Define Marketing

Supply Chain

A longer channel stretching from raw materials to final customers. Marketing is often viewed as the art of managing a supply chain (Apple).

Satisfaction

A persons comparative judgment of a products perceived performance in relation to expectation.

Selling concept

An inside-out view that focuses on existing products and heavy selling. The aim is to sell what the company makes rather than making what the customer wants.

Marketing

An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing concept

An outside-in view that focuses on satisfying customers needs as paths to profits.

Relationship Marketing

Building mutually satisfying long term relationships with key constituents in order to retain their business.

Performance Marketing

Concerned with understanding the business returns from marketing activities, as well as addressing legal, ethical, social and environmental effects of business practices. Financial accountability and social responsibility are the two main themes.

Product Concept

Consumers favor the best product (quality, performance, or innovative features).

5. Capture value from customers: Marketing Process

Create satisfied, loyal customers. Capture customer lifetime value. Increase shares of market and customer.

4. Build profitable relationships: Marketing Process

Customer relationships management. Partner relationship management.

Strength and length of customer relationship management is determined by

Customer-perceived value is the difference between total benefits and total cost as perceived by customer. Customer satisfaction is the products perceived performance relative to buyers expectations (conformance quality).

(Mass) Production Concept

Customers prefer products that are widely available and inexpensive.

Key categories of constituents:

Customers, Employees, Partners

Selling Concept

Customers, if left alone, will not buy enough of the organizations products.

Marketing Concept

Design the right product for your own customers.

Internal Marketing

Ensures that everyone in the organization embraces appropriate marketing principles. Most important functions: hire the right ppl, train and motivate employees, empower employees, monitor and reward/reinforce good performance. Ex: Southwest Airlines- man rapping.

New Company Capabilities

Increased market reach. Online communities increases brand awareness. IT improves efficiency in value chains. Interactive marketing techniques improve target marketing and facilitate permission marketing efforts.

Integrated Marketing

Integrating all marketing elements requires a strategy and a marketing program that creates, communicates, and delivers value for customers.

New Consumer Capabilities

Lower brand loyalty and more/better information.

Customer Relationship Management (narrow definition)

Managing information about individual customers (using modern IT) in order to maximize loyalty.

Market

Physical place where buyer and sellers meet to transact. Collection of buyers and sellers who transact over a particular product. Used to describe a group of customers. Sellers constitute an industry. Buyers constitute a market.

Societal (holistic) marketing concept

Premise: everything matters with marketing. Focuses on all aspects of marketing strategy with emphasis on integrated marketing planning, relationship marketing, internal marketing, performance marketing.

3. Implement an integrated marketing program: Marketing Process

Product and service design. Pricing. Distribution. Promotion.

The marketing mix for integrated marketing is the set of tools (Four Ps) the firm uses to implement the marketing program:

Production, Price, promotion, Place

1.Understand the market and customer wants: Marketing Process

Research customers and markets. Manage marketing information and customer data.

2. Design a customer driven marketing strategy: Marketing Process

Select customers to serve. Decide on value proposition.

Market Offering

Some combination of products, services, information, or experiences offered to the market to satisfy a need or want.

Marketer

Someone who seeks a response from a prospect. Must have diverse skills: quantitative, qualitative, entrepreneurial, and creative. Roles are defined in a logical marketing process.

Wants

Specific needs that are shaped by culture and personality. Marketing influences wants!

Needs

States of felt deprivation. Marketing does not create needs.

Marketing Environment

Task environment includes immediate actors involved in producing, distributing, and promoting the offering. Broad Environment consists of six additional sub-environments.

Societal Marketing Concept

The idea that a company should make good marketing decisions by considering consumers wants, the company's requirements to achieve profits, and society's long run interest.

Marketing Myopia

The mistake of paying attention to product rather than customer benefits. The bread wheel is an example.

Customer Relationship Management (broad definition)

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Globalization

The process by which regional economies become integrated. It describes the transactional circulation of ideas, languages, cultures, and trade.

Competition

The rivalry b/t individuals and firms for a greater share of the market. Multi-dimensional.

Target Market

The segment of customers that the company wants to serve. Companies decide who to serve by diving the market into segments of customers. For each target market, the firm develops a value proposition and attempts to position in the minds of customers.

Value

The sum of the perceived tangible and intangible benefits and costs to customers. "Customer value triad"- quality, service, and price.

Distribution marketing channel

Used to display, sell or deliver products or services.

Service marketing channel

Used to facilitate transactions.

Demands

Wants backed by buying power.

Communication marketing channel

deliver and receive messages from target market.