Chapter one: overview of marketing

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

-want to be a value to our stockholders

want ot use marketing to do good for the world at large and benefit firm and customers

marketing plan

specifies the marketing activities for a specific period of time

marketing is about...

Satisfying customer needs and wants

the market place

world of trade that can be segmented into groups of people

marketing entails...

an exchange

exchange

the trade of things of value between the buyer and the seller so that cash is better off as a result

marketing creates value through...

product, price, place, and promotion decisions

marketing mix

aka the 4 ps

-the controllable set of decisions or activities that the firm uses to respond to the wants of its target markets

--Product=creating value

--price=capturing value

--place=delivering value

--promation=communicating value

product

fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas to satisfy customer needs

-goods and services can be combined (like gc haircut and product)

goods

items you can physically touch

-function is to fill a need and how they are marketed determines their value

services

intangible customer benefits that are produced by people or machines and cannot be separated from the producer

ideas

thoughts, opinions, and philosophies; intellectual concepts

-ex: group promoting bicycling safety for schools

Price

everything a buyer gives up (money, time, energy) in exchange for the product

-want the price to match what the buyer thinks its worth

place

all activities necessary to get the product to the right customer when that customer wants it

incorporates both supply chain management and marketing channel management

without a strong supply chain system, merchandise isnt available when customers want it, so customers become unhappy, they tell other people, and your sales can go down

-external instances like the weather can effect supply chain management

supply chain managment

a set of approaches and techniques firms employ to integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels that their customers require.

marketing channel managment

concerned with developing and maintaining partners and relationships within the supply chain and includes the approaches and techniques firms employ to efficiently and effectively integrate their suppliers and serve their customers

Promotion

even the best product and services will go unsold is marketers cannot communicate their value to customers

-communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response

marketing can be preformed by...

preformed by individuals and organizations

-intermediates accumulate merchandise from producers in large amounts and then sell it to you in smaller amounts

-B2B, C2C, B2C, and also individuals market themselves to other individuals through their resume and how they act and dress

B2B marketing

business-to-business marketing; the process of selling merchandise or services from one business to another

B2C marketing

business-to-consumer marketing; the process in which businesses sell to consumers

C2C marketing

the process in which consumers sell to other consumers (ex. eBay, social media)

Marketing affects...

various stakeholders

-includes supply chain partners (wholesalers, retailers or other intermediaries) and society at large

The production oriented era

Turn of the 20th century when most firms were production oriented and believed a good product would sell itself

Sales oriented era

Between 1920-1950, With overproduction they depended on heavy doses of personal selling and advertising

-people were spending less bc of GD and WWII

marketing oriented era

After world war two, soldiers returned home, got new jobs, and started families. At the same time, manufacturers turned from focusing on the war efforts towards making consumer products. This was when the United States turned into a buying market-customers had a say on what types of products they want. This was during the period marketing was discovered.

Value-Based Marketing Era

most successful firms today are market oriented, meaning they generally have transcended a production or selling orientation and attempt to discover and satisfy their customers' needs and wants. Before the turn of the 21st century, better marketing firms recognized that there was more to good marketing than simply discovering and providing what consumers wanted and needed; to compete successfully they would have to give their customers greater value than their competitors did.

value

reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives

Relational orientation

thinking about customers in terms of relationships rather than transactions

-focus on profitability of relationship in the long run, not the money during a single transaction

Customer Relationship Management (CRM)

a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers

-ROTTEN=relationship over transactions 10 times/10

Technology-Augmented Era

-technology can help augment the value of products (this changed after covid)

-as a creative and contemporary way to ensure value, firms, customers, and stakeholders can engage in value cocreation such that customers collab with other members of the supply chain to create a product that appeals to them and offers optimal value

-able to access more because of drone delivery

Value stems from 4 main activities that value driven marketers undertake

1. adding value

2. marketing analysis

3. social and mobile marketing

4. ethical and societal dilemma

Adding value

Value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offerings

-they use available customer data to find opportunities to satisfy their customers needs better, keep down costs, and develop long-term loyalties

Marketing analysis

modern marketers rely on sophisticated data analysis to define and refine their approaches to their customers and their markets

Social and mobile markteting

allows marketers to connect better with their cultures and thereby serve the needs more efficiently

-market on social media or apps

geotargeting

segmenting an audience according to their current and past locations

Ethical and Societal Dilemma

greener products, healthier foods, safer workplaces so that consumers feel good about buying from that place

________Blank refers to the approaches a firm employs to effectively integrate its supplies, manufacturers, warehouses, and stores into a seamless value chain in which merchandise is produced and distributed.

Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction (e.g., transportation companies) into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers.

Which marketing mix element typically enhances the value of the product or service a company is offering consumers through the use of advertising and other activities?

Promotion generally can enhance a product's or service's value.

What is most likely true about the use of social media in advertising?

Social media allows firms to take advantage of new technologies and connect with their customers.

-Using social media, firms can take advantage of new technologies and connect with their customers, using the latest digital, virtual, and social media channels.

When marketers communicate the value proposition, it involves the ________Blank element of the marketing mix.

Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response.

During which era did manufacturers focus on product innovation, rather than satisfying the needs of individual customers?

Around the turn of the 20th century, most firms were production-oriented and believed that a good product would sell itself. Manufacturers were concerned with product innovation, not with satisfying the needs of individual consumers, and retail stores typically were considered places to hold the merchandise until a consumer wanted it.

By continually expanding its storefronts, Dunkin' uses the ________Blank element of the marketing mix to make coffee and other refreshments available for customers when and where they need them.

The place element of the marketing mix represents all the activities necessary to get the product to the right customer when that customer wants it.

Which statement illustrates how marketing has a direct impact on consumers?

Marketing helps consumers learn about new products and services.

-Marketing has had a significant impact on consumers. Without marketing, it would be difficult for any of us to learn about new products and services.

The ________Blank era embraced the belief that a good product would sell itself.

Around the turn of the 20th century, most firms were production-oriented and believed that a good product would sell itself.

Understanding consumers' ________Blank is fundamental to marketing success.

Understanding the marketplace, especially consumer needs and wants, is fundamental to marketing success.

Ultimately, marketing is all about ________Blank —the trade of things of value between two parties.

Marketing is about an exchange—the trade of things of value between the buyer and the seller so that each is better off as a result.

Better Eats manufactures reusable bento boxes. The company targets its marketing campaigns at different market ________Blank, including young professionals and environmentally-conscious buyers.

The manufacturer targets its marketing campaigns at different market segments, including young professionals and environmentally-conscious buyers. Such campaigns benefit the entire reusable lunchbox industry and promote the product benefits to its entire market.

Which of the marketing mix elements represents all the activities necessary to get the product to the right customer when that customer wants it?

Place represents all the activities necessary to get the product to the right customer when that customer wants it.

A group that visits high schools to give speeches about the dangers of substance abuse is providing which marketing offering?

Groups that provide speeches are creating value by encouraging their target market to adopt the safety idea of not using alcohol or drugs. The exchange of value occurs when the adolescents listen to the sponsors' presentation and abstain from substance abuse, which means they have adopted, or become "purchasers" of, the safety idea that the group marketed.

Remodel Depot provides free installation when customers purchase a new water heater. This is an example of which combination?

Goods and services

-Home improvement stores often provide physical goods (water heaters) as well as services (installation).

A local hair salon often engages in conversations with its customers on Instagram and even allows them to book their appointments through its Instagram page. This is an example of marketing using

Value-driven marketers take advantage of new technologies and connect with their customers using the latest social media channels.

Rather than being just a random activity, good marketing requires ________Blank in determining appropriate actions to produce sound decisions

Good marketing requires thoughtful planning to create, capture, communicate, deliver, and exchange offerings that have value for all parties involved in the exchange.

Over the last several decades, marketers have adopted a __________Blank because they have realized they need to think about customers in terms of relationships rather than transactions.

During the past couple of decades, as a way to build value, marketers are using a relational orientation because they have realized that they need to think about their customers in terms of relationships rather than transactions.

Google collects massive amounts of data about when and what people search for, and when they search for it. Then it analyzes those data to better serve its customers. This activity refers to

Marketing analytics

-Modern marketers rely on sophisticated data analytics to define and refine their approaches to their customers and their markets.

Spirit Airline has gained success because enough travelers are willing to trade luxury for a low-cost ticket. The ________Blank reflects the capture of value in the marketing exchange.

Marketers capture value in the exchange process through the price variable in the marketing mix. Price is everything the buyer gives up—money, time, and/or energy—in exchange for the product. The remaining three variables—product, promotion, and place—are means through which to provide value.

What is one of the core practices among value-oriented marketers?

constantly measuring the benefits that customers receive against the costs of offerings

-Value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offerings. They use available customer data to find opportunities to satisfy their customers' needs better, keep down costs, and develop long-term loyalties.