market CH 1

marketing

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large

exchange

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

market

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

target market

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

marketing mix

consists of the marketing manager’s controllable factors- product, price, promotion, and place. That can be used to solve a marketing problem

market orientation

focuses on efforts on continuously collecting information on:

continuously collecting information about customers’ needs
sharing this information across departments
using it to create customer value

customer value proposition

cluster of benefits that an organization promises customers to satisfy their needs

environmental forces

uncontrollable forces that affect a marketing decision and consist of:

social
economic
technological
competitive
regulatory forces

customer value

the unique combination of benefits received by targeted buyers that includes

quality
convenience
on-time delivery
both before-sale and after-sale service at a specific price

relationship marketing

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

marketing program

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

marketing segments

relatively homogeneous groups of prospective buyers that

have common needs
will respond similarly to a marketing action

marketing concept

idea that an organization should

strive to satisfy the needs of consumers
while also trying to achieve the organization’s goals

customer relationship management (CRM)

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

customer experience

internal response that customers have to all aspect of an organization and its offering

societal marketing concept

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

product

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value

ultimate consumers

consists of the people who use the product and services purchased for a household. Also called consumers, buyers, or customers

organizational buyers

those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale

utility

consists of the benefits or customer value received by users of the product

marketing seeks to

discover needs and wants of customers and to satisfy them

diverse elements influence marketing actions

an organization’s marketing activity focuses on assessing and satisfying consumer needs

other people, groups, and forces also interact to shape its actions

in an organization, management establishes goals

marketing works closely with other departments to provide products and service, facilitates relationships, marketing decisions are affected by environmental forces

what is needed for marketing to occur

two or more parties with unsatisfied needs
desire and ability to be satisfied
a way for the parties to communicate
something to exchange

how marketing discovers consumer needs

the challenge: meeting consumer needs with new products
consumers may not know or cannot describe what they need or want.
38,000 new products are introduced each year
40% of new products fail
the challenge:
“focus on the consumer benefit”
“learn from past mistakes”

needs vs wants

needs are basic necessities

wants are shaped by knowledge, personality, culture

does marketing persuade people to buy the “wrong” things?

marketing concentrates efforts on certain needs of a specific group of potential consumers (target market)

the 4 Ps

controllable marketing mix factors

product- goods, services, or ideas
price- what is exchanged for product
promotion- communication between seller and buyer
place- means of getting product to consumer

uncontrollable environmental forces

social
competitive
economic
regulatory
technological

evolution of the marketing orientation

production era - goods were scarce
sales era- manufacturers produced more goods than buyers could consume
marketing concept era - manufacturers met consumer needs while achieving organization’s goals
customer relationship era - satisfy high consumer expectations 

ethics

companies develop codes of ethics, policies, and guidelines

social responsibility

organizations are accountable to a larger society

who benefits to marketing

consumers, organizations that sell, society as a whole