Introduction: What Is Marketing? - W1L1 Flashcards
What is Marketing?
The process of maximising returns. to stakeholders by developing exchanges with valued customers and creating an advantage for them.
Step 1
Marketers need to understand customer needs, wants and demands, and the environment within which they operate.
Needs
States of felt deprivation.
Wants
The form human needs take, as shaped by culture and individual personality.
Demands
Human wants that are backed by buying power.
Market Offering
Some combination of goods, services, information, or experiences.
Customer Value & Satisfaction
Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly.
Exchange
The act of obtaining a desired object from someone by offering them something in return.
Transaction
A trade between two parties that involves at least two things of value, agreed-upon conditions, and a time and place of agreement.
A Market
A set of actual and potential buyers of a product, all sharing a particular need or want.
Main Elements of a Marketing System
Suppliers; Company; Competitors; Marketing Intermediaries; Final Consumers.
Step 2
Design a Customer Driven Marketing Strategy
Marketing Management
The art and science of choosing target markets and building profitable relationships with them.
STP
Segmentation Targeting Positioning
A marketing organizations demand comes from…
New customers and repeat customers
A Marketing Organisations Value Proposition
The set of benefits or values it promises to deliver to consumers to satisfy their needs.
Step 3
Preparing an Integrated Marketing Plan
The Marketing Program
Builds customer relationships by transforming the marketing strategy into action.
The Marketing Mix
Embodies the value proposition. 4ps (Product, Promotion, Place & Price) crafting the strategy (STP).
7ps (for services)
Price, People, Placement Logistics, Promotion, Process & Physical Evidence.
Step 4
Engaging Customers and Managing Customer Relationships
Customer Relationship Management (CRM)
The process of building and maintaining profitable customer relationships.
Customer-perceived Value
The customers evaluation of the differences between all the benefits and costs of a market offering.
Customer Satisfaction
The extent of which a products perceived performance matches or exceeds a buyer’s expectations.
Step 5
Capturing Value from Customers
Creating Customer Loyalty and Retention
Good customer relationship management creates customer satisfaction.
Customer Lifetime Value
Amount by which revenues from a customer over time exceed the companies cost of attracting, selling and servicing the customer.
Customer Equity
Total combined customer lifetime values of all of the company’s customers.
Four Customer Relationship Groups
Companies classify customers based on their potential profitability and manage its relationships accordingly.
Strangers
Low profitability, low loyalty.
Butterflies
Somewhat profitable, but not loyal.
True Friends
Profitable and Loyal
Barnacles
Highly loyal, but not profitable.
Non-for-profit Marketing
Organizations whose aim is to make surpluses so as to continue their operations, but do not seek to make profits for shareholders.
Globalisation
Technological advancements have allowed companies to expand their geographical market coverage, purchasing and manufacturing.
