the activity, set of institutions and processes for creating, communicastin, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
To safisfy needs
Buyers, sellers or investors in a company where goods and services are sold
Any person or organization that has a stake in the outcome
Is the basic approach of a company doing business
In order to survive, it preaches that the firm should adapt itself to the dynamic marketing enviornment.
Requires: Customer and competitor orientation, interfunctional coordination, long range planning, profitability
Includes all the activities (like planning, organizing, implementing and controlling towards adapting the firm to the changing marketing enviornment.
Tools: Product, Price, Promotion, Place
The ultimate user of a good or service.
Marketers first identify consumer needs and then provide products that satisfy those needs
The different between a consumer's actual state and some ideal or desired state.
Relate to physical or psychological needs
A desire for a particular product used to satisfy that need
Are culterally and socially influenced
Customers' desires for a product coupled with the resources needed to obtain them.
Consists of all the consumers with that need and the resources to make the exchange
Any location or medium used to conduct an exhcange
The usefulness or benefit consumers recieve from a product
Utility is what creates value
Transforming raw materials into finshed products
Benefit marketing provides by making products availibale wheer customers what them
Benefit marketing provides by storing products until they are needed
Benefit marketing providesn by allowing the consumer to own, use, and enjoy the product
When a person gives somthing and gets something else in return.
The buyer recives an object, service, or idea that satisfies a need and the seller recieves something he feels is of equivalent value
The head of every marketing act
Refers to the benefits a customer recieves from buying a product or service
Ex: quality, price, convenience, on time delivery, before and after sale service
A marketplace offering that fairly and accurately sums up the value that the customer will realize if he/she purchases product/service
Value from Customer's perspective
Value is the ratio of costs (price) to benefits (utilities)
Value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product
Value for Seller's perspective
Making a profitable exchange
Earning prestige among rivals
Taking pride in doing what a company does well
Nonprofits: motivating, educating, or delighting the
A superior capability of a firm in comparison to it's direct competitors
Properties of procuts that set them apart from competirors product by providing unique customer benefits
Must be differnt and somthing consumers want
A series of activities involved in designing, producing, marketing, delivering, and supporting any product
Inbound logistics: bringing in material to make product
Operations: converting into final product
Outbound logistics: shipping out the final product
Marketing final product: promoting and selling final
Service: meetint hte customers needs
The Production Era
Dominated by the production orientation
Sellers market with demand > supply
Focuses on most effiecent way to produce and distribue products
Emphasized mass production
Marketing played an insignificant role
View market as a homogenous group that will be satisfied with the basic funcion of a producet.
Ex: Henry Ford's Model T and Ivory Soap
Management philosophy that emphasizes the most efficeint ways to produce and distribute products.
They have to take whatever is available becaues they have no other choice
When product availability exceeds demand, businesses may focus on a one-time sales of goods rather that repeat business.
Dominated by selling orinetation
Move products out of warehouses to reduce inventory
Sell unsought goods- buy from prodding
Came about in great depression, after WW2
Manageraial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
Foscued on customer orientaiton
Marketing becomes more important
Started following approach Total Quality managment (TQM)
A managment philosophy that empahasizes satisfying customers' needs and wants
Created way to out do the competition
Total Quality Managment
A managment philosophy that involves all employees from the assembly line onward in continuous prodcut quality imporvoment.
On demand- don't create the procuct till asked for
A business person who only produces a product when it is ordered
Triple Bottom Line Era
Building long-term bonds witht he customers rather thatn merely selling them stuff today.
Seeks to maximize:
Financial bottom line: financial profits to stakeholders
Social bottom line: Contribuint tot the communities in which the company operates
Greater focus on accountability- measuring jusg how much value marketing activiities create.
Enviornmental bottom line: creating sustainable business practies that minimaze damage tot he enviornment or that even improve it
Customer relationship managment: involves systmatically tracking consumers preferences and behaviors over time in order to tailor the value propostion as closely as possible to each individual's uniique wants and needs
Social Marketing concept
Marketers must satisfy customers needs in ways that also benefit society and deliver profit to the firm
Cleaner safer environemnt
meeting present needs without compromising the ability of future generations to meet their needs.
Cut glass that is recycled and organic cotton bedding
Return on Investment: is the direct financial impact of a firm's expenditure of resources such as time or money
A documetn that describes the amrketing enviornmnet, outlines the marketing objectives and stragegies, and identifies how the company will implement and contrl the strategies imbedded int he plan
Mass Market: All possible customers in a market, regardless of the diff in their needs and wants
Market segment: distinct group of customers within a large market who are similar needs differ from large market
The 4 Ps
Product: design and packaging of good, features
Price: assignment of value, amount consumers must exchange
Promotion: all activiies marketers undertake to inform consumers about product
Place: availability of the product to the customer (supply chain- set of firms that work together to get product to consuemr)
Rules of conduct
Written standars of behavior
Basic values that guide a firms behavior
Consumer Bill of Rights
Presdient John F. Kennedy
Right to be safe, informed, heard, and choose freely
Ongoing proces of making decisions that guide the firm both in the short term and the long term
A plan that includes the decisions that guide the entire organization
Managerial decision process that matches the firms resources and capabilities to it;s market opprotuniites for longterms growth
Define the mission, strategic plans, set SBU objectives
Strategic business units: individual units representing different areas of business within a fimr that are diffe3rent enough to each have their own mission and stuff.
AKA tactical planning
Plannign done by top functional-level managment such as the frim cheif marketing officer.
Set marketing objective, implement stratadgies, perform situational analysis
Planning done by supervisory managers
Sales managers, brand managers
Focucus on day-to-day execution fo the funcitona. plans and included detailed annual, semi, quarter plans.
Monitor how plan is working
an assessment of a firms internal and external enviornments.
Strategic Planning step 1
1: Define Mission: A formal document that describes the fimr's overall purpose and what it hopes to achieve in terms of it's customers, products, and resources
Strategice Step 2
Evaluate the internal and external enviornments
Controllable elemetns inside of an organization that influence how well the firm operates