Chapter 1 (Kotler Armstrong) Flashcards
(29 cards)
Marketing
The process by which companies create value for customers and build strong relationships in order to capture value from customers in return.
The Marketing Process 5 Steps
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
Needs
States of felt deprivation
Wants
The form human needs take as shaped by culture and individual personality (Eg: Need food, want a taco)
Demands
Human wants that are backed by buying power
Market offering
Some combination of products, services, information, or experience offered to a market to satisfy a need or a want
Marketing Myopia
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
Exchange
The act of obtaining a desired object from someone by offering something in return
Market
The set of all actual potential buyers of a product or service
Marketing Management
The art and science of choosing target markets and building profitable relationships with them
Production concept
The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency
Product concept
The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements
Selling Concept
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
The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
Social Marketing Concept
The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests
Selecting customers to serve
market segmentation- dividing market into segments of customers
target markets- selecting which segments it will go after
“Marketing management is customer management and demand management”
Customer relationship management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaciton
Customer-perceived value
The customer’s evaluation of the difference between all the benefits and the costs of a marketing offer relative to those of competing offers
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations
Customer Relationship levels and tools
Frequency marketing programs (frequent flyers rewards)
Club marketing programs (Harley Davidson Owners Group)
Selective relationship management
Targeting fewer, more profitable customers (Angels vs Demons)
Consumer-generated marketing
Marketing messages, ads, and other brand exchanges created by consumers themselves- both invited and uninvited
Partner relationship management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Customer lifetime value
The value of the entire stream of purchases that the customer would make over a lifetime of patronage
