Marketing midterm 1

Marketing midterm 1 - What is Marketing Marketing is an...

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Marketing Overview What is Marketing? Marketing is 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 How does marketing add value to an organization? Marketers help organizations by using marketing tools such as: 1.Identifying what customers want. Market research & customer visits 2.Determining competitively advantageous positions for offerings in marketplace. Customer analysis, competitor analysis, & conjoint analysis 3. Implementing the marketing mix needed to attract customers & communicate value to them. Consumer research, product testing, channel audits, communications research, etc. Distinguish between a “market-driven” and a “market-driving” approach. Classic Marketing approach 1.Market-driven 2.“Give customer what they want.” 3.Matches well with markets containing products with high buyer familiarity. 4.Assumes buyers evaluate choices based on fixed value concepts. Alternative Marketing approach 1.Market-driving 2.“Help customers learn what they want.” 3.Matches well with rapidly evolving markets with growing number of novel products. 4.Assumes buyers can learn and evolve with new value concepts. What is value? Value proposition? Value is the consumer assessment of a product’s utility based on what is given up for what is received What is a market-oriented approach? What are its limitations? 1.Collecting and understanding information relating to customer needs 2.Sharing this information across departments 3.Using insights gained to create customer value in a manner that is superior to competitor’s offerings LIM 1.Development of truly breakthrough products can be difficult. 2.Market opportunity can pass during the over analysis of customer needs. Define utility, and be able to describe spatial utility, knowledge utility, value utility, temporal utility, and ownership utility. (“Utilities” are need satisfying capabilities) Spatial- (overcoming the geographic spread between product & distribution point) Knowledge- (providing information that aids buyers) Value- (selling perceived benefits that exceed perceived costs) Temporal- (making the product available when the buyer wants it) Ownership- (transferring ownership to ultimate buyers) Why is customer satisfaction important to marketers? Looking to delight the customer…have them return…develop a relationship Describe effective ways for measuring customer satisfaction (we covered 9). Standard Approaches- 1. Measure satisfaction levels 2.Review customer feed-back, especially complaints 3.Conduct market research (mystery shops) 4.Listen to frontline personnel 5.Involve customers in business decision making Newer Approaches- 1.Intent to Refer 2.Product Penetration 3.Price Sensitivity 4.Behavioral Patterns Distinguish between a market-oriented and product-oriented approach.
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