markting Flashcards
Marketing :
is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
The goals of marketing are to:
attract new customers by promising superior value
grow current customers by delivering satisfaction
The Marketing Process Steps:
Understanding The Marketplace And Customer Needs And Wants.
Designing A Customer-Driven Marketing Strategy.
Constructing an integrated marketing plan that delivers superior value.
Build Profitable Relationships.
Capturing Value From Customers.
The five core marketplace concepts:
Needs, Wants, and demands
Market offerings
Value and satisfaction
Exchange and relationships
Markets
Marketing myopia :
is focusing only on existing wants and losing sight of underlying consumer needs..
Market :
is set of actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through exchange relationships.
Marketing management :
is the art and science of choosing target markets and building profitable relationships with them
How can we best serve these customers ?
value proposition
Value Proposition
A brand’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs.
The selling concept :
takes an inside-out perspective. It starts with the factory, focuses on the company’s existing products, and calls for heavy selling and promotion to obtain profitable sales.
The marketing concept :
takes an outside-in perspective. It starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers. In turn, it yields profits by creating relationships with the right customers based on customer value and satisfaction
Societal marketing:
The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests
The marketing mix is comprised of a set of tools known a the four Ps:
product
price
promotion
place
Customer- perceived value
The difference between total customer perceived benefits and customer cost
Customer satisfaction
The extent to which perceived performance matches a buyer’s expectations
Customer-Engagement Marketing
:goes beyond just selling a brand to consumers. Its goal is to make the brand a meaningful part of consumers’ conversations and lives.
Consumer-Generated Marketing
Companies themselves are inviting consumers to play a more active role in shaping products and brand content. Brand exchanges created by consumers themselves and consumers are playing an increasing role in shaping brand experiences in blogs, video-sharing sites, social media, and other
Partner relationship management
Involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers such as suppliers, channel partners, and others outside the company
The business portfolio
portfolio is the collection of businesses and products that make up the company.
Business portfolio planning involves two steps.
The company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment.
It must shape the future portfolio by developing strategies for growth and downsizing
Portfolio analysis
is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.
Strategic business units (SBU) can be a:
Company division
Product line within a division
Single product or brand
A company classifies all its SBUs according to the :
the growth-share matrix.
the growth-share matrix:
:A portfolio-planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share.
The vertical axis, market growth rate provides a measure of market attractiveness
The horizontal axis
relative market share serves as a measure of company strength in the market.
Problems with Matrix Approaches
Difficulty in defining SBUs and measuring market share and growth
Time consuming
Expensive
Focus on current businesses, not future planning
Market penetration
involves making more sales to current customers without changing its original product such as by adding new stores in current market areas to make it easier for customers to visit.
Diversification
involves starting up or buying businesses beyond its current products and markets. For example, the company could acquire a company that operates in different market segments with a different product mix.
