Marketing Chapter 1

5 C's of Marketing Analysis

Company Customers Competitors Collaborators Context (environment)

When backed by buying power, wants become ________.

demands

What is marketing?

engaging customers, build strong customer relationships, and create customer value in order to capture value from customers in return

Customer Satisfaction

how well a market offering meets or surpasses customer expectations

Consumers' needs and wants are fulfilled through ________.

market offerings

5 Marketing Management Orientations

production concept, product concept, selling concept, marketing concept, societal marketing concept

Market Offerings include _______

products, services, persons, places, organizations, information, and ideas

What are human wants

shaped by culture and individual personality, described in terms of objects that will satisfy needs

Market Offerings

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

What are human needs

states of felt deprivation, can be physical, social, individual

Customer Equity

the total combined customer lifetime values of all of the company's current and potential customers.

Marketing Concept

- achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do - sense-and-respond philosophy

Production Concept

- consumers will favor products that are available and highly affordable - focus on improving production and distribution efficiency

Product Concept

- consumers will favor products that offer the most in quality, performance, and innovative features - Under this concept, marketing strategy focuses on making continuous product improvements

Selling Concept

- consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. - concept is typically practiced with unsought goods—those that buyers do not normally think of buying, such as life insurance or blood donations

Social Marketing Concept

- holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being - questions possible conflicts between consumer short-run wants and consumer long-run welfare

Marketing Process

1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

The 4 P's of marketing

Product, Price, Place, Promotion

Customer Value

perceived benefits over perceived costs

Exchange

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

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 focused on customers needs instead of needs/wants

Customer Relationship Management (CRM)

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.

Share of Customer

the share they get of the customer's purchasing in their product categories