Defining marketing and the marketing process Flashcards
What is marketing?
engaging customers and managing profitable customer relationships
(the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return)
two main aspects of marketing
- create value for customers and building customer relationships
- capture value from customers in return (creating profits and customer equity)
Needs
states of felt deprivation
Wants
The form human needs take as they are shaped by culture and individual personality
Demands
human wants that are backed by buying power
Market offerings
some combination of products, services, information or experiences offered to a market to satisfy a need or want
Marketing myopia
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
Exchange
the act of obtaining a desired object from someone by offering something in return
Market
the set of all actual and potential buyers of a product or service
marketing management
the art and science of choosing target markets and building profitable relationships with them
production concept
the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency
product concept
idea that consumers will favor products that offer the most quality, performance and features; therefore, the organization should devote its energy to making continuous product improvements
selling concept
idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort
marketing concept
philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
societal marketing concept
the idea that a company’s marketing decisions should consider consumer’s wants, the company’s requirements, consumers’ long-run interests and society’s long-run interests
customer relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
customer-perceived value
the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
customer satisfaction
the extent to which a product’s perceived performance matches a buyer’s expectations
customer-engagement marketing
making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences and community
consumer-generated marketing
brand exhanges created by consumers themselves - both invited and uninvited - by which consumers and playing an increasing role in shaping their own brand experiences and those of other consumers
partner relationship management
working closely with partners in other company departments and outside the company to jointly bring greater value to customers
customer lifetime value
the value of the entire stream of purchases a customer makes over a lifetime of patronage
share of customer
the portion of the customer’s purchasing that a company gets in its product categories
customer equity
the total combined customer lifetime values of all of the company’s customers
