Mktg: Chapter 1

value

A customer's subjective assessment of benefits relative to costs in determing the worth of a product. Through the integration of their perceptions of product quality and financial sacrifice.

A good

A physical entity you can touch - oakley sunglasses, seven for all manking jeans, axe body spray...

Green marketing

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

Promotion mix

Advertising Personal selling Public relations Sales promotion

Risk

Another nonmentary cost, can be reduced by offering good basic warranties or extended waranties for an additional charge.

Product

Anything customer receives in an exchange. Good Service Idea Includes Brand names Packaging Warranties Repairs

Price

Anything the customer gives up in an exchange. Monetary cost is the first thing most people think about

how it satisfies customers.

Business should be defined according to what?

Exchange

Buyers and sellers each swap something of value. Each party expects to gain a reward greater than the costs. Both buyer and seller must benefit.

Socially responsible marketing

Can promote the welfare of customers and society

Distribution variable

Companies can now make their products available throughout the world w/o maintaining facilities in each country. This is an example of?

Stakeholders

Constituents who have a "stake" or claim, in some aspect of a company's products, operations, markets, industry, and outcomes. Developing relations with these are crucial to the long-term growth of an organization and its products.

Experiences

Customers receive benefit based on their?

Product variable

Deals with researching customers' needs and wants and designing a product that satisfies them. Also involves creating and modifying brand names and packaing and may include warranty and repair services decisions

Dynamic

Determines opportunities and threats Economic Political Legal and regulatory Technological Sociocultural Competitive

Managing customer relationships

Goal is to achieve full profit potential of each customer. Should all customers be treated the same (equally)? Some customers have more potential than others. Focuses on using information to maintain desirable customer relationships. May include formal loyalty programs.

By increasing consumers' perceptions of the products quality and social approval.

How does marketing increase the value of products?

Cost

Include anthing a buyer must give up to obtain the benefits the product provides.

Customer costs

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

Idea

Include concepts, philosophies, images and issues. - marriage counselor, politcal parties, churches, schools

Customer benefits

Includes anything a buyer receives in an exchange. ie: Hotels and motels provide a room, but different levels of services and amenities.

Marketing environment

Includes competitive, economic, politcial, legal and regulatory, technological, and sociocultural forces, surrounds the customer and affects the marketing mix.

Promotion

Inform Desire Encourage purchase Sustain interest

Customers

Marketing focuses on what?

Marketing Concept

Not a second definition of marketing. Realize you are not selling a product, you are satisfying needs. An organization should try to provide prods that satisfy customers' needs tht also allows the organization to achieve its goals.

Time Effort Opportunity to buy something else

Other elements of price?

Customer value

Percieved benefit - percieved cost to customer

Product Orientation

Possibility to produce goods more efficiently. With new techhnology and new ways of using labor, products poured into the marketplace, where demand for manufactured goods was strong.

Evolution

Production orientation Sales orientation Product orientation Market orientation

relationship marketing

Refers to "long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges.

Market Orientation

Requires the "organizationwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organizationwide responsiveness to it." Linked to new-product innovation by developing a strategic focus to explore and develop new products to serve target markets.

Customer Relationships management

Requires: Identifying buying patterns. Focusing on the most promising and profitable customers.

A service

The application of human and mechanical efforts to people or objects to provide intangible benefits to customers. - air travel, education, haircutting, banking, mdical care....

Perceptions of value

The marketing mix can be used to enhance?

Monetary price

The most obvious cost

Sales Orientation

The period when businesses viewed sales as the major means of increasing profits. Believed that the most important markting activities were personal selling, advertising and distribution.

Marketing

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

Exchanges

The provision or transfer of goods, services, or ideas in return for something of value. When this occurs, products are traded for other products or for financial resources.

Nonmonetary costs

The time and effort customers expend to find and purchase desired products.

Customer lifetime value

This is a key measurement that forecasts a customers lifetime economic contribution based on continued relatiionship marketing efforts.

increase product availability

To reduce time and effort, a company can?

Customer relationship management

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

Marketing mix

Variables that can be controlled and changed as part of a marketing strategy. Components Product Distribution Promotion Price Must match the needs of customers in target market. Based on in-depth, up-to-date information.

Economic conditions Competitive structures government regulations How expensive

What limits marketing managers from altering variable of the marketing-mix.

Distribution

When (time utility). Where (place utility). Economically (logistics).

Target market

group of customers that is the focus of marketing.

Benefit

include anything a buyer recieves in an exchange