Essentials of Marketing - Chapter 1

What is marketing all about?

Creating value and customer satisfaction

What is the order?

convenience -> shopping -> specialty -> services -> B2B

What is convienence?

lower price products that are easy to buy

What is shopping?

Products you spend time looking at, bought every 3-5 years

What is specialty?

very specific, buy once in a lifetime

What are the 4 P's of marketing?

1. Product

2. Place

3. Promotion

4. Pricing

The 4 P's of marketing are?

What we manage

What do the 4 P's determine?

If you win/lose the market

What is marketing?

delivering profitable revenue

Why are the segments/groups that help you decide which product to buy? (4)

1. Price

2. Place

3. market leadership/ "coolness"

4. Product performance

What causes a decline in sales trends? (4)

1. Competition

2. High quality

3. limited new features

4. New products

True or False: Marketing is about satisfying Customer needs and wants

True

What questions should you ask about your target customers? (3)

1. who are they?

2. What is important to them?

3. What needs are not being met?

When customers needs are not being met you should....?

Determine the total business perspective (attractiveness) and customer value (unique 4 P's)

What is Product all about?

Creating value by differentiating yourself to satisfy customer needs

True or False: Capturing value should be based on costs?

False, they shouldn't be

What is price?

the opportunity costs

What is the key to determining price?

Figure out how much customers are willing to pay and assess if profit can be made at that point

The relationship between benefits and sacrifice (price) necessary to obtain benefits is...?

Customer value

What is the customer value equation?

value = (real & per. benefits)/Price

what are real benefits?

Includes aspects like product quality, superior performance or a higher level service

What are perceived benefits?

Includes the power of the brand (trust, status)

What is customer satisfaction?

The customers' evaluation of a good or service in terms of whether it has met their needs and expectations

What does CRM stand for?

Customer Relationship Management

What is CRM?

Fundamental premise is that all customers are NOT all equal

What does CRM identify?

"lifetime" value of individual customer

What does CRM develop?

unique approach based on this value