Marketing 311 Study Guide Midterm 1

1. Managing customers as assets
- * Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized * Different types of customers require different relationship management strategies * Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction * 2. Marketing Mix (4 P’s) * Product, price, place and promotion—the controllable set of activities that a firm uses to respond to the wants of its target markets * Product- goods, services and ideas * Price-everything the buyer gives up (time, energy, money) in exchange for the product * Place- all the activities necessary to get the product to the right customer when that customer wants it. * Supply chain management- the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction, such as transportation companies into a seamless value chain. This allows merchandise to be produced and distributed in the right quantities, to the right place, and at the right time. * Promotion- Communicating the value of a product to its customers. * 3. Consumer decision making process- * Need Recognition- consumers recognize that they have an unsatisfied need and want to go from their needy state to a desired state. The bigger this gap is=the greater the need recognition. * Functional needs- pertains to the performance of a product or service. * Psychological needs- pertain to the personal gratification consumers associate with a product or service. **shoes are needed to keep feet clean. $500 shoes satisfy a psychological need. * THE KEY TO SUCCESSFUL MARKETING: establishing a balance between these two needs that best appeals to that