Marketing Chapter 1

Marketing seeks to:

1. discover needs and wants of customers

2. satisfy them

Marketing

The 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

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

the diverse elements influencing marketing actions

• mission and objectives determine the business and goals

• management establishes goals

• marketing works with other departments to provide customer-satisfying products

the organization and its departments

• HR

• manufactoring

• finance

• marketing

• ISA

• research and development

society forces

• suppliers

• customers

• shareholders (owners)

• other organizations

environmental forces

• socail

• economic

• technological

• competitve

• regulatory

what is needed for marketing to occue

1. two or more parties with unsatisfied needs

2. a desire and ability on their part to have their needs satisfied

3. a way for the parties to communicate

4. something to exchange

how marketing discovers consumer needs

• focus on the consumer benefit

• learn from past mistakes

needs

necessities

wants

are shaped by culture

market

people with both the desire and the ability to buy a specific offering

target market

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

marketing mix

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

the four Ps (controllable marketing mix factors)

1. product

2. price

3. promotion

4. place

product

a good, service, or idea to satisfy the consumer’s needs

price

what is exchanged for the product

promotion

a means of communication between the seller and buyer

place

a means of getting the product to the consumer

environmental forces (uncontrollable factors)

a marketing decision and consists of social, economic, technological, competitive, and regulatory forces

customer value

the unique combination of benefits received by targeted buyers that includes quality, convenience, on time delivery, and both before sale and after sale service at a specific price

customer value strategies

• best price

• best service

• best product

relationship marketing

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

marketing program

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

market segments

the relatively homogeneous groups of prospective buyers

1. have common needs

2. will respond similarly to a marketing action

marketing concept

meet needs of consumer

1. strive to satisfy the needs of consumers

2. trying to achieve the organizations goals

market orientation

create customer value

1. continuously collecting information about customers needs

2. sharing this information across departments

3. using it to create customer value

customer relationship management (CRM)

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

customer experience

The internal response that customers have to all aspects of an organization and its offerings

ethics

companies develop codes of ethics, policies, and guidelines

social responsibility

organizations are accountable to a larger society

social marketing concept

The view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.

products

goods

serivces

intangible items

ideas

conceepts

ultimate consumers

The people who use the products and services purchased for a household. Also called consumers, buyers, or customers.

organizational buyers

Those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.

who buys and uses what is marketed?

• ultimate consumers

• organizational buyers

who benefits?

• consumers who buy

• organizations that sell

• society as a whole

how do consumers benefit?

utility

utility

The benefits or customer value received by users of the product.

form utility

the production of the product or service

place utility

having the offering available where consumers need it

time utility

having it available when needed

possession utility

the value of making an item easy to purchase through the provision of credit cards or financial arrangements

internal foces

controllable

external forces

uncontrollable

relationship marketing

links the organization to its indivdual customers, employees, long term benefits