Topic 1: Theoretical Realms of Marketing Flashcards
Perhaps the simplest
definition of marketing
Marketing is engaging customers and managing profitable customer
relationships
marketing must be understood not in the old sense of making a sale −
“telling and selling” −but in the new sense of ____
satisfying customer needs
What can help companies to more effectively sell products?
If the
marketer engages consumers effectively, understands their needs, develops
products that provide superior customer value, and prices, distributes, and promotes
them well, these products
marketing mix
a set of marketing tools that work
together to engage customers, satisfy customer needs, and build customer
relationships.
Marketing
The process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return.
Five-step model of the marketing process for creating
and capturing customer value
- Understand the marketplace and customer needs and wants; 2. Design a customer value-driven marketing strategy; 3. Construct an integrated marketing program that delivers superior value, 4. Build profitable relationships and create customer delight; 5. Capture value from customers to create profits and customer equity
Wants
The form human needs take as they are shaped by culture and individual
personality.
Demands
Human wants that are backed by buying power.
Human needs
states of felt deprivation. They include basic physical needs for food, clothing,
warmth, and safety; social needs for belonging and affection; and individual needs for
knowledge and self-expression. Marketers did not create these needs; they are a
basic part of the human makeup
Wants are the form human needs take as ____
they are shaped by culture and individual
personality.
How are wants defined?
An American needs food but wants a Big Mac, french fries, and a soft
drink. A person in Papua, New Guinea, needs food but wants taro, rice, yams, and pork.
Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs.
When backed by buying power, wants become ____.
Demands
Given
their wants and resources, people demand products and services with benefits that ____
add up to the most value and satisfaction.
utstanding marketing companies go to great lengths to learn about and
understand their customers’ _____
Needs, wants, and demands
What are some ways in which marketing companies learn about and understand customers’ needs, wants, and demands?
They conduct consumer
research, analyze mountains of customer data, and observe customers as they shop
and interact, offline and online. People at all levels of the company −including top
management −stay close to customers
market offerings
some
combination of products, services, information, or experiences offered to a market to
satisfy a need or a want. Market offerings are not limited to physical products. They
also include services
services
activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking,
airline, hotel, retailing, and home repair services
market offerings also include other entities, such as _____
persons, places,
organizations, information, and ideas
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.
Market
The set of all actual and potential buyers of a product or service.
Marketing management
The art and science of choosing target markets and
building profitable relationships with them.
Selecting customers to serve
The company must first decide which customers to serve. To do this, it divides the market into segments of customers (market segmentation) and select which segments to go after (target marketing).
market segmentation
dividing the market
into segments of customers
target marketing
selecting which segments it
will go after
Simply put, marketing
management is ____
customer management and demand management
value proposition
the set
of benefits or values it promises to deliver to consumers to satisfy their needs
The company must also decide how it will serve targeted customers −how it will
______ itself in the marketplace
differentiate and position
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.
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 do.
The marketing concept holds that achieving organizational goals depends on ____
knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do.
Under the marketing concept, customer ____ and ____ are the paths to sales and profits.
focus and value
Instead of a product-centered ____ philosophy, the marketing concept is a customer-centered ____ philosophy.
make-and-sell; sense and respond
Customer-driven companies ____
research
customers deeply to learn about their desires, gather new product ideas, and test
product improvements. Such customer-driven marketing usually works well when a
clear need exists and when customers know what they want.
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.
