Chapter 1: Overview of Marketing

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. Done periodically to get customer info and target best customers.

*Relationship orientation*

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

What is an entrepreneur?

a person who organizes, operates, and assumes the risk of a business venture

*Promotion*

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.

Social misison

Compels us to use our company in innovative ways to make the world a better place.

In 2009, mobile Internet ad spending was $____billion, whereas in 2018 it is projected to be $ billion.

1.3; 125

* marketing helps create value*

If we get rid of ads people would have to pay around $1200 to use a dozen channels and those with specific audience would probably die out. Less of everything. Product era --> now in value based era.

Kroger collects massive amounts of data about how, when, why, where, and what people buy, and then analyzes those data to better serve its customers. This refers to

marketing analytics.

The ________ addresses how a product will be designed, how much it should cost, how it will be promoted, and how it will get to consumer

marketing plan

A national hotel chain engages in conversations with its customers through Facebook and even allows them to book their hotel reservations through its Facebook page. This is an example of marketing using

social media.

When companies work collaboratively to buy and sell, transport, and store merchandise through a channel of distribution, it involves the entire ________ for goods and services.

supply chain

*Marketing*

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Partners in the supply chain include

whole sales, retailers, or other intermediaries such as transportation warehouse companies.

*In the 4Ps product is*

Creating value. Fundamental principal of marketing, create value by developing offerings to satisfy customer needs and wants (goods services, ideas).

Marketing intermedieries

(retailers) accumulate merchandise from products in large amounts and then sell it to you in smaller amounts.

Apple's iPad is an example of which of the following types of marketing offerings?

Goods

A group that sponsors bike helmet poster contests for children to promote bicycle safety is providing which of the following marketing offerings?

Ideas

According to your text, which of the following can be said regarding the use of social media in advertising?

Only 20 percent of the world's population uses Facebook—which means 80 percent still has not signed up.

*Marketing Stakeholders*

Society, customers, employees, supply chain.

Marketing can be preformed by individuals and organizations

b2b, b2c, c2c

Because it has been at the center of success for many companies, marketing is considered a cornerstone of

entrepreneurship.

Goods

items that you can physically touch. Ex: a bag of Godiva chocolate

The ________ era embraced the belief that a good product would sell itself.

production-oriented

The goal of a marketing exchange is that the parties to the transaction be

satisfied.

Which of the following illustrates how marketing has a direct impact on consumers?

Marketing helps consumers learn about new products and services.

*Ideas*

Thoughts, opinions, and philosophies; intellectual concepts such as these can be marked.

A service is different from a good in that the benefit is

intangible.

To communicate to consumers that its products are both healthy and delicious, Red Mango would use which of the 4 Ps?

promotion

When marketers communicate the value proposition, it involves the ________ element of the marketing mix.

promotion

Crest toothpaste targets different consumer ________ by offering different types of toothpaste for smokers than it does for children based on their differing needs and wants.

segments

Having employees make smoothies for customers represents which aspect of a product offering?

service

*Market place*

broad: the world of trade. Narrow: divided into groups of people who are pertinent to an organization for particular reasons.

* Value based marketing Era*

most successful firms today are market oriented, meaning they generally have transcended a production or selling orientation and attempt to discover and satisfy their customers' needs and wants. Price is justified and what they get for what they give is of good value. (doesn't mean inexpensive).

During the last couple of decades, it has become important for value-oriented marketers to ________ with customers.

move toward a relational perspective from a transactional orientation

*In the 4Ps Price is*

Capturing value. Everything has a price, not always monetary. It can be everything the buyer gives up in exchange for the product. You pay more for convince ( last minute plane ticket).

*In the 4Ps promotion is*

Communicating value proposition.

*marketing enriches society*

Focuses on nonfictional things like good corporate citizenry, greener products, ect. Strong social orientation in business is a strategy that is the best interest of the company and the custoemrs.Can be trusted long-term.

When an optical center provides eye exams and new contact lenses as its offering, it is an example of which the following combinations?

Goods and services

*Business- to consumer marketing (B2C)*

The process by which businesses sell to consumers. (Sells pc's and monitors)

* Production oriented Era*

Turn of 20th century, most firms believed that to be a good product it sold itself. Product innovation, not customer wants was the focus. Held merchandising until a costumer wanted it.

*Purchase trends*

Used by companies like Amazon. It creates a record of your purchases, credit card info is already there. Uses this to make personal recommendations.

*balancing benefits with cost*

Value oriented marketers constantly measure the benefits that consumers perceive against the cost of their offerings. Use date to meet customer needs, keep cost low and develop long term loyalties.

*Entrepreneurs*

a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Firms that are ________ recognize that including a strong social orientation in business is a sound strategy that is in the best interest of both the firm and its customers.

socially responsible

Modern marketers rely on

sophisticated data and analytics to define their approaches to their consumers and their markets. When, how, why, and where people are.

*Supply chain*

A group of firms that make or deliver a given set of goods/ services.

*Business- to- business (B2B) marketing *

The process of selling merchandise or services from one business to another. (manufacturer makes monitors)

*Marketing is a way to facilitate*

The sale of products or services to consumer clients.

* 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.

Understanding consumers' ________ is fundamental to marketing success.

needs and wants

When an electronics company sells its global positioning systems to a car manufacturer, it is engaged in ________ marketing.

B2B

*Value co creation*

Customers act as collaborators with manufactures or retailers to create the product or service.

Which marketing mix element deals specifically with retailing and marketing channel management?

Place

*Marketing consists of*

creating value, satisfying customer wants/needs, exchange, 4Ps,by individuals and organizations, affects various stakeholders.

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers is known as

customer relationship management.

The ________ consists of the product, price, place, and promotion of an offering.

marketing mix

The video mentions how firms compete on price point, store design, and the product itself. These are all elements of a firm's

marketing mix.

By creating cool, comfortable stores that invite customers to socialize, Red Mango increased the ______ of its market offerings.

value

Services

Any intangible offering that involves a deed, performance

Economic mission

Asks us to manage our company for sustainable financial growth.

*Marketing can benefit an industry as a whole*

Company can do a charity event and restore the notion in food banks that benefits the whole industry.

*Geographic Information System*

Graphical summaries of GIS data in map form. Location info, demographics details, the software allows pertinent criteria. Helps determine what kind of store to open and where.

*In the 4Ps place is*

Delivering value. Supply chain management. All the activities necessary to get the product to the right customer when the customer wants it. Can mean expanding storefronts like Starbucks (data analytics helps gather and analyze info. Helps with profitability). Use GIS

Product mission

Drives us to make fantastic icecream- for its own sake.

*value*

Reflects the relationship of benefits to costs. What you get for what you give. People want a fair return.

Building Relationships with customers

Relationship orientation, customer relationship managment

Marketing plan*

Specifies the marketing activities for a specified period of time. Analysis of current market situation, opportunities/ threats, marketing objectives, strategy, 4Ps, action programs, projected income.

A firm relies on a wide variety of vendors to make and distribute its products. Manufacturers buy raw materials from suppliers, use shipping companies to transport finished goods to multiple locations, and establish relationships with the retailers who sell them to consumers. Put all these businesses together and you have a

supply chain.

Customers can use the self-service area to customize their own dish of frozen yogurt. In marketing terms, Red Mango is engaging these customers in

value co-creation.

____ billion people link to some social media sites through their mobile devices.

4.2

*Supply Chain Management*

The set of approaches and techniques that a firm employs to effectively and efficiently integrate their suppliers, manufacturers, warehouses, and stores, and firms involved in the transaction into a stemless value chain in which merchandise is produced and distributes in the right quantities, to the right locations, at the right times, while minimizing system died cost and satisfying service requirements by customers. Enhances a product/ service's value. use nostalgia and any means to get a product out there.

*How is that idea marketed?*

Organizations such as Mothers Against Drunk Driving or Students Against Drunk Driving often receive support from brewers and distillers in promoting responsible drinking and safe driving. What is the exchange these groups are asking consumers to enter? They want you to consume alcohol in a manner that is consistent with safety, which means sacrificing some consumption. Groups promoting using bike helmets to children. Exchange of value occurs when the children listen to the sponsors and use helmets while riding their bike, they become "purchasers".

*marketing is entrepreneurial*

center of many business ventures.

Which of the following is one of the core practices among value-oriented marketers?

constantly measuring the benefits that customers receive against the costs of offerings

*Consumer to consumer (C2C) marketing*

consumers sell to other consumers (Etsy, Ebay)

Marketers determine the price of a product carefully on the basis

of potential buyer's belief about its value.

Redbox uses the ________ element of the marketing mix to make movie rentals available for customers when and where they need them.

place

Which of the marketing mix elements corresponds to what the buyer gives up in the marketing exchange?

Price

A firm that creates value by developing a variety of offerings including goods, services, and ideas is doing so through which element of the four Ps?

Product

*Marketing mix (4Ps)*

Product, Price, Place, Promotion- the controllable set of activities that a firm uses to respond to the wants and needs of the target market. 5th P is patience (this isn't really a thing.. he just said it as a joke).

*Marketing expands global presence*

It also enhances global career opportunities for professionals.

*Marketing analytics helps with*

1. Balancing benefits with cost, 2. building relationship with customers, 3. Connecting with customers

* importance of marketing*

1. can be entrepreneurial, 2. Expands global presence, 3. enriches society, 4. Pervasive across channel members.

* How do Marketing firms become more value driven*

1.Share information about their customers and competitors across their own organization or other firms. (helps them get thier product / service to the marketplace). 2. strive to balance their customers benefits and costs 3. concentrate on building relationships with customers 4. take advantage of new technologies and connect with their customers by using social and mobile media.

*Sales oriented era*

1920-1950: more sophisticated production techniques. Great depression ww2. Taught items to manufacture themselves. Surplus led to personal selling and advertising for firms (quality, convenience, and price).

____% of marketers use social media tools for their businesses

97%

Exchange

The trade of things of value between the buyer and the seller so each is better off as a result.

Rather than being just a random activity, good marketing requires ________ in determining appropriate actions to produce sound decisions.

Thoughtful planning

*Marketing advises production about*

how much of the company's product to make. And tells supply chain managers to ship it. Identifies long- lasting relationships that make them expand globally. Impact consumers to know about new products.