Marketing Definition and Goals

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Questions and Answers

Identify one example of a product (good or service) you purchased recently and explain how it satisfied a need, want, or demand.

Answers will vary. Students should describe a recent purchase and how it fulfilled a specific need, want, or demand.

Which of the following are elements of a marketing system? Choose all that apply.

Pricing (correct)

Customer service

Product development (correct)

Consumer research (correct)

The societal marketing concept emphasizes balancing consumer needs with company profits and societal interests.

True

Match the marketing concept with its description:

Production concept = Focuses on product availability and affordability Product concept = Emphasizes quality, performance, and features Marketing concept = Prioritizes customer needs and wants over competitors Societal marketing concept = Considers long-term consumer and societal well-being Signup and view all the answers

What are the four Ps of marketing?

Product, Price, Place, Promotion Signup and view all the answers

Define customer relationship management (CRM).

Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Signup and view all the answers

Higher levels of customer satisfaction do not lead to greater customer loyalty.

False Signup and view all the answers

The ultimate aim of customer relationship management is to produce high customer ___.

equity Signup and view all the answers

Match the customer relationship groups with their characteristics:

Strangers = Low potential profitability and little projected loyalty Butterflies = Potentially profitable but not loyal True friends = Profitable and loyal Barnacles = Highly loyal but not very profitable Signup and view all the answers

What percentage of the world's population is now online?

46% Signup and view all the answers

Petco's Community site is a place where pet lovers can connect, share, and learn via a blog and discussion boards dedicated to only dogs and cats.

False Signup and view all the answers

What is the three-part mission of Ben & Jerry's?

Make fantastic ice cream (product mission), manage the company for sustainable financial growth (economic mission), and use the company to make the world a better place (social mission) Signup and view all the answers

Today, almost every company, large or small, is touched in some way by ______________ competition.

global Signup and view all the answers

What is the primary goal of marketers in today's business environment?

To build the right relationships with the right customers Signup and view all the answers

Not-for-profit organizations do not face stiff competition for support and membership.

False Signup and view all the answers

What is the significance of the growing number of people online?

It has fundamentally changed the way we live, communicate, share information, access entertainment, and shop. Signup and view all the answers

Ben & Jerry's and its products are 'Made of _______________.

Something Better Signup and view all the answers

Match the organization with its marketing approach:

Ben & Jerry's = Social mission-driven Petco = Community-focused Not-for-profit organizations = Support and membership-driven Signup and view all the answers

Study Notes

Marketing Definition and Importance

Marketing is about engaging customers and managing profitable customer relationships.
The twofold goal of marketing is to attract new customers by promising superior value and grow current customers by delivering satisfaction.
Sound marketing is critical to the success of every organization, including large for-profit firms, not-for-profit organizations, and personal interactions.

Human Needs and Wants

Human needs include basic physical needs, social needs, and individual needs.
Wants are the form human needs take when shaped by society and described in terms of objects that will satisfy those needs.
When backed by buying power, wants become demands.

Market Offerings and Experiences

Market offerings include entities such as persons, places, organizations, information, and ideas.
Outstanding marketing companies go to great lengths to learn about and understand their customers' needs, wants, and demands.
Marketing experiences involve creating brand experiences for consumers through orchestration of services and products.

Marketing and Exchange Relationships

Marketing occurs when people decide to satisfy their needs and wants through exchange relationships.
Exchange is the act of obtaining a desired object from someone by offering something in return.
Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences.

Markets and Target Marketing

A market is the set of actual and potential buyers of a product or service.
Sellers must search for buyers, identify their needs, design good market offerings, set prices, promote, and store and deliver them.
Companies must decide which customers to serve and how to bring them value.

Value Proposition

A value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs.
Value propositions differentiate one brand from another and answer the customer's question, "Why should I buy your brand rather than a competitor's?"
Companies must design strong value propositions that give them the greatest advantage in their target markets.

Marketing Concepts

There are five alternative concepts under which organizations design and carry out their marketing strategies: production, product, selling, marketing, and societal marketing concepts.
The marketing concept is a customer-centered sense-and-respond philosophy that focuses on customer needs and wants.
The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare.

Integrated Marketing Program

The company's marketing strategy outlines which customers it will serve and how it will create value for these customers.
The marketing program builds customer relationships by transforming the marketing strategy into action.
The marketing program consists of the firm's marketing mix, including product, price, place, and promotion.

Customer Relationship Management

Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
The key to building lasting customer relationships is to create superior customer value and satisfaction.
Satisfied customers are more likely to be loyal customers and give the company a larger share of their business.

Customer Engagement and Retention

Delighted customers not only make repeat purchases but also become willing marketing partners and "customer evangelists" who spread the word about their good experiences to others.
Customer-engagement marketing goes beyond just selling a brand to consumers and aims to make the brand a meaningful part of consumers' conversations and lives.
Keeping customers loyal makes good economic sense, as it's five times cheaper to keep an old customer than acquire a new one.### Customer Equity and Performance Measurement
Customer equity is a better measure of a firm's performance than current sales or market share because it suggests future potential.
Marketers should focus on customer lifetime value and customer equity, rather than just current sales and market share.

Customer Segmentation and Relationship Management

Customers can be classified into four relationship groups based on profitability and projected loyalty: Strangers, Butterflies, True Friends, and Barnacles.
Each group requires a different relationship management strategy.
The goal is to build the right relationships with the right customers.

Impact of Digital Technology

The growth of digital technology has fundamentally changed the way people live, communicate, and shop.
An estimated 3.3 billion people (46% of the world's population) are now online.
64% of American adults own smartphones, with 71% keeping them next to them while sleeping.

Digital Technology in Marketing

Petco's Community site is an example of using digital technology to connect with customers and provide a platform for sharing and learning.

Marketing in Not-for-Profit Organizations

Marketing is becoming increasingly important for not-for-profit organizations, such as colleges and hospitals, to attract members, funds, and support.
Sound marketing can help not-for-profits compete for support and membership.

Marketers are reexamining their relationships with social values and responsibilities and the environment.
Companies like Ben & Jerry's are using sustainable marketing practices and socially responsible missions to make a positive impact.
Today's marketers are being called upon to develop sustainable marketing practices that align with the worldwide consumerism and environmentalism movements.

The Marketing Process

The marketing process involves understanding customer needs, creating a marketing mix, and building relationships with customers.
An expanded model of the marketing process can help marketers pull all the steps together.