Podcast
Questions and Answers
What does a product-oriented mindset focus on improving?
What does a product-oriented mindset focus on improving?
When does a sales orientation become less effective?
When does a sales orientation become less effective?
What is a key focus of marketing orientation?
What is a key focus of marketing orientation?
What is the concept of value in marketing primarily characterized by?
What is the concept of value in marketing primarily characterized by?
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Which type of utility focuses on the convenience of product availability?
Which type of utility focuses on the convenience of product availability?
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What is the primary benefit of time utility in service offerings?
What is the primary benefit of time utility in service offerings?
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Possession utility is primarily valued by customers for which reason?
Possession utility is primarily valued by customers for which reason?
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Which of the following is NOT a kind of economic utility mentioned?
Which of the following is NOT a kind of economic utility mentioned?
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What is a primary benefit of establishing a customer-centric culture within an organization?
What is a primary benefit of establishing a customer-centric culture within an organization?
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Which of the following is NOT a characteristic of good customer service?
Which of the following is NOT a characteristic of good customer service?
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How does providing outstanding customer value affect an organization in a competitive market?
How does providing outstanding customer value affect an organization in a competitive market?
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What is one method to encourage customer loyalty?
What is one method to encourage customer loyalty?
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Which of the following actions contributes to building a strong culture and reputation through customer service?
Which of the following actions contributes to building a strong culture and reputation through customer service?
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What is the primary focus of traditional approaches in marketing?
What is the primary focus of traditional approaches in marketing?
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How does contemporary marketing differ from traditional marketing?
How does contemporary marketing differ from traditional marketing?
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What does the equation for customer value, CV = B - C, signify?
What does the equation for customer value, CV = B - C, signify?
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Which level of relationship marketing involves minimal interaction and direct sales?
Which level of relationship marketing involves minimal interaction and direct sales?
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What is the goal of proactive marketing?
What is the goal of proactive marketing?
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Which of the following best describes Partnership Marketing?
Which of the following best describes Partnership Marketing?
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What is a key aspect of Customer Relationship Management (CRM)?
What is a key aspect of Customer Relationship Management (CRM)?
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Why is designing superior customer value important in modern business strategy?
Why is designing superior customer value important in modern business strategy?
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What is a fundamental role of marketing within an organization?
What is a fundamental role of marketing within an organization?
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Which of the following is NOT a goal of marketing?
Which of the following is NOT a goal of marketing?
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In Maslow's Hierarchy of Needs, which level includes basic necessities?
In Maslow's Hierarchy of Needs, which level includes basic necessities?
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What happens in a Seller’s Market according to the marketing process?
What happens in a Seller’s Market according to the marketing process?
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What are demands in the context of marketing?
What are demands in the context of marketing?
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Which component is NOT part of the strategic marketing process?
Which component is NOT part of the strategic marketing process?
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Which of the following statements best defines 'wants'?
Which of the following statements best defines 'wants'?
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What key aspect characterizes the marketing function?
What key aspect characterizes the marketing function?
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Study Notes
Marketing Definition
- The American Marketing Association defines marketing as the activities, institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
- Marketing is an organizational function, a set of processes, focuses on delivering value to customers, and emphasizes a give-and-take relationship.
Studying Marketing
- Helps facilitate profitable transactions.
- Delivers value to customers.
- Benefits society.
- Costs money.
- Offers career opportunities.
Marketing Goals
- Acquiring customers.
- Retaining customers.
- Turning customers into brand ambassadors.
The Marketing System
- Consist of strategic and tactical marketing.
Strategic Marketing
- Includes customer segmentation, target market selection, and value positioning.
Tactical Marketing: Value Deployment
- Involves product design and development, product portfolio management, service development, pricing, distribution, and logistics.
Tactical Marketing: Value Communication
- Involves salesforce strategies, sales promotion strategies, and advertising.
Needs
- A state of feeling deprivation about something deemed necessary.
Wants
- Specific manifestations of needs.
Demands
- Wants backed with purchasing power.
Maslow's Hierarchy of Needs Theory
- The most basic needs are at the bottom of the pyramid.
- Higher-level needs can only be felt when the lower-level needs are met.
The Marketing Process Components: Stage 1
- Supply < Demand
- Seller's market: Manufacturers can sell whatever they produce.
- Production orientation: Firms maximize production to meet demand.
The Marketing Process Components: Stage 2
- Supply < Demand, Competition Growing
- Product orientation: Focus on product innovation and improvement (quality, features, comfort, design).
- "Building a better mousetrap."
The Marketing Process Components: Stage 3
- Supply > Demand
- Sales orientation: Employ sales organizations to push products directly to customers.
- Can be beneficial or result in hard selling tactics.
The Marketing Process Components: Stage 4
- Supply > Demand, Customer-centric Strategies Emerge
- Marketing orientation: Prioritizing customer needs over company needs.
- Identifies and understands target markets.
- Designs products based on target market needs.
- Prices products according to target market budgets.
- Sells products where it is most convenient for the target market.
- Promotes products in a way that best catches the target market's attention.
The Concept of Exchange
- Marketing promotes positive exchanges.
- Customers feel they're better off after a transaction, encouraging customer loyalty.
- Companies need to understand market needs for successful exchanges.
The Concept of "Value"
- Value is subjective and dependent on individual factors like hunger, experiences, history, social interactions, education, and perceptions.
Five Kinds of Economic Utility
- Form utility: The product itself saves consumers from making it themselves.
- Place utility: Convenience of product availability near the customer.
- Time utility: Faster service than competitors.
- Possession utility: Value in owning the product, regardless of its use.
- Information utility: Value provided by knowing information about the product.
Traditional Approaches in Marketing
- Focus on production, product, selling methods, and markets.
- Non-interactive, one-way communication.
- Pull customers regardless of cost.
Contemporary Approaches in Marketing
- Focus on relationships, social awareness, and content.
- Interactive approach.
- Customer satisfaction and support are crucial.
Relationship Marketing
- Strategy of customer relationship management (CRM) that emphasizes customer retention, satisfaction, and lifetime customer value.
- Builds and maintains profitable customer relationships by delivering superior customer value and satisfaction, leading to brand loyalty.
Levels of Relationship Marketing
- Basic marketing: Direct sales, basic interactions
- Reactive marketing: Providing contact information for customer inquiries.
- Accountable marketing: Sales agents reaching out for product feedback.
- Proactive marketing: Contacting regular customers for feedback.
- Partnership marketing: Loyal customers act as brand ambassadors through word-of-mouth marketing.
Customer Value
- A customer's perception of the worth of a product or service compared to alternatives.
- Focuses on whether the customer believes they received more benefits than what they paid.
- Equation: Customer Value (CV) = Benefits - Cost (CV = B - C)
Importance of Customer Value
- Essential for business success in the 21st century.
- Drives today's marketplace.
- Customers won't pay more than a product is worth.
- Customer-centric cultures focus on providing exceptional value.
- Leads to market leadership in competitive markets.
- A management mandate.
Relationship Marketing Strategies and Tools
- Networking
- Cherishing each customer
- Listening to customers
- Building a brand identity
- Providing free information
- Loyalty rewards
- Frequent communication
- Special events
- Face-to-face time
Customer Service
- Taking care of customer needs by providing professional, helpful, high-quality service and assistance before, during, and after the customer's needs are met.
Characteristics of Good Customer Service
- Promptness
- Politeness
- Professionalism
- Personalization
Benefits of Good Customer Service
- Customer retention
- Customer loyalty
- Strong culture and reputation
- Referrals
- Sales boost
- Upselling products
- Employee happiness
- Competitive advantage in the marketplace
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