An organizational function and set of processes for creating, capturing, communicating, and delivering value to customers for managing customer relationships in ways that benefit the organization and its stakeholders.
What are the five aspects of marketing?
Creates value, satisfies customer needs and wants, entails an exchange, requires product, price, place, & promotion, can be performed by organizations and individuals, and occurs in many settings.
The trade of things of value between the buyer and the seller so that each is better off as a result.
What is marketing mix?
The four P’s: product, price, place, promotion
______ creates value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
Items you can physically touch.
Intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
Include concepts, opinions, and philosophies: intellectual concepts that can be marketed.
_____ is everything the buyer gives up – money, time, energy, in exchange for the product.
______ represents all the activities necessary to get the product to to the right customer when that customer wants it.
_________ is communication by a marketer that informs, persuades, and reminds potential about a product or service.
True or false, marketing can only be performed by organizations.
B2C (business-to-consumer) marketing
The process in which businesses sell to consumers.
B2B (business-to-business) marketing
The process of selling merchandise or services from one business to another.
C2C (consumer-to-consumer) marketing
The process in which consumers sell to other consumers.
Supply chain partners and society at large.
The book lists two other stakeholders in marketing, they are?
At the turn of the twentieth century, a belief that good product would sell itself, concerned with product innovation not satisfying customer wants, and retail stores were just holding the product until it sold.
1920-1950, customers consumed less so manufacturers overproduced. Dependence on heavy doses of personal selling and advertising.
Post WWII manufactures and retailers both focused on the customer who now had choices such as quality, convenience, and price.
Value-Based Marketing era
Marketing firms generally have transcended a production or selling orientation and attempt to discover and satisfy their customers’ needs and wants.
Reflects the relationship of benefits to costs. Customers seek fair return in goods/services for their money, time, and energy.
When customers act as collaborators with a manufacturer or retailer to create the product or service.
Sharing information, Balancing benefits with costs, Building relationships with customers, and Take advantage of new technology.
How marketing firms become more value driven
Marketer’s realization that they need to think of customers in terms of relationships rather than transactions.
customer relationship management (CRM)
A business philosophy and set of strategies, programs, and systems that focus on building loyalty among the firm’s most valued customers.
Expands global presence, pervasive across channel members, enriches society, can be entrepreneurial
The four ways in which marketing is important
supply chain or marketing channel
A group of firms that make and deliver a given set of goods and services from raw materials to finished product
People who organize, operate, and assume the risk of a business venture.
Identifies firm’s target market(s), related marketing mix (4 P’s), and the basis on which to build a sustainable competitive advantage.
sustainable competitive advantage
An advantage over the competition that is not easily copied that can be maintained over a long period of time.
customer excellence, operational excellence, product excellence, and locational excellence
Four macro strategies that focus on aspects of the marketing mix to deliver value and develop sustainable competitive advantages.
Achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service.
retaining loyal customers
A form of customer excellence in which the firm builds sustainable competitive advantage through customer loyalty by using clear and precise positioning strategy and emotional attachment through loyalty programs.
A form of customer excellence in which the firm builds sustainable competitive advantage. Provided by employees of the firm and because of human nature not as consistent as machines.
A way to achieve a sustainable competitive advantage through efficient operations, excellent supply chain management, and strong relationships with suppliers.
A way to achieve a sustainable competitive advantage by providing products with high perceived value and effective branding and positioning.
Most important for retailers and service providers, sustainable competitive advantage based on location is strong because it is not easily duplicated.
A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
planning, implementation, and control
The three major phases of the marketing plan.
The five steps of the marketing plan
business mission and objectives, situation analysis, identify opportunities, implement marketing mix, and evaluate performance using marketing metrics.
First two steps of the marketing phase. Step one, business mission and planning and step two, situation analysis (SWOT).
define the business mission
Step one of the marketing plan.
A broad description of firm’s objectives and scope of activities. Answers two questions, what type of business are we and what do we need to do to accomplish goals and objectives.
conduct a situation analysis
Step two of the marketing plan.
Assesses both internal environment with regards to strength and weakness and the external environment in terms of its opportunities and threats.
Strength, Weakness, Opportunity, and Threat
In a SWOT analysis strength and weakness assess the ________ environment.
In a SWOT analysis opportunities and threats assess the ________ environment.
Step three of the marketing plan.
segmentation, targeting, and positioning
A group of consumers who respond similarly to a firm’s marketing efforts.
The process of dividing the market into groups of customers with different needs, wants, or characteristics.
Marketing directed toward those groups (market segments) an organization decides it can serve profitably.
The process of defining the market mix variables so target customers have a clear, distinctive, desirable understanding of how the product compares with competing products.
implement the marketing mix
Step four of the marketing plan.
The key to success of any marketing program is the creation of value which firms accomplish by developing ________.
As part of the marketing mix, _____ allows customers to perceive good value for the product they receive.
In the marketing mix, making a product readily available when and where a customer wants it is a function of _____.
Within the marketing mix, communicating the value of the offering through a variety of media channels is known as _________.
evaluate performance using marketing metrics
Step five of the marketing plan
A popular portfolio analysis method developed by the Boston Consulting Group
Percentage of the market accounted for by a special entity used to establish the product’s strength in a particular market.
relative market share
Provides managers with a product’s relative strength compared with that of the largest firm in the industry.
market growth rate
The annual growth rate of the specific market in which a product competes.
Occur in high growth rate markets and are high market share products. Requires heavy resource investment to fuel growth.
Low growth market, but high market share. Creates excess resources for products that need it.
Occur in high growth markets, but have relatively low market share. Mangers must decide whether to invest or phase out these products.
Found in the low growth rate, low market share of the market which should be phased out unless they are needed to assist in the sale of another product.
market penetration strategy
A growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers.
market development strategy
a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international
product development strategy
Offers a new product or service to a firm’s current target market.
A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.
The current target market and/or marketing mix shares something in common with the new opportunity.
The new business lacks any common elements with the present business.
Content distributed through online and mobile technologies to facilitate interpersonal interactions.
excite, educate, experience, and engage
The 4E framework of social media.
An offer that is relevant to the targeted customer is meant to _______ the customer.
Marketers have a golden opportunity to _______ customers about a product’s value proposition and offered benefits.
Allowing a customer to sample part of a song or book the marketer is allowing the customer to __________ the product before buying it.
With __________ comes action, the potential for a relationship, and possibly loyalty and commitment.
Three categories of social media
social network sites, media-sharing sites, and thought-sharing sites
social network site
A type of site where people interact with friends or business acquaintances. An excellent way for marketers to create excitement.
Uses social media as new ways to post and share their creativity.
Social butterflies who use social media to enhance and expand the relationships.
Use social media to show how smart and efficient they are.
Social media users who like to help others and stay well informed in order to do so.
A well known social network platform that allows companies to interact with their fans.
A social network site that is based on professional relationships instead of casual or friendship-based relationships.
This social network site is attempting to lure users away from Facebook by adding games to their site.
media sharing site
Gives social media users a way to share videos and pictures. Allows customers to experience products and allows marketers to engage customers.
A video-sharing platform that allows individuals and companies the opportunity to express themselves.
A social media platform that allows users to share photographs with one another.
thought sharing site
A social media type that allows users to communicate through blogs. Effective way for marketers to educate and engage their customers.
A journal or diary that is published on the web.
The highest level of control, this type of blog is created by the companies themselves.
Written by people who review and give recommendations on products and services.
Written by people who receive no products or remuneration.
Consist of short sentences, short videos, or individual images
The most popular microblogging site, users are limited to 140-characters messages.
price check apps
Allows customers to scan items to check the prices form other retail markets.
Uses the GPS function of a smartphone allows the user to share where they are and what they are doing.
Using location-based apps to build loyalty by making patronage a game.
listen, analyze, and do
Three stage process by which firms engage customers through social media
By searching and reading what customers are writing in social media about products marketers ______ to what customers have to say.
A marketing technique in which companies gather customer comments and analyze customers attitudes and preferences.
The understanding of data collected from social media.
The total requests for a web page.
The number of times any page gets viewed by a visitor.
The percentage of times a visitor leaves the site almost immediately, such as after viewing one page.
Shows how users proceed through the information of a website.
A measure that indicates what percentage of visitors act as the marketer hopes.
Determines what words people used to search on the Internet for their products and services.
The last stage of the engagement process in which firms implement what they learned form the first two stages.
Understanding what’s popular and what’s not on a firm’s website, including load times and site navigation.
Tracks effectiveness of social media programs including information on social media referred conversion rates and engagement metrics.
Tracks website access from mobile devices, which ads direct people to the firm’s app, and understand which mobile platforms perform best.
Measures sales, downloads, video plays, or any other action important to a firm.
Tracks the effectiveness of social, mobile, search and display ads, divide ad effectiveness by device, platform, or type.
Identify strategy and goals, Identify target audience, Develop the campaign, Develop the budget, and Monitor and change.
The five steps to creating a marketing campaign
Identify issues, Gather Information and identify stakeholders, Brainstorm alternatives, and Choose a course of action.
What are the four steps of ethical decision making?
corporate social responsibility
Describes the voluntary actions taken by a company to address the ethical, social, and environmental impact of its business operations and the concerns of its stakeholders.
customers, employees, marketplace, and society
Who are the four key stakeholders that are impacted by corporate social responsibility?
During which stage might the firm include its ethical view into its mission statement?
During this phase the firm will be asking itself ‘should we.”
During this phase a company checks for successful implementation and react to change.