W1 - Introduction to Marketing Flashcards
What is marketing fundamentally about?
Marketing is about satisfying consumer wants and needs that creates value for both parties
What are the 4Ps?
Product
Price
Place
Promotion
What is a brand and how does a brand succeed?
A brand is nothing more than a product wrapped in a story and a brand with the best story wins
Why do different brands tell different stories?
The story that one brand actually tells is different to another to induce different values to different target markets to induce you to consume or not to consume
What is the purpose of stories in marketing?
- Turn products into brands
- Create brand differentiation from competing offerings
- Simplify and energise
- Resonate with people to create consumption behaviour and brand preference
What is the key idea of this course?
KEY: The key point of this course is that you are trying to unfold a story, trying to find a narrative that is unique but motivating to a target audience and you are using the marketing mix as a toolbox (4Ps) as a mechanism by which you are delivering you message to your target audience
What does the marketing process consist of?
- Understand market and wants and needs
- Market strategy
- Marketing program
- Create customer relationships
- Capture value from customers
Why is it important to build customer relationships?
More expensive to attract a new customer than retain an existing one, this is key
What are needs?
Needs are states of felt deprivation. We seek to fulfil our needs to remove that deprivation
What are wants?
Wants are the form human needs take, as shaped by culture and individual personality. They represent the specific choices we make in the goods and services we buy, to fulfil our need state
What are different types of needs that we seek to fulfill?
- Physical needs
- Social needs
- Individual needs
What is a market offering?
Some combination of goods, services, information or experiences offered to a market to satisfy and need or a want
How do you calculate value?
Value = Benefits - Costs
How should value be measured?
Not through price alone as it could measure convinience too for example
How can we design a customer-driven marketing strategy?
- Select the customers to serve (target market)
- CHoose a value proposition
What are the three different types of customers?
- New customers
- Repeat customers
- Lapsed customers
What is a value proposition?
A value proposition is the set of attributes and benefits a brand promises to deliver to customers to satisfy their needs. A value proposition is a promise to a customer
Where is value derived from in a product?
Value is derived for similarities to and unique differences from competitors
How do Points of Parity add value?
Expected offering (similarities)
How do Points of Difference add value?
Differentiation, why a better solution
Break down the marketing mix in terms of value?
Product - Creates value
Price - Captures value
Place - Delivers value
Promotion - Communicates value
What additional 4Ps can be added if you are a service?
- Placement logistics
- Promotion
- Process
- Physical evidence
What is a customer relationship management?
It is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
What are the two building blocks for profitable customer relationships?
- Customer perceived value
- Customer satisfaction
What is customer-perceived value?
The customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers
What is customer satisfaction?
The extent to which a product’s percieved performance matches or exceeds a buyers expectations
How do we capture value from customers?
- Creating loyalty and retention
- Growing share of customer
- Building customer equity
- Building the right relationship
