Chapter 1 Flashcards
(20 cards)
What is marketing?
The activity, set of institutions, and purposes for creating, capturing, communicating, delivering, and exchanging offerings that have VALUE for customers, clients, partners and society at large.
What are the core aspects of marketing?
- Affects various stakeholders
- Satisfies customers’ needs and wants
- Creates value through product, price, place and promotion decisions
- Entails an EXCHANGE
- Can be performed by individuals and organizations
What is a marketing plan?
Written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm.
Marketing objectives and strategy are specified in terms of the 4 Ps (price, promotion decisions, product and place), action programs and projected or pro forma income (and other financial) statements.
What is marketing about?
Satisfying customer needs and wants
What is the marketplace?
The world of trade: can be segmented or divided into groups of people who are pertinent to an organization for particular reasons.
E.g. water bottle users:
- outdoor enthusiasts
- health-conscious buyers
- young people who want an accessory to show off
etc.
What is an exchange?
The trade of things of value between the buyer and the seller so each is better off as a result.
e.g. Buyers: give money and info to seller
Seller: has a website, partners with Amazon, Amazon creates a record of purchase so they can create personalized recommendations for you etc
What is a good?
Item you can physically touch
What is a service?
Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
How does a company create value?
Develop a variety of offerings, incl. goods, services and ideas to satisfy customer needs.
What are ideas?
Thoughts, opinions, and philosophies. These are intellectual concepts that can also be marketed.
What is price?
Everything the buyer gives up- money, time, and/or energy- in exchange for the product.
Who can marketing be performed by?
Individuals and organizations
Types of marketing processes
business-to-consumer (B2C)
business-to-business (B2B)
consumer-to-consumer (C2C)
Who does marketing affect?
Various stakeholders
e.g. manufactures sell merch to retailer, but retailers have to convince manufactures to sell to them
4 eras of marketing
Production-oriented era: a good product would sell itself
Sales-oriented era: 1920-1950: overproduction of goods so firms relied on sellers to go door-to-door to sell stuff
Market-oriented era: post WW2: when firms are trying to advertise to consumers, meet their demands in a certain market
Value-based marketing era: present day
- have transcended a production/selling orientation, attempt to discover and satisfy customer’s needs and wants
What is value?
Relationship of benefits to costs, or what you get for what you give
Good value: doesn’t mean product/service is inexpensive
e.g. Hermes lipstick- carry on the prestigious and artisanal nature of the brand even though less profitable than Birkins
What is value cocreation?
Customers act as collaborators with a manufacturer or retailer to create the product/service
What is customer relationship management?
Business philosophy and set of strategies, programs and systems that focus on identifying and building loyalty among firm’s most valued customers.
What is relational orientation?
Method of building a relationship with customers based on the philosophy that buyers and sellers should dev a a long-term relationship.
How does marketing create value?
- Adding value
- Marketing analytics
- Social and mobile marketing
- Ethical and social dilemma
