First Flashcards
Definition of Marketing?
Marketing is concerned with the firms relationship to customers
It can provide long-term value to firms if done right
Crucial in a market with multiple sellers and diverse customers
Marketing’s Dual Character
- Leadership philosophy: Strategic management, guiding activities of all members of an organization
- Managerial Function: Marketing Management, everyday-marketing, campaigns, research
The 4 P’s?
- Product
- Price
- Promotion
- Place
Product in the 4 P’s
- Product variety
- Quality
- Design
- Features
- Brand name
- Packaging
- Sizes
- Services
- Warranties
- Returns
Price in the 4 P’s
- List price
- Discounts
- Allowances
- Payment period
- Credit terms
Promotion in the 4 P’s
- Advertisement
- Personal selling
- Sales promotion
- Public relations
Place in the 4 P’s
- Channels
- Coverage
- Assortment
- Locations
- Inventory
- Transportation
- Logistics
The new additional 3 P’s?
- People
- Physical Evidence
- Processes
People in the additional 3 P’s
- Employees
- Customers
- Communicating culture and value
- Employee research
Physical Evidence in the additional 3 P’s
- Facility Design
- Equipment
- Signage
- Employee Dress
- Other tangibles
Processes in the additional 3 P’s
- Flow of activities
- Number of steps
- Level of customer involvement
What is the problem when only considering the 4 P’s?
It was invented in the 1940s and thus targets mass marketing over mass media
It is more product oriented than customer oriented and does not justice to service providers
-> relationship management
Relationship management?
Is the process of creating, maintaining and enhancing strong relationships with customers and other stakeholders
Basic three elements of relationship management
- Customer recruitment
- Customer retention
- Customer recovery
but only of profitable customers
Yearly profit of a customer
Long-term customers are more profitable