98 notecards = 25 pages (4 cards per page)
benefits a customer receives from buying a good or service
an organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
buyers, sellers, or investors in a company, community residents, and even citizens of the nations where goods and services are made or sold-in other words, any person or organization that has a "stake" in the outcome
marketing is only about satisfying the customer, T or F
F, it's about satisfying everyone involved
ultimate user of a good or service
management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability
recognition of any difference between a consumer's actual state and some ideal or desired state
when the difference between a consumer's actual state and some ideal or desired state is big enough, the consumer is motivated to take action to satisfy what?
Needs relate to what two functions?
physical and psychological
the specific way a person satisfies a need depends on his or her unique what 3 things?
history, learning experiences, and cultural environment
the desire to satisfy needs in specific ways that are culturally and socially influenced
the outcome sought by a customer that motivates buying behavior-that satisfies a need or want
customers' desires for products coupled with the resources needed to obtain them
all the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange
all the consumers who share a common need that can be satisfied by a specific product and who have the resources, willingness, and authority to make the purchase
any location or medium used to conduct an exchange
digital products consumers buy for use in online contexts
sum of benefits we receive when we use a good or service
what are the four utilities marketing processes create to provide value to consumers? FPTP
form utility, place utility, time utility, possession utility
benefit marketing provides by transforming raw materials into finished products, as when a dress manufacturer combines silk, thread, and zippers to create a bridesmaid's gown (utility)
benefit marketing provides by making products available where customers want them. the most sophisticated evening gown sewn in New York's garment district is of little use to a bridesmaid in KC if it isn't shipped to her in time (utility)
benefit marketing provides by storing products until they are needed. Some women rent their wedding gowns instead of buying them and wearing them only once (utility)
benefit marketing provides by allowing the consumer to own, use and enjoy the product. the bridal store provides access to a range of styles an coors that would not be available to a woman outfitting a bridal party on her own (utility)
process by which some transfer of value occurs between a buyer and a seller, occurs when a person gives something and gets something else in return
good, service, an idea, a place, a person-whatever is offered for sale in exchange
management philosophy that emphasizes the most efficient ways to produce and distribute products, works best in a seller's market when demand is greater than supply because it focuses on the most efficient ways to produce and distribute products-essentially consumers have to whatever is available
What is one problem with production orientation?
View can be too narrow-firms that focus on a production orientation tend to view the market as a homogenous group that will be satisfied with the basic function of a product.
managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory/don't pile up
Where will you still see the "hard sell"/selling orientation today?
usually one-time sales, or unsought goods that people don't buy without prodding (cemetery plot)
business approach that prioritizes the satisfaction of customers' needs and wants
a management philosophy that focuses on satisfying customers through empowering all employees to be an active part of continuous quality improvement
total quality management (TQM)
a businessperson who only produces a product when it is ordered
a business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices to build long-term bonds with customers rather than merely selling them stuff
triple bottom line orientation
what are the three bottom lines of triple bottom line orientation?
financial bottom line, social bottom line, environmental bottom line
a systematic tracking of consumer's preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs. It allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts
customer relationship management, CRM
what does CRM stand for?
customer relationship mangement
how does the internet apply to CRM/make it easier?
provides the ultimate opportunity for implementation of the marketing concept because it allows a firm to personalize its messages and products to better meet needs of each individual consumer
some marketing analysts suggest that the internet create a paradigm shift for business, what does this mean?
companies must adhere to a new model to profit in a wired world
a company's success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather just dollars
what's an example of an attention economy?
Google-seels advertising to many other companies, so the more consumers it can persuade to "google" rather than "bing, the more it can charge to place ads on search pages
what does an attention economy mean for companies?
they must find new and innovative ways to stand out from the crowd and become an integral apart of consumers' lives rather than just being a dry company that makes and sells products
a management philosophy that marketers must satisfy customers' needs in ways that also benefit society and also deliver profit to the firm
social marketing concept
a product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs, "cradle to cradle"
a marketing strategy that supports environmental stewardship, thus creating a differential benefit in the minds of consumers
measuring just how much value marketing activities create, triple bottom line puts a bigger focus on this. it means that marketers at these organizations ask hard questions about the true value of their efforts and their impact on the bottom line
direct financial impact of a firm's expenditure of a resource such as time or money
return on investment, ROI
questions about the true value of marketers' efforts and their impact on the bottom line all boil down to the simple acronym?
ROI, return on investment
music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market
goods and services that are popular at any time often mirror changes in the larger society. example?
cosmetics made of natural materials showed consumer concern for pollution and animal rights
marketing messages often communicate stories containing symbolic elements that express the shared emotions and ideals of a culture, what are these stories called?
goods individual consumers purchase for personal or family use
intangible products that are exchanged directly between the producer and the customer
the marketing of goods and services from one organization to another, businesses and other organizations buy a lot more goods than consumers do
goods individuals or organizations buy for further processing or for their own use when they do business, ex-ford buys steel from another business
the buying or selling of goods and services electronically, usually over the internet
losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise
the deliberate defacement of products
organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members
marketing principles also encourage people to endorse ideas, places, and people or to change behaviors in positive ways. examples?
ideas-click it or ticket, safe sex, etc
a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased-the way marketers communicate benefits to the cusomter
what's a big challenge of the value proposition?
create an attractive one that also looks superior to other options
what three parties' perspectives are involved in deciding value in an exchange?
customers, sellers, society
value from the customer's perspective?
consider price and benefits, might be making a statement about the type of person you are or wish you were
value from the seller's perspective?
determine whether the exchange is profitable to them, value to the seller can take many forms: prestige among rivals, pride in doing what they do well, whether the relationship they have with a customer possesses enough value for them to continue it
becoming more and more popular for companies to host events that thank customers for their loyalty, what are these events called?
it's more expensive to attract new customers than it is to retain current ones, T or F
T, but it doesn't always hold true. It can cost a lot of money to keep customers loyal
the potential profit a single customer's purchase of a firm's products generates over the customer's lifetime
lifetime value of a customer
superior capability of a firm in comparison to its direct competitors
properties of products that set them apart from competitors' products by providing unique customer benefits, value that competitors don't offer
what do differential benefits provide reasons for?
customers paying a premium for a firm's products and exhibit a strong brand preference
differential benefits don't necessarily mean simply offering something different
effective product benefits must be both DIFFERENT from the competition and things CUSTOMERS WANT
a series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the costumer eventually buys
what are the main activities of value-chain members? 5
inbound logistics, operations, outbound logistics, marketing, service
feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals
What do marketing scorecards tend to look like?
short and to the point, charts and graphs to summarize info, easy-to-read format
measurements or "scorecards" marketers use to identify the effectiveness of different strategies or tactics
consumers who contribute ideas to online forums for the fun and challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income
everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers
online platforms that allow a user to represent him or herself via a profile on a web site and provide and receive links to other members of the network to share input about common interests
the new generation of the world wide web that incorporates social networking and user interactivity
key difference between web 1.0 and 2.0?
interactivity we see among producers and users
characteristics of web 2.0?
improves as the number of users increases, its currency is eyeballs (google charges advertisers by how many people see their ad after typing in a search term), it's version-free and in always a work in progress, it categorizes entries according to folksonomy rather than taxonomy
new apps that enable user-generated clouds of content to form around products; barcode cans allow the user to upload content or see what others have already uploaded
a classification system that relies on users rather than preestablished systems to sort contents
under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products
wisdom of crowds
a practice used in the software industry in which companies share their software codes with one another to assist in the development of a better product
open source model
dark side of marketing?
terrorism, addictive consumption, exploited people, illegal activities
a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
all possible customers in a market, regardless of the differences in their specific needs and wants
what's the risk of offering goods and services to a mass market?
firm risks losing potential customers to competitors whose marketing plans instead try to meet the needs of specific groups within the market
a distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market
the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
the way in which the target market perceives the product in comparison to competitors' brands
a combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers
marketing mix, "marketer's strategic toolbox"
think of the marketing mix as the four Ps, what are they?
product, price, promotion, and place
the assignment of value, or the amount the consumer must exchange to receive the offering
the coordination of a marketer's communication efforts to influence attitudes or behavior
the availability of the product to the consumer at the desired time and location