Midterm ReviewToni RazzagoneCh 1- Creating Customer Relationships and Value through MarketingMarketing-the activity for creating , communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large. Marketing seeks to discover the needs and wants of prospective customers and satisfy themExchange-the trade of things of value between buyer and seller so that each is better off after the trade and is the key to discovering customer needsThis chart shows the key people, groups, and forces outside the organization that influence its marketing activitiesMarketing dpt is responsible for facilitating relationships, partnerships and alliances with customers, shareholders and suppliersEnvironmental forces (social, economic, technological, competitive, and regulatory) shape marketing activitiesAn organizations marketing decisions are affected by and have an important impact on society
Required Factors for Marketing to Occur1)Two or more parties with unsatisfied needsa)Example: you desire information about how a computer works, you didn’t know that Wired magazine existed or that it was sold at a bookstore near you. Both parties with unmet needs are you; desiring technology related info, and the bookstore owner; needing someone to buy Wired 2)A desire and ability on their part to be satisfieda)Example: you have the money to buy the magazine and the time to go to the bookstore and the bookstore owner has the ability and desire to sell his products3)A way for the parties to communicatea)Example: when you see the magazine on the rack or hear that they sell it, the communication barrier is overcome4)Something to exchangea)Example: you exchange your money for the magazineConsumer needs and wantsNeedswhen a person feels deprived of the basic necessities such as food, clothing, and shelterWantsa need that is shaped by a person’s knowledge of culture and personalityA Market- people with both the desire and ability to buy aSpecific offeringTarget markets-one of more specific groups of potentialConsumers toward which an organization directs itsMarketing program
The 4 Ps (elements of themarketing mix-the marketing managers controllable factors)•Product – a good, service or idea•Price- what is exchanged for the product•Promotion –communication between seller and buyer•Place –getting the product to the consumerUncontrollable Factors Environmental Forces-social, economic, technological, competitive and regulatory Customer value-the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before sale and after sale service at a specific price.