Topic 01-Introduction Flashcards
Definition: Marketing
Marketing is a process of creating value for customers and building strong customer relationships in order to capture value from customers in return.
Definition: Exchange
An exchange is defined as the transfer of goods between a minimum of two entities and is at the heart of marketing.
Criteria for Exchange (5)
1) Transfer of goods
2) Minimum of 2 Parties
3) Each brings value to the other
4) All act voluntarily (nobody is forced to buy or sell)
5) Lines of communication must be present (buyer to seller/seller to buyer)
Marketing Orientations (5)
1) Product Oriented
2) Production Orientation
3) Selling Orientation
4) Marketing Orientation
5) Societal Orientation
Steps/description marketing process (5)
1) Understand the marketplace and the customer (needs/wants)
2) Design a customer driven marketing strategy
3) Construct a integrated marketing program that delivers superior value
4) Build profitable relationships and create customer delights
5) Capture value from customers to create profits and customer equity
Definition: Product Orientation
- Quality is the most important factor, no mass production, priced higher
- Customer is not fucused
- Product oriented marketers think that customers will chose the product with best quality
- May not hit customers needs
Definition: Selling Orientation
Involves taking drastic measures to convince the customer that they have to buy a product, even if they may not necessarily need it
-Ex.: shark tank
Definition: Marketing Orientation
Due to the fact that customers have become more sophisticated, Marketing Orientation asks the customers what they want, putting their satisfaction at the forefront.
Definition: Societal Orientation
It calls for sustainable, socially and environmentally responsible marketing that meets consumers and businesses’ present needs while also preserving or enhancing future generations’ ability to meet their needs.
Definition: Needs
Needs are essential to human survival and are classed into physical, social and individual needs.
Definition: Wants
Wants describe the products or services that customers desire, but do not necessarily need. They are shaped by culture and individual personality.
Definition: Demands
Human wants that are backed by buying power (Needs/Wants + Money = Demand)
-Customer is willing to spend money for satisfy his need
Three Dimensions of the Societal Marketing Concept
Society wants human welfare, Consumers want satisfaction and the Company wants profits.
Definition: Production Orientation
Quality is not the most important factor, simply produce as much as possible to achieve maximum economies of scale to lower prices.
Marketing mix-the Four Ps
1) Product
2) Place
3) Price
4) Promotion
Explain: Product (MM)
Refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won’t do any good.
Explain: Price (MM)
- Refers to the value that is put for a product
- Depends on costs of production, segment targeted, ability of the market to pay, supply, demand
- Many other direct and indirect factors
- Several types of pricing strategies, each tied in with an overall business plan.
- Pricing can also be used as demarcation, to differentiate and enhance the image of a product.
Explain: Place (MM)
- Refers to the point of sale.
- Catching the eye of the consumers and making it easy for them to buy is the main aim of a good distribution or ‘place’ strategy.
- Retailers pay a premium for the right location.
Explain Promotion (MM)
- Refers to all the activities undertaken to make the product or service known to the user and trade
- Can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade
- It can also include consumer schemes, direct marketing, contests and prizes.
Ideas vor 5th P
1) Packaging - not only protection, own product, tells the product story
3) Process - customer focus, design features, R and D
4) Physical evidence - staff contact, packaging, online experience
What can be marketed
Everything - as long somebody wants to pay for it
Factors affecting the environment of Marketing (6)
1) Changes in economic and financial environments (Inflation Rates, Unemployment)
2) Changes in cultural and social environments (normal models, sustainable)
3) Globalization of markets and businesses
4) Changes in ethical and social responsibility standards, (ex. what and how to eat)
5) Growth of non-profit and other forms of non-traditional marketing (ex. second hand, kleiderkreisel)
6) Impact of rapidly changing technologies and metrics
(ways of communication, social media, data anlalytics)
Examples fo cunsumer tech trends
- Finance tech (FinTech)
- Streaming
- IoT
