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Chapter 1--Overview of marketing (What is marketing? (Aim to find out…
Chapter 1--Overview of marketing
What is marketing?
Definition
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and the society at large
Activity
Marketing is a conscious effort, requiring a mix of both art(creativity and innovation) and science(logic and processes)
Creating
Marketing seeks to match consumers with products and services that will be valuable to them
Communicating
Marketing seeks to find ways to let consumers know about the products and services that are being offered to them
Delivering
Marketing must ensure the products and services that are offered to consumers will be useful as promised
Exchanging
Marketing must find a way to physically "meet" with consumers so that they can pass the products or services to consumers and in return, get payment from them
Offerings
Provide products and/or services that will be valuable to consumers
Benefit customers
The products and/or services bought by the consumer can satisfy his/her needs
Benefit the organization
The products and/or services that are sold to consumer in return for cash increases the company's profits
Benefit stakeholders
Part of the profits earned by the company will generate taxes, some of the profits can be given to the needy in the society, and the rest of the profits go to shareholders
Benefit society at large
The research & development to create products and services brings more knowledge to the society; the operations of the company will ass more employment to society; and the revenues earned by the company contributes to the economy of the country
Marketing is in the business of enabling customers to make quick choice that maximize their satisfaction
Marketing is about matching the correct people to the correct product
REASON: different types of people (AKA market segments) have different needs and wants at different times/occasion
Aim to find out
what customers need/want
what can marketing people do to satisfy them
how can marketing people earn the (most) value
Marketing focus on discovering and satisfying consumer needs
Requirements for "Marketing" to occur
Parties with unsatisfied needs
A desire and ability to be satisfied
A way for the parties to communicate
Something to exchange
Definitions of needs VS wants
Needs
A need occurs when a person is deprived of basic necessities
Needs are not created but businesses along with other societal factors, influence wants
Wants
A preference for specific objects to satisfy a need. Shaped by a person's knowledge, culture and personality
To gain an edge, companies learn what they want
Different Segments, Different needs = Distinct Products for Each
Consumers & Target Market
Consumers / Potential customers
People with both the desire & ability to buy a specific product
Target market
"BEST" group of potential consumers
Refers to one or more specific groups of potential consumers towards which an organization directs its marketing program
Marketing Mix
Controllable factors, Internal forces
Products
Good, service, or idea to satisfy the consumer's needs
Price
What is exchanged for the product
Promotion
Means of communication between the seller and buyer
Place/Distribution
Means of getting the product to the consumer
Uncontrollable factors, External environmental forces
Social
Economic
Competitive
Regulatory
Technological
Customer Relationship Management
The challenge is to build greater customer value through customer relationships
Easy to understand
Difficult to implement
Requirements
Customer Insights
Knowing customers and understand their needs and wants
Strategies
Developing core strategy and concept
Marketing Program
Assembling the right mix of products or services, price, promotion and place
How do consumers benefit?
Marketing utilities/Benefits/Values
Form utility
Having a good in a form desired/wanted by the customer
The various form/options that the product come in
Product/Service enhanced, more appealing
Place utility
Having a good or service available where needed
Convenient locations where items can be bought
Online portal--can shop anywhere via devices
Time utility
Having a good or service available when needed
When you want it (e.g. FedEx--delivery next morning)
Long operating hours
Possession utility
Making an item easy to purchase so consumers can own and use it
Intermediary helps buyer take possession (e.g. car loans & delivers new car to the owner)
Derived from the goods/services