MARK 3000E ch 1

Marketing

The activity, set of institutions, and processes used to create, capture, communicate, and deliver value to customers.

Value Creation

Meeting customer needs and desires through products and services that provide value.

Exchange

The process where customers give something of value (like money or time) in return for something valuable (products or services).

Cocreation

When customers collaborate with a company to help design or personalize products/services.

Production-Oriented Era

A time when businesses focused on production efficiency and product innovation, not on customer needs.

Sales-Oriented Era

A period where businesses emphasized aggressive selling due to overproduction, often ignoring customer needs.

Customer-Centric Marketing

Marketing strategy that prioritizes satisfying customer needs and views customers as co-creators of value.

Market Segmentation

Dividing a broad market into smaller groups based on shared traits like demographics, behavior, or needs.

Targeting

Selecting specific segments of the market to serve based on their attractiveness and fit with company goals.

Positioning

How a product is defined by consumers in relation to competing products, such as being “luxury” or “budget-friendly.”

Value Cocreation (Examples)

Custom sneakers (Nike), personalized embroidery, bakery custom cakes, tattoos—products/services shaped by customer input.

Events That Led to Overproduction

Major historical events like WWI, The Great Depression, WWII, and The Great Recession that caused supply to exceed demand.

Product Innovation (Production Era)

Focused on enhancing product features and technology, not aligned with individual consumer needs.

Sales-Oriented Era Characteristics

Businesses could produce more than people would buy, leading to reliance on pushy sales tactics.

Marketing Communications

Advertising, promotions, PR, and other methods used to inform, persuade, and remind customers.

Value Delivery

Ensuring products/services reach the customer and meet the expected value.

Benefit Segmentation

Dividing a market based on the specific benefits sought, such as toothpaste buyers wanting whitening or cavity protection.

Relationship Marketing

Strategy focused on long-term engagement with customers through personalization, loyalty rewards, and consistent interaction.

Marketing Orientation

A business approach that starts by understanding customer needs and then creating products to satisfy them.