Topic 1 Introduction, Marketing definition, marketing process Flashcards
What is marketing? (few definitions)
- Marketing is engaging customers and managing profitable customer relationships.
- The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers.
- Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.
Old and new sense of marketing
Old sense - “telling
and selling”
New sense - satisfying customer needs
5 steps of the marketing process: creating and capturing customer value
- Understand the
marketplace and
customer needs
and wants - Design a
customer value–
driven marketing
strategy - Construct an
integrated
marketing program
that delivers
superior value - Engage customers,
build profitable
relationships, and
create customer
delight - Capture value
from customers to
create profits and
customer equity
Needs, Wants and demands
Needs - states of felt deprivation
Wants - the form human needs take as they shaped by culture and individual personality
Demands - human wants that are backed by buying power
Market offerings
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Marketing myopia
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
Exchange
The act of obtaining a desired object from someone by offering something in return.
Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences involving a product, service, idea, or other object.
Market
The set of actual and potential buyers of a product or service.
Marketing means managing markets to bring about profitable customer relationships.
Marketing management
The art and science of choosing target markets and building profitable relationships with them
Market segment
Dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing).
Value proposition
How the company differentiates and positions itself in the marketplace.
A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
5 alternative concepts under which organizations design and carry out
their marketing strategies
The production, product, selling, marketing, and societal marketing concepts.
Production concept
The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency
Product concept
The idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements
Selling concept
The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort
Marketing concept
A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors
Societal marketing concept
The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
Marketing mix
The set of marketing tools the firm uses to implement its marketing strategy (4Ps)
Customer relationship management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Customer-perceived value
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations
Customer-engagement marketing
Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
Consumer-generated marketing
Brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
Partner relationship management
Working closely with partners in other
company departments and outside the
company to jointly bring greater value to
customers
Customer lifetime value
The value of the entire stream of purchases a customer makes over a lifetime of patronage.
Share of customer
The portion of the customer’s purchasing that a company gets in its product categories
Customer equity
The total combined customer lifetime values of all of the company’s customers.
Digital and social media marketing
Using digital marketing tools such as
websites, social media, mobile apps
and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices
