Marketing – Chapter One

Marketing
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Requirements for Marketing to Occur
– Two or More Parties with Unsatisfied Needs
– Desire and Ability to Satisfy these Needs
– A way for the Parties to Communicate
– Something to Exchange
Market
people with the desire and with the ability to buy a specific product
Social Marketing
marketing designed to influence the behaviour of individuals in which the benefits of the behaviour accrue to those individuals or to the society in general and not to the marketer
Ultimate Consumer
the people who use the goods and services purchased for a household
Organizational Buyers
units such as manufacturers, retailers, or government agencies that buy goods and services for their own use or for resale
Marketing’s first task: discovering consumer needs
Potential consumers: the market –> Information about needs –> Organization’s marketing department: Discover consumer needs
Target Market
One or more specific groups of potential customers toward which an organization directs its marketing program
Marketing Mix
product, price, promotion, and place
Environmental Factors
the uncontrollable factors involving social, economic, technological, competitive, and regulatory forces
Marketing’s second task: satisfying consumer needs
Potential consumers: the market–>information about needs –> Discover consumer needs –> concepts for products>Satisfy consumer needs by finding the right combination of: Product, Price, Promotion, Place–> Goods, services, ideas–>Potential consumers:the market
Marketing program
a plan that integrates the marketing mix to provide good, service, or idea to prospective buyers
Five different orientations in the history of North American business
Production Era: 1860 – 1930
Sales Era: 1920 – 1970
Marketing Concept Era: 1950 – 1995
Market Orientation Era: 1990 – 2020
Customer experience management era: 2005-2010
Marketing Concept
the idea that an organization should strive to satisfy the needs of consumers, while also trying to achieve the organization;s goals
Market Orientation
an organization that has a market orientation focuses its efforts on continuously collecting information about customers’ needs and competitors capabilities, sharing this information across departments, and using the information to create customer value
Customer Value
the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-timer delivery and both before-sale and after-sale service
Customer Satisfaction
the match between customer expectations of the product and the product’s actual performance
Customer Lifetime Value (CLV)
The profit generated by the customer’s purchase of an organization’s product or service over the customer’s lifetime
Consumer Relationship Management (CRM)
the process of identifying prospective buyers, understanding them intimately, and the developing long term perceptions of the organization and its offering so that buyers will chose them in the marketplace