Marketing Management Lecture 1

What is the definition of marketing and through which perspective is it seen?

 delivery of customer satisfaction at a profit through products/services (marketer’s perspective)

What is necessary for business success and marketing?

target market > environments > market research > profit!

Explain why a target market is crucial!

necessary because of limited resources (sections by age, gender) like money or time

Explain why environments are crucial!

you need to adapt to ever-changing environments (legal, demographic) > mp3 files

Explain why market research is crucial! How can it be done?

find out if your customers are satisfied with the product (primary data: survey questionnaire; secondary data: magazines/newspapers)

Explain why profit is crucial!

necessary for a company’s survival (amazon struggled a lot with it at first)

What are needs?

state of deprivation (physical, social + individual) e.g. need for food (Shawshank redemption: freedom)

What are wants?

the product you use to take care of your need (influenced by culture, personality, situation) (Shawshank redemption: hammer) > can change over time

What are demands?

wants backed by purchasing power (transportation > train > train ticket)

What is a product?

 anything (a medium) to satisfy a need/want (physical goods, intangible products (service))

What is the value of a product?

= perceived benefits – perceived costs of a product (you can increase benefit or decrease cost to increase the value) > perceived value (very subjective, dependent on customers themselves)

What is an exchange? What conditions are needed to classify it that way?

 getting desired object by offering something in return (value is important)

conditions: at least 2 parties who are free to accept/reject, value of product, ability to communicate

What is customer satisfaction? What are its benefits?

how the product’s perceived performance matches the buyer’s expectations

benefits: brand loyalty, less price sensitivity, spread of word-of-mouth, low promotion costs

How do you calculate customer satisfaction? How can you increase customer satisfaction?

performance – expectation

increase performance/decrease expectation to increase customer satisfaction

What’s the difference between a market and an industry?

market: actual + potential buyers of the product (IMPORTANT) 

industry: sellers of similar products