Chapter 12 Flashcards
(58 cards)
Marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
The Marketing concept
The whole firm is directed toward serving
customers at a profit
Value and Benefits
Delivering value (Value = Benefits/Costs)
Value and Utility
The ability of a product to satisfy a human want or need (of value)
Form utility
Marketing has a voice in designing products with features that customers want
Time utility
Marketing creates a time utility by providing products when customers will want them
Place utility
Marketing creates a place utility by providing products where customers will want them
Ownership/Possession utility
Marketing creates a possession utility by transferring product ownership to customers by setting selling prices, by setting terms for customer credit payments if needed, and by providing ownership documents.
Consumer goods
Tangible products purchased by individuals for their
use
Industrial goods
Products purchased by companies to use directly or
indirectly to produce other products
Services
Intangible products to serve users’ needs
Ideas
Thoughts or philosophies
Relationship Marketing
Building lasting relationships with customers and
suppliers
Goal: Customer satisfaction and retention
Customer Relationship Marketing (CRM)
Organized methods used to build information
connections to improve company–client
relationships
Political and Legal Environment
Legislation and government programs can be
favourable or not. Marketing managers try to maintain favour by gaining public support for products, advertising for public awareness of important issues, lobbying and contributing to political parities (with restrictions)
Social and Cultural Environment
Reflects the values, beliefs, and ideas of a society
(ex. Growing popularity of organic food)
Economic Environment
Conditions affect spending patterns of businesses and individuals (Canadian dollar, interest rates, inflation/deflation, and the business cycle)
Technological Environment
Science and technology lead to new ways of doing everyday things (new goods continue to emerge and trends create new goods and cause others to become obsolete)
Competitive Environment
Brand competitions, Substitute products, and International competition
Marketing Plan
A detailed, focused strategy for gearing the
marketing mix (product, price, place, and promotion) to meet consumer needs and wants
Product Differentiation
Creating a product that has a different image than existing products to attract consumers and changing existing products in reponse to trends
Price
Choosing the right price to attract consumers & meet profit goals (May be a low-price strategy or high-price strategy and Price must consider all costs)
Place (Distribution)
Getting the product from producer to buyer
(Physical transportation, warehousing, inventory, an Choice of sales outlets)
Promotion
Choosing the right method of communicating
information about the product (Advertising, personal selling, sales promotions, public relations, and direct or interactive marketing
