OVERVIEW OF MARKETING Flashcards
Chapter One
Customer Value (Driven Marketing)
Benefits would be more important than costs
Benefits
-Functional
-Social
-Personal
-Experimental
Costs
-Monetary
-Temporal
-Psychological
-Behavioral
Functional
basic purpose of the product,
(e.g., watch keeps time, car takes you from point A to point B)
Social
benefit you derive when other people admire and appreciate what you own or posses,
(e.g., you own an expensive car and it may signal to others something about you that you want them to know: may raise status or seem cool)
Experimental
derived through one of the five senses
(e.g., visit to a theme park has lots of experimental benefits one can derive.)
Personal
based on benefits that are closely aligned with your personal values
(e.g., an electric car if you are concerned about the effect of fossil fuels on the environment.)
Customer Value
sometimes, more than one benefit can be offered by a brand
(e.g., an electric car may you look hip among your friends.)
Monetary
how much you pay?
Temporal
time taken to use the product.
-the opposite of time as a cost could be that some products save you time
(ex. a slow cooker takes more time to cook than a microwave. So temporal cost is more. If food tastes better, then experimental benefit is more with cooker. Now you decide what matters more to you-taste vs. time. That influences your decision to buy.)
Psychological
this is a mental cost.
Usually the uncertainty associated with whether you are making the right choice, is this the right laptop for me? etc.
Behavioral
the physical effort required to make a product work
(e.g., furniture has to be transported to our homes. How do we move it? Washer has to be moved and connected properly.)
EXAMPLES: When a person donated blood to the Red Cross, what kind. of benefits do they derive?
A. Functional
B.Psychological
C.Personal
D.Experimental
C.Personal
- We donate blood as we feel we are doing something good for society.
Different Views of Marketing Seen in Different Firms
-Production Orientation
-Product Orientation
-Sales Orientation
-Market Orientation
(Marketing Concept)
-Societal Orientation
Marketing Concept
-Develop products based on what customers need and want.
-Almost anything can be marketed (e.g., Red Cross)
Different Orientations Towards Marketing (Marketing Concept)
Not every company feels that this is what marketing is all about: products based on customer’s wants and needs
Customer Value
Smart marketers understand customers so well that they figure out what customers really need and offer something even before customers express a need for a product or service.
These are usually “extremely” successful products or service in the marketplace.
Customer Value
Ikea furniture –> Designer furniture at regular price. How did they do it?
Customer Equity
total combined customer lifetime values of all of the company’s customers
number of customers x the average value of each customer
Customer Lifetime Value
a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship
customer value x average customer lifespan
Order of Chart
- Superior Customer Value
2.Customer Satisfaction and Delight - CustomerLoyalty
4.Long Term Profitable Relationships
