Module 1 Overview of Marketing Flashcards
What is marketing?
Marketing is the activity, set of institutions and processes involved in creating, capturing, communicating delivering and exchanging offerings that have VALUE for customers, clients, partners and society in general.
Marketing is about the creation of VALUE.
Marketing is essentially a social and managerial process of identifying customers’ needs and wants and then developing offerings to satisfy those needs and wants at a profit.
What are offerings?
- Goods
- Services
- ideas
How is marketing strategic?
- Marketing requires thoughtful planning
- A firm assesses their market position and then decides on their marketing strategy.
- Based on the above, they devise a marketing plan.
Marketing is not random. It is about asking the right questions through research.
What are the 4 P’s?
- Product
- Place
- Price
- Promotion
What is a Marketing Plan?
A marketing plan is a written document that includes:
- Situation analysis
- Marketing objectives
- Marketing strategy
- The 4P’s ( Product, Place, Price, Promotion)
What are needs and wants?
In this context
1. A need is a conceptual necessity. Needs can vary from individual to individual. A need is a state of felt deprivation. (NEEDS deal with PROBLEMS; ACTUAL state v’s DESIRED state)
Example: Do I need glasses? No. You need to be able to see. The NEED is to solve the PROBLEM that I can’t see clearly.
Example: I am in Niagara Park and I want to be in Newcastle. I NEED a mode of transportation.
2. A want is to identify a solution to a need.
Example: I want to wear glasses so that I can see properly. I want to wear contacts on the weekend so that I can see properly.
Example: To get from Niagara Park to Newcastle, I want to drive my car.
What do Marketers do?
Marketers solve customers’ problems. Marketers provide Value to customers.
What is the marketing mix?
The four P’s (Product, Price, Production, Promotion)
What is a market?
A group of potential buyers, or a collection of actual and potential buyers. Together they are the market for this particular product.
A potential customer has an interest in the offering and the ability to buy it.
What are the core aspects of marketing?
- Helps create value
- Is about satisfying customer needs and wants
- Entails an exchange
- Requires products price place and promotion decisions
- Can be performed by both individuals and organisations
- Occurs in many settings
What does a customer define value as?
For a customer, value is benefits minus costs.
When the benefits outweigh the costs, we say that value is maximised.
Define the 4 P’s (the marketing mix)
- Product (the offering)
- Place (distribution)
- Price (price that corresponds to the value the product offers)
- Promotion (advertising and sales promotion)
What are the 4 values created in the marketing mix?
- Creating Value (Product)
- Capturing Value (Price)
- Delivering Value (Place)
- Communicating Value (promotion)
What is a marketer?
WE solve customers’ problems. A marketer is a problem solver. We do this by developing our offerings.
