Week 1 :Introduction to Marketing management Flashcards
What is Marketing Management?
It is a disciplined process used by organisations to solve business problems - which entails: understanding, creating, delivering and managing customer value.
Customer needs: Social Impact
Highest point of customer need (top of pyramid).
Self- transcendence - Having people care about others & go transcend themselves & think about society and affiliation values.
Customer needs: Life-changing
The second highest point of customer need.
Fulfilling life-changing roles for the consumer.
E.g., self-actualisation, affiliation/belonging, Motivation, Provides hope
For instance:
During pandemic, hope can be life-changing so product that does that.
Customer needs: Emotional
Third highest point of customer need. A little more complex than basic needs - go beyond certain concrete needs, more functional needs. E.g., reduces anxiety, fun/entertainment, wellness, therapeutic value, provides access, design/aesthetics etc.
For instance:
candles that have a soothing scent
Customer needs: Functional
The first base of customer needs - very concrete. Very basic customer needs - wanting to simplify something in daily life or reduce effort, cost, time etc.
E.g., reduces risk, organises, connects, informs, avoids hassles, saves time, reduces effort, quality, variety, sensory appeal, reduces costs.
For instance:
Connects: good social media apps that allow you to stay in touch with people and functions well and has good features. Saves time/avoids hassle/reduces effort: ordering food instead of going out using JustEat or UberEats etc.
The societal marketing concept seeks to establish a balance between…
consumer short-run wants and consumer long-run welfare
What is Customer Equity?
It is the total of the discounted lifetime values of the organization’s customer.
The more loyal the customers, higher is the customer equity. There are three drivers of customer equity :
Value equity,
Brand Equity,
and Relationship equity.
When backed by buying power, wants become…
demands
Customer-perceived value is determined by…
a customer’s evaluation of the benefits and costs of a market offering relative to those of competing offers.
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon customer-perceived value.
A market offering is…
some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.
marketing myopia
is sellers being preoccupied with their own products and losing sight of underlying consumer needs
Consumer research, product development, communication, distribution, pricing, and service are all core…
marketing activities
sellers are more effective when..
they focus more on the benefits and experiences produced by their products and services
According to management guru Peter Drucker, “The aim of marketing is to ________.”
make selling unnecessary
Marketing is defined as
a social and managerial process by which individuals and organizations obtain what they need and want through
value creation and exchange
