Chapter 1 Marketing

selling concept

The idea that consumers will not buy enough of the firms products unless the firm undertakes a large scale selling and promotion effort. Ex. insurance and blood donation people must be good at tracking down prospects and selling them on a product's benefits. This is high risk because it focuses on creating sales transactions rather than on building long term relationships.

What is the target market and what's our value proposition

The marketing manager must answer two important questions: what customers will we serve (_________) and How can we serve these customers best (__________)

wants

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

societal marketing concept

the idea that a company's marketing decisions should consider consumer's wants, and the company's requirements, consumers' long run interests and society's long run interests.

customer and demand

Marketing management is _____ and _____ management.

Marketing management

The art and science of choosing target markets and building profitable relationships with them. The aim to to find, attract, keep, and grow target customers by creating deliver, and communicating superior value

production 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. This concept runs a major risk of marketing myopia and focusing too narrowly on their own operations.

product concept

The idea that consumers will favor products that offer the most quality, performance, and features: therefore, the organization should devote its energy to making continuous product improvements. Leads to marketing myopia.

customer satisfaction

the extent to which a product's perceived performance matches a buyer's expectations

society, consumers, comany

3 considerations underlying the societal marketing concept

integrated marketing program

A firm must blend each marketing mix tool into a comprehensive _____ _____ ______ that communicates and delivers the intended value to chosen customers.

Marketing Concept

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. customers focus and value are the paths to sales and profits. "sense and respond" philosophy.

shared value

GE, Walmart, Google are all working on embarking on important efforts to create shared economic and societal value by rethinking the intersection between society and corporate performance

superior value, satisfaction

Goal of marketing is to attract new customers by promising ______ ______ and to keep and grow current customers by delivering _________

services

Market offerings are not limited to physical products, they also include __________.

Outside in

Marketing concept takes an _____ __ perspective. Starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers.

customer alue and customer satisfaction

_________ __________ and ________ __________ are the key building blocks for developing and managing customer relationships

customer perceived value

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

market segmentation

dividing the market into segments

demands

human wants that are backed up by buying power

marketing

managing profitable customer relationships

customer driven

research customers deeply to learn about their desires, gather new product ideas, and test product improvements

target marketing

selecting which segments it will go after

Market

set of actual and potential buyers of a product or service. These buyers share a particular need/want that can be satisfied through exchange relationships

value proposition

set of benefits or values it promises to deliver to consumers to satisfy their needs. Facebook helps you "Connect and share with the people in you life" whereas YouTube "provides a place for people to connect, inform, and inspire others across the globe". They help differentiate one brand from another.

marketing mix

set of marketing tools that work together to satisfy customer needs and build customer relationships

market offerings

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

Exchange

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

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.

marketing

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

Customer driving

understanding customer needs even better than the customer and creating products and services that meet both existing and latent needs. (Henry Ford; Faster Horses)