marketing ch. 1

advertising

builds awareness and informs a large audience

public relations

builds credibility and shapes public perception

social media

engages customers and builds relationships online

sales promotions

encourages customers to take immediate action

direct marketing

delivers targeted messages to specific customers

personal selling

builds personal connections and drives solutions

market research

provides insights to understand customers and the marketplace

marketing is…

engaging customers and managing profitable customer relationships

goals of marketing

-attract new customers by promising superior value
-keep and grow current customers by delivering satisfaction

the marketing process

-understand the marketplace and customer needs and wants
-design a customer-value driven marketing strategy
-construct an integrated program that delivers superior value
-engage customers, build profitable relationships, and create customer delight

the 4 P’s of marketing

price, place, promotion, and product

customer needs, wants and demands

needs vs. wants + buying power = demands

market offerings

customer needs and wants are fulfilled through market offerings

marketing myopia

sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products

ex: Blockbuster vs. Netflix; blockbuster went out of business because they simply were focused on their products and not the experience behind it

customer expectation

customers form expectations about the value and satisfaction of market offerings
-satisfied customers buy again
-dissatisfied customers switch to competitors

setting the right level of expectations

-low expectations may fail to attract buyers
-high expectations may disappoint buyers

exchanges

the act of obtaining a desired object by offering something in return
-marketing consists of creating, maintaining, and growing desirable exchange relationships

markets

-all actual and potential buyers of a product
-sellers and consumers market
-customer-managed relationships

marketing management

art and science of choosing target markets and building profitable relationships

market segmentation

refers to dividing the markets into segments of customers

target marketing

refers to which segments to go after

value proposition

the company must decide how it will differentiate and position itself in the marketplace

three considerations underlying the societal marketing concept

society (human welfare), consumers (want satisfaction), and company (profits)

customer perceived value

customer’s evaluation of a marketing offer relative to those of competing offers - subjective

customer satisfaction

extent to which a product’s perceived performance matches a buyer’s expectations

customer lifetime value

the value of the entire stream of purchases a customer makes over a lifetime of patronage

share of customer is increase by…

-good customer relationship management
-offering greater variety to current customers
-creating programs to cross-sell and up-sell existing customers

marketing takeaways

-marketing is about creating value - not just selling products
-every marketing decisions should start with the customer
-great marketing creates relationships, not just transactions