Chapter 1- MKTG Flashcards
Market
Set of all actual and potential buyers of a product or service
Customer brand advocacy
Actions by which satisfied customers initiate favorable interactions with others about a brand
Customer equity
Total combined customer lifetime values of all the company’s current and potential customers.
the more loyal the firms profitable customers are, the higher the customer equity.
Societal marketing concept
The idea that a company’s marketing decisions should consider:
- Consumer wants and long-term interests
- company’s requirements
- society’s long-run interests
Demands
Wants backed by buying power
Marketing concept
Achieving organizational goals depends on knowing the needs and wants of target markets & delivering the desired satisfaction better than competitors do
Customer engagement marketing
Making the brand a meaningful part of customer’s conversations by fostering direct and continuous customer involvement in shaping brand, experience and community
Customer relationship management
Overall process of building and maintaining profitable relationships by delivering superior customer value and satisfaction
Marketing channels
distributors, retailers, and other who connect the company to its buyers
Supply chain
Longer channel, from raw materials to components to final products.
Customer lifetime value
Value of the entire stream of purchases a customer makes over a lifetime of patronage.
This emphasizes long-term value of customers
Supply chain management
Important because profit depends on the performance of the whole supply chain vs the supply chain of the competitor.
Integrated marketing mix
4 P’s
Product
Price
Place
Promotion
Demarketing
Reducing demand temporarily or permanently (not destroying)
Customer satisfaction
Depends on the product’s perceived performance relative to buyer’s expectations.
Companies should aim to promise what they can deliver, and then delivering more than they promised.
Customer-driving marketing
Understanding customer needs even better than customer themselves & create products and services that meet both existing and latent needs.
Shared value
Creating economic value in a way that also creates value for society.
→ recognizes that societal needs (not just economic needs) define markets
Production concept
Holds that consumer will favor concepts that are available and highly affordable
Product concept
Holds that consumers will favor products that offer the most in quality, performance and innovative features.
Focuses on making continuous product improvements.
Market segmentation
Dividing the market into segments of customers
→ e.g., demographics (age, gender, income)
Marketing myopia
Paying more attention to the specific products than to the benefits and experiences produced, and the broader needs of the customers
It’s technically forgetting that a product is only a tool to solve a consumer problem.
Target marketing
Select a segment of customers to pursue
Value proposition
Set of benefits or values the company promises to deliver to its customers to satisfy their needs.
It answers the question: Why should I buy from your brand rather than a competitors.
Market offerings
Combination of products, services or experiences offered to a market to satisfy a need or a want.
Butterflies
potentially profitable but not loyal
e.g., stock market investors. they don’t build a regular relationship with a single brokerage company.
Barnacies
Not profitable but loyal.
→ most problematic customers because they absorb a lot of time and attention.
True friends
Profitable + Loyal
the company should make continuous investments to delight these customers.
Share of customer
“Share of customer” refers to the portion of a particular customer’s total spending in a specific product category that a company captures.
In other words, it measures how much of a customer’s overall purchases in a given category are directed toward a specific company compared to its competitors.
Example: a customer spends $50 per month on coffee.
They spend $30 at Starbucks
And $20 at Stories
In this case, Starbucks’s share of customer is 60% because it captures $30 out of the customer’s total $50 monthly coffee budget.
Partner relationship management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
Strategic Planning
Process of developing and maintaining a profitable strategic fit between the organization’s goals and capabilities and its changing market opportunities.
it sets the stage for the rest of the planning in the firm.
Steps:
→ 1 Defining its overall mission (how the company wants to positively affect it’s market or society in operates)
Set by marketing leaders (e.g., chief marketing officer)
→ 2 Setting company objectives and goals
by each business unit and product team
→ 3 Designs portfolio of businesses and products ( and decide how much support to give each one.
Mission statement
statement of the organization’s purpose - what it wants to accomplish in the higher environment.
clear mission statement : acts as ‘invisible hand’ that guides
→ Should be Market-oriented
+ defined in terms to satisfy customer and societal needs.
