CH 12 Flashcards
(36 cards)
BRAND
The relationship between a company and its customers that is built on trust.
The key to branding is what it means in the consumer’s mind.
MARKETING
The entire process of creating relationships with customers by offering goods, services, and experiences that they value.
Includes: Product, Pricing, Placement, Promotion.
PRODUCTION ORIENTATION
A past era in marketing that placed emphasis on increased output and production efficiency.
Marketing was limited to taking orders and distributing finished goods.
Industrial era.
SALES ORIENTATION
Era following the production era, where production has caught up and began exceeding demand, forcing producers to direct their efforts on selling, and not just producing goods.
Marketing consisted of promoting products through personal selling and advertising, taking orders, and delivering goods.
CUSTOMER ORIENTATION
The current era in marketing where an organization first determines what customers need and then develops products to fill those needs.
Businesses realized they are in the business of satisfying customer needs, not selling or producing.
Marketing included research teams, product managers, brand managers, and other marketing specialists who collaborate to meet customer needs.
CAUSE OF SHIFT FROM PRODUCTION TO CUSTOMER ORIENTATION
Driven by falling production costs and increased global trade, both of which created competition within the market.
MARKETING CONCEPT
A philosophy that a business should provide goods and services that satisfy customers’ needs through a coordinated set of activities that allow the business to achieve its objectives
STEPS TO IMPLEMENT A MARKETING CONCEPT
- Obtain information about existing and potential customers
- Identify not only what customers’ needs are, but also how well they are being satisfied by products currently in the market
- Asses how the business’ products might be improved and what opinions customers have about the business and its marketing efforts
- Use this information to pinpoint the specific needs and potential customers toward which the business needs to direct its marketing activities and resources
- Mobilize marketing resources (to Product, Price, Promotion, and Placement)
- Obtain marketing information regardless effectiveness of its efforts and modify accordingly.
CUSTOMER RELATIONSHIP MANAGEMENT
Tracks and organizes information about current and prospective customers to create marketing strategies that develop and sustain desirable customer relationships.
BRAND PROMISE
Core benefits a company promotes to consumers.
HOW BUSINESSES SATISFY THEIR CUSTOMERS / WORK IN CUSTOMER ORIENTATION
Satisfying a customer requires giving them:
- The right product
- In the right place
- At the right price
- At the right time
WAYS IN WHICH CUSTOMER ORIENTATION PROVIDES VALUE
- Right product: Customers have a choice of product options that satisfy their needs and wants.
- Right place: Customers are able to acquire a product in a convenient manner.
- Right price: Customers are able to pay a price that reflects the fair market value of that product.
- Right time: Customers are able to acquire that product when they need it.
VALUE/UTILITY
The ability of a product to satisfy a human need
FOUR KINDS OF UTILITY
- Form utility - created by converting production inputs into finished products. Marketing efforts may influence form utility indirectly because the data gathered as part of marketing research are frequently used to determine the size, shape, and features of a product.
- Place utility - created by making a product available at a location where customers wish to purchase it.
- Time utility - created by making a product available when customers wish to purchase it.
- Possession utility is created by transferring title (or ownership) of a product to a buyer. Along with the title to its products, the seller transfers the right to use that product to satisfy a need.
MARKETING MIX
The combination of marketing activities that deliver value to customers; typically divided into four elements: product, price, placement, and promotion
4 P’S OF MARKETING
- Product - an element of the marketing mix that includes decisions about a product’s design, features, brand name, packaging, warranties, and so on.
- Pricing - setting a price based on the demand and cost for a good or service.
- Placement (or Distribution) -
creating the means by which products flow from the producer to the consumer. Provides value in both “right time” and “right place” - Promotion - element of the marketing mix that focuses on providing information to target markets. Promotion provides value in all 4 ways, because it makes the customers aware about the existence of a product capable of satisfying their needs.
MARKETING STRATEGY
A plan that will enable an organization to make the best use of its resources and advantages to meet its objectives
TARGET MARKET
A group of individuals for which a business develops a specific marketing mix
WHAT DOES IT MEAN TO BE COMPLETE AND INTEGRATED
It applies to the four elements of the marketing mix.
Being complete means the four elements must be thoroughly considered.
Being integrated means the four elements must be well coordinated.
TWO ELEMENTS OF MARKETING STRATEGY
- The selection and analysis of a target market
- The creation and maintenance of an appropriate marketing mix, or the combination of marketing activities, that satisfy customer needs and preferences.
TWO REASONS THAT MAKE THE 4 P’S IMPORTANT TO BRANDING
- The marketing mix must be complete and integrated if it is going to satisfy target customers.
- The marketing mix for a given product must remain consistent in order for consumers to trust that they will receive the same benefits from that product in the future.
CONSUMER BUYING DECISION - 5 STEPS
- Recognize the problem/opportunity
- Search for information
- Evaluate alternatives
- Purchase
- Evaluate after purchase
INFLUENCES ON THE CONSUMER DECISION PROCESS
- Situational - physical & social surroundings, time, purchase reason, buyer’s mood and condition
- Psychological - perception, motives, learning, attitudes, personality, lifestyles
- Social - family, roles, peer groups, social class, culture
HOW DOES BRANDING / BRAND LOYALTY MAKE DECISION MAKING EASIER
If there were no brands, we would have no frame of reference for evaluating alternatives. Over time, we accumulate information about various brands based on a set of preferences and experiences. This allows us to fast track the purchase decision process because we can filter out the vast array of products and focus on the ones most likely to satisfy our needs (we can skip step 2&3, and go from problem to purchasing).
Branding makes our purchase decisions simpler and less risky, which is why we are sometimes willing to pay a premium for the brands we prefer.
For the brand, it makes the selling process more efficient, and is beneficial when introducing new products.
