Marketing Fundamentals Overview

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Questions and Answers

What is the primary difference between needs and wants in marketing?

Needs can be satisfied only by physical products.

Wants and needs are identical concepts in marketing.

Wants are always more expensive than needs.

Needs are basic requirements while wants are influenced by personal preferences. (correct)

Which of the following best describes marketing myopia?

Concentrating on the benefits that products provide to consumers.

Paying more attention to specific products than to the broader benefits and experiences they offer. (correct)

Focusing on customer needs rather than product improvements.

Developing new products without examining consumer satisfaction.

What does customer-perceived value refer to in marketing?

A comparison of the marketing offer's value against competing offers. (correct)

The amount of money invested in promoting a product.

The total sales figures generated by a product.

The level of customer loyalty achieved by a company.

Which of the following statements best reflects the importance of value propositions in marketing?

They define the set of benefits a company promises to deliver to consumers. Signup and view all the answers

What is the primary purpose of targeting a market in marketing?

To identify and meet the needs of specific consumer groups. Signup and view all the answers

In the context of marketing, what does the term 'exchange' refer to?

The act of obtaining a desired object while offering something in return. Signup and view all the answers

Which of the following is NOT a type of need identified in marketing?

Financial needs Signup and view all the answers

What can lead to increased customer loyalty according to customer satisfaction principles?

Meeting customer expectations. Signup and view all the answers

What is one of the main goals of marketing?

To keep and grow current customers by delivering satisfaction Signup and view all the answers

Which describes the contemporary marketing approach?

It focuses on customer satisfaction and direct, personal engagement. Signup and view all the answers

How does marketing create demand?

By communicating and delivering relevant value Signup and view all the answers

Which of the following is considered a core marketing concept?

Needs, wants, and demands Signup and view all the answers

What major change is impacting the marketing landscape today?

The rise of digital marketing and customized customer engagement Signup and view all the answers

What is one factor contributing to the growth of not-for-profit marketing?

Increased societal focus on social causes Signup and view all the answers

How has the economic environment affected marketers?

They are emphasizing value, practicality, and durability in their offerings. Signup and view all the answers

What does glocalization refer to in marketing?

A strategy that combines global strategies with local adaptations Signup and view all the answers

Study Notes

Marketing Definition

Marketing is the process of engaging customers and managing profitable customer relationships.
It involves understanding customer needs and desires, and creating products and services that meet those needs.

Marketing Goals

Attract new customers by offering superior value.
Keep and grow existing customers by delivering satisfaction.

Marketing Approaches

Outside-in Approach: Begin with understanding customer needs and working backward to develop products.
Inside-out Approach: Focus on creating products that the company likes, without prioritizing customer needs - now considered outdated.

What is Marketed?

Goods: Physical products like cars, food, clothing.
Services: Intangible products like banking, healthcare, education.
Events and Experiences: Live concerts, sporting events, theme park visits.
Persons: Celebrities, athletes, public figures.
Places and Properties: Tourist destinations, real estate.
Organizations: Non-profit organizations, businesses.
Information: Books, articles, news.
Ideas: Social causes, political campaigns.

Importance of Marketing

Creates, communicates, and delivers value to customers.
Builds and maintains relationships with customers and partners.
Generates demand and business, which is essential for financial success.

Forms of Marketing

Traditional Marketing: Focuses on making a sale, often through mass media like TV, magazines, and direct mail. Assumes abundance of products in stores.
Contemporary Marketing: Emphasizes satisfying customer needs, using personalized approaches via websites, apps, social media, and interactive communication.

Reasons for Changing Marketing Landscape

Digital Age: Provides access to customer data, changes distribution methods, enables personalized communication, and increases customer engagement.
Changing Economic Environment: Marketers prioritize value, practicality, and durability in their product offerings. Customers are becoming more affluent and demanding.
Growth of Not-for-Profit Marketing: Organizations like charities use marketing strategies to achieve their missions.
Rapid Globalization and Sustainable Marketing: Companies adopt a global view of industry, competitors, and customers, while incorporating sustainable practices.
Socially Responsible Marketing: Marketers acknowledge their social and environmental impact, promoting ethical practices like reducing carbon footprint.

Core Marketing Concepts

Needs, Wants, and Demands:
- Needs: Basic human requirements like physical, social, and individual needs.
  - Physical Needs: Hunger, thirst, shelter.
  - Social Needs: Belonging, communication, affection.
  - Individual Needs: Ego, self-expression, knowledge.
- Wants: Specific forms that needs take, shaped by culture and personality.
- Demands: Wants backed by buying power.
Marketing Offerings: Combines product, services, information, or experiences to satisfy needs or wants. (e.g., Ikea)
Marketing Myopia: Focuses too much on product improvements without considering customer needs and experiences (e.g., Nokia vs. Apple).
Value & Satisfaction:
- Customer-perceived Value: Comparison of a product's value to competitor offerings.
- Value Proposition: Set of benefits promised to customers to satisfy their needs.
- Customer Satisfaction: Alignment of perceived performance with expectations.
Exchange, Transaction, & Relationship:
- Exchange: Act of obtaining desired objects by offering something in return.
- Transaction: Trade of value between two parties involving money, credit, etc.
- Relationships: Actions to build and maintain relationships.
Target Market: Specific group of actual and potential buyers who share needs that can be satisfied through exchange.

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Description

Explore the essential concepts of marketing, including its definition, goals, and various approaches to attracting and retaining customers. Learn about what is marketed, from goods and services to events and locations, and understand the differences between customer-focused and product-focused strategies.