Chapter 1 - The World of Marketing Flashcards
Brand Parody
Brands are becoming more and more like each other.
E-Marketers
Marketers who use e-commerce in their strategies.
Marketing
- Pervasive Advantage
- 4 P’s - product (creating), price (value), place (distributing, value chain, logistics, SCM), promotion (communication)
- Relationships, Benefits, and Shareholders
- Satisfy individual and organizational objectives
Consumer
The ultimate user of a good or service.
Marketing Concept
Focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability.
What is exchanged in the market place?
- Products
- Information
- Money
- Time and Attributes
Need
Recognition of any difference between a consumer’s actual state and some ideal or desired state.
Want
The desire to satisfy needs in specific ways that are culturally and socially influenced.
Benefit
The outcome sought by a customer that motivates buying behavior - that satisfies a need or want.
Demand
Customers’ desire for products coupled with the resources to obtain them.
Simple/Complex Exchange
- How many channel partners do we have?
- Will you sell directly to the customer?
- Partners are key.
Formal/Informal Exchange
- All contracts should be in writing.
Transactional/Relational Exchanges
- Repeat Purchase and Word of Mouth
- Transactional = focus on the sale
- Building relationships is key.
Market
Consists of all the consumers who share a common need that can be satisfied by a specific product or service and who are willing to make the exchange.
Value Proposition
A marketplace offering that fairly and accurately sums up the value that will be realized if the product is purchased.
- oversold - exaggerated and the buyer’s level of satisfaction is low.
- undersold - proposition is not communicated so there are no takers or the product does not get assigned the worth it deserves.
Expert
Someone who teaches you to be successful with the use of the product.
Relationship Model
- Relationships built on trust.
- Find things in common.
- Communicate clearly.
- FAB = features, advantages, benefits.
1. Similarities
2. Communication
3. Expertise
4. Trust
5. Commitment
6. Repeat Exchange
Consumer Goods
The goods purchased by individual consumers for personal or family use.
Product
Tangible good, service, idea, or some combination of these that satisfies consumer needs through the exchange process.
- FAB
Business-to-Business Marketing
Marketing of goods and services that business and organizational customers need to produce other goods and services for resale or to support their operations.
Industrial Good
Goods bought by individuals or organizations for further processing or for use in doing business.
E-commerce
The buying or selling of goods and services electronically, usually over the internet.
The total product
Includes service or merchandise, as well as brand name, warranty, package, and service plan.
The marketing mix
- Product
- Price
- Place
- Promotion
Promotion
Includes all activities marketers use to inform the consumer and encourage purchase.
Promotion Mix
- Advertising (cheap option, draws people in)
- Personal Selling (most expensive)
- Sales Promotion (gets people to buy for a time because of a promotion, short time, coupons, rebates)
- Publicity, Public Relations (FREE, 3rd party)
Logistics Management/Place
- Transportation
- Inventory Mgmt.
- Warehousing
- Order Processing
- Materials Handling
- Reverse Logistics (how things are put back into the system)
Customer Relationship Management
A philosophy that sees marketing as a process of building long term relationships with customers to keep them satisfied and coming back.
Marketing Plan
Describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.
Price
The value in terms of money, goods, or services that is exchanged for something.
- Determine value
- Select the list price
- Determine discounts and allowances
- Establish the conditions and terms of sale.
The 3 C’s
- Cost (fixed and variable)
- Competition
- Customer
Make sure to do market research before doing business.
Mass Marketing
All possible customers in the market, regardless of the differences in their specific needs and wants.
Market Segment
A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market.
Target Market
The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.
Market Position
The way in which the target market perceives the product in comparison to competitors’ brands.
External Forces (Uncontrollable)
- Opportunities and Threats
1. Economic & Competitive Forces
2. Natural Resources & Physical Threats
3. Science & Technology
4. Political & Legal Forces
5. Demographic Forces
6. Social Values & Beliefs
Internal Forces
- Strengths and Weaknesses
- 4 P’s
Six Utilities
- Form
- Time
- Place
- Possession
- Information
- Service
Domain of Marketing
- Includes almost all organizations, profit or non-profit.
1. Profit & Non-Profit
2. Not Misleading or Manipulative
3. Legal
4. Free Choice
Almost anything can be marketed -
- Consumer Goods and Services
- B2B Marketing
- Not-For-Profit
- Idea, People, Place Marketing
The evolution of business
- Product Orientation (1920)
- Sales Orientation (1950)
- Customer Orientation (1980)
- Social Orientation (2000)
Product Orientation
Mgmt philosophy that emphasized the most efficient ways to produce and distribute products.
Selling Orientation
Mgmt view marketing as a sales function or a way to move products out of warehouses so that inventories don’t pile up.
- Better at one time sales and not repeat.
- Used among comp. that sell unsought goods (people won’t buy without some prodding)
Consumer Orientation
Mgmt philosophy that focuses on ways to satisfy customers’ needs and wants.
New Era Orientation
Marketing means a devotion to excellence in designing and producing products that benefit the customer plus the firm’s ees, shareholders, and communities.
Utility
The usefulness or benefit consumers receive from a product.
- Form Utility - transforming raw materials into finished products.
- Place Utility - Making products available where customers want them.
- Time Utility - storing products until needed.
- Possession Utility - allowing the consumer to own, use, and enjoy the product.
Why study marketing?
- Better consumer
- Increase ability to market yourself
- Fast track to mgmt.
- Increase career opportunities and success.
- Increase skills (conceptual, human, and technical)
Marketing 101
- ID Target (identify customer)
- Market Research (problems/needs)
- Marketing Mix (4 P’s to meet need and build relationships)
