Intro To Marketing (Lecture 1.1,1.2) Flashcards
What is Marketing
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably
The Marketing Mix (Four Ps)
Product, Price, Place, Promotion
Product
A product can be a good, service, an idea, a place, a person, or anything else an organisation or person offers for sale in the exchange
Promotion
Promotion includes all the activities marketers undertake to inform consumers about their products and encourage them to buy
Place
Place refers to the availability of the product to the customer at the desired time and location
Price
The assignment of value or exchange rate to receive the offering
Non Monetary exchanges
Internships, swap shops, Politician votes
Marketing Concept
A management orientation that focuses on identifying and satisfying consumer needs while insuring long term profitability.
Need
Difference between a consumers actual state vs desired (hungry, thirsty, bored)
Want
The desire for a product to satisfy a need in a particular way (Public transport vs BMW)
Demand
Desire + buying power
A Market
All consumers who share a common need that can be satisfied by a particular product or service
A Marketplace
Any Location or medium used to conduct the exchange
Types of Utility (in terms of creating value)
Form, Place, Time, Possession
Form Utility
Turning raw materials into finished goods
Place Utility
Making products available where customers want them (convenience of distribution)
Time Utility
storing products until they are needed and available at the right time. (Logistical/Delivery)
Possession Utility
ability for consumers to own, store, and use products for current and future use.
Who is marketing for?
Meeting the needs of the stakeholders.
Stakeholder examples
Suppliers
Consumers
Employees
Investors
Broader Community
Governments
Production Era
Mass production at the lowest cost (Early 20s)
Sales Era
Aggressive selling with promotional techniques (40-70s)
Relationship Era
Knowing needs and wants of the customers to better satisfy them. (80s-2010)
The Triple-Bottom-Line Orientation
Building long term relationships with the customer
The social marketing concept
Firms satisfying consumer needs in ways that will benefit society and be profitable.
3 components of the The social marketing concept that need to be maximised
Financial, Social, Environmental
Financial bottom line
Profit for Stakeholder (Profit)
Social bottom line
contribute to local community ( People)
environmental bottom line
sustainable, minimize damage to environment (Planet)
Value Proposition
Communicating the entire benefits delivered by the company, not just the benefits of the product
Customer Value Perspective
May not be the performance of the product, rather the image associated with owning it.
Seller Value Perspective
Profit may not always be how value is judged, instead, customer loyalty, reputation and leadership may surpass it.
How firms create value
by creating a competitive advantage
Cost advantage
Lower cost than competition
Differential Advantage
Different product to competitors
Distinctive Competence
A firms superior capability to its competitors (Amazon)
The Value Chain
All the activities involved in designing, producing, marketing, delivering, and supporting any product.
