Marketing - Ch.1

Core Aspects of Marketing

1. Marketing affects various stakeholders. 2. Marketing is about satisfying customer needs and wants. 3. Marketing can be performed by individuals and organizations. 4. Marketing creates value through product, price, place, and promotion decisions. 5. Marketing entails an exchange.

Sales-Oriented Era

1920-1950 - Production and distribution techniques became more sophisticated... firms found an answer to their overproduction in becoming sales oriented: They depended on heavy doses of personal selling and advertising.

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 value customers' needs and then use

Product: Creating Value

Although marketing is a multifaceted function, its fundamental purpose is to create value by developing a variety of offerings , including goods, services, and ideas, to satisfy customer needs.

services

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

Goods

Are items that you can physically touch. Goods primarily function to fulfill some need, such as satiating hunger or cleaning clothing.

consumer-to-consumer (C2C) marketing

Consumers sell to consumers.

Price: Capturing Value

Everything has a price, although it doesn't always have to be monetary. Price, therefore, is everything the buyer gives up- money, time, and/or energy - in exchange for the product. For marketers, the key to determining prices is figuring out how much customers are willing to pay so that they are satisfied with the purchase, while the seller still achieves a reasonable profit.

What entails good marketing?

Good marketing is not a random activity; it requires thoughtful planning with an emphasis on the ethical implications of any of those decision on society in general. Good marketing should entail doing good for the world at large, while also benefiting the firm and its customers.

Ideas

include thoughts, opinions, and philosophies; intellectual concepts such as these also can be marketed.

business-to-business marketing

the process of selling merchandise or services from one business to another.

Marketing Is about Satisfying Customer Needs and Wants

If you manufacture and sell energy bars, you need to know for which marketplace segments your product is most relevant, then make sure you build a marketing strategy that targets those groups.

Value cocreation

In this case, customers can act as collaborators to create the product or service.

ideas

Include thoughts, opinions, and philosophies; intellectual concepts such as these also can be marketed.

marketing plan

It specifies the marketing activities for a specific period of time.

Production-Oriented Era

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.

relational orientation

Marketers have realized that they need to think about their customeres in terms of relationships rather than transactions.

Marketing Creates Value through Product, Price, Place, and Promotion Decisions

Marketing traditionally has been divided into a set of four interrelated decisions and consequent actions known as the marketing mix, or four Ps: product, price, place, and promotion.

Value-Based Marketing Era

Most successful firms today are market oriented. They needed to give their customers greater value than their competitors did.

Marketing Affects Various Stakeholders

Partners in the supply chain include wholesalers, retailers or other intermediaries such as transportation or warehousing companies.

Promotion: Communicating the Value Proposition

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.

Value

Reflects the relationships of benefits to costs, or what you get for what you give.

Marketing Can Be Performed by Individuals and Organizations

Retailers are marketing intermediaries that accumulate merchandise from producers in large amounts and then sell it to you in smaller amounts.

marketing channel management/supply chain management

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 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.

Market-Oriented Era

The United States entered a buyer's market- the customer became king! Consumers had choices and could make decisions on the basis of factors such as quality, convenience, and price.

marketing

The activity, set of institutions, and processes for creating, capturing, communication, delivering, and exchanging offerings that have value for customers.

business-to-consumer marketing

The process by which businesses sell to consumers is known.

Place: Delivering the Value Proposition

The third P, place, represents all the activities necessary to get the product to the right customer when that customer wants it.

Exchange

The trade of things of value between the buyer and the seller so that each is better off as a result. Furthermore, Amazon creates a record of your purchase trends, to create personalized recommendations of other luscious treats that you might like.