Marketing - Chapter 1
Marketing - Chapter 1 MAR 250
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This 4 page Class Notes was uploaded by Melanie Guerrero on Monday February 1, 2016. The Class Notes belongs to MAR 250 at Pace University taught by Harvey Markowitz in Winter 2016. Since its upload, it has received 39 views. For similar materials see Principles of Marketing (20335) in Marketing at Pace University.
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Date Created: 02/01/16
Marketing 250 – CRN 20335 – Markovitz Chapter 1 – Creating Relationships and Value through Marketing Vocabulary: Customer experience – the internal response that customers have to all aspects of an organization and its offering Customer relationship management (CRM) – the process of identifying prospective buyers, understanding them, and developing favorable perceptions of the organization so that buyers will choose them in the marketplace Customer value – the unique combination of benefits received by targeted buyers Customer value proposition – a cluster of benefits that an organization promises customers to satisfy their needs Environmental forces – social, economic, technological, competitive, and regulatory forces Exchange – trade of things of value between a buyer and a seller so that each is better off after the trade Market – people with both the desire and ability to buy a specific offering Market orientation – focuses efforts on continuously collecting information about customers’ needs, sharing this information across departments, and using it to create customer value Market segments – homogeneous groups of prospective buyers that have common needs and will respond similarly to a marketing action Marketing – the activity for creating, communication, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large Marketing concept – the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organizations goals Marketing mix – the 4 P’s – product, price, promotion, and place – that can be used by the marketing manager to solve a marketing problem Marketing program – a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers Organizational buyers – those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale Product – a good, service, or idea consisting of attributes that satisfies a customers’ needs and is exchanged for money or something else of value Relationship marketing – links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit Target market – one or more specific groups of potential consumers, which an organization directs its marketing program towards Ultimate consumers – the people who use the products and services purchased for a household Utility – the benefits or customer value received by users of the product I. What is Marketing? A. Marketing: Delivering Benefits to the Organization, Its Stakeholders, and Society 1. Marketing – definition found on vocabulary sheet 2. Marketing Seeks: a. To discover the needs and wants of prospective customers b. To satisfy them 3. Exchange – Vocabulary sheet* B. The Diverse Elements Influencing Marketing Actions 1. The marketing department is responsible for: a. Facilitating relationships b. Partnerships 2. Also responsible for alliances with: a. Organizations’ customers b. Its shareholders c. Its suppliers d. Other organizations C. What Is Needed for Marketing to Occur 1. Two or more parties with unsatisfied needs 2. Desire and ability to satisfy those needs 3. A way for parties to communicate 4. Something to exchange D. The Challenge: Meeting Customer Needs with New Products 1. 2 suggestions – a) focus on what the customer benefit is b) learn from past mistakes 2. Customer Needs and Consumer Wants a. A need occurs when a person feels deprived of basic necessities b. A want is a need that is shaped by a person’s knowledge, culture, and personality 3. Marketing department must scrutinize its consumers to understand what they need and want and the forces that shape those needs and wants 4. What a Market Is a. Market – Vocabulary sheet* E. Satisfying Consumer Needs 1. Target market – Vocabulary sheet* 2. The 4 P’s: Controllable Marketing Mix Factors a. Product – a good, service, or idea to satisfy the consumer’s needs b. Price – what is exchanged for the product c. Promotion – a means of communication between the seller and buyer d. Place – a means of getting the product to the consumer e. Marketing mix – vocabulary sheet* f. Marketing mix elements are called controllable factors because they are under the control of the marketing department in an organization g. Customer value proposition – vocabulary sheet* 3. The Uncontrollable, Environmental Forces a. Environmental forces – Vocabulary sheet* b. Marketing executives have treated these forces as rigid, absolute constraints that are entirely outside their influence II. The Marketing Program: How Customer Relations Are Built A. Relationship Marketing: Easy to Understand, Hard to do 1. Customer Value – Vocabulary sheet* a. Combination of benefits includes: quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price b. Many successful firms deliver outstanding customer value with one of three value strategies: 1) best price 2) best product 3) best service 2. Relationship marketing – Vocabulary sheet* B. The Marketing Program and Market Segments 1. Marketing Program – Vocabulary sheet* 2. Market Segments – Vocabulary sheet* C. Evolution of the Market Orientation 1. Marketing concept – Vocab sheet* 2. Market orientation – Vocab sheet* 3. Customer relationship management – Vocab sheet* 4. Customer experience – Vocab sheet* a. Internal response includes both direct and indirect contacts of the customer with the company b. Direct Contacts – buying, using, and obtaining service c. Indirect contacts – word-of-mouth comments from other customers, reviewers, and news reports D. Ethic and Social Responsibility in Marketing: Balancing the Interests of Different Groups 1. Ethics a. Many companies, industries, and professional associations have developed codes of ethics to assist managers 2. Social Responsibility – the idea that organizations are accountable to a larger society a. Social marketing concept – Vocab sheet* E. The Breadth and Depth of Marketing 1. Must analyze: a. Who Markets b. What is marketed i. Product – Vocab sheet* c. Who buys and uses what is marketed i. Ultimate consumers – Vocab sheet* ii. Organizational buyers – Vocab sheet* d. Who benefits from these marketing activities i. Marketing benefits society ii. It enhances competition e. How consumers benefit i. Utility – Vocab sheet* ii. 4 Types of Utility: 1) Form 2) Place 3) Time 4) Possession iii. “Marketing creates utilities by bridging space (place utility) and hours (time utility) to provide products (form utility) for consumers to own and use (possession utility).”
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