AEM 240 Prelim 1 Review - Armand Hershowitz AEM 240 Prelim...

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Unformatted text preview: Armand Hershowitz AEM 240 Prelim 1 Review Chapter 1: Creating Customer Relationships and Value through Marketing Marketing: A social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others o Marketing seeks to 1) discover the needs and wants of customers 2) and to satisfy them o 4 Factors needed for marketing to occur : Two or more parties with unsatisfied needs A medium of exchange A want to exchange Something to exchange Exchange: trade of things of value between buyer and seller so that each is better off Discovering Consumer Needs Hard to discover consumer needs because they dont know what they want 94% of new products dont succeed in the long run Consumer need: when a person feels deprived of basic necessities such as good, clothing, and shelter Consumer want: is a need that is shaped by a persons knowledge, culture, and personality Market: People with desire and ability do buy a specific product Target Market: specific group of potential consumers toward which an organization directs its marketing program Environmental forces: uncontrollable marketing factors such as (SETCR) The Marketing Program: How Customer Relationships are Built Customer value: Buyers benefits including: o Quality o Price o Convenience o on-time delivery o before and after-sale service Successful firms focus on one of three value strategies: best price, best product, or best service Relationship Marketing: Easy to Understand, Hard to do Relationship marketing: connecting with individual customers, employees, suppliers, and other partners for mutual long-term benefits Marketing program: a plan that uses the marketing mix to provide the good/service to prospective consumers Evolution of the Market Orientation Marketing concept: concept that 1) the firm should satisfy consumer needs while 2) trying to acquire the firms goals 5 Key Marketing Concepts (PEMMC): o Price vs Customer Value Value= (Benefits[ex. taste, quality, safety, info]/Price) Value of 1=No consumer surplus, <1=bad buy, >1=good buy Price (can have a direct or indirect change in price) o Ex. direct price change would be an increase in price would have a decrease in value Marketers can manipulate price changes into indirect changes o Economic Utility : customer value (benefits) from the product/service Form utility- value to consumers from the production or alteration of the good/service (marketers can change the product ex. food ingredients) Place utility- value to consumers of having a good/service available where needed (convenient newspaper vending machines) Time utility- value to consumers of having a good/service available when needed (ex. 24 hr drive thrus) Possession utility- value to consumers of making an item easy to purchase so consumers can use it (able to return products) o Marketplace orientation:...
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AEM 240 Prelim 1 Review - Armand Hershowitz AEM 240 Prelim...

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