Lecture 5: Introducing Marketing Flashcards
Marketing (definition)
Identifying and meeting human and social needs at a profit
Meeting customer needs profitably
The activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large
Marketing management
The art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communication superior customer value
Needs, wants and demands
Needs: basic human requirements such as air and food, clothes, shelter
Wants: needs become wants when directed to specific objects that might satisfy the need (customer needs food, but wants a sandwich)
Demands: wants for specific products or services backed by an ability to pay
Five types of needs
- Stated needs (the customer wants an inexpensive car).
- Real needs (the customer wants a car whose operating cost, not initial price, is low).
- Unstated needs (the customer expects good service from the dealer).
- Delight needs (the customer would like an onboard GPS navigation system).
- Secret needs (the customer wants friends to see them as a savvy consumer).
Three factors which have dramatically changed the marketplace
Technology
Globalisation
Social responsibility
New consumer capabilities
Can use the internet as a powerful information and purchasing aid.
Can search, communicate and purchase on the move.
Can tap into social media to share opinions and express loyalty.
Can actively interact with companies.
Can reject advertising they find inappropriate
New company capabilities
Can use the internet as a powerful information and sales channel, and for customisation.
Can collect fuller and richer information about markets, customers, prospects and competitors.
Can reach customers quickly and effi ciently with location-dependent information.
Can improve purchasing, recruiting, training and internal and external communications.
Can improve cost efficiency
The production philosophy (marketing philosophies)
Consumers prefer products that are widely available and inexpensive
High production efficiency, low costs and mass distribution
The product philosophy (marketing philosophies)
Consumers favour products offering the most quality, performance or innovative features
The selling philosophy (marketing philosophies)
Consumers and businesses, if left alone, won’t buy enough of the organization’s offerings, mainly for unsought offerings such as insurance of cemetery plots
The marketing philosophy (marketing philosophies)
There is a total company effort to achieve customer satisfaction at a profit
The key to achieving organizational goals is being more effective than competitors in creating, delivering and communicating superior customer value to your target markets and everyone in the organization has the customer as the focus of their operations and plans
The holistic marketing philosophy (marketing philosophies)
Extension of the marketing philosophy, based on the development, design and omplementation of marketing programs, processes and activities that recognize their breadth and interdependencies
Four components characterising holistic marketing: relationship marketing, integrated marketing, internal marketing and performance marketing
Relationship marketing: creating deep, enduring relationships with people and organizations - basically between the company and customers, employees, marketing partners and members of the financial community (shareholders, investors)
Integrated marketing: many different marketing activities can create, communicate and deliver value, and marketers should design and implement any one marketing activities with all other activities in mind –> all communication should reinforce and compliment each other
Internal marketing: focuses on the company employees - ensures staff are aware of and aligned to the vision
Performance marketing: understanding both financial and non-financial returns: ie how the marketing activities pay in terms of not just sales revenue, but market share, customer loss rate, customer satisfaction, offering quality and other measures
Also known as the legal, ethical, social and environmental effects of marketing activities and programs
Relationship marketing
creating deep, enduring relationships with people and organizations - basically between the company and customers, employees, marketing partners and members of the financial community (shareholders, investors)
Integrated marketing
many different marketing activities can create, communicate and deliver value, and marketers should design and implement any one marketing activities with all other activities in mind –> all communication should reinforce and compliment each other
Internal marketing
focuses on the company employees - ensures staff are aware of and aligned to the vision
