chapter 1 What is Marketing? Definition and Value

Target marketing

Marketing directed toward those groups (market segments) an organization decides it can serve profitably.referstowhichsegmentstogo after.

Social Media Campaign

Planned, coordinated marketing efforts using one or more social media platforms.

Marketing Mix (4 P's)

Product, price, place, and promotion—the controllable set of activities that a firm uses to respond to the wants of its target markets.

Building Customer Equity

Right relationships with the right customers involves treating customers as assets that need to be managed and maximized Different types of customers require different relationship management strategies

Exchanges

The act of obtaining a desired object from someone by offering something in return

Marketing Management

The art and science of choosing target markets and building profitable relationships with them. The marketing manager's aim is to engage, keep, and grow target customers by creating, delivering, and communicating superior customer value

Customer Perceived Value (CPV)

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offers relative to those of competing offers

customer satisfaction

The extent to which a product's perceived performance matches a buyer's expectations Customer delight can be achieved by delivering more than promised.

product concept

The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

Marketing Myopia

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

share of customer

The portion of the customer's purchasing that a company gets in its product categories

market

The set of all actual and potential buyers of a product or service Marketing involves serving a market of final consumers in the face of competitors

Customer Equity (CE)

The total combined customer lifetime values of all of the company's customers.

Customer Lifetime Value (CLV)

The value of the entire stream of purchases a customer makes over a lifetime of patronage. Customer lifetime value: to keep customers coming back, Stew Leonard's has created the "Disneyland of dairy stores." rule #1—the customer is always right. rule #2—If the customer is ever wrong, reread rule #1.

Digital and social media marketing

Using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices

Partner relationship management (PRM)

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

integrated marketing program

comprehensive plan that communicates and delivers the intended value to chosen customers

Marketers

every person or organization that has products, services, or ideas to sell

Customer‐Engagement Marketing

makes the brand a meaningfulpartofconsumers'conversationsandlives byfosteringdirectandcontinuouscustomerinvolvementin shapingbrandconversations,experiences,andcommunity meaningfulpartofconsumers'conversationsandlives byfosteringdirectandcontinuouscustomerinvolvementin shapingbrandconversations,experiences,andcommunity

Customer-engagement marketing

making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community

mobile marketing

marketing through wireless handheld devices

Value and satisfaction

offering will be successful if it delivers value and satisfaction to the target buyer -Value reflects the sum of the perceived tangible and intangible benefits and costs to customers -Satisfaction reflects a person's judgments of a product's perceived performance (or outcome) in relationship to expectations

Customer relationship management (CRM)

overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Market offerings

some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Needs

states of felt deprivation

Wants

the form human needs take as they are shaped by culture and individual personality

Marketing Concept

the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals

selling concept

the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort

Market Strategy

the plan you put together that details exactly how you intend to enter a new market and attract new customers

Marketing

the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

value proposition

the set of benefits or values it promises to deliver to consumers to satisfy their needs. JetBlue promises to put "You Above All" by bringing "humanity back to travel."

Designing Customer Value‐ Driven Marketing Strategy

‐ Selecting Customers ‐ Choosing a Value Proposition ‐ Marketing Management Orientations

Understanding the marketplace and customer needs There are five different core customer and marketplace concepts.

•Customer Needs, Wants, and Demands •Market Offerings- Products, Services, and Experiences •Customer Value and Satisfaction •Exchanges and Relationships •Markets

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers The company must decide how it will serve targeted customers— how it will differentiate and position itself in the marketplace

Consumer-generated marketing

Brand exchanges created by consumers themselves—both invited and uninvited— by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

Building Customer Relationships

CustomerRelationshipManagement ‐ EngagingCustomers ‐ PartnerRelationshipManagement is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, engaging, and growing customers

Demands

Human wants that are backed by buying power. People demand products and services with benefits that add up to the most value and satisfaction.

Relationship building blocks

- customer-perceived value: the difference between total customer perceived benefits and customer cost - customer satisfaction: the extent to which perceived performance matches a buyer's expectations

Building Customer Relationships

-Under promise, over deliver -Don't forget the small things -Stay in contact -Establish a feedback system

Constructing an integrated marketing plan

A marketing strategy outlines which customers it will serve and how it will create value. The marketer develops an integrated marketing plan that will deliver value to customers. It contains the marketing mix: the tools used to implement the strategy, which are the four Ps: product, price, place and promotion

Market: (Start - Circular Flow Model)

A place where buyers and sellers meet to engage in mutually beneficial, voluntary exchanges of goods, services, or productive resources

Market Process

a free-market system is best understood as an ongoing process in which entrepreneurs seek profits by eliminating inefficiency (dead weight losses)holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make-andsell philosophy, the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find the right customers for your product but to find the right products for your customers.