Exam 1 Study Guide - Marketing 360

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Chapter 1 – Overview of Marketing
* Inertia to Passion
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* 80/20 Rule
* “80% of profits come from 20% of consumers”
* Economies of Scale
* The more you make of something, the less it costs per unit * i.e. Microsoft Office 2014
* Wholesale – Costco
* Understand Marketing Mix (4 P’s)/From Customer Perspective 4 Cs * Marketing Mix: A combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set f predefined consumers * Marketing Mix consists of;

Marketer| Consumer|
Product| Customer Solution|
Price| Customer Cost|
Promotion| Communication|
Place| Convenience |

* Exchange
* Pg. 12 “Occurs when a person gives something and gets something else in return. The buyer receives an object, service, or idea that satisfies a need, and the seller receives something he or she feels is of equivalent value” * Trade currency

* Trade services
* Trade behaviors
* Exchange Value
* Criteria for a Market
* A market consists of all the consumers who share a common need that can be satisfied by a specific product and who have the resources, willingness, and authority to make a purchase * Utility – Time, Place, Possession, Form, Info

* Utility: The usefulness or benefit consumers receive from a product * Time Utility: Storing products until they are needed * Place Utility: Making products available where customers want them * Possession Utility: Allowing the consumer to won, use, and enjoy the product * Form Utility: Transforming raw materials into finished products * What is Value? Components of Value

* Value: Benefits a customer receives from buying a good or service * Value from the customer’s perspective: Price and benefits * Value from the seller’s perspective: Is the exchange profitable to them, has it made money * Build Value: Goal is to satisfy customer over and over again so that they can build a long-term relationship rather than just having a “one night stand” * Customers have value: Firms recognize that it can be very costly in terms of both money and human effort to do whatever it takes to keep some customers loyal to the company. Very often these actions pay off, but there are cases in which keeping a customer is a losing proposition * Lifetime value of a customer: How much profit they expect to make from a particular customer * Provide value through competitive advantage: Distinctive competency- a firm’s capability that is superior to that of its competition * Value from society’s perspective:

* Customer Satisfaction Model
* Customer Equity
* Combined customer lifetime value of all customers
* Firing Customers
* Sustainable Competitive Advantage
* Competitive Advantage: Ability of firm to outperform competition, providing customers with benefit competition cant * Identify distinctive competency (firm’s capability superior to competition) * Turn distinctive competency into differential benefit (important to customers) * Sustainable Competitive Advantage

* Distinctive Competencies; Differential Benefits
* The Value Proposition
* Philosophies (eras)
* Societal Marketing Orientation (New Era); Triple Bottom Line * Emphasis on satisfying broader needs of society (employees, stockholders, etc.) This is like market orientation by there is a little something more * Being concerned with social issues… doing things better for society and being genuinely concerned * Building long-term relationships

* Also referred to as the “triple bottom line” * Environmental, social and...
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