Marketing Exam 1, Ch.1
Terms
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- Activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large
- Marketing
- Exchange
- Trade of things of value between buyer and seller so that each is better off after
- What factors influence marketing activities?
- Organization Partnerships with suppliers Environmental forces Customer relationships Alliances with other organizations
- Four factors required for marketing
- 1. Two or more parties must have unmet needs 2. Both parties have desire/ability to satisfy each others' needs 3. Each party must be able to communicate 4. Each party must have something of value to exchange
- Need
- A basic necessity; physiological basis
- Want
- Needs shaped by society; "felt need"
- Marketing mix
- Controllable factors: Price, product, place, promotion
- Environmental factors (5)
- Social Economic Technological Competitive Regulatory
- Customer value
- Unique combination of benefits received by targeted buyers (loyal and satisfied customers repurchase products)
- Relationship marketing
- Links organization to customers, employees, suppliers
- Production era
- Early U.S. - 1920s: goods were scarce, consumers were not picky
- Sales era
- 1920s-1960s: Manufacturers produced more than buyers consumed; competition flourished
- Marketing concept era
- Late 50s-1990s: Satisfying consumer needs while accomplishing organizational goals
- Consumer relationship era
- 1980s-Today: CRM - Identifying prospective buyers, understanding the buyers, developing relationships
- Goods
- Physical objects (ex: soap)
- Services
- Intangible items (ex: legal representation)
- Ideas
- Thoughts about concepts (ex: protecting the environment)
- Ultimate consumers
- People who use the product in a household
- Form utility
- Production of a good/service
- Place utility
- Having the offering available where consumers need it
- Time utility
- Having the offering when consumers need it
- STP marketing
- Segmentation: Identifying different needs Targeting: Choosing needs to address Positioning: Marketing to the target segments
- Customer lifetime value (CLV)
- Value of all purchases of a loyal customer Includes: Acquisition costs, base profit, revenue growth, operating cost savings, referrals, price premium (charge more to loyal customers)
- Market share
- Ratio of sales revenues to total industry sales (me/entire industry)