Chapter 11 Flashcards
8 functions of marketing
Risk taking Buying Selling Transporting Storing Grading Financing Marketing research
Market is NOT
Marketing IS
Not: manipulating customers to buy things they don’t need
Is: a systematic approach to satisfying customers
What is marketing
Activities designed with the purpose of increasing sales by creating, pricing and promoting goods and services
What is exchange
Giving up one thing for something else
Customer value=
Customer benefits - customer costs
What are customer benefits
Anything a buyer receives
What are customer costs
Anything a buyer must obtain to reap a company’s benefits
The marketing concept determines…
A companies level of success
Describe the two approaches to marketing segmentation
Concentration approach: A company develops ONE marketing strategy for a single marketing segment
Multi segment approach: aimed marketing efforts and unique strategy for 2 or more segments
Example of concentration approach
Porsche - directed towards one segment - high income people
Example of multi segment approach
Bicycle company- young old athletic and unique marketing strategy for each one
Explain total market approach
A company using a marketing strategy to appeal to a total market mix
What is a niche, give an example
A niche is a narrow focus on a small and defined group with a specific need Ex: airlines and first class flyers with special perks
The task of successfully using a multi segment of concentration approach to market a product to a need
Segmentation
How to successfully preform segmentation
Needs for a product must be diverse
Identifiable and divisible
One or more segments must be predicted to develop marketing Strategies
Market segment(s) must be achievable with specific Strategies
(Diverse, identifiable, divisible, predicted, available)
