Chp 1 - Overview of Marketing Flashcards
define marketing
Set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships
6 core aspects of marketing
1) Helps create value
2) About satisfying customer needs and wants
3) Entails an exchange
4) Requires product, price, place and promotion decisions
5) Can be performed by individuals and organizations
6) Occurs in many settings
role of marketing
about satisfying customer needs and wants
define want
particular way in which a person chooses to satisfy a need, shaped by knowledge, culture and personality
define demand
ability and willingness to act on needs and wants
define target market
customer segment or group to whom the firm is interested in selling its products and services. Firms direct marketing to their target market due to cost
how can firms understand wants and needs
first firm must identify customers or market for product
what are the 4 p’s
Product, price, place, promotion
define the 4 p’s
controllable set of activities a firm uses to respond to the wants of its target market
explain 4 p’s - product (2 points)
1) about creating value
2) product/service, brand, size, quality, features, packaging, warranty
explain 4 p’s - price (2 points)
1) about transacting value
2) List price, discounts, allowances, costs, payment period, credit terms
define price
overall sacrifice (time, money etc) consumer is willing to make to acquire product/service
explain 4 p’s - place (2 points)
1) about delivering value
2) Marketing channels, distribution intensity, locations, supply chain, logistics
explain 4 p’s - promotion (2 points)
1) about communicating value
2) Advertising, sales promotion, personal selling, public relations, direct marketing, electronic media
how does marketing affect stakeholders example
impacts many stakeholders like supply chain partners and manufacturers (firms have to convince manufacturers to sell to them)
2 reasons why marketing is important
1) it is universally applicable - it can be used by any organization or anyone for any good, service, event, idea
2) without customers you have no business and marketing is the link to the consumer. everyone who comes in contact with the consumer is a marketer, it shouldn’t be left to the department
4 orientations of marketing
product, sales, market, value-based marketing
3 points on product-based marketing orientation
1) If we make it, they will buy it
2) Focus on developing and distributing innovative products with little concern about whether products best satisfy customers needs
3) Retail stores considered places to hold merchandise until customer wanted it
5 points of sales orientation
1) If we sell it right, they will buy it
2) Try to sell as many products as possible rather than focus on making what customers want
3) Short term view over long term customer relationships
4) Profits come from sales volume rather than repeat business from satisfied customers
5) Depend on advertising to attract new customers
4 points on marketing orientation
1) If we make what they want, they will buy it
2) Focus on what customers need and want before designing/selling products
3) Do everything possible to satisfy customers
4) Focus on making marketing an integrated process through whole firm
4 points on value-based orientation
1) Determining needs and wants of target markets then delivering the offer more efficiently and effectively than competitors to create value
2) Focus on triple bottom line: people, profits, planet
3) value and value co-creation
define value in value-based orientation
reflects relationship of benefits to costs, what consumer gets for what they give
define value co-creation in value based orientation
customers act as collaborators for product
4 ways firms can become more value driven
1) sharing info
2) cost/benefit
3) relationship building through CRM
4) media based connections
