BUS2 130 Chapter 1

What is marketing?

the set of strategies and activities by which companies acquire and engage customers

What is (1) goal of marketing?

attract new customers by promising superior value

What is (2) goal of marketing

engage and grow current customers by delivering promised value

What is (3) goal of marketing

Help drive long-term company profitability by recapturing some delivered value from satisfied customers

What are the two forms of marketing?

• Traditional

• Contemporary

What are forms of traditional marketing?

• Making a sale

• Television, magazine, and direct-mail ads

What are forms of contemporary marketing?

• Imaginative websites and mobile phone apps, blogs, online videos, and social media

What is the first step in the marketing process?

Understand the marketplace and customer needs and wants

What is the second step of the marketing process?

Design a customer value-drive marketing strategy

What is the third step of the marketing process?

Construct an integrated marketing mix that delivers superior value

What is the fourth step of the marketing process?

Engage customers, build profitable relationships, and create customer delight

What is the fifth step of the marketing process?

Capture value from customers to create profits and customer equity

What are the 5 core customer and marketplace concepts?

• Needs, wants, and demands

• Market offerings

• Value and satisfaction

• Exchanges and relationships

• Markets

What are needs?

states of felt deprivation

• physical

• social

• individual

What are examples of physical needs?

food, clothing, warmth, and safety

What are examples of social needs?

belonging and affection

What are examples of individual needs?

Knowledge and self-expression

What are wants?

the form of human needs take as they are shaped by culture and individual personality

What are demands?

wants that are backed by buying power

What is marketing offerings?

some combination products, services, solutions/information, and experiences offered to a market to satisfy a need or want

What is marketing myopia?

mistake of paying more attention to the specific products a company offers than to the customer benefits and experiences delivered by those products

What is exchange?

the act of obtaining a desired object from a person or an organization by offering something in return

What is market?

the set of actual and potential buyers of a product or service

What is the first key question a winning marketing strategy answers? (Customer value-driven marketing strategy)

What customers will we serve (what’s our target market?)

What is the second key question a winning marketing strategy answers? (Customer value-driven marketing strategy)

How can we serve these customers best (What’s our value proposition?)

What is marketing management?

Choosing target markets and building profitable relationships

What is market segmentation?

It refers to dividing the markets into segments of customers

What is target marketing?

Refers to which segments to go after

What are the five marketing orientations?

• Production concept

• Product concept

• Selling concept

• Marketing concept

• Societal marketing concept

What is the production concept?

Consumers favor products that are available and highly affordable

What is the product concept?

Consumers favor products that offer the most in quality, performance, and innovative features

What is the selling concept?

Consumers will not buy enough of the firm’s product unless the firm takes a large scale promotion effort

What is the marketing concept?

Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do

What is the societal marketing concept?

A company’s marketing decision should consider a consumer’s wants, company’s requirements, consumers long term interests, and society’s long run interest

What are the 3 concepts of societal marketing considerations?

• Society (human welfare)

• Consumers (want satisfaction)

• Company (profits)

What are the 4 P’s of marketing

• Product

• Price

• Place

• Promotion

Customer-perceived value

Customer’s evaluation of a marketing offer relative to those of competing offers

T/F Customers judge values and costs accurately/objectively

False

Customer satisfaction

Extent to which a product’s perceived performance matches a buyer’s expectations

Customer lifetime value

The value of the entire stream of purchases a customer makes over a lifetime of patronage

Customer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Customer-engagement marketing

Fostering directing and continuous customer involvement in shaping brand conversations, brand experiences, and brand community

Customer brand advocacy

actions by which satisfied customers initiate favorable interactions about a brand with others

Customer-generated marketing

Customers themselves help shape their own brand experiences and those of others

Partner relationship management

Working with others inside and outside the company to jointly engage and bring more value to their customers

Share of customer

The portion of customer’s spending in its product categories that a company captures

How do you increase share of customer?

• Good customer relationship management

• Offering greater variety to current customers

• Creating programs to cross-sell and up-sell to existing customers

Customer equity

the total combined customer lifetime values of all of the company’s customers

Digital and social media marketing

Engaging consumers via their digital devices using digital marketing tools

Mobile marketing

Using mobile channels to stimulate immediate buying, making shopping easier, and enrich the brand expeirence

Brands can use big data to:

• Gain deep customer insights

• Personalize marketing offers

• Improve customer engagements and service