class 2 Flashcards
what are myths about marketing
Myth #1: People think marketing is just advertising
Myth #2: Marketing is selfish / a scam
what is marketing
Create, communicate, deliver and exchange an offering , creates value. Marketing should optimize company value, customer value and value to the world
- all about creating value
-satisyfing the four ps - satisfying customer needs
what is the empathy design
Empathy- put yourself in the consumers shoes
Observe consumers
Identify needs and pain points
Brainstorm and develop solutions
Goal: identify needs or opportunities that consumers cant express
what is the market?
The set of actual and potential customers for a good or service
People who have both the desire and the ability to buy
what is the production era
Late 1800s referred to as production era, closely followed industrial revolution
Mass production → Companies producing as many products as they could
Compete on dimensions of price and quality
Assumed product would sell itself
don’t really care about what the customer wants
think about the product first
thy start thinking about the product first
what is the sales era
Efficiency
Focus on selling
The issue was finding people to buy the products
Ex: coca cola, can produce a lot but had to find buyers. S
Companies begin investing in advertising for the first time with the idea of being able to cultivate new buyers
They believe that if consumers try their products, they will like them
Their focus is on the products or services they have to offer, more than on consumer needs and wants
Profits come from sales volume rather than from repeat business from satisfied customers
large use of personal selling and advertising . they just want to sell as much as possible
what is the market orientation era
Similar to marketing now
Emerging in business
another shift where firms realised they were missing opportunities by only focusing on producing what they were good at not what customers actually wanted
Should be going up to customers to understand what they want and need and use this information to decide what products to create
wants/ needs of consumers should guide all firm action
starting point for todays type of marketing
what is valued based marketing era
value to the world at large
Value in broader sense
Focus on retaining customers; functional integration
they have gone beyond a product or sales orientation and have tried to discover and satisfy their customers’ needs and wants)
creating value for the customer
ex could be providing more for a cheap price
KEEPING RELATIONSHIPS, retaining, building loyalty
why is the product based approach less effective today vs in the past
due to technology: Technology: product life-cycles have become much shorter
Global competition: firms can copy innovation very quickly
Consumer power: highly informed and empowered customers
what do value based firms do
understand, attract and retain the most valuable customers
what are the four ps
product–> creating value
price–> transacting value
promotion–> communicating value
place–> delivering value
delierving them as a whole
how do firms become more value driven
1) gather vast information about their customers and competitors, then analyze and share it across the organization and other organizations (manufactorers, etc)
2) strive to balance their customers’ benefits and costs of their offerings for all parties involved
3) they concentrate on building relationships with customers
CLV
how much revenue an indovual person brings into a business
