Class 1 | Chap 1 | Marketing introduction Flashcards
What is the definition of Marketing?
“Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”
What is the value of marketing?
- To deliver values and profits in an unforgiving economic environment, unprecedented changes in business, growing globalisation and growing digital advancement.
- To create Financial succes: often depends on marketing ability.
- Social benefits
What does Peter Drucker say about the purpose of business and marketing?
“The purpose of business is to create a customer. The business has two – and only two – functions. Marketing and Innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
What place should the customer have in marketing?
To have the customer in the centre of the organisation. ‘‘to think customer’’
How does the book explain marketing as an activity?
Marketing is an activity, set of institutions, and the process for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.
How does the book describe marketing management?
As the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.
There is a difference when it comes to the definition of marketing. What is it?
Social and Managerial definition.
Social: shows the role of marketing in society. Societal process by which individuals obtain what they need.
Managerial: Selling products, but that is only one tip of the iceberg.
The aim of marketing is…
To know and understand the customer so well that the product or service fits him and sells itself.
Marketing during challenging economic times:
it had a beginning an middle but no ending. As economies change marketers need to rethink their marketing practice to stay aligned to customer needs.
Skilful marketing is a never-ending pursuit
Marketing’s role in creating demand:
Stimulating and managing demand. Both willingness and ability must be present; if either is missing there is no demand.
For the demand…
Marketers must identify the underlying cause(s) of the demands (linked to needs and wants) state and determine a plan of action to shift the demand to a desirable state.
What type of needs are there?
- Stated needs (customer wants an inexpensive car)
- Real needs (customer wants a car whose operating cost are low)
- Unstated needs (Customer expects goods service from dealer)
- Delight needs (customer would like onboard GPS)
- Secret needs (customer wants friends to see him as a savvy customer)
What are three transformative forces for marketing:
1) Technology
2) Globalisation
3) Social responsibility (consider ethics, environment, law and social)
Technology, globalisation and social responsibility dramatically changed the marketplace partly because…
Bringing customers and companies new capabilities and heightening competition
What are the new customer capabilities? (5)
- Can use the internet as a powerful information and parchasing aid
- Can search, communicatie and purchase on the move
- Can tap into social media to share opinions and express loyalty
- Can actively interact with companies
- Can reject advertising they find inappropriate
Wat are the new company capabilites? (5)
- Can use the internet as a powerful information and sales channel, and for customisation
- Can collect fuller and richer information about markets, customers, prospects and competitors
- Can reach customers quickly and efficiently with location-dependent info
- Can improve purchasing, recruiting, training internal and external communications
- Can improve cost efficiency
Retailing in EU has changed in 5 ways:
1) growth of own brands
2) Retail internationalisation
3) Fragmentation of the retail market in EU
4) Internet retailing and blurring of digital and real stores
5) Proliferation of stores (many stores per square mile)
What hightend the competition?
1) Mega-brands (extended in related categories)
2) Deregulation
3) Privatisation
What is the evolution of the marketing philosophies?
1) Production philosophy: the oldest. Consumers prefer products that are widely available and inexpensive (mass production or expand market)
2) Product philosophy: consumers favour products offering the most quality, performance or innovative features
3) Selling philosophy: consumers won’t buy enough if left alone -> selling strategy
4) Marketing philosophy: (mid-1950’s) a total company effort to achieve customer satisfaction at a profit.
5) Holistic marketing philosophy: (21st century) everything matters in marketing (development, design, etc).
What types of holistic marketing are there?
1) Relationship marketing: develop deep, enduring relationships with people and organisations that directly or indirectly affect the success of firms marketing activities.
2) Integrated marketing: create, communicate and deliver value for consumers such that ‘the whole is greater than parts’
3) Internal marketing: core aspect of holistic marketing. Focused internally on employees.
4) Performance marketing: understanding the financial and non-financial returns to business and society from marketing activities. Cust. satisfaction, quality, market share etc.
What are the 4 P’s and 7P’s?
Marketing mix:
product, price, place and promotion (McCarthy)
More holistic approach -> 7P’s
Product/service, price, place, promotion, physical evidence, process, people
What term is used to distinguish online stores from the traditional format?
Bricks-and-Mortar store
Four key constituents of Relationship Marketing include:
Customers
Employees
Marketing Partners (suppliers, distributors, agencies)
Financial Community (shareholders, investors, analysts)
