marketing chapter 1

commercialism

began after industrial revolution. prior, made in small quantities, locally, in shops. changed with invention of steam engine in england in 1760's

4 marketing concept

build profitable relationships and create customer value

result of marketing concepts

capture value from customers to create profits and customer equity

3 marketing concept

construct an integrated marketing program that delivers superior value

relationship marketing

focus on customer relationship and satisfaction for consistent clients

transaction

focuses on single point of sale transactions. focus on maximizing value rather than a relationship

2 marketing concept

design a customer driven marketing strategy

production concept

holds that consumers will favor products that are available and highly affordable; therefore the organization should focus on improving production and distribution efficiency

demands

human wants that are backed by buying power

societal marketing concept

idea that a companys marketing decisions should consider consumers wants, the company's requirements, consumers long run interests, and societies long run interests

product concept

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

selling concept

idea that consumers will not buy enough of the firm's products unless the firm undertakes a large scale selling and promotion efforts

customer managed relationships

marketing relationships in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands

marketing myopia

mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

marketing

more than any other business function deals with customers. it is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

customer relationship marketing

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

marketing concept

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

marketing offering

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

needs

states of felt deprivatioin

exchange

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

marketing management

the art and science of choosing target markets and building profitable relationships with them

customer satisfaction

the extent to which a products perceived performance matches a buyers expectations

wants

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

market

the set of all actual and potential buyers of a product/service

customer lifetime value

the value of the entire stream of purchases a customer makes over a lifetime of patronage

customer equity

total combined customer lifetime values of all of the company's customers

1 marketing concept

understand the marketplace and customers needs and wants

partner relationship managment

working closely with partners in other companys departments and outside the company to jointly bring greater value to customers