Chapter 1

• What is Marketing?

  The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
• What are the two objectives that marketing seeks to do?

  (1) Discover the needs and wants of customers

  (2) Satisfy them
• What is the key to achieving the two objectives of marketing?

  Exchange
• What is Exchange?

  The trade of things of value between buyer and seller so that each is better off after the trade
• What does the organization determine? Who is responsible for establishing these goals?


  (a) Mission and objective determine the business and goals

  (b) Management

  Marketing works with other departments to provide customer satisfying products
• In society, what shapes marketing actions?

  Environmental forces
• What are the 4 factors required for marketing to occur?


  (1) 2 or more parties with unsatisfied needs

  (2) Desire and ability to be satisfied

  (3) Way for parties to communicate

  (4) Something to exchange
• What challenge does marketing face with meeting consumer needs with new products?

  Consumers may not know, or cannot describe what they need or want
• What percent of products fail?

  40%
• What are the 2 key suggestions when products fail?

  (1) Focus on consumer benefit

  (2) Learn from past mistakes
• What are needs?

  Necessities

  (EX: food, clothing, and shleter)
• What are wants?

  Need shaped by culture, personality, knowledge
• Who makes up the market?

  Potential customers
• What is a Market?


  People with both the desire and the ability to buy a specific offering
• What is the process of marketing?

  (1) Potential customers

  (2) Info about needs

  (3) Discover needs through research

  (4) Satisfy needs by designing a program with the right amount of the 4 Ps

  (5) Product, service, and idea

  Back to potential customers
• Who does marketing focus their needs on?


  Target Market
• What is a Target Market?

  One or more specific groups of potential consumers toward which an organization directs its marketing program
• What are the 4 Ps of Controllable Marketing Mix Factors?

  (1) Product

  (2) Price

  (3) Place

  (4) Promotion
• What is Product (1)?

  Good, service, or idea
• What is Price (2)?

  Something to exchange
• What is Place (3)?


  Getting product to consumer
• What is Promotion (4)?


  Communication between buyer and seller
• What is a Marketing Mix?

  The controllable factors such as product, price, promotion, and place that can be used by the marketing manager to solve a marketing problem
• What are environmental forces?

  The uncontrollable forces that affect a marketing decision
• What are the 5 uncontrollable forces?

  (1) Social

  (2) Competitive

  (3) Economic

  (4) Regulatory

  (5) Technological
• What makes successful marketing?

  Gaining loyalty from customers
• To gain loyalty from customers, what do we do?

  Create customer value
• What is Customer Value?

  The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price
• What are 3 customer value strategies to use?

  (1) Best price: Target

  (2) Best service: Nordstrum

  (3) Best Product: Starbucks
• What is Relationship Marketing?

  Building long-term relationships with customers to foster loyalty and repeat business which is easy to understand yet hard to do
• How do we convert consumer needs into products?

  (1) Marketing program

  (2) Marketing Segment
• What is a Marketing program?

  Plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
• What is a Marketing segment?

  A group of potential customers with similar characteristics or needs who respond similarly to a marketing action
• What is Marketing Concept?

  Idea that organization must meet needs of consumers and achieve goals
• What is Marketing Orientation?

  Organization that collects info on needs, share info to departments, and uses info to create customer value
• What is Customer Relationship Management (CRM)?

  CRM is a strategy for managing interactions with customers and potential customers to which they will soon become advocates for their company
• What is Customer Experience?

  Internal response that customers have to all aspects of an organization and its offering (foundation of CRM)
• What are ethics?

  Moral principles or values that guide behavior that companies develop
• What is Social Responsibility?

  View that organizations should satisfy needs to account for society at large
• What is the Social Marketing Concept?

  Organizations should satisfy the needs of consumers in a way that provides for society’s well-being