Flashcards in Chapter 1 Deck (35):
What is marketing
The process by which companies create value for customers and build strong relationships in order to capture value from customers in return
States of felt deprivation
The form humans needs take as they are shaped by culture and individual personality
Human wants that are backed by buying power
Example of needs vs wants
Americans need food to live but want French fries from mcdonalds
The act of obtaining a desired object from someone by offering something in return
The set of actual and potential buyers of a product or service
Easily avaliabile and inexpensive. Therefore they should focus on improving the production and distribution efficiency.
Disadvantage of production concept
Can lead to market myopia
Good quality products will sell itself. Therefore the organization should focus its energy to making improved products
A good product doesn't need marketing
Disadvantage of product concept
Making the best mouse trap when really customers are looking for a different solution.
Aggressive selling and promotion
Overcapacity- when supply is higher than demand
Disadvantage of selling concept
Focuses too much on creating sales transactions instead of developing long relationships with the customers
The marketing concept
Knowing the needs and wants of target markets and delivering desired satisfactions better than the competitors.
Disadvantage of marketing concept
Customers don't know what they want or what is even possible
Societal marketing concept
Understanding society's well being and sustainable market. Should consider consumer wants the company's requirements and consumers and society's long run interest.
Perspective of company/organization
Big picture, how practiced in countries and society.
Characteristics of micro marketing
How can we improve sales? Grab more customers from the company? Applies to non profit and profit organizations. Marketing from companies point of view.
Characteristics of macro marketing
Broader view of marketing. Views marketing as a social process that matches supply with demand to satisfy society's objectives NOT specific companies, focuses on society's concern.
Macro marketing systems
Planned economy and market orientated economy
Value that comes from satisfying human needs
Production values utility
Form- creating tangible products from raw materials
Marketing values utility
Time-insuring customers get their products at the right time
Place-at the right place
* know how to calculate this
Products perceived performance-expectations
*know how to calculate this
Marketing management philosophies
Societal marketing concept
Marketing decision variables
Actual terms of exchange specified times, prices,place etc
Consumer generated marketing
Brand exchanges created by the consumers themselves. Consumers are playing a role in shaping their own brand experince and those of other consumers
Partner relationship management
Working closely with others inside and outside the company to jointly bring more value to customers
What is good for some consumers/companies isn't necessarily good for society.
Ex. Cigarettes, snow skiing, disposable packages
Control what is produced and how much is
Market oriented economy
Prices are set freely by supply and demand