What is Marketing?
Marketing- the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
1. helps create value
2. satisfying customer needs and wants
3. entails an exchange
4. requires product, price, and promotion decisions
5. can be performed by both individuals and organizations
6. occurs in many settings
Marketing Plan- specifies the marketing activities for a specific period of time. Marketing plan is broken into various components – how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.
Marketing is About Satisfying Customer Needs and Wants
-Broadest terms= Marketing is the world of trade.
-Narrow terms= marketplace can be segmented into groups of people who are pertinent to an organizations for particular reasons.
Marketing Entails an Exchange
Exchange- the trade of things of value between the buyer and the seller so that each is better off as a result.
Marketing Requires Product, Price, Place, and Promotion Decisions
1. Product (Creating Value)- fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
-Good-items that you can physically touch. -Services- intangible customer benefits that are produced by people or machines and cannot be separated from the producer. -Ideas- can be marketed – opinions, programs, and philosophies.
2. Price (Capturing Value)- does not have to be monetary, is everything the buyer gives up, money, time, energy, in exchange for the product.
3. Place (Delivering the Value Proposition)- represents all the activities necessary to get the product to the right customer when that customer wants it.
4. Promotion (Communicating the Value Proposition)- even the best products, whether goods or services, will go unsold if marketers cannot communicate, or promote, their value to customers.
Marketing Can Be Performed by Both Individuals and Organizations
-B2C (business-to-consumer) marketing
-B2B (business-to-business) marketing
Marketing Impacts Various Stakeholders
Employment marketing- involve undertaking marketing research to understand what potential employees are seeking, as well as what they think about the firm; developing a proposition and an employment brand image; communicating that brand image to potential employees; and then fulfilling the brand promise by ensuring the employee experience matches that which was advertised.
Marketing Helps Create Value
Production-Oriented Era- Around the turn of the 20th century, most firms believed a good product would sell itself.
Sales-Oriented Era- Manufactures had the capacity to produce more than customers really wanted or were able to buy.
Market-Oriented Era- buyer’s markets, firms discovered marketing.
Value-Based Marketing Era- Value reflects the relationship of benefits to costs, or what you get for what you give. To prove additional value- Value Cocreation- customers act as collaborators to create the product or service.
What is Value-Based Marketing?
-Consumers make explicit and/or implicit trade-offs between the perceived benefits of a product or service and its cost.
How Firms Compete on the Basis of Value
It involves deciding which products/services to provide for whom.
How Do Firms Become Value Driven?
1. share info about their customers and competitors across their own organization and with other firms, such as manufacturers and transportation companies, that help them get the product or service to the marketplace.
2. Strive to balance their customer’s benefits and costs.
3. Concentrate on building relationships with customers.