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43 Cards in this Set

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What Is Marketing?
Marketing deals with identifying and meeting human and social needs.

One of the shortest definitions of marketing is "meeting needs profitably."
American Marketing Association's Formal Definition of Marketing?
Marketing is 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 stake holders.


We see marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
What is the Social Definition of Marketing?
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
What is the Managerial Definition of Marketing?
For a managerial definition, marketing has often been described as "the art of selling products," but people are surprised when they hear that the most important part of marketing
is not selling! Selling is only the tip of the marketing iceberg
What is an Exchange?
Exchange, which is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return. Exchange is a value-creating process because it normally leaves both parties better off.
What are the conditions required for an Exchange to take place?
For exchange potential to exist, five conditions must be satisfied:

1. There are at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the other party.
What is a Transaction?
A transaction is a trade of values between two or more parties: A gives X to B and receives Yin return. Smith sells Jones a television set and Jones pays $400 to Smith. This is a classic monetary transaction.

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A transaction involves several dimensions: at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.
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How does a transaction differ from a transfer?
In a transfer, A gives X to B but does not receive anything
tangible in return. Gifts, subsidies, and charitable contributions are all transfers.
What are the different things that are marketed?
Goods, Services, Events, Experiences, Persons, Places, Properties, Organizations, Information, Ideas.
What are the different Demand States that can exist for a product?
Eight demand states are possible:

1. Negative demand- Consumers dislike the product and may even pay a price to avoid it.

2. Nonexistent demand - Consumers may be unaware or uninterested in the product.

3. Latent demand - Consumers may share a strong need that cannot be satisfied by an existing product.

4. Declining demand - Consumers begin to buy the product less frequently or not at all.

5. Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

6. Full demand - Consumers are adequately buying all products put into the marketplace.

7. Overfull demand - More consumers would like to buy the product than can be satisfied.

8. Unwholesome demand - Consumers may be attracted to products that have undesirable social consequences.
What is a Market?
Traditionally, a "market" was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class (e.g., the housing market or grain market).
What are the KEY CUSTOMER MARKETS?
The four key customer markets are: consumer, business, global, and Nonprofit and Governmental Markets.
What is the difference between a marketplace and a marketspace?
The marketplace is physical, as when you shop in a store; marketspace is digital, as when you shop on the Internet.
What is a Metamarket?
A metamarket is a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.

Example: The automobile metamarket consists of automobile manufacturers, new car and used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, service shops, auto magazines, classified auto ads in newspapers,
and auto sites on the Internet. In purchasing a car, a buyer will get involved in many parts of this metamarket, and this has created an opportunity for metamediaries to assist buyers to move seamlessly through these groups, although they are disconnected in physical
space. Edmunds.com website.
What are the important changes in Business and Marketing that we are witnessing today?
1. Changing technology: Digital revolution, Information Age, mass production and mass consumption, more accurate levels of production, more targeted communications, and more relevant pricing.

2. Globalization. Technological advances in transportation, shipping, and communication.
3. Deregulation. Many countries have deregulated industries to create greater competition and growth opportunities. (Telephone Companies in US).
4. Privatization: Conversion of public companies to private ownership and management to increase their efficiency.
5. Customer empowerment: Customers increasingly expect higher quality and service and some customization, shop more intelligently.
6. Customization: Individually differentiated goods whether ordered in person, on the phone, or online; capacity to interact with each customer personally, to personalize messages, services, and the relationship.
7. Heightened competition. Brand manufacturers are facing intense competition from domestic and foreign brands, which is resulting in rising promotion costs and shrinking profit margins.
8. Industry convergence: Industry boundaries are blurring at an incredible rate. Pharmaceutical companies, at one time essentially chemical companies, are now adding biogenetic research capacities in order to formulate new drugs, new cosmetics.
9. Retail transformation: Small retailers are succumbing to the growing power of giant retailers and "category killers."
10. Disintermediation: dot-coms such as AOL, Amazon, Yahoo, eBay, E'TRADE, and dozens of others who created disintermediation in the delivery of products and services, struck terror in the hearts of many established manufacturers
and retailers.
What are the key concepts underwhich marketing has been conducted?
1.The Production Concept
2.The Product Concept
3.The Selling Concept
4.The Marketing Concept
5.The Holistic Marketing Concept
What is the Production Concept?
The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.
What is the Product Concept?
The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in these organizations focus on making superior products and improving them over time.
What is the Selling Concept?
The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products. The organization must, therefore, undertake an aggressive selling and promotion effort.
"The purpose of marketing
is to sell more stuff to more people more often for more money in order to make more profit."
What is the Marketing Concept?
The marketing concept emerged in the mid-1950s.16 Instead of a product-centered, "make-and-sell" philosophy, business shifted to a customer-centered, "sense-and-respond" philosophy.
Instead of "hunting," marketing is "gardening." The job is not to find the right customers
for your products, but the right products for your customers. The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets
What is the Holistic Marketing Concept?
The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and inter-dependencies. Holistic marketing recognizes that "everything matters" with marketing— and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and social responsibility marketing. Holistic marketing is thus an approach to marketing that attempts to recognize and reconcile the scope and complexities of marketing activities.
What are THE TEN RULES OF RADICAL MARKETING?
1. The CEO must own the marketing function. CEOs of radical marketers never delegate marketing responsibility.
2. The marketing department must start small and flat and stay small and flat. CEOs of radical marketers must not allow layers of management to grow between them and the market.
3. Get face-to-face with the people who matter most—the customers. Radical marketers know the advantages of direct interaction with customers.
4. Use market research cautiously. Radical marketers prefer grassroots techniques.
5. Hire only passionate missionaries, not marketers. Radical marketers "don't have marketers, they have missionaries."
6. Love and respect customers as individuals, not as numbers on a spreadsheet. Radical marketers recognize that the core customers are responsible for the bulk of their companies'
successes.
7. Create a community of consumers. Radical marketers "encourage their customers to think of themselves as a community,
and of the brand as a unifier of that community."
8. Rethink the marketing mix. For example, radical marketers use "surgical strike advertising" characterized by short, targeted ad campaigns.
9. Celebrate common sense and compete with larger competitors
through fresh and different marketing ideas. Radical marketers, for example, limit distribution in order to create loyalty and commitment among distributors and customers.
10. Be true to the brand. Radical marketers "are obsessive about brand integrity, and they are fixated on quality."
What are the 4 P's of Marketing?
Product
Price
Place
Promotion
What are the 4 C's of Marketing?
Customer Solution
Customer Cost
Convenience
Communication
Fundamental Marketing Concepts, Trends, and Tasks
1. NEEDS, WANTS, AND DEMANDS.
2. TARGET MARKETS, POSITIONING, AND SEGMENTATION
3. OFFERINGS AND BRANDS
4. VALUE AND SATISFACTION
5. MARKETING CHANNELS
6. SUPPLY CHAIN
7. COMPETITION
8. MARKETING ENVIRONMENT
9. MARKETING PLANNING
What are the new consumer capabilities that markets are witnessing today?
1. A substantial increase in buying power
2. A greater variety of available goods and services.
3. A great amount of information about practically anything.
4. A greater ease in interacting and placing and receiving orders.
5.An ability to compare notes on products and services
Relationship marketing?
Relationship marketing involves cultivating the right kind of relationships with the right constituent groups. Marketing must not only do customer relationship management (CRM), but also partner relationship management (PRM) as well. Four key constituents for marketing
are customers, employees, marketing partners (channels, suppliers, distributors, dealers,
agencies), and members of the financial community (shareholders, investors, analysts).
A marketing network?
A marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business relationships. Increasingly, competition is not between companies but between marketing networks, with the prize going to the company that has built the better network. The operating principle is simple: Build an effective network of relationships with key stakeholders, and profits will follow
Example of a company that utilized Marketing Network?
Rich, multifaceted relationships with key constituents create the foundation for a mutually
beneficial arrangement for both parties. For example, tired of having its big rigs return empty after making a delivery as often as 15 percent of the time, General Mills entered a program
with Fort James and a dozen other companies to combine one-way shipping routes into a cross-country loop via a tag-team of contracted trucks. As a result, General Mills reduced its empty truck time to 6 percent, saving 7 percent on shipping costs in the process.26
What is social responsibility
marketing?
Holistic marketing incorporates social responsibility
marketing and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs. The cause and effects of marketing clearly extend beyond the company and the consumer to society as a whole. Social responsibility
also requires that marketers carefully consider the role that they are playing and could play in terms of social welfare.
Examples of social responsibility
marketing?
McDonalds - McDonald's have added healthier items to their menus (e.g., salads) and introduced environmental initiatives (e.g., replacing polystyrene
foam sandwich clamshells with paper wraps and lightweight recycled boxes).ordered its suppliers to eliminate the use of antibiotics that are also given to humans, specifically when those drugs are used to make chickens, pigs and, less often, cattle, grow faster.
What is the societal marketing concept?
The societal marketing concept holds that the organization's
task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves
or enhances the consumer's and the society's well-being.
What is cause-related marketing?
activity by which a company with an image, product, or service to market builds a relationship
or partnership with a "cause," or a number of "causes," for mutual benefit."
Examples of cause related
marketing companies?
Patagonia, Body Shop, Ben & Jerry's
What is Value?
Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service, and price (qsp), called the "customer value triad." Value increases with quality and service and decreases with price, although other factors can also play an important role.

Value is a central marketing concept. Marketing can be seen as the identification, creation, communication, delivery, and monitoring of customer value.
What is Satisfaction?
Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or outcome)
in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied and disappointed. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted.
Sumamry 1
From a managerial point of view, marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals. Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating
superior customer value.
Sumamry 2
Marketers are skilled at managing demand: They seek to influence the level, timing, and composition of demand. Marketers are involved in marketing many types of entities:
goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. They also operate in four different marketplaces: consumer, business, global, and nonprofit.
Sumamry 3
Businesses today face a number of challenges and opportunities,
including globalization, the effects of advances in technology,
and deregulation. They have responded by changing the way they conduct marketing in veiy fundamental ways.
Summary 4
There are five competing concepts under which organizations
can choose to conduct their business: the production
concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept.
The first three are of limited use today.
Summary 5
The holistic marketing concept is based on the development,
design, and implementation of marketing programs,
processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes
that "everything matters" with marketing and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing,
integrated marketing, internal marketing, and socially responsible marketing.
Summary 6
Marketing management has experienced a number of shifts in recent years as companies seek marketing excellence.
Summary 7
The set of tasks necessary for successful marketing management
includes developing marketing strategies and plans, connecting with customers, building strong brands, shaping the market offerings, delivering and communicating
value, capturing marketing insights and performance, and creating successful long-term growth.