Chapter 1: Defining Marketing for the 21st Century
* Marketing is about identifying and meeting human and social needs. It is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value for customers, clients, partners, and society at large.
* Marketing creates demand for a product, which in turn drives revenue. Greater demand creates the need for companies to hire new workers, while revenue (top line) contributes to a company’s bottom line (profits), which allow the company to be more fully engaged in socially responsible activities. * Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
* Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. * Persons, experiences, events, properties, organizations, information ideas, goods, services and places are marketed. * Marketers are individuals, groups, associations, companies, etc. that seek a response, such as attention, a purchase, donation, vote, etc., from another party which is called the prospect. * If two parties are seeking to sell someone to each other, we call them both marketers. * Eight demand states are possible:
1. Negative – consumer’s dislike a product and may pay to avoid, such as with dental work 2. Nonexistent – consumers are unaware of or uninterested in the product or service 3. Latent – There is no product on the market that can satisfy consumer needs 4. Declining – Consumers purchase a product less and less frequently, or not at all. For example, the sales of albums (vinyl and CD’s) are declining significantly. 5. Irregular – A products demand varies by time, such as on a seasonal basis. 6. Full – Consumers are buying all the products that enter into the market. 7. Overfull – There are more buyers than product available. 8. Unwholesome – Consumers are attracted to products that have undesirable social consequences, such as cigarettes or gambling. * Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class. * There are five basic markets – Manufacturer, resource (financial, labor, raw materials), intermediary (wholesalers, resellers, etc), consumer, and government. * Key customer markets:
9. Consumer Markets – Companies selling mass consumer goods and services, in which they spend a great deal f time establishing a strong brand image by developing superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service. 10. Business Markets – Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings. Business buyers buy goods to make or resell a product to others at a profit. They must demonstrate how their products will help achieve higher revenue or lower costs. 11. Global Markets – Companies in the global marketplace must decide which countries to enter; how to enter each; how to adapt product and service features to each country; how to price products in different countries; and how to design communications for different cultures. 12. Nonprofit and Governmental Markets – Companies selling to nonprofit organizations with limited purchasing power such as churches, universities, charitable organizations and government agencies need to price carefully. Lower selling prices affect the features and quality the seller can build into the offering. * Marketplace – physical locations (such as retail store) * Marketspace – digital location (online retailer)
* Metamarkets – The cluster of complementary products and services...
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