Marketing Ch 1: Overview of Marketing Assignment

List four functions that illustrate the importance of marketing.

1. Can be entrepreneurial 2. Expands global presence 3. Enriches society 4. Pervasive across channel members

A firm doing the right thing emphasizes the importance of marketing to __________.

?

customer relationship management (CRM)

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers. Firms that employ CRM systematically collect information about their customers' needs and then use that information to target their best customers with the products, services, and special promotions that appear most important to them.

Marketing Plan

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements. The _______________ also is broken down into various components—how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.

Market-Oriented Era

After World War II, soldiers returned home, got new jobs, and started families. At the same time, manufacturers turned from focusing on the war effort toward making consumer products. Suburban communities, featuring cars in every garage, sprouted up around the country, and the new suburban fixture, the shopping center, began to replace cities' central business districts as the hub of retail activity and a place to just hang out. Some products, once in limited supply because of World War II, became plentiful. And the United States entered a buyers' market—the customer became king! When consumers again had choices, they were able to make purchasing decisions on the basis of factors such as quality, convenience, and price. Manufacturers and retailers thus began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products and services. It was during this period that firms discovered marketing. Approx 1950-1990.

Sales-Oriented Era

Between 1920 and 1950, production and distribution techniques became more sophisticated; at the same time, the Great Depression and World War II conditioned customers to consume less or manufacture items themselves, so they planted victory gardens instead of buying produce. As a result, manufacturers had the capacity to produce more than customers really wanted or were able to buy. ** Firms found an answer to their overproduction in becoming sales oriented: They depended on heavy doses of personal selling and advertising.

How come Within just a couple of years, mobile advertising will be a bigger market than digital advertising?

Both forms are similar, in the sense that they are clearly distinct from traditional marketing and seek to reach technologically savvy shoppers. But they require unique approaches and marketing plans because a campaign that works well on a user's desktop computer might not function effectively on a tablet or smartphone. Furthermore, mobile marketing offers functionalities and advertising tactics that digital ads cannot provide. In addition, mobile advertising allows brands and marketers to send timely, location-based communications to consumers at the moment they enter a store or begin a search for a nearby restaurant on their phones.

How Do Marketing Firms Become More Value Driven?

Firms become value driven by focusing on four activities: First, they share information about their customers and competitors across their own organization and with other firms that help them get the product or service to the marketplace, such as manufacturers and transportation companies. Second, they strive to balance their customers' benefits and costs. Third, they concentrate on building relationships with customers. Fourth, they take advantage of new technologies and connect with their customers using social and mobile media.

Value-Based Marketing Era

Since approximately 1990, better marketing firms recognized that there was more to good marketing than simply discovering and providing what consumers wanted and needed; to compete successfully, they would have to give their customers greater value than their competitors did

Promotion (4 Ps)

The fourth P is ___________. Even the best products and services will go unsold if marketers cannot communicate their value to customers. ______________________ is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service so as to influence their opinions and elicit a response. _______________ generally can enhance a product's or service's value.

business-to-consumer (B2C) marketing

The process by which businesses sell to consumers is known as ____________________________

consumer-to-consumer (C2C) marketing

The process in which consumers sell to other consumers. For example, through various Internet sites such as eBay and Etsy, consumers market their products and services to other consumers.

Price (The 4Ps)

The second of the four Ps is ________________. Everything has a _________________, although it doesn't always have to be monetary. ______________, therefore, is everything the buyer gives up—money, time, and/or energy—in exchange for the product. Marketers must determine the ______________________ of a product carefully on the basis of the potential buyer's belief about its value

Marketing Channel

The set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption; consists of all the institutions and marketing activities in the marketing process. All the various channel members (e.g., suppliers, manufacturers, wholesalers, and retailers) of the supply chain are firms that are likely to provide career opportunities to marketing professionals.

Product (4 P's)

The starting point of the 4 Ps. Although marketing is a multifaceted function, its fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, brand, image, values, etc to satisfy customer needs.

Place (The 4Ps)

The third P, ____________________, represents all the activities necessary to get the product to the right customer when that customer wants it. ________________ more commonly deals specifically with retailing and marketing channel management, also known as supply chain management.

Great and distinguished entrepreneurs have visions of how certain combinations of products and services can satisfy unfilled needs. They find and understand a:

They find and understand a marketing opportunity (i.e., the unfilled need), conduct a thorough examination of the marketplace, and develop and communicate the value of their products and services to potential consumers.

Production-Oriented Era

Turn of the 20th century when most firms were production oriented and believed a good product would sell itself Manufacturers were concerned with product innovation, not with satisfying the needs of individual consumers, and retail stores typically were considered places to hold the merchandise until a consumer wanted it.

Value

________________ reflects the relationship of benefits to costs, or what you get for what you give. In a marketing context, customers seek a fair return in goods and/or services for their hard-earned money and scarce time. They want products or services that meet their specific needs or wants and that are offered at a price that they believe is a good value. A good value, however, doesn't necessarily mean the product or service is inexpensive. If it did, luxury goods manufacturers like Godiva would go out of business. There are customers willing to pay asking prices for all types of goods at all price levels because, to those individuals, what they get for what they give is a good value.

Relational Orientation

a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

The key to determining prices is

figuring out how much customers are willing to pay so that they are satisfied with the purchase and the seller achieves a reasonable profit.

value cocreation

in this case, customers can act as collaborators to create the product or service. When clients work with their investment advisers, they cocreate their investment portfolios; when Nike allows customers to custom design their sneakers, they are cocreating.

Ideas (Products)

include thoughts, opinions, and philosophies; intellectual concepts such as these also can be marketed.

Socially responsible firms recognize that:

including a strong social orientation in business is a sound strategy that is in both its own and its customers' best interest.

Services (Products)

intangible customer benefits that are produced by people or machines and cannot be separated from the producer. Examples include: tickets to a concert, airplane, etc.; hotels, insurance companies; getting money from your bank (adding value); etc

Supply chain management

is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction (e.g., transportation companies) into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers.

Marketing Mix/ The 4 Ps

product, price, place, and promotion. The four Ps are the controllable set of decisions or activities that the firm uses to respond to the wants of its target markets.

Exchange: The Underpinning of Seller-Buyer Relationships

sellers provide products or services, then communicate and facilitate the delivery of their offering to consumers.

The American Marketing Association (AMA) states that "marketing is...

the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

Value-oriented marketers constantly measure

the benefits that customers perceive against the cost of their offerings. They use available customer data to find opportunities to satisfy their customers' needs better, keep down costs, and develop long-term loyalties.

Supply Chain

the group of firms that make and deliver a given set of goods and services

Goods (Products)

the physical objects that someone produces

business-to-business (B2B) marketing

the process of selling merchandise or services from one business to another is called ___________________________________

Although marketing is a multi-faceted function, its fundamental purpose is

to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.