Professional Documents
Culture Documents
Kotcha 01
Kotcha 01
What is Marketing?
(pp. 5-6)
The process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (p. 6) Simply put: Marketing is the delivery of customer satisfaction at a profit. (p. 5)
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Promotion
(Communication)
Place (Convenience) 3
Needs - state of felt deprivation for basic items such as food and clothing, and complex needs such as for belonging. (i.e. I am hungry.) Wants - form that a human need takes as shaped by culture and individual personality. (i.e. I want a hamburger, French fries, and a soft drink.) Demands - human wants backed by buying power. (i.e. I have money to buy this meal.)
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Organizations
Information
Ideas
Services Activities or benefits offered for sale that are essentially intangible and don t result in the ownership of anything
How Do Consumers Choose Choose Among Products & Services? (pp. 9-11)
Customer Value Value gained from owning a product less the costs Customer Satisfaction Perceived performance in providing value, relative to expectations Quality Total quality management (TQM) continuous improvement Caution: Avoid Marketing Myopia
(pp. 8, 18)
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Transactions
Relationships
Building a marketing network with supporting stakeholders
Market
Actual and potential buyers who share a particular need or want that can be satisfied through an exchange or relationship. Actual buyers
Resources to exchange
Willingness to exchange
Potential buyers
Most marketers are targeting fewer, potentially more profitable customers. Asking:
What value does the customer bring to the organization? Are they worth pursuing? keeping current customers, and building lasting relationships based on superior satisfaction and value. 10
Demand Management
Finding and increasing demand, also changing or reducing demand such as in Demarketing
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Consumers favor products that are available and highly affordable. Consumers favor products that offer the most quality, performance, and innovative features. Consumers will buy products only if the company aggressively promotes/ sells these products. Focuses on needs & wants of target markets & delivering satisfaction better than competitors. Focuses on needs & wants of target markets & maintaining or improving societal and customer well-being.
12
Production Concept
Late 1800s & Early 1900s Demand > Supply; High Costs
(Still appropriate under these limited circumstances)
(pp. 16-17)
Consumers Favor:
Management s Focus:
engineer
Product Concept
Late 1940s (Post World War II) Demand < Supply
(p. 18)
Consumers Favor:
Management s Focus:
inventor
Danger:
Marketing Myopia
Focus on physical products, not customer needs & wants Fall in love with the product, not the customer o Customers don t need or want ( just don t care ) o Over-improve o New technology replaces
Selling Concept
Late 1940s (Post World War II) Demand < Supply (p. 18)
Consumers Favor:
Not buying or not buying enough hard-sell salesman Large-scale selling and promotion efforts Coaxing & pushing people to buy
Management s Focus:
Marketing Concept
1950s Present Demand < Supply (pp. 18-20)
Consumers Favor:
Management s Focus:
customer oriented
Understanding the needs and wants of consumers Satisfying them more efficiently and more effectively than competitors
(NOTE: Efficiency & effectiveness - keeps the best of the production & product concepts) (Focuses on the underlying and latent needs as well as the stated needs)
Focus
Existing Products
Means
Selling and Promoting
Ends
Profits through Volume
Market
Customer Needs
Integrated Marketing
Company
(Profits)
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Chapter Review
(pp. 36-37)
Define what marketing is and discuss its core concepts. Explain the relationships between customer value, satisfaction, and quality. Define marketing management and examine how marketers manage demand and build profitable customer relationships. Compare the five marketing management philosophies.
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