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52 Cards in this Set
- Front
- Back
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Amazon Philosophy |
-Jeff Bezos is Founder |
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*Marketing |
-Managing profitable customer relationships -Attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. -Satisfying customer needs -Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return |
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*Marketing Mix |
Set of marketing tools that work together to satisfy customer needs and build customer relationships |
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*Marketing Process |
1. Understand marketplace and customer needs and wants--> 2. Design a customer-driven marketing strategy--> 3. Construct and integrated marketing program that delivers superior value--> 4. Build profitable relationships and create customer delight--> 5. Capture value from customers to create profits and customer equity (CAPTURE VALUE FROM CUSTOMERS IN RETURN) |
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*Needs |
States of deprevation 1. Physical- food, clothing, warmth, safety 2. Social- belonging, affection 3. Individual- knowledge, self expression |
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*Wants |
Human needs take a shape influenced by culture and individual personality.
Objects that satisfy needs.
Ex: I need food, I want a Big Mac
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*Demands |
Wants backed by buying power |
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*Market Offerings |
Consumers needs and wants are fulfilled through this.
Combination of products, services, information, or experiences offered to a market to satisfy a need or want.
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*Marketing Myopia |
Sellers who mistake paying more attention to their products rather than the benefits and experiences produced by these products. |
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*Exchange |
Act of obtaining a desired object from someone by offering something in return. |
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*Market |
Set of actual and potential buyers of a product or service. These buyers share a need/want that can be satisfied through exchange relationships. |
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*Modern Marketing System (Diagram) |
Suppliers-->Company/Competitors-->Marketing intermediaries-->Final Consumers--> Back to Company and Competitors |
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*Core Marketing Activities |
1. Consumer Research 2. Product Development 3. Communication 4. Distribution 5. Pricing 6. Service |
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*Marketing Managment |
Art and science of choosing tardet markets and building profitable relationships with them. |
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Marketing Manager's Goal |
to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value. |
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To design a winning marketing strategy, the marketing manager must answer 2 important questions... |
1. What customers will we serve (target market) 2. How can we serve these customers best (value proposition( |
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*Market Segmentation |
Deciding whom the company will serve to by organizing types of customers |
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*Target Marketing |
Deciding which segmented customers a company will go after |
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Marketing management is a combination of.... |
1. Customer Management 2. Demand Managment |
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*Value Proposition |
Set of benefits and values a company promises to deliver to customers to satisfy their needs |
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*Five Alternative Concepts under which organizations design and carry out their marketing strategies (Marketing Management Orientations... |
1. Production 2. Product 3. Selling 4. Marketing 5. Societal Marketing Concepts |
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*Production Concept |
1 of 5 alternative concepts under which organizations design and carry out their marketing strategies (Marketing Management Orientations)
Consumers will favor products that are available and highly affordable.
Managment should focus on improving production and distribution efficiency
Can lead to marketing myopia- focus too narrowly on their own operations and lose sight of real objective (which is satisfying customer needs and building customer relationships) |
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*Product Concept |
1 of 5 alternative concepts under which organizations design and carry out their marketing strategies(Marketing Management Orientations)
Consumers will favor products that offer most in quality, performance, and innovative features
Marketing strategy focuses on making continuous product improvements
Can lead to marketing myopia |
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*Selling Concept |
1 of 5 alternative concepts under which organizations design and carry out their marketing strategies(Marketing Management Orientations)
Consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort
Can lead to caring about product more than with relationship with customer |
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*Marketing Concept |
1 of 5 alternative concepts under which organizations design and carry out their marketing strategies(Marketing Management Orientations)
Customer focus and value are the paths to sales and profits
Customer-centeres sense and respond philosophy
Not to find the right customers for your product, but find the right products for your customers |
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Selling Concept vs Marketing Concept (Diagram) |
Selling Concept: inside-out perspective focuses on customer conquest, getting short-term sales with little concern about who buys and why
Factory-->Existing Products-->Selling and Promoting--> Profits through Sales Volume
Marketing Concept: outside-in perspective focuses on well-defined market, customer needs, and integrates marketing activities that affect customers. Yields profits by creating relationships.
Market-->Customer Needs-->Integrated Marketing--> Profits through Customer Satisfaction |
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Customer Driving Markets |
Understanding customer needs even better than customers themselves do and creating products and services that meet both existing and latent needs now and in the future.
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*Societal Marketing Concept |
1 of 5 alternative concepts under which organizations design and carry out their marketing strategies(Marketing Management Orientations)
Improves customer and society's well-being overtime- sustainable marketing |
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Sustainable Marketing |
Socially and Environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing ability of future generations to meet their needs. |
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*Integrated Marketing Plan and Program |
1. Marketing Strategy: Outlines which customers it will serve and how it will create value for these customers 2. Marketer develops an integrated marketing program that delivers the intended value to target customers and builds customer relationships by transforming marketing strategy into action. (Consists of marketing mix) |
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*The Four P's |
1. Product 2. Price 3. Place 4. Promotion |
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*Customer Relationship Management |
A customer data management activity (CRM)
Managing Detailed info about individual customers and carefully managing customer touchpoints to maximize customer loyalty
Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Acquiring, keeping, and growing customers. |
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Relationship Building Blocks |
1. Customer Value 2. Satisfaction |
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*Customer-Perceived Value |
Customer's evaluation of difference between all benefits and all costs of a market offering relative to those of competing offers.
Customers often do not judge values and costs "accurately" or "objectively"
Act on perceived value |
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*Customer Satisfaction |
Depends on product's perceived performance relative to a buyer's expectations
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How to win Customer Loyalty |
"...Forget the bells and whistles and just solve their problems!" |
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*4 Customer-Relationship Levels and Tools |
1. Basic Relationships- fulfill basic contact and advertising with customers 2. Full Partnerships- work with other large retailers as customers that invest in product 3. Frequency Marketing Programs- Reward Programs 4. Club Marketing Programs- members receive special benefits |
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*Customer-Managed Relationships |
Today's consumers have access and more knowledge to brands than ever before in a variety of platforms. |
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Attraction |
Creating market offerings and messages that involve consumers rather than interrupt them instead of intrusion. |
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Consumer-Generated Marketing |
Consumers themselves are playing a bigger role in shaping their own brand experiences and those of others. |
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*Partner Relationship Management |
Working closely with other inside and outside the company to jointly bring more value to customers.
*Inside: Electronically, cross-functional *Outside: Marketers connect with suppliers, chain partners, and competitors by developing partnership |
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*Supply Chain Management |
Longer channel stretching from raw materials to components to final products that are carried to final buyers |
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Great Recession |
Caused people to value price more than brand |
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*Customer Lifetime Value |
Value of entire stream of purchases that the customer would make over a lifetime of patronage (CLV)
It isn't to sell something once, it is a relationship that develops overtime |
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*Share of Customer |
Share they get out of customer's purchasing in their product categories
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Value of a Company Depends on... |
It's future and current customers |
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*Customer Equity |
Total combined customer lifetime values of all the company's current and potential customers
Determines Future
Better measure of a firm's performance than current sales/market shares |
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*Customer Relationship Groups (Diagram P. 44) |
Strangers- low profitability and low loyalty Butterflies- high profitability and low loyalty True Friends- high profitability and high loyalty Barnacles- low profitability and high loyalty |
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Social Marketing Campaigns |
Non-Profit Organizations, Causes, and Social Issues |
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Caring Capitalism |
Civic minded, responsibilities |
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*Considerations Underlying the Societal Marketing Concept (Diagram p 34) |
Triangle. Left Bottom= Consumers (Wants/Satisfaction) Right Bottom= Company (Profits)
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*Changing Environmental Factors |
1. Uncertain Economic environment 2. Digital Age- Connections through social media, information, surveys, data pooling, mobile devices 3. Globalization- sustainable marketing, non-profits |
