Chp 1 - Overview of Marketing Flashcards
define marketing
Set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships
6 core aspects of marketing
1) Helps create value
2) About satisfying customer needs and wants
3) Entails an exchange
4) Requires product, price, place and promotion decisions
5) Can be performed by individuals and organizations
6) Occurs in many settings
role of marketing
about satisfying customer needs and wants
define want
particular way in which a person chooses to satisfy a need, shaped by knowledge, culture and personality
define demand
ability and willingness to act on needs and wants
define target market
customer segment or group to whom the firm is interested in selling its products and services. Firms direct marketing to their target market due to cost
how can firms understand wants and needs
first firm must identify customers or market for product
what are the 4 p’s
Product, price, place, promotion
define the 4 p’s
controllable set of activities a firm uses to respond to the wants of its target market
explain 4 p’s - product (2 points)
1) about creating value
2) product/service, brand, size, quality, features, packaging, warranty
explain 4 p’s - price (2 points)
1) about transacting value
2) List price, discounts, allowances, costs, payment period, credit terms
define price
overall sacrifice (time, money etc) consumer is willing to make to acquire product/service
explain 4 p’s - place (2 points)
1) about delivering value
2) Marketing channels, distribution intensity, locations, supply chain, logistics
explain 4 p’s - promotion (2 points)
1) about communicating value
2) Advertising, sales promotion, personal selling, public relations, direct marketing, electronic media
how does marketing affect stakeholders example
impacts many stakeholders like supply chain partners and manufacturers (firms have to convince manufacturers to sell to them)
2 reasons why marketing is important
1) it is universally applicable - it can be used by any organization or anyone for any good, service, event, idea
2) without customers you have no business and marketing is the link to the consumer. everyone who comes in contact with the consumer is a marketer, it shouldn’t be left to the department
4 orientations of marketing
product, sales, market, value-based marketing
3 points on product-based marketing orientation
1) If we make it, they will buy it
2) Focus on developing and distributing innovative products with little concern about whether products best satisfy customers needs
3) Retail stores considered places to hold merchandise until customer wanted it
5 points of sales orientation
1) If we sell it right, they will buy it
2) Try to sell as many products as possible rather than focus on making what customers want
3) Short term view over long term customer relationships
4) Profits come from sales volume rather than repeat business from satisfied customers
5) Depend on advertising to attract new customers
4 points on marketing orientation
1) If we make what they want, they will buy it
2) Focus on what customers need and want before designing/selling products
3) Do everything possible to satisfy customers
4) Focus on making marketing an integrated process through whole firm
4 points on value-based orientation
1) Determining needs and wants of target markets then delivering the offer more efficiently and effectively than competitors to create value
2) Focus on triple bottom line: people, profits, planet
3) value and value co-creation
define value in value-based orientation
reflects relationship of benefits to costs, what consumer gets for what they give
define value co-creation in value based orientation
customers act as collaborators for product
4 ways firms can become more value driven
1) sharing info
2) cost/benefit
3) relationship building through CRM
4) media based connections
explain sharing info in value driving
Share info about customers and competitors collected through crm and integrate it with firm’s departments
explain cost/benefit in value driving
Measure benefits customers perceive against cost of offering
explain relationship building in value driving
relationship orientation and customer relationship management
define relationship orientation
method of building relationship with customers based on philosophy that buyers and sellers should develop a long term relationship
define customer relationship management
business philosophy that focuses on identifying and building loyalty among firm’s most valued customers; collect info about customers needs and use to target customers with focused products
explain media based connections and give example
1) connect with customers using social and mobile media
Example: location-based social media apps like facebook places so customers can find their stores
6 reasons why marketing is important
1) pervasive across organizations
2) pervasive across supply chain
3) makes life easier
4) enriches society (encourages firms to invest in socially responsible actions)
5) can be entrepreneurial
6) expands global presence
LO1: define need
basic necessities of life, like food, clothing, shelter
LO1: example of want
when we are hungry we want something to eat. some people want a salad from home and other people want mcdonalds to satisfy that hunger
LO1: define market
the groups of people who need or want a company’s products or services and have the ability and willingness to buy them
LO1: define exchange
trade of things of value between buyer and seller so that each is better off as a result
LO2: how do marketers create value for product/service
by choosing an effective marketing mix
LO2: define goods
items that can be physically touched
LO2: define services
intangible customer benefits that are produced by people or machines and cannot be separated from the producer
LO2: 3 things in product (4P)
good, service, idea
LO2: define ideas
thoughts, opinions, philosophies, and intellectual concepts
LO2: define place
all activities necessary to get product from manufacturer to right customer when they want it
LO2: define promotion
communication by marketer that informs, persuades, reminds potential buying about product to influence their opinions
LO2: why is promotion important for marketers
Promotion can enhance a product’s value, like promoting jeans that sells youth and style
LO2: what do marketers do with 4Ps
4Ps work together - greater value is delivered to consumers by treating 4Ps as whole
LO2: when is marketing performed by individuals?
in C2C marketing like in auction sites like kijiji. also in job applications through resumes and interviews - market yourself.
define supply chain
the group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services
define B2B
business to business - process of selling merchandise or services from one business to another
define B2C
business to consumer - process in which business sells to consumers
define C2C
consumer to consumer - process in which consumers sell to other consumers
define social media
use of digital tools to easily and quickly share and create content to foster dialogue, social relationships and personal identities
