Chapter One

exchanges
provision or tranfer of goods, services, or ideas in return for something of value
marketing
process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers and stakeholders
Four things have to take place for a successful exchange to happen
1) Two or more people have to be involved
2) Both parties must benefit
3) Promise must come through with promise
4) The exchange must meet both parties expectations
stakeholder
includes those constituents who have a stake or claim in some aspect of a company’s products, operations, markets or outcomes.
marketing enviorment
the competitive, economic, political, legal and regulatory, technological and sociocultural forces that surround the customer and affect the marketing mix
what is the marketing mix?
product, price, distribution and promotion
marketing concept
an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals.
what is the major focus of the marketing concept?
to satisfy customers
the sales orientation
focusing on selling products to many buyers
market orientation
focusing on what the customers need and creating a product to fulfill that need
Management must first establish an ______ ______ to discover customers’ real needs and then use the information to create satisfying products
information system
Customer relationship management
focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships
profits can be increased by…
1) acquiring new customer
2) enhancing the profitability of current customers
3) extending the duration of customer relationships
relationship marketing
long-term mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more exchanges
customer lifetime value
predicts the net value for the future relationship with the customer
About _____ of the money you spend on a product goes towards marketing
50 – 60 %
green marketing
making relationships with customers while also enhancing and supporting the natural enviroment
value
a customer’s subjective assessment of benefits relative to costs in determining the worth of a product