AEM 240 Prelim 1 Review

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 don’t know what they want • 94% of new products don’t 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 person’s 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 firm’s 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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