MKTG Chapter 1

green marketing

A strategic process involving stakeholder assessment to create meaningful, long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

the benefits they desire and their willingness and ability to pay for the costs associated with the benefits.

Customers judge which type of accommodation offers the best value according to

relationship marketing

Establishing long-term, mutually satisfying buyer-seller relationships

premium image example: Higher prices can be used competitively to establish a product's

Higher prices can be used competitively to establish a product's

customer relationship management

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships

entertainment and making people happy

Walt Disney company is not in the business of establishing theme parks; it is in the business of

Product

a bundle of satisfaction that provides value to the customer

customer value

customer benefits - customer costs

experiences

customers receive benefits based on their

reducing energy consumption, developing environmentally friendly packaging, and creating easily recyclable products

examples of practicing green marketing

Target Market

focusing marketing efforts on a specific group of customers

1. two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires 2. the exchange should provide a benefit or satisfaction to both parties involved in the transaction 3. each party must have confidence in the promise of the "something of value" held by the other 4. to build trust, the parties to the exchange must meet expectations

for an exhange to take place, four conditions must exist

1. they influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. 2. marketing environment forces help to determine whether and how a marketing manager can perform certain marketing activities. 3. environmental forces may affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix

general ways the forces of the marketing environment affect a marketers' ability to facilitate value driven marketing marches

Product

good, service, or idea

Promotion

helps customers learn about the products and determine if it will satisfy their needs

Price

helps establish value

information technology

helps marketers understand and satisfy more customers than ever before

a company can increase product availability, thereby making it more convenient for buyers to purchase the firm's products.

how to reduce time and effort

Customer costs

include anything a buyer must give up to obtain the benefits the product provides.

time and effort

nonmonetary costs

Products

not what a company makes or produces, but what they do to satisfy the customers.

Good

physical entity you can touch

revenue (which is the responsibility of the marketing function)

price mulitplied by quantity sold

Marketing Mix

product, price, distribution, and promotion

Promotion variable

relates to activies used to inform and persusade to create a desired response

in-depth, up-to-date information about customer needs examples: age, income, ethnicity, gender, and educational level, their preferences for product features, their attitudes toward competitors' products, and the frequency with which they use the product

Before marketers can develop a marketing mix, they must collect

The Sales Oritentation

Businesses viewed this as the major means of increasing profits

example of product variable

Coca-Cola released a new global design for its products that features the traditional red as the main color. The "one brand" strategy is to create a unified global presence for its flagship soda.

to create and maintain the right mix of these variables to satisfy the customers' needs for a genral product type.

A primary goal of marketing managers is

risk-reduction strategy

100% satisfaction guarantee

value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product

marketing concept

A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals

The Production Orientation

Although mass markets were evolving, firms were developing the ability to produce more products, and competition was becoming more intense.

market oritentation

An organizationwide commitment to researching and responding to customer needs

1. by acquiring new customers, 2. by enhancing the profitability of existing customers, and 3. by extending the duration of customer relationships.

At the most basic level, profits can be obtained through relationships in the following ways:

the long term needs of society

It is important that marketers consider not only their current buyers' needs, but also

buidling of stakeholder relationships

Marketing also creates value through the

customers are concerned about benefits, roles, and costs

Price is a critical component of the marketing mix because

sustain the operations of the organization and provide financial returns to investors

Marketing is the business function responsible for creating revenue to

example: Walmart's tagline "Save Money. Live Better."

Other companies are skilled at providing products at prices lower than their competitors'

Service ex: air travel, education, lodgin, banking, medical care, day care

The application of human and mechanical efforts to people or objects to provide intangible benefits to customers.

marketing environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

Marketing

The process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

Customers

The purchasers of organizations' products; the focal point of all marketing activities

marketing research and analytics

To build these long-term customer relationships, marketers are increasingly turning to

what buyers want and uses this information to develop satisfying products

To implement the marketing concept, an orgnaization strives to determine

Distribution

To satisfy customers, products must be available at the right time and in appropriate locations.

customer beneftis ex: Hotels and motels, for example, basically provide a room with a bed and bathroom, but each brand provides a different level of service, amenities, and atmosphere to satisfy its guests.

anything a busy receives in an exchange

risk

can be reduced by offering good, basic warranties or extended warranties for an additional charge

Promotion

can increase public awareness of the organization and of new or existing products.

Ideas

concepts, philosophies, images, and issues

stakeholders

include those constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes; these include customers, employees, shareholders, suppliers, governments, communities, competitors, and many others.

product variable

involves creating or modifying brand names and packaging, and it may include decisions regarding warranty and repair services

customer satisfaction

the major focus of the marketing concept

pricing

the most lexible marketing-mix variable and can be changed very quickly

exchanges

the provision or transfer of goods, services, or ideas in return for something of value

stakeholders

to build trust, the parties to the exchange must meet expectations