between buyer and seller
Place is referred as
Distribution
Getting product to consumer where exchange can take place
What are the forces affecting marketing decision?
Environmental Social Economic Technological Competitive Regulatory
Marketing aims to create a marketing program that connects with customers. They build
Long-term customer relationships
How are customer relationships built?
They deliver customer value
Strategies to deliver customer value include
Best price
Best product
Best service
How did customer relationship change?
Production era
Sales era
Marketing era
Customer relationship era
Consumers benefit from marketing utilities such as
Form utility
Place utility
Time utility
Possession utility
What is form utility?
Value to customer that is from production or alteration of good and service
What is place utility
Value of having g&s available when needed
What is time utility
Value of having g&s when needed
What is possession utility?
Value of making g&s easy to purchase so that consumers can use it
