Business Chapter 13

What is Marketing?
The American Marketing Association has defined marketing as 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.
What does the term marketing mean?
Th4 term marketing means different things to different people.
What is another simple way thinking of marketing?
We can also think of marketing, more simply, as the activities buyers and sellers perform to facilitate mutually satisfying exchanges.
Why do people still think of marketing as mostly selling, advertising and distribution from seller to buyer?
In the past marketing focused almost entirely on helping the seller sell.
Today, much of marketing is instead about “Helping The Buyer Buy.” What does one author call this saying?
“The Power of Pull.”
What is the future of marketing trying to do?
The future of marketing is doing everything you can to help the buyer buy.
What are the four evolutions of marketing in the United States?
1. production. 2. selling. 3. marketing concept. 4. customer relationship.
What is marketing concept and what caused it?
in 1945, after world war 2, returning soldiers starting new careers and new families sparked a tremendous demand for goods and services. The postwar years launched the sudden increase in the birthrate that we now call the baby boom, and also a boom in consumer spending. Competition for the consumers’s dollar was fierce. Businesses recognized they needed to be responsive to consumers if they wanted to get their business, and a philosophy emerged in the 1950’s called the marketing concept.
What are the three parts to marketing concept?
1. a customer orientation.
2. a service orientation.
3. a profit margin.
what is customer oreientation in the marketing concept and why is it important?
Finding out what customers want and provide it for them. (Note the emphasis on meeting the customer needs rather than on promotion or sales.)
What is a service orientation in the marketing concept? Why is this important?
Making sure everyone in the organization has the same objective: customer satisfaction. This should be a total and integrated organizational effort. That is, everyone from the president of the firm to the delivery people should be customer oriented.
What is a profit margin in the marketing concept? and why is this important?
it focuses those goods and services that will earn the most profit and enable the organization to survive and expand to serve more consumer wants and needs.
Customer relationship management (CRM)-
The process of learning as much as possible about customers and doing everything you can to satisfy them- or even exceed their expectations- with goods and services.
Why is customer relationship management so important?
Because the idea is to enhance customer satisfaction and stimulate long-term customer loyalty.
There is a great degree of consumer dissatisfaction why would this happen?
because according to a recent study, only 6.8 percent of marketers said they have excellent knowledge of their customers when it comes to demographic, behavior, and psychographic (how they think) data.
The newest in CRM efforts is customer-managed relationships (CMR). Why?
the idea is to give the customer the power to build relationships with the suppliers and consumers.
Why do non-profit organizations raise money? Such as charities…..
Charities use marketing to raise funds for combating world hunger, for instance or to obtain other resources.
marketing mix-
the ingredients that go into a marketing program: product, price, place, and promotion.
Managing the controllable parts of the marketing process means…
1) designing a want-satisfying product,
2) setting a price for the product,
3) putting the product in a place where people will buy it ,
4) promoting the product, including how “green” it is.
Product-
any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers. such as a brand.
test marketing-
The process of testing products among potential users.
Brand name-
A word, letter, or group of words or letters that differentiates one seller’s goods and services from those competitors.
What are intermediaries?
are the middle links in a series of organizations that distribute goods from producers to consumers. (middlemen)
Promotion-
all techniques sellers use to inform people about and motivate them to buy their products or services. Promotion includes: advertising, personal selling; public relations, publicity,; or word of mouth (viral marketing); and various sales promotion efforts, such as coupons, rebates, samples and cents -off-deals.
Marketing research-
The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.
a simplified marketing research process consists of four key steps. What are they?
1) Defining the question (the problem or opportunity) and determining the present situation.
2) Collecting research data.
3) Analyzing the research data.
4) Choosing the best solution and implementing it.
Why is defining the question and determining the present situation so important?
Marketing researchers need the freedom to discover what the present situation is, what the problems or opportunities are, what the alternatives are, what information they need, and how to go about gathering and analyzing the data.
Why is collecting data so important?
because usable information is vital to the marketing research process.
Secondary data-
information that has already been complied by others and published in journals and books or made available online.