“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” – AMA Association Value: The benefits a customer receives from buying a good or service. Marketing: An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Stakeholders: Buyers, sellers, or investors in a company, community residents, and even citizens of the nations where goods and services are made or sold—in other words, any person or organization that has a “stake” in the outcome. Consumer: The ultimate user of a good or service.
Marketing concept: A management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitability. Need: The recognition of any difference between a consumer’s actual state and some ideal or desired state. (Can be physical or psychological) Want: The desire to satisfy needs in specific ways that are culturally and socially influenced. Benefit: The outcome sought by a customer that motivates buying behavior—that satisfies a need or want. Demand: Customers’ desires for products coupled with the resources needed to obtain them. Market: All the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange. Marketplace: Any location or medium used to conduct an exchange. Virtual Goods: Digital products consumers buy for use in online contexts. Utility: The usefulness or benefit consumers receive from a product. • Form utility: the benefit marketing provides by transforming raw materials into finished products A dress manufacturer combines silk, thread, and zippers to create a bridesmaid’s gown. • Place utility: benefit marketing provides by making products available where customers want them The most sophisticated evening gown sewn in New York’s garment district is of little use to a bridesmaid in Kansas City if it isn’t shipped to her in time. • Time utility: benefit marketing provides by storing products until they are needed. Some women rent their wedding gowns instead of buying them and wearing them only once (they hope!). • Possession utility: the benefit marketing provides by allowing the consumer to own, use, and enjoy the product. The bridal store provides access to a range of styles & colors that would not be available to a woman outfitting a bridal party on her own
Exchange: The process by which some transfer of value occurs between a buyer and a seller. Product: A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses. The Production Era: focuses on the most efficient production & distribution of products (The Model T story) Production Orientation: A management philosophy that emphasizes the most efficient ways to produce and distribute products. The Sales Era: During the Great Depression in the 1930s, when money was scarce for most people, firms shifted their focus from a product orientation to moving their goods in any way they could. Selling Orientation: A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory. The Relationship Era: Marketers did research to understand the needs of different consumers, assisted in tailoring products to the needs of these various groups, and did an even better job of designing marketing messages than in the days of the selling orientation. Consumer Orientation: A business approach that prioritizes the satisfaction of customers’ needs and wants. Total Quality...
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