Marketing Function Flashcards
A marketing philosophy that focuses the organization on identifying and understanding the customers’ preferences in terms of needs and wants and delivering them more effectively and efficiently than their competitors.
Marketing Orientation
Cornerstone of marketing
Customers
This approach focused on improving the efficiency of production and distribution in order to reduce costs and deliver more affordable products
Production Philosophy
This approach required organizations to aggressively focus on selling and promotion efforts as a way to stimulate demand and drive sales.
Selling Concept
Staying close to the customer (sentences)
1.) Continuously collect information about customers’ needs and competitors’ capabilities
2.) Share the information across departments, including production and sales
3.) Use the information to create a competitive advantage by increasing value for customers
Prime guideline for marketing success (sentence)
establish customer satisfaction as a company’s number-one priority.
How can an organization create the right products, services, messages, and experiences for a potential customer
segmentation and targeting
The starting point for understanding your potential customer; Whom you want to reach
segmentation
Helps organizations use their resources wisely and customize what they do much more specifically for those who will see the greatest value from their offering.
targeting
Whom are you trying to reach? (sentences)
1.) Identify the Business Need You Address
2.) Segment Your Total Market
3.) Profile Your Target Customer Segment(s)
4.) Research and Validate Your Market Opportunity
Is the measure of the benefit gained from a product or service relative to the full cost of the item.
Value
Value formula
Value = benefit - cost
It includes perceptions of benefits that are different for every person
Value
Is providing the same offering but is accentuating different features and benefits.
Competitor
are viewed by the user as alternatives
substitute offerings
includes different features, and the price and location vary, the sum of which creates different perceptions of value for customers.
competitive offerings
as total offer, vis-à-vis relevant competition, that is more attractive to customers
competitive advantage
A business or marketing statement that summarizes why a consumer should buy a product or use a service.
value proposition
A value proposition should be:
clear, compelling, differentiating
How to spot bad value preposition
1.) Doesn’t articulate unique value
2.) Too much words
3.) Does not provide clarity about the offering
4.) Mimics the value proposition of a competitive offering
the solution that the customer wants and needs.
Product
refers to the communications that occur between the company and the customer; includes both the messages sent by the company and messages that customers send to the public about their experience.
Promotion
refers to the distribution of the product.
Place
refers to the cost to the customer.
Price
