Marketing Chapter 1
What is a "Product"?
- Anything that can be offered to someone to satisfy a need or want. -this market offering/thing can be a combination of tangible or intangible product or service
Explain the difference between the "Selling" and "Marketing" Concept
-The Selling Concept doesn't establish long term customer relationships (more focused on getting rid of products) The Marketing Concept focuses on long term relationships with customers (There for profits will follow)
What are the direct benefits of Marketing 3.0
-better products -more targeted markets -higher consumer satisfaction -more sales and $ -larger market size and share
What can a company do to understand a customers needs, wants, and demands?
-consumer research -analyze sales data -Post-purchase survey
What's the "Selling Concept"?
-consumers will buy not enough products unless the company undertakes long selling and promotion efforts. (ie. They will only buy if its on sale.) Focus: maximize sales volume with aggressive selling and discounting Result: fails to establish long term customer relationships, creates false indication that company's product is successful, consumers have low product loyalty, hard selling is often a result of over-capacity.)
What is the "Production Concept"?
-consumers will buy whatever is available and cheap Focus: Improve production and distribution efficiency Results: customers who are focused on other benefits often en dup dissatisfied. (If you make it, customers will buy it.)
What is the "Product Concept"?
-customers prefer existing products that offer the most quality & performance Focus: Develop versions of an existing product and add to it (Marketing Myopia) Result: Consumers will leave when they find a different product that will better satisfy their core needs. ex. Mouse trap (improving the product feature rather than finding the real solution to the pest problem)
What does "Market Size" depend on?
-depends on the number of people who 1. have the need 2. have the ability to engage in exchange 3. are willing to offer these abilities in exchange for what they want
Whats is the "Marketing Concept"?
-determine the needs and wants of target market -deliver the desired satisfactions Focus & Result: -creates long term customer relationships, beats out competition, business is more focused and perceived as specialty. ex. Vegan diners
What are the indirect benefits of Marketing 3.0
-higher consumer loyalty -more distinct C2B communications -stronger long-term relationships -stronger brand -more and better C2C communications -Brand Evangelists
What is a "Market"?
-set of actual and potential buyers of a product -share particular/ common need or want
How can you differentiate between "needs", "wants" and "demands"? (list an example for each)
1. I "need" to get home from work 2. I "Want" a car 3. I "Demand" a Porsche
What are the 5 types of Marketing Concepts?
1. Production 2. Product 3.Selling 4.Marketing 5. Marketing 3.0
What are the 6 steps involved in Marketing and delivering customer satisfaction?
1. Raw Idea 2. Research Market 3.Identify needs of target consumer group (s) 4. Develop 4 P's 5. Profits from consumers 6.Long-Term relationships established
Whats is "Customer Value"
Customer value is the satisfaction a consumer feels after making a purchase for goods or services relative to what she must give up to receive them.*Must know customers and understand*
What is Marketing?
DELIVER CUSTOMER SATISFACTION AT A PROFIT. Satisfying customer needs, managing long term profitable relationships *through a product or service*
Is tourism Intangible or Tangible?
Intangible (based on experience, and service.)
What is the literal definition of marketing?
Marketing is the process by which companies create value for customers and society, resulting in strong customer relationships which capture value from the customers in return.
What is Abraham Maslow's "Hierarchy of needs"
Maslow stated that people are motivated to achieve certain needs. When one need is fulfilled, a person seeks to perfect the next one, and so on. 1. Physiological 2. Safety 3. Love and belonging needs 4. Esteem needs 5. Self actualization
What is monetary and non-monetary?
Monetary=of or relating to money or currency. (tangible assets) Non-Monetary= intangible assets ex. The necklace has sentimental as opposed to monetary value
What are the 4P's?
Product, Price, Place (distribution), Promotion (advertising, sales, publicity, promotions)
What is Target Marketing?
Selecting the one(s) who are most suitable and profitable and sell to them
What is "Mass-Marketing"?
Selling to any one and everyone
What does 'Intangible" mean?
Something that is undetectable by our 5 senses *customers usually don't know what they are getting until they don't get it.
What does "Tangible" mean?
Tangible products are evident - we can see them, feel them, smell them and even taste them.
What is the definition of a "demand"?
When backed by buying power (ability and willingness to buy) wants turn into demands (precise product, brand name)
What is the "Marketing 3.0" Concept?
When marketers approach consumers as whole human beings with minds, hearts and spirits; there for resulting in direct and indirect benefits
What is a human need?
a human need is a a state of felt deprivation
Whats the definition for a Marketing Manager?
a person involved in Marketing Analysis planning, implementation, and control activities.
What are Some esteem needs?
achievement, mastery, independence, status, dominance, self-respect etc..
What's a "Penetrated Market"?
actual group of consumers who really buy and like your product and stay mostly loyal to your product. (target market)
What are Physiological needs?
air, food, drink, shelter, warmth, sex, sleep
What must marketing always start with?
always understanding the needs and wants of consumers
What are customer expectations?
based on past buying experiences, the opinions of friends (WOM), and market information (advertisements, market intelligence) *Marketers must be careful to set the right level of expectations (Under-promise and Over-deliver is ideal ie. Ritz Carleton.)
Whats a CRM data file?
database of customer information
What does the term "Value" mean in terms of marketing a product to consumers?
derived satisfaction/ quality of product that fits the customer (doesn't just mean cheap product)
What is "Market-Segmentation"?
dividing the market into different segments and choose to sell to the most suitable market.
Whats an example of Love and Belongingness needs?
friendship, intimacy, family, affection and love etc..
What is Customer Relationship Management? (CRM)
managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty
What is Self actualization?
realizing personal potential, self fulfillment, soaking personal growth and peak experiences. (higher education status, elite membership...)
What are some Safety needs?
security of body, health, employment, finance.
What is Marketing Myopia?
short sightedness that arises when marketers are so consumed with their products and lose sight of real customer needs.
Whats the lifetime value of a customer?
the stream of profits a customer will create over the life of his or her relationship of business (A company can lose money on a specific transaction but still benefit greatly from a long-term relationship)
What is the definition of a "want"?
wants are how people communicate their needs; takes shape in terms of a product/service (shaped of time of day, culture, personality, peer group etc..)
