Chapter 1: What is Marketing? Flashcards
Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Creating
process of collaborating with suppliers and customers to create offerings that have value.
Communicating
broad term in marketing that means describing the offering and its value to your potential and current customers, as well as learning from customers what it is they want and like.
Delivering
getting those offerings to the consumer in a way that optimizes value.
Exchanging
trading value for those offerings.
Four Components of Marketing
Creating, Communicating, Delivering, Exchanging
Value
benefits the buyers receive that meet their needs.
Personal Value Equation
value = benefits received - [price + hassle]
Marketing Concept
philosophy underlying all that marketers do, driven by satisfying the customer wants and needs.
Market Orientated
firms operating using the marketing concept.
Production Orientated
belief that the way to compete is a function of product innovation and reducing production costs, as good products appropriately priced sell themselves.
Production Era
began with the industrial revolution and lasted until the 1920’s when production-capacity growth began to outpace demand growth and new strategies were called for.
Selling Orientated
belief that is was necessary to push their products by heavily emphasizing advertising and selling.
Selling Era
during the Great Depression and World War II; dollars were short so competition was stiff.
Marketing Era
post-WWII; demand for goods increased as the economy soared; from 1950-1990.
Value Era
time when companies emphasize creating value for customers (now).
One-to-One Era
from the 1990’s to present, the idea of competing by building relationships with customers one at a time and seeking to serve each customer’s needs individually.
Service Dominant Logic
approach to business that recognizes that consumers want value no matter how it is delivered.
Service Dominant Logic Era
from 1990 to present in which some believe that the philosophy of service-dominant logic dominates the way firms compete.
Supply Chain
includes a number of organizations and functions that mine, make, assemble, or deliver materials and products from a manufacturer to consumers.
Logistics
actual transportation and storage of materials and products; primary component of supply chain management.
Nonprofit Marketing
when a nonprofit engages in marketing activities.
Social Marketing
marketing conducted in an effort to achieve social objectives; can be done by government agencies, nonprofit institutions, religious organizations, and others.
Marketing Plan
strategy for implementing the components of marketing: creating, communicating, delivering, and exchanging value.
Social Responsibility
you must actively seek to improve the lot of others.
Sustainability
involves engaging in practices that do not diminish the earth’s resources.
