Marketing 101 Chapter 1 – The Marketing World

Marketing
An activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large
Stakeholder
buyers, sellers, investors in a company where goods and services are made or sold – anyone that has a stake in the outcomes
marketing concept
a management orientation that focuses on identifying and satisfying consumer needs to ensure the organizations long term profitability
Need
the recognition of any difference between a consumers actual state and some ideal or desired state.
Want
the desire to satisfy needs in specific ways that are culturally and socially influenced
Benefit
the outcome by a customer that motivates buying behavior – that satisfies a want or need
Demand
customers desire for products coupled with the resources to obtain them.
Market
customers and potential customers who share common needs that can be satisfied by a specific product, who have the resources to obtain it, willing to make the exchange and have the authority to make the exchange
Utility
the usefulness consumers receive from buying, owning or consuming a product
Exchange
the process by which some transfer occurs between a buyer and seller
Product
a tangible product, idea or combination of these that satisfies consumer or business customer needs through an exchange
Business to business marketing
the marketing of goods and services that businesses and organizations need in order to produce other goods and services for resale to support their operations
Industrial Goods
goods bought for further processing or for use in doing business
not-for-profit organizations
Organizations with public service goals that buy goods and services to support their functions and to attract and serve their members.
Value
the benefits a Custer receives from buying a product
value proposition
A marketplace offering that fairly sums up the value that will be realized if the product is purchased.
Lifetime value of a customer
the projected profit obtained from a customer over their lifetime – including every purchase
Competitive advantage
a company s ability to outperform the competition, thereby providing customers with a benefit the competition cannot provide
Distinctive Competency
a company’s superior capability to its direct competitors. (e.g. Cokes distinctive capability of distribution and marketing due to its global market presence)
Differential Benefit
properties of products that set them apart from competitors products by providing unique customer benefits.
Value Chain
A series of activities involved in designing, producing, marketing, delivering and supporting any product. Each link in chain can add or remove value from the product.
Making and delivering Values includes:
1. Making marketing value decisions
2. Understandings consumers needs
3. Creating value proposition
4. Communicating value proposition
5. Delivering value proposition
Scenario Planning
Undertaken for likely scenarios that may affect its strategic and operation objectives
Market Segment
a group of customers in a larger market who are similar to one another and whose needs differ from others in the larger market.
Target market
market segment where marketing plans and marketing efforts are directed
Market position
the way in which the market perceives the product in comparison to competitors brands.
Marketing Mix
A combination of product, price, place and promotion
Promotion
the co-ordination of marketers marketing efforts to influence attitudes and behaviour
5 marketing milestones
1. production era
2. selling era
3. consumer era
4. new era
5. new millenium
Customer relationship management (CRM)
a philosophy that sees marketing as a process of building long term relationships with customers to kepp them coming back