Marketing Chapter 1 PDF

**Chapter one** - Central theme of the book is that Marketing adds value - Marketing creates enduring and mutually valuable relationships - Identifies what customers value locally and globally - **Marketing:** a set of business practices designed to plan for and present an organizati...

**Chapter one** - Central theme of the book is that Marketing adds value - Marketing creates enduring and mutually valuable relationships - Identifies what customers value locally and globally - **Marketing:** a set of business practices designed to plan for and present an organizations products or services in ways that build effective customer relationships **Need:** one of the basic necessities of life. Ex. Food, clothing, shelter, or safety **Want:** the particular way in which persons chose to fulfill their needs - Shaped by their knowledge - Culture - Personality - **Demand** is demonstrated by your ability and willingness to act on those needs and wants - A company must determine the customers/market for their product/service - Companies seek out those who have interest in the product and ability to buy it - **Target Market:** the customer segment or group to whom the firm is interested in selling its products and services - Marketing is about an **exchange**- the trade of things of value between the buyer and the seller so that each is better off as a result - Marketing mix/4 P's : four interrelated decisions- **Product, Price, Place and Promotion** - The controllable set of activities that the firm uses to respond to the wants of its target markets - Fundamental purpose of marketing - Offering a variety of goods, services, ideas - Satisfy needs - **Goods:** items that you can physically touch, - fulfill some need, - what they provide - how they are marketed - **services:** intangible customer benefits that are produced by people or machines and cannot be separated from the producer - **ex.** A ticket - **Ideas:** thoughts, opinions, philosophies and intellectual concepts that also can be marketed - **Ex.** MADD - Everything has a price - Everything the buyer gives up - Price is determined depending on the potential buyer's belief about its value - How much customers are willing to pay so that they are satisfies with the purchase and the seller achieves a reasonable profit - All the activities necessary to get the product from the manufacturer to the right customer, when. The customer wants it - Retailing and distribution management - **supply chain management:** the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores and other firms involved in the transaction - without a good distribution system products aren't available where/when customers want them - P/S will go unsold if marketers cannot communicate their value to customers - Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or get a response - B2C (business-to-consumer): The process in which businesses sell to consumers. - B2B (business-to-business): The process of selling merchandise or services from one business to another. - C2C (consumer-to-consumer): The process in which consumers sell to other consumers. - People can also market themselves(interview for job) **The four orientations of Marketing** - **Product orientation:** companies that focus on developing and distributing innovative products - Little concern for customer needs - Good product will sell itself - **Sales orientation:** companies that view marketing as a selling function - Selling us much as possible - Not focused on products customers want - New customers - **Market orientation:** start out focusing on what customers need/want - The customer is king - Anything to satisfy customer needs - Long term customers - **The triple bottom line:** people, profits and planet - **Value based orientation:** companies that provide their customers with greater value than their competitors - **Value:** reflects the relationship of benefit to cost/what you get for what you give - **value cocreation:** Customers act as collaborators with a manufacturer or retailer to create the product or service - every value based firm must implement its strategy according to what its customers value - how firms become value driven 1. gather info about customers and competitors, analyze and share 2. balance benefits and costs 3. build relationships 4. new technologies - constantly measure the benefits against the costs - **relational orientation:** A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship. - **customer relationship management (CRM):** A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers. Review questions for end 1. Define the role of marketing and explain its core concepts 2. Describe how marketers create value for a product or service 3. Summarize the four orientations of marketing Product orientation: the manufacture of a product simply makes it and assumes people will buy It. Sales orientation: manufacture of the product simply wants to sell as many products as possible Market orientation: the producer is now focused on the consumers wants and needs and designs their product and makes decisions with that in mind Value based orientation: focuses on how to be the best/give the best customer experience. Be competitive 4. Understand the importance of marketing both withing and outside the firm