Chapter 1 – Marketing 1

Utility
the want-satisfying power of a good or service. 4 basic kinds: form, time, place, and ownership
form (utility)
conversion of raw materials and components into finished goods and services
Ex: dinner at chili’s, Samsung Galaxy, Levi jeans
time (utility)
availability of goods and services when consumers want them
Ex: dental appointment, digital photographs, Fedex Overnight
place (utility)
availability of goods and services at convenient locations
Ex: technicians available at an auto repair facility; on-site day care, Redbox
ownership (utility)
ability to transfer title to goods or services from marketer to buyer
Ex: Retail sales – buying TV or signing up for a cruise
Marketing
an organizational function and set of process for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
production era
-manufacturers stressed production of quality products and then looked for people to purchase them
– business success often was defined solely in terms of production success
Sales era
customers will resist purchasing nonessential items but creative advertising and selling will overcome consumers resistance. Firms attempted to match their output to the potential number of customers who’d want it.
Marketing era
– shift from a seller’s market to a buyers’ market
– Strong buyer’s market created the need for customer orientation so companies had to market!
Marketing concept
company-wide consumer orientation with the objective of achieving long-run success.
– a strong market orientation generally improves market success and overall performance
Relationship era
developing long-term, value added relationships over time with customers and suppliers
Loyalty ladder for relationship marketing
new customer-> regular purchaser-> loyal supporter-> consumer advocate; consumer advocates basically advertise for the company
The social era
companies new routinely use the Web and social networking sites to connect to consumers as a way to market goods and services
marketing myopia
management’s failure to recognize the scope of its business
-having only one way to satisfy the needs and wants of consumers
– product oriented rather than customer oriented management endangers future growth
Person marketing
designed to cultivate attention, interest, and preferences of a target market toward a celebrity or authority figure`
Place marketing
marketing efforts designed to attract visitors to a particular area; improve consumer images of a city, state, or nation; and/or attract new business
Ex: Las vegas or Disney
Cause marketing
identification and marketing of a social issue, cause, or idea to selected target markets
event marketing
marketing of sporting, cultural, and charitable activities to selected target markets
Ex: U.S. world cup commercial “I believe”
organization marketing
Marketing efforts of mutual-benefit organizations, service organizations, and government organizations that seek to influence others to accept their goals, receive their services, or contribute to them in some way
Strategic alliances
Partnership in which two or more companies combine resources and capital to create competitive advantages in new market Ex: Nike and University of Arkansas, American Express and Bluebird
8 universal marketing functions
Buying, selling, transporting, storing, standardizing and grading, financing, risk taking, securing marketing information
Buying
ensuring that product offerings are available in sufficient quantities to meet customer demands
Selling
Using advertising, personal selling, and sales promotion to match the products to customer needs
exchange functions
buying and selling
transporting
moving products from their point of production to locations convenient for purchasers
storing
warehousing products until needed for sale
physical distribution functions
transporting and storing
standardizing and grading
ensures that product offerings meet quality and quality controls Reduce the need for purchasers to inspect each item.
Financing
Providing credit for channel members (wholesalers and retailers) and consumers
Risk taking
Dealing with uncertainty about future customer purchases
Securing Marketing Information
collecting information about consumers, competitors, and channel members for use in making marketing decisions.
facilitating functions
standardizing and grading, financing, risk taking, securing marketing information