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Chapter 1 + Chapter 2 of Marketing
What is Marketing?
is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
is NOT just selling and advertising
New view of ____ focuses on CONSUMER
managing profitable customer relationships
What is Marketing Myopia?
a concept where companies focus on selling products rather than understanding customer needs, leading to a narrow view of the market.
Occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products
What is a Market?
A group of buyers and sellers who exchange goods and services, defined by their needs and wants.
What is Satisfaction?
depends on the product’s perceived performance relative to a buyer’s expectations
If the product’s performance falls short of expectations the customer is dissatisfied
If the product’s performance matches expectations, the customer is satisfied
If the product’s performance exceeds expectations, the customer is delighted
High level of customer _____ or delight often leads to customer loyalty
Selling Concept
is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort
Marketing Concept
is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do
Societal Concept
is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s profits, and society’s long-run interests
What is the difference between selling concept and marketing concept?
The selling concept focuses on aggressive sales techniques to increase product sales, while the marketing concept emphasizes understanding and meeting consumer needs to achieve long-term satisfaction and loyalty.
What is Customer Lifetime Value?
is the total worth of a customer to a business over the entirety of their relationship, factoring in revenue and costs associated with acquiring and serving that customer.
companies are realizing that losing a customer means losing more than a single sale. it means losing the entire stream of purchase that the customer would make over a lifetime of patronage
Customer Equity
the total combined customer lifetime values of all the company’s current and potential customers that reflects the value of maintaining relationships with customers over time.
Consumer Generated Marketing
is a marketing strategy that involves customers creating content or feedback about a brand or product, which can influence other consumers and enhance brand loyalty.
Explain Marketing Process
understand the marketplace and customer needs and wants
design a customer-driven marketing strategy
contract a marketing program that delivers superior value
build profitable relationships and create profits and customer equity
Production Concept
holds that consumers will favor products that are available and highly affordable
Product Concept
holds that consumers will favor products that offer the most in quality, performance, and innovative features.
Market Segmentation
is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior who might require separate products or marketing programs
Market Segment
consists of consumers who respond in a similar way to a given set of marketing efforts
Market Targeting
is evaluating each market segment’s attractiveness and selecting one or more segments to enter
A company with limited resources might serve only a few “market niches” Market niches are segments that major competitors overlook or ignore
Most companies enter a new market by serving a single segment. If this proves successful, they add segments
Differentiation
differentiating the company’s market offering so that it gives consumers more value
Market Positioning
Product ____ is the place the product occupies relative to competitors in consumers’ minds
is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Developing and Integrated Marketing Mix
The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market
Consists of the “four Ps”; product, price, place, and promotion
An Alternative of 4 Ps — 4 Cs
From the buyer’s viewpoint, the four Ps might do better described as the four Cs:
Products = Customer Solution
Price = Customer Cost
Place = Convenience
Promotion = Communication
