Module A: Defining Marketing And The Marketing Process Flashcards
Definition of marketing
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return
OR
Marketing is the management process which identifies and anticipates what the customer needs
What are the steps of the marketing process?
- Understand the marketplace and customer needs
- Design a customer-driven strategy
- Construct an integrated marketing program that delivers superior value
- Build profitable relationships and create customer delight
- Capture value from customers to create profits and customer supply
Tangible good
Products
Intangible good
Services or forms of entertainment
What are the 4 P’s?
Price, Product, Place, Promotion
What are the 7 P’s / the extended marketing mix?
Process, Physical Evidence, People
What is the marketing mix?
The marketing mix is a set of tools used at the disposal of the marketing maneger in order to implement the marketing strategy
What is a need
A need is a state of deprivation
- Physical : food, clothing, warmth, safety
- Societal : belonging and affection
- Individual : knowledge and self expression
What is a want?
A want is the form that needs take as they’re shaped by culture and individual personality
What is a demand?
A demand is a want which is backed by purchasing power
What are market offerings?
Market offerings are a combination of products, services, info or experienced offered to a market to satisfy a need or want
What is marketing myopia?
Marketing myopia is when companies focus only on current customer wants and not focusing on future potential customer wants
What is an exchange?
An exchange is the act of obtaining a desired object from someone by offering something in return
What is a market?
The set of actual and potential buyers of a product
What is market segmentation
Market segmentation refers to diving the markets into segments of customers
What is target marketing?
Target marketing refers to the choice of segments the business chooses to serve
What is a marketing orientation / philosophy / concept?
Marketing orientation is a business philosophy - an analysis of how a company will implement its strategy of identifying customer needs or wants and satisfy them
What are the 5 marketing concepts?
Production, product, selling, marketing, social
What is the production concept?
The production concept is the idea that consumers will favour products that are available or highly affordable
What is the product concept?
The product concept is the idea that consumers will favour products that offer the most quality, performance and features and that the organisation should therefore devote its energy to making continuous product improvements
What is the selling concept?
The selling concept focuses on making every sale of the product, regardless of the quality of the product or the need of the customer. The main focus is to make money. This philosophy doesn’t include building relationships with customers
What is the marketing process?
The marketing process is the idea that achieving organisational goals depends on knowing the needs and wants of the target markets and delivering tye desired satisfactions better than competitors do
What is the societal marketing concept?
The societal marketing concept is the idea that a company’s marketing decisions should consider consumer’s wants, the company’s requirements consumer’s long-term interests and society’s long-run interests
How is the societal market in concept split?
Society (human welfare)
Consumers (want satisfaction)
Company (profits)
What is an integrated marketing program?
An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers
What is customer relationship management (CRM)?
CRM is the combination of practices, strategies and technologies that companies use to manage and analyse customer interactions and data throughout the customer lifecycle
What are the two types of customer relationships?
Basic Relationships
Full Partnership
What are the three main aspects of CRM?
- Customer Value
- Customer Perceived Value
- Customer Satisfaction
What are basic relationships?
Basic relationships are often used by a company with low-margin customers
What are full partnerships?
Full partnerships are used in markets with few customers and high margins, sellers want to create full partnerships with key consumers
What is a supply chain?
A channel that stretched from raw materials to components to final products to final buyers
How can companies keep their customers loyal?
- Give customers a reason to be loyal
- Design a creative and engaging loyalty program
What is customer lifetime value?
Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage
What is the share of customer?
Share of customer is the portion of the customer’s purchasing that a company gets in its product categories
What is equity?
Equity is a better measure of a firm’s performance than current sales or market share.
What are the 4 types of customers?
- Strangers: low loyalty and profitability
- Barnacles: high quality, low profitability
- Butterflies: low loyalty, high profitability
- True Friends: high loyalty, high profitability
