chapter one and two Flashcards
what is marketing?
managing profitable customer relations, aims to create value for customers
5 core customer and marketplace concepts
- needs and wants
- market offerings
- value and satisfaction
- exchanges and relationships
- markets
needs
states of felt deprivation
wants
form human needs take as shaped by culture
demands
wants that are backed by buying power
market offerings
combination of goods etc offered to a market to satisfy a need or want
marketing myopia
focus only on existing wants, loose sight of underlying customer needs
transaction
trade between 2 parties that involves at least 2 things of value
market
set of all actual and potential buyers
marketing management
choosing a target get market and building a profitable relationship
demarketing
temp or permanently reduce demand
demand comes from
- new customers
- repeat customers
production concept/orientation
company places its ability to produce goods at its core
product concept/orientation
Favour high quality and unique products at its core
selling concept
focus on sales transactions more than building long term profitable customer relationships
marketing concept/orientation
knowing needs and wants of the target market, creates lasting relos based on value and satisfaction
societal marketing concept
decisions consider consumer wants and long term interests
CRM (customer relationship marketing)
detailed info about customers and managing customer touch points in order to max customer loyalty
consumer perceived value
customers evaluation between all the benefits and all the costs relative to its competitors
customer satisfaction
products perceived performance exceeds expectations
consumer generated marketing
role in shaping their own brand experiences
partner relationship management
working with partners outside the company to bring greater value to customers
customer lifetime value
customers overtime exceed cost of attracting and selling to that customer
share of customer
portion of purchasing that a company gets in its product categories
customer equity
total combined customer value
butterflies
potentially profitable but not loyal
true friends
both profitable and loyal
true believers
come back regularly and tell others
barnacles
highly loyal but not very profitable
not for profit marketing
aim to make surplus ace so they can continue to operate, dont seek profit
winning marketing strategies are able too….
serve target customer
value =
anything with money worth, represented by the fulfilment of a need
customer vs consumer
customer = makes the purchase
consumer =person who uses it
5’cs
context, company, collaborators, competition and customers
Strategic planning
developing and maintaining a fit between organisations goals and capabilities, detailed marketing plans
mission statement
statement of purpose
SBU (stratigraphic business units)
key business that makes up a company
business portfolio
businesses and products that make up the company
portfolio analysis
evaluation of how the company can best use their strengths
growth share matrix
portfolio planning method where the company evaluates how to best use their strengths
stars (maker share)
high growth, high share, need heavy investments to produce a rapid growth, eventually slow down and become cash cows
cash cows (maker share)
low growth, high share, need less investments to hold their market share, produces a lot of cash the compmay can use to pay bills
question marks (maker share)
low share, high growth markets, require a lot a cash, aim to be built into stars
dogs (maker share)
low growth, low share, generate enough to maintain themselves
problems with matrix approach
- difficult
- time consuming
- costly
- hard to define and measure growth
- hard to future plan
product/market expansion grid
planning for identifying company growth through market penetration
market penetration
increasing sales of current products to current market segments without changing the product
market development
new market segments for current products
product development
growth by modifying or new product to current market segments
diversification
growth by acquiring business outside current product and markets
marketing strategy
hopes to create customer value and achieve profitable customer relationships
market segmentation
Analysing and dividing markets into distinct groups
positioning
arranging for a product to occupy a clear and distinctive place in the minds of target consumers relative to competing products
differentiation
Differentiating the companies market offering from that offered by its competitors
marketing mix
set of controllable marketing tools, product placement, price, promotion, people and physical evidence that blends to produce the response it wants in the target market
3 additional marketing mix variables
people, process and physical evidence
SWOT analysis
strengths, weaknesses, opportunities and threats
marketing implementation
turns marketing strategies and plans marketing actions in order to achieve marketing objectives
ROI
return on marketing investments
4 steps for strategic planning
- defining company mission
- setting objectives
- designing a business portfolio
- develop functioning plans
actors in the enviro
- suppliers
- customers
- competitors
- publics and other
enviro forces
- demographic
- economic
- natural
- tech
- political
- cultural
public
group with actual or potential interest interest in ability to achieve objectives
types of public
Financial publics (shareholders, banks, investors)
media publics (social media, tv etc)
government publics (product safety, truth in ads act)
citizen action publics (consumer organisations, enviro groups, being questioned by these)
local publics (residents)
general publics
internal publics (workers, employee attitudes)
customers are
the most important actors in the micro environment
5 types of customer markets
- consumer market (personal consumption)
- business markets (use in production process)
- reseller market (buy to sell for profit)
- government markets (public service)
- international markets (buyers overseas)
