Chapter 1 Marketing Fundamentals Flashcards
Marketing planning starts with a scan of the environment
- External demographic
- social-culture
- economic
- technological
- competitive
- regulatory forces
Successful marketing is focused on
Customer’s wants and needs
Need
Occurs when a person feels deprived of basic necessities
Want
Is a need that is shaped by a person’s knowledge, culture, and personality
Marketers need to consider how consumers navigate online environment when developing marketing programs
1) Understand the consumer’s path to purchase. What website/social media should you advertise to in order to engage with consumers
2) Website must be easily found and highly ranked by search engines
Customer Value Proposition
The unique benefits received by customers that will benefit their needs (price, convenience, delivery, and both before-sale and after-sale services)
Marketing Mix (4P)
Product, price, place, and promotion (all are controllable factors)
Creating products with added values is achieved through
1) Product design
2) Pricing strategies
3) Service elements (fast delivery, points, healthy benefits, reviews)
With limited funds, target…
customers who are most interested rather than targeting everyone
Target Market
Specific group (or segment) of existing or potential consumers where marketers direct their efforts towards (Ensuring each element of the marketing mix is appealing to the target market)
Describing the 4P of marketing mix
1) Product: All attribute that makes up a good, it can be a good, service or idea to satisfy customer need and includes product design, features, color, packaging, warranty, and service levels
2) Price: What is exchanged for a product, regular retail price or sale price
3) Place: The way your product gets to the customer, including distribution channels, retail formats, and merchandising used to sell a product
4) Promotion: The tools used to communicate with consumers about a product, including advertising, public relations, sales promotions, direct response, event marketing, sponsorship, online approaches, and personal selling
Marketing Process
1) Identifying consumer needs
2) Managing the marketing to meet consumer needs
3) realizing profits
Marketing
Process of planning, managing goods, services, or ideas to meet consumer needs and organizational objectives
Exchange
Is the trade of things between buyers and sellers so that they both benefit
A Good
Is a product that is tangible and you can touch it and own it
A Service
Is an intangible product you cannot touch or own
An Idea
An idea is a concept that typically looks for support (Mothers against drunk driving)
Market
Describes potential consumers who are willing and have the ability to buy a product
Production Orientation
Focused on manufacturing, consumer needs was not a priority. Assembly line. (Up until 1930)
Sales Orientation
Focused on selling as many products as possible (From 1930 to 1960)
Marketing Orientation
Focused on the idea to satisfy the need of the customers while achieving organization’s goal (From 1960-1990)
Relationship Marketing
Focus on the life time value of consumers and strive to offer better services and higher quality products to establish long-term relationships with customers (1990-Now)
Customer Relationship Management (CRM)
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction (Reward cards etc)
Share of Wallet
The percentage of a customer’s purchases that a company has in a specific product category
