Marketing Chapter 1

Front 1

marketing

Back 1

- 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

- managing profitable customer relationships

Front 2

process

Back 2

create value for customers and build customer relationships

Front 3

designing a strategy: select a customer group

Back 3

- what market is it?

- market segmentation

- target marketing

Front 4

designing a strategy: choose a value proposition

Back 4

- scan environmental factors

- differentiating and positioning

- you can't be the best in all dimensions

Front 5

market

Back 5

- set of actual potential buyers

- share a need or a want that can be satisfied through exchange relationships

Front 6

target market

Back 6

- segmentation: divides market into groups of customers with varying needs and wants

- go to target group: selected potential customers

Front 7

value and satisfaction

Back 7

if performance is higher then expected then satisfaction is high

- must set expectations right

- satisfied customers buy again

- unsatisfied customers change companies

Front 8

relationship marketing

Back 8

-forge long-term partnerships with customers

- rewarded with repeated sales and referrals

- costs less to serve existing customers than to acquire new customers

- customer lifetime value = customer equity

Front 9

customer relationship groups

Back 9

butterflies

strangers

true friends

barnacles

Front 10

butterflies

Back 10

- good fit between company's offering

- high potential profit

Front 11

true friends

Back 11

- good fit between company's offering and customer's needs

- highest potential profit

Front 12

strangers

Back 12

- little fit between company's offering and customer's needs

- lowest potential profit

Front 13

barnacles

Back 13

- limited fit between company's offerings

- low profit potential

Front 14

market offering

Back 14

product services, info or experiences offered to a market to satisfy customer need

Front 15

marketing myopia

Back 15

sellers paying more attention to a product than the benefits produced by these experiences

- look beyond to create brand experiences

Front 16

exchange

Back 16

obtaining a desired object from someone by offering something in return

Front 17

the production concept

Back 17

consumers will favor products that are available and highly affordable

- no option for consumer

- management should focus on improving production and distribution

- distribute at affordable price

- mass produce at lowest cost

Front 18

the product concept

Back 18

consumers favor products that offer the most in quality, performance and features

- don't get marketing myopia

Front 19

the selling concept

Back 19

only sell enough if the company puts in large selling and promotion efforts

- high sales but just a one time transaction

- need to make it good for customer = don't just sell it

Front 20

marketing concept

Back 20

know the needs and wants of customers better than the competition

- find the most profitable customers and cater to their wants

Front 21

the societal marketing concept

Back 21

- companies decisions should consider consumer wants , the companies' requirements, consumers long-term interests and society's long term interest

- balance: company's profit, consumer wants and society's interests

Front 22

red lining

Back 22

discrimination against the poor

- not selling to

- not putting stores in their neighbor