Intro to Marketing Flashcards
(33 cards)
what is marketing
a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
(what is marketing)
The twofold goal of marketing:
= attract new customers by promising superior value
= grow current customers by delivering satisfaction
(what is marketing)
The 5 steps of the marketing process
Companies work to understand consumers, creating customer value and strong r/s
1) Understand marketplace + customer needs + wants
2) Design a customer value-driven marketing strategy
3) Construct an integrated marketing program that delivers superior value
4) Build profitable r/s + create customer delight
5) Capture value from customers to create profits and customer equity
==> By creating superior customer value, companies capture value from consumers in the form of SALES, PROFITS + LONG-TERM CUSTOMER EQUITY
Understanding marketplace + customer needs/wants/demands
needs = states of deprivation, physical (food,clothing,safety), social (affection,belonging), individual (knowledge, self expression)
wants = the form that needs take as they are shaped by one’s society and are described in terms of objects that will satisfy those needs
demands = wants that are backed by buying power, they become demands
(Understanding the Marketplace and Customer Needs)
market offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
(Understanding the Marketplace and Customer Needs)
marketing myopia
the mistake of focusing only on existing wants and losing sight of underlying consumer needs.
(Understanding the Marketplace and Customer Needs)
customer value and satisfaction
Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly.
Satisfied customers buy again and tell others about their good experiences.
Dissatisfied customers often switch to competitors and disparage the product to others.
Marketers have to set the right lvl of expectations
if too low = hey may satisfy those who buy but fail to attract enough buyers.
if too high = buyers will be disappointed.
(Understanding the Marketplace and Customer Needs)
Exchanges and Relationships
Exchange = the act of obtaining a desired object from someone by offering something in return.
Marketing occurs when people decide to satisfy their needs and wants through exchange relationships. Marketing actions try to create, maintain, and grow desirable exchange relationships.
(Understanding the Marketplace and Customer Needs)
Markets
Suppliers ↓ ↓ Company Competitors ↓ ↓ Marketing Intermediaries ↓ Final Consumers
A market is the set of actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through exchange relationships.
Marketing means managing markets to bring about profitable customer relationships. Activities such as consumer research, product development, communication, distribution, pricing, and service are core marketing activities.
today’s marketers must also deal effectively with customer-managed relationships asking “How can our customers influence us/eachother?”
(Designing a Customer Value-Driven Marketing Strategy)
Marketing management
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?
(Designing a Customer Value-Driven Marketing Strategy)
Market segmentation
refers to dividing the markets into segments of customers.
The marketing manager’s aim is to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value.
(Designing a Customer Value-Driven Marketing Strategy)
Target marketing
refers to which segments to go after.
To design a winning marketing strategy, the marketing manager must answer two important questions:
What customers will we serve (what’s our target market)?
How can we serve these customers best (what’s our value proposition)?
(Designing a Customer Value-Driven Marketing Strategy)
What is a value proposition?
the set of benefits or values it promises to deliver to customers to satisfy their needs.
(Designing a Customer Value-Driven Marketing Strategy)
Marketing Management Orientations
The 5 concepts under which organisations design and carry out their marketing strategies
Production concept Product concept Selling concept Marketing concept Societal Marketing concept
(Designing a Customer Value-Driven Marketing Strategy)
Production concept
management focuses on improving production and distribution efficiency.
Consumers will favor products that are available and highly affordable.
dominate through low labor costs, high production efficiency, and mass distribution but can lead to marketing myopia
(Designing a Customer Value-Driven Marketing Strategy)
Product concept
The focus is on continuous product improvements.
Consumers favor products that offer the most quality, performance, and features.
buyers may look for alternative solutions rather than an upgraded original solution so can lead to marketing myopia
(Designing a Customer Value-Driven Marketing Strategy)
Selling concept
Consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.
typically practiced with unsought goods (dont normally think of buying e.g. life insurance/blood donations)
Aggressive selling, however, carries high risks. It focuses on creating sales transactions rather than on building long-term, profitable customer relationships. The aim often is to sell what the company makes rather than making what the market wants.
(Designing a Customer Value-Driven Marketing Strategy)
Marketing concept
Know the needs and wants of the target markets and deliver the desired satisfactions better than competitors.
customer focus and value are the paths to sales and profits.
the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find the right customers for your product but to find the right products for your customers.
(Designing a Customer Value-Driven Marketing Strategy)
Societal marketing concept
The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
These companies donate, contribute, or offer services to charities and not-for-profit organizations.
deliver value to customers in a way that maintains/improves both the consumer’s and society’s well-being. calls for sustainable marketing, socially and environmentally responsible marketing. Many companies have Corporate Social Responsbility (CSR) programs.
(Designing a Customer Value-Driven Marketing Strategy)
The selling concept marketing management orientations
Starting point = FACTORY ↓ Focus = EXISTING PRODUCTS ↓ Means = SELLING AND PROMOTING ↓ Ends = PROFITS THRU SALES VOLUME
inside-out perspective, focusing on existing products, calling for heavy selling and promotion to obtain profitable sales. getting short-term sales with little concern about who buys or why.
(Designing a Customer Value-Driven Marketing Strategy)
The marketing concept marketing management orientations
Starting point = MARKET ↓ Focus = CUSTOMER NEEDS ↓ Means = INTEGRATED MARKETING ↓ Ends = PROFITS THRU CUSTOMER SATISFACTION
outside-in perspective, integrates all the marketing activities that affect customers yielding profits by creating relationships with the right customers based on customer value and satisfaction.
(Designing a Customer Value-Driven Marketing Strategy)
The societal marketing concept triangle
Society (human welfare), consumers (want satisfaction), company (profits)
Sustainability = good for the environmant and business
(Preparing an Integrated Marketing Plan and Program)
Marketing Mix
4 P’s a firm uses to implement its marketing strategy. An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers.
Product = a need-satisfying market offering Price = how much it will charge for offering Place = how offering is made available to target consumers Promotion = must engage target consumers, communicate about the offering and persuade consumers of the offer's merits
(Building Customer Relationships)
Customer Relationship Management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.