Week One Flashcards
Explain the 5 steps of the marketing process
1) understand the marketplace and customer needs and wants
2) design a customer 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
what are NEEDS?
NEEDS are physical social and individual needs (think Maslows hierarchy)
what are WANTS?
WANTS are things we want based on culture and individual personality
what are DEMANDS?
DEMANDS are wants backed by buying power
What is MARKET SEGMENTATION?
the process of dividing the markets into segments of customers
what is TARGET MARKETING?
TARGET MARKETING refers to selecting which segments to target
what is the VALUE PROPOSITION?
the set of benefits or values a company promises to deliver to customers to satisfy their needs
Explain the PRODUCTION CONCEPT
Consumers will favor products that are available and affordable; the firm focuses on making more. (THINK FORD PREFECT)
explain the PRODUCT CONCEPT
Consumers will favor products that offer the most quality, performance, and features; the firm focuses on making continuous product improvements. (THINK SAMSUNG)
explain the SELLING CONCEPT
Consumers will not buy without a large-scale selling and promotion effort; the firm focuses on selling. (THINK cheesy salesman)
explain the MARKETING CONCEPT
Achieving organisational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do; the focus is on knowing and understanding your customers.
explain the SOCIETAL CONCEPT
Make good marketing decisions by considering
Consumers’ wants, Company requirements, Consumers’ long-term interests, And Society’s long term interests
What is MARKETING MYOPIA and when can it occur?
A company can become so focused on their own products that they lose sight of underlying customer needs
Define their business / market too narrowly
Eg
We are in the railway business
We are in the movie business
occurs in product concept
what is an integrated marketing program?
an Integrated marketing program is a comprehesive plan that communicates and delivers the intended value to chosen customers
what is customer relationship management?
Customer Relationship Management (CRM) is the overall provess of building and maintaining profitible customer relationships by delivering superior customer value and satisfaction
what is customer perceived value?
Customer perceived value is the difference between total customer value and total customer cost
what is customer satisfaction?
Customer Satisfaction is the extent to which a product’s perceived performance matches or exeeds a buyer’s expectations.
what is a BASIC RELATIONSHIP?
where a company builds relationships through brand-building advertising sales promotions and its web site
what is a FULL PARTNERSHIP?
used in markets with few customers and high margins such as b2b sellers want to create full partnerships with key customers
e.g. P&G working closely with large retailers
explain customer relationship today
Relate with fewer, more carefully selected (more profitable) customers
Relating more deeply and interactively through social media blogs websites online communities.
how can you bring greater value to customers through partner relationship management?
by working closely with:
Partners in other departments
Every function area interacting with customers electronically and through cross-functional teams
AND
Partners outside the company
Develop partnerships with suppliers, channel partners, and competitors
what is CUSTOMER LIFETIME VALUE?
Customer Lifetime Value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage
what is SHARE OF CUSTOMER?
Share of customer is the portion of customer’s purchasing that a company gets in its product categories
what is CUSTOMER EQUITY?
customer equity is the total combined customer lifetime values of all of the company’s customers
