MKT 3000 CH.1

What are the 5 Marketplace Concepts that Marketers need to understand?

- needs, wants, and demands

- market offerings (products, services, and experiences)

- value and satisfaction

- exchanges and relationships markets

Needs

physical (food, security), Social (belonging, affection), individual (knowledge, self expression)

Wants

They are the form human needs take and are shaped by culture and individual personality.

Demands

They are human wants that are backed by buying power.

Market offerings

They are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Marketing myopia

paying more attention to the specific products than to the benefits and experiences produced

value proposition

the set of benefits or values it promises to deliver to customers to satisfy their needs

Customer-Engagement Marketing

Fosters direct and continuous customer involvement in shaping brand conversations, experiences, and community.

customer brand advocacy

satisfied customers initiate favorable interactions with others about a brand.

Consumer-Generated Marketing

Consumers promoting the brands themselves without any direct sponsorship

Uninvited exchanges

blogs, video sharing, social media

Partner relationship management

involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers…suppliers, resellers, wholesalers

Customer lifetime value

the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

Share of customer

the portion of the customer’s purchasing that a company gets in its product categories.

How do you increase share of customer? 

•You can offer greater variety to current customers

•Create programs to cross-sell and up-sell to market more products and services to existing customers.

ARPU

Average Revenue Per User. It’s used to measure how much money a person is buying in their business. The goal is to show which items they should sell more.

Cross sell Vs. Upsell

Cross Sell: Promoting complimentary or related products with the main purchase

Upsell: Encouraging a customer to buy a more expensive or premium product

Customer equity

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

Strategic Planning

Prioritizing things we can realistically do well in a timely manner

What is Marketing Management?

It is the art and science of choosing target markets and building profitable relationships with them.

What is the Marketing Manager’s Job?

To find, attract, keep, and grow target customers

What is a Target Market and what does it try to answer?

It tries answer the types of customer a business should primarily serve.

What does the value propsition seek to answer?

It tries to answer how we can best serve customers.

Societal Marketing

Companies should satisfy customers profitably in ways that also protect the long-term well-being of consumers and society

What are the 4 P’s in marketing?

•Product, Service, Experience (need satisfying offer)

•Price (monetary value of the offer)

•Promotion (engage & communicate with customers)

•Place (Channels of Distribution)

Customer relationship management

winning customers and keeping them coming back by giving them more than they expect, in a way that still makes the company money.