Marketing: Chapter 1

Marketing

is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

marketing plan

written doc of analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the 4 p's action programs, and projected or pro forma income statements

core aspects of marketing

-marketing requires product prices, place, and promotion decisions (4Ps)
- marketing is about satisfying customer needs and wants
- marketing occurs in many settings, various stakeholders
-marketing can be performed by both individuals and organizations
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exchange

the trade of things of value between the buyer and the seller so that each is better off as a result

marketing mix (4Ps)

product(creating value), price(capturing value), place(delivering value), and promotion(communicating value). the controllable set of activities that a firm uses to respond to the wants of its target markets

goods

items that you can physically touch

services

intangible customer benefits that are produced by people or machines and cannot be separated from the producer

ideas

include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed.

B2C marketing

(business-to-consumer) - the process by which businesses sell to consumers

B2B marketing

(business-to-business) - the process of selling merchandise or services from one business to another

C2C marketing

consumers sell to other consumers

value

reflects the relationship of benefits to costs, or what you get for what you give

value cocreation

a creative way to provide value to customers. customers can act as collaborators to create the product or service.

relational orientation

an orienation developed by marketers as they realized that they need to think about their customers in terms of relationships rather than transations.

customer relationship management (CRM)

a business philosphy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.

importance of marketing

can be entrepreneurial
expands global presence
pervasive across channel members
enriches society

supply chain (marketing channel)

the group of firms that make and deliver a given set of goods and services

entrepreneurs

people who organize, operate, and assume the risk of a business venture.

product

creating value: purpose is to create value by developing a variety of offerings, goods services, ideas

Price

capturing value, goal: customer satisfied, seller-reasonable profit. Price= everything the buyer gives up- money, time,energy- in exchange for the product

place

place~ marketing channel management (ppl who make and deliver products) kiosk, convenient locations

promotion

communicating the value proposition (persuades and reminds buyers of product or service to influence opinions and elicit response

eras of marketing

production oriented
sales oriented
market oriented
value based marketing

production era

believed a good product would see itself
- not focused on needs of the customer, only on product (henry Ford)

sales-oriented

1920-1950 great depression= ppl buy less,
focused on selling selling, personal and ads

market-oriented era

began to focus on what consumers wanted and needed before they designed, made, or attempted to sell products and services
*marketing first discovered

value-based marketing era

value- costs to benefits
value coercion- customers collar with retailer

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold.

sales oriented

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates a

Value

Marketing was once an afterthought to

production

In delivering value, marketing firms attempt to find the most desirable balance between

providing benefits to customers and keeping costs down.

Effective promotion enhances a product or service's

perceived value

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as

market intermediaries.

The basic difference between a good and a service is that a good

can be physically touched

The idea that a good product will sell itself is associated with the __________ era of marketing.

production-oriented

UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals.

supply chain management

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?

place

The importance of supply chain management is often overlooked in the study of marketing because

many of the activities take place behind the scenes

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and

the ability to buy them

The process of value __________, in which customers collaborate in product design, often provides additional value to the firm's customers.

co-creation

The primary purpose of the __________ plan is to specify the marketing activities for a specific time.

marketing

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets.

controllable

Marney bought a dress from a retail store. Which core aspect of marketing was Marney most directly participating in

marketing entails an exchange

The marketing goal of getting the right quantities to the right locations at the right time relates to

supply chain management

After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in aNo __________ marketing

transactional

Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called

supply chain management

The Got Milk advertising campaign, designed to increase consumption of milk, was intended to help market a

industry