Unit 4 - Understanding Customers Flashcards
What is a product?
Anything that can be bought
What is a customer?
Someone who buys a product.
What is a consumer?
Someone who uses a product
What is marketing
Process of identifying customers and building meaningful exchanges with them.
How do Kotler and Armstrong define marketing?
“the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.”
How did Chartered Institute of Marketing define Marketing?
“Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.”
How did the American Marketing Association define Marketing?
Marketing is the activity, set of institutions, and processes for creating, communications, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.”
Who advocated that people buy value and not products?
Philip Cotler and Levitt (1969)
What did Zetihaml include in sacrifice?
Money, time, energy and effort.
What is opportunity cost?
The alternatives forgone to do/buy one specific thing.
How did Zeithaml define perceived value?
The consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given.
What did Webster say marketing involves in 1997?
Value defining processes
Value developing processes
Value delivering processes
What are the 4 P’s of the Marketing Mix?
What is the fifth?
Product
Price
Place
Promotion
5:People
What were Lauterborn’s four Cs?
Customer needs and wants (product)
Cost to the user (price)
Convenience (place)
Communication (promotion)
What are 5 benefits of market segmentation/targeting?
1) increased knowledge of target audience.
2) easier to identify trends and influences.
3) more efficient use of resources - expensive activities can be more targeted.
4) more effective development and tailoring of marketing activities and features, pricing, comms etc can be tailored.
5) increased potential for setting achievable and realistic objectives e.g. sales targets.
