Chapter 1 Marketing: The Art and Science of Satisfying Cusotmers Flashcards
Define marketing?
The activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society
Types of utility?
Form, time, place, ownership (possession)
Define form utility? Provide an example.
Conversion of raw material and components into finished goods and services
Example: iPod
Define time utility? Provide an example.
Availability of goods and services when customers want them
Example: Dental appointment, digital photogrphs
Define place utility? Provide and example.
Availability of goods and services at convenient locations
Example: Banks in grocery stores
Define ownership utility? Provide an example.
Ability to transfer title to goods and services from marketer to buyer
Example: Retail sales in exchange for credit card payment
4P’s of the Marketing Mix
Product:
- Brand name
- Packaging
- Sizes
- Features
4 P’s of the Marketing Mix
Price:
- Discounts
- Allowances
- Credit terms
- Payment period
4 P’s of the Marketing Mix
Place:
- Distribution channels
- Inventory
- Transport
- Locations
4 P’s of the Marketing Mix
Promotion:
- Advertising
- Sales promotions
- Public relations
- Direct marketing
7 P’s of the Marketing Mix
- Product
- Price
- Place
- Promotion
- Physical environment
- Process
- People
Five eras in the history of marketing
Production Era (prior to 1920's) Sales Era (prior to 1950's) Marketing Era (since 1950's) Relationship Era (since 1990's) Social Era (since 2000's)
Describe the Production Era
Product Orientation - Stressing efficiency in producing a quality product
“ A good product will sell itself”
Production shortages and intense consumer demand
Describe the Sales Era
Sales Orientation - Customers will resist purchasing nonessential items
Personal selling and creative advertising to persuade them to buy
Describe the Marketing Era
Emergence of Marketing Concept - A company wide consumer orientation to achieve long term success
A strong market orientation improves market success and overall performance
Describe the Relationship Era
Relationship Marketing - Developing long term, value added relationships over time with customers and suppliers
Describe the Social Era
Social Era - Accessibility to the internet and the creation of social media sites
High-End Marketing vs Low-End Marketing
High-End Market: Die hard fans and high image consumers
Enhanced brand equity
Low-End Market: New and budget oriented younger segment
Emerging markets
Define Marketing Myopia. Provide an example.
Marketing Myopia - Management’s failure to recognize the scope of its business
A narrow understanding of what business they are in
Example: Kodak lost much of its hare to Sony cameras when digital cameras boomed
Non-Traditional marketing types
- Person Marketing
- Place Marketing
- Cause Marketing
- Event Marketing
- Organizational Marketing
Describe Personal Marketing. Provide an example.
Person Marketing - Focus on marketing of a fictional character, celebrity or political candidate to cultivate the attention of a target market
Example: Drake, the rapper
Describe Place Marketing. Provide an example.
Place Marketing - Focus on marketing places as tourist attraction
Example: Saskatchewan - Land of living skies
Describe Cause Marketing. Provide an example.
Cause Marketing - Marketing of a social issue, cause or idea to selected target markets
Example: “Smoke, stink, die”
Describe Event Marketing. Provide an example.
Event Marketing - Market of sporting, cultural and charitable activities to selected target markets
Example: Grey Cup, Rogers Cup
Describe Organizational Marketing. Provide an example.
Organizational Marketing - Influences others accept the organization’s goals, receive its services and contribute in some way
Example: United Way, Canadian Red Cross
Define Transaction Based Marketing
Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between parties
Companies gain a competitive edge by moving customers up a loyalty ladder
Define Mobile Marketing
Marketing messages transmitted via wireless technology
Define Interactive Marketing
Buyer seller communications in which the customer controls the amount and type of information received from a marketer
Define Social Marketing
The use of online social media as communications channels for marketing messages
Define Strategic Alliances
Partnerships in which 2 or more companies combine resources and capital to create competitive advantages in the marketplace
Forms of alliances
- Product development partnerships
- Vertical alliances
Universal Marketing Functions
- Buying
- Selling
- Transporting
- Storing
- Standardizing and Grading
- Risk Taking
- Financing
- Securing Market Information
Explain the buying function
Ensuring product offerings are available in sufficient quantities to meet customer demands
Explain the selling function
Using advertising, personal selling and sales promotions to a match products to customer needs
Explain the transporting function
Moving products from their point of production to locations convenient for purchasers
Explain the the storing function
Warehouse products until needed for sale
Explain the standardizing and grading function
Ensuring product offerings meet quality and quantity controls of size, weight and other variables
Explain the risk taking functions
Dealing with uncertainty about future customer purchases
Explain the financing function
Providing credit for channel members (Wholesalers/retailers) and consumers
Explain the securing market information functio
Collecting information about consumers, competitors and channel members for use in marketing decisions
Define ethics
Moral standards of behaviour expected in a society
Define social responsibility and its benefits
Marketing philosophies, policies, procedures and actions whose primary objective is to enhance society Benefits: - Improved customer relationships - Increased employee loyalty - Marketplace success - Improved financial performace
Define sustainable products
Products that can be produced, sued and disposed of with minimal impact on the environment
