1. In your own words, what does the term marketing mean?
Marketing, more than any other business function, deals with customers. Creating customer value and satisfaction are at the very heart of modern marketing thinking and practice. The simplest definition of marketing is that it is the delivery of customer satisfaction at a profit. The goal of marketing is to attract new customers by promising superior value, and to keep current customers by delivering satisfaction.
Marketing is much more than selling and advertising. Today, marketing must be understood beyond the old saying “telling and selling”. The new direction is that of satisfying customer needs, Therefore, the definition used in the text is that marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
2. Marketing is managing profitable customer relationships. Discuss the concept of customer value and how it relates to successful marketing.
Customers usually face a broad array of products and servicesthat might satisfy a given need. Customers make their buying choices based on their perceptions of the value that various products and services deliver.
Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. Since, because customers often do not judge product values and costs accurately or objectively, marketers must gear efforts toward perceived value on the part of the consumer.
In the broadest sense, the marketer tries to bring about a response to some offer. This transaction relationship is part of the larger idea of forming relationships in marketing. Beying creating short term transactions, marketers need to build long term relationships with valued customers, distributors, dealers, and suppliers. Strong customer value aprreciation helps to solidify the relationship and network with key stakeholders and profits will follow.
3. The value proposition is fulfilled through a marketing offer. Pick a company whose product you’ve recently purchased. Describe the company’s value proposition and a marketing offer.
Coca Cola’s value proposition:
“Our Product is unique”
Coca-cola, produced by Coca-cola Enterprises is a unique product with its formula famously being a closely guarded secret. This secret formula combined with exclusive use of the coca-cola brand name means that nobody else can ever produce a coca-cola product, merely imitations of it. Thus, Coca-cola is a completely unique product.
Coca Cola’s market offer:
Coca-Cola, long the world's leading soft drink, delivers on the simple but enduring promise, "Always Coca-Cola"—always thirst-quenching, always good with food, always cool, always a part of your life.
4. Discuss the differences between the marketing concept and the production, product, and selling concepts. Which concepts are easier to adopt in the short run? Which concept offers the best chance of long-run success? Why?
The key difference between the marketing concept and the production, product and selling concepts is its basic focus. The marketing concept begins with the needs and wants of the consumer. A true marketing company achieves its success by fulfilling its customer’s desires. The production, product, and selling concepts all focus on the need of the seller. The production and product concepts begin with the product, and assume it will generate demand because of price, availability, or quality. The selling concept begins with the product to be sold, and tries to generate demand for it.
The production, product, and seller based concepts are the easiest to apply in the short run. The company does not need to redefine its business, its just works harder (more efficiency, a better product, harder selling). But these measures are only successful if consumer needs are met.
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