Chapter 1 Flashcards
(24 cards)
Marketing
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return.
Five core customer and marketplace concepts
Needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets
market offerings
are some combination of products, services, information, or experiences offered to a market to satisfy a need or a want.
marketing myopia
s focusing only on existing wants and losing sight of underlying consumer needs.
exchange
is the act of obtaining a desired object from someone by offering something in return.
market
is the set of actual and potential buyers of a product.
marketing management
is the art and science of choosing target markets and building profitable relationships with them.
What customers will we serve?
How can we best serve these customers?
market segmentation
refers to dividing the markets into segments of customers.
target market
refers to which segments to go after
Value propositon
is the set of benefits or values a company promises to deliver to customers to satisfy their needs.
Production concept
is the idea that consumers will favour products that are available or highly affordable.
Product concept
is the idea that consumers will favour products that offer the most quality, performance and features and that the organisation should therefore devote its energy to making continuous product improvements.
Selling concept
is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
Marketing concept
is the idea that achieving organisational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do.
Societal marketing
concept is the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-term interests and society’s long-run interests.
The marketing mix
set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion and place.
Integrated marketing programme
comprehensive plan that communicates and delivers the intended value to chosen customers.
Customer-managed relationships:
Marketing relationships in which customers, empowered by today’s new digital technologies, interact with companies and with each other to shape their relationships with brands.
Partner relationship management
involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
Supply chain
a channel that stretches from raw materials to components to final products to final buyers.
Customer lifetime value
is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.
Share of customer
is the portion of the customer’s purchasing that a company gets in its product categories.
Share of Customer is increased by:
Good customer relationship management
Offering greater variety to current customers
Creating programs to cross-sell and up-sell to existing customers
Customer equity
is the total combined customer lifetime values of all of the company’s customers.
