Marketing chap 1

What is marketing?

Marketing is a set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships

What are the four historical marketing orientations?

Production-oriented, sales-oriented, market-oriented, and value-based marketing.

What is the focus of market-oriented marketing?

Satisfying consumer needs and wants

What is the focus of value-based marketing?

Creating customer value, building long-term profitable relationships,

Firms must understand how each aspect of their product/service creates value for customers.

To succed in value-based marketing they need to provides greater value than competitors' offerings.

Why can two customers assign different values to the same experience?

Their needs, preferences, and expectations may differ.

Why is providing value important in marketing?

It helps build and maintain a loyal customer base and satisfy consumer demands.

What is a customer need vs want?

need: A basic necessity, such as food, clothing, or shelter.

want: A particular way a person chooses to satisfy a need. (ex: resto)

What is a target market?

The customers to whom a firm is interested in selling its products or services.

Could be by income, gender (ex: some firms interested in selling products to women)

Firms focus on specific customers because they cannot be equally good at serving everyone.

What are the four Ps of the marketing mix?

Product: represents creating value (Goods, services,)

Promotion: represents communicating value (advertizing, sales promotions)

Price: represents transacting value. (Everything the buyer gives up in exchange for a product: time, energy, money)

Place: Delivering value (supply chain, retailers online: All activities needed to get the product to the right customer)

Why is marketing important?

it expands the firms’ global presence: Goods are available to consumers from many countries

it is important throughout the supply chain: Every step involves marketing, and all members must focus on creating value for customers and end users.

It make life easier and provide employment opportunities: It provides product choices and information and creates jobs in areas such as research, sales, promotions, and global marketing.

It enriches society: Companies can support social causes and demonstrate that they care about customers and society.

Why might a company adapt its products in different countries?

Customers in different countries may have different preferences.

Why must businesses analyze the marketing environment?

To monitor internal and external environments, identify segmentation opportunities, rethink their offerings, and watch competitors.

What are the two main types of marketing environments?

The micro-environment (Factors closely connected to the company's capabilities, competition, and corporate partners.)

and the macro-environment. (technology, cultural, political, economic, social)

What is a core competency?

An ability that helps a company satisfy customer needs.

What is competitive intelligence (CI)?

The collection of information about competitors.

What are three ways to collect competitive intelligence?

Review public information,

interview customers/suppliers/former employees,

examine competitors' marketing actions.

Why should marketers consider cultural differences when looking at the macro-environment?

Different cultures and regions can have different preferences and expectations.

What is a generational cohort?

A group of people belonging to the same generation. (boomers, gen z)

How does income affect consumers?

Purchasing power is tied to income.