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• Market-skimming pricing


  A strategy with HIGH INITIAL PRICES to "skim" revenue layers from the market
• Market-penetration pricing


  Sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
• Product line pricing


  • Takes into account the cost differences between products in the line, customer evaluation of their features, and competitors' prices
• Marketing


  A social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging products of value with others
• Selling and advertising are only the tip of the marketing iceberg
• Marketing must be understood not in the old sense of making a sale, but in the new sense of satisfying customer needs
• Needs


  The most basic concept underlying marketing, states of felt deprivation including basic physical, social, and individual needs
• Wants


  The form human needs take as they are shaped by culture and individual personality
• Demands


  Wants that are backed by buying power
• Marketing Offerings


  Some combination of products, services, information, or experiences offered to a market to satisfy a need or a want
• Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products
• Marketing myopia


  Sellers are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs
• Customer value


  The difference between the values the customer gains from owning and using a product and the costs of obtaining the product
• Customer satisfaction


  How well the product's performance lives up to the customer's expectations
• Customer value and customer satisfaction are key building blocks for developing and managing customer relationships
• Exchange


  The act of obtaining a desired object from someone by offering something in return
• Customer relationship management


  The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
• Today's companies are going beyond designing strategies to attract new customers and create transactions with them. They are using customer relationship management to retain current customers and build profitable, long-term relationships with them
• Marketing management


  The art and science of choosing target markets and building profitable relationships with them
• Selecting customers to serve

  1. Market segmentation

  2. Target marketing
• Value proposition


  The set of benefits or values a brand promises to deliver to consumers to satisfy their needs
• Marketing management philosophies


  • Production concept
  • Product concept
  • Selling concept
  • Marketing concept
  • Societal marketing concept
• Production concept


  Consumers will favor products that are available and highly affordable, so management should focus on improving production and distribution efficiency
• Product concept


  Consumers will favor products that offer the most in quality, performance, and innovative features
• Selling concept


  Consumers will not buy enough of the company's products unless it undertakes a large-scale selling and promotion effort
• Marketing concept


  Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
• Societal marketing concept


  Marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being
• Customer-perceived value


  The customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers
• Higher levels of customer satisfaction lead to greater customer loyalty, which in turn results in better company performance
• Companies aim to delight customers by promising only what they can deliver and then delivering more than they promise
• Customer-engagement marketing


  Fostering direct and continuous customer involvement in shaping brand conversations, brand experiences, and brand community
• It's five times cheaper to keep an old customer than acquire a new one
• Customer equity


  The total combined customer lifetime values of all of the company's current and potential customers
• Customer-Engagement Marketing goes beyond just selling a brand to consumers. Its goal is to make the brand a meaningful part of consumers' conversations and lives
• Consumer-generated marketing


  Consumers themselves play role in shaping their own brand experiences and those of others
• Partner relationship management


  Working closely with others inside and outside the company to jointly engage and bring more value to customers
• Research shows that it's five times cheaper to keep an old customer than acquire a new one
• Customer equity


  The total combined customer lifetime values of all of the company's current and potential customers. A measure of the future value of the company's customer base
• The more loyal the firm's profitable customers, the higher its customer equity
• Digital and social media marketing


  Using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers anywhere, anytime via their computers, smartphones, tablets, internet ready TVs, and other digital devices