Chapter 1

Marketing

activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Exchange

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

Four factors for marketing to occur

1. 2+ parties with unsatisfied needs
2. desire and ability on their part to have their needs satisfied
3. way for parties to communicate
4. something to exchange

Need vs Want

* need - when person feels deprived of basic necessities such as food, clothing, shelter
* want - need that is shaped by a person’s knowledge, culture, and personality

Market

people with both desire and ability to buy a specific offering

Target market

one or more specific groups of potential consumers toward which an organization directs its marketing program

4Ps / marketing mix

controllable factors that can be used by the marketing manager to solve a marketing problem

* product
* price
* promotion
* place

environmental factors

uncontrollable forces that affect a marketing decision

* social
* economic
* technological
* competitive
* regulatory forces

customer value

unique combination of benefits received by targeted buyers that includes:

* quality
* convenience
* on-time deliver
* berfore-sale and after-sale service at a specific price

Relationship marketing

links organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit

marketing program

plan that integrated marketing mix to provide a good, service, or idea to prospective buyers

market segments

relatively homogeneous groups of prospective buyers that


1. have common needs


1. will respond similar to marketing action

Marketing concept

idea that organization should


1. strive to satisfy needs of consumers


1. try to achieve organization’s goals

market orientation

organization with market orientation focuses its efforts on


1. continuously collecting information about customers’ needs
2. share information across departments


1. use it to create customer value

Customer relationship management (CRM)

process of identifying prospective buyers, understanding them intimately, developing favorable long-term perceptions of organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase

customer experience

internal response that customers have to all aspects of organization and its offering

social responsibility and societal marketing concept

social responsibility - idea that organizations are accountable to a larger society

\
societal marketing concept - view that organization should satisfy the needs of consumers in a way that provides for society’s well-being

breadth and depth of marketing

* who markets - every organization
* what is marketed - goods, services, ideas = products
* who buys and uses what is marketed -
* ultimate consumers: people who use products and services purchased for a household
* organizational buyers: manufacturers, wholesalers, retailers, service companies, NPOs, and government agencies that buy products and services for their own use or for resale
* how consumers benefit - form utility, place utility, time utility, possession utility
* marketing creates its utilities by bridging space and hours to provide products for consumers to own and use