Chapter 1 - Chapter 1- What is Marketing Welcome to Branded...

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Chapter 1- What is Marketing Welcome to Branded You Value : the benefits a customer receives from buying/using a g/s in relation to the costs/sacrifices of buying/using it What is Marketing? Marketing : an organizational function/set of processes for creating, communicating and delivering value to customers/for managing customer relationship in ways that benefit the org/stakeholders Focus on Value Creation -marketing is all about creating/delivering value, and doing this for all parties involved in an exchange -involves a decision-making process/these decisions are made by ppl who have marketing roles -can also be defined as a process of achieving individual/organizational objectives by creating superior customer value for one or more target markets with sustainable strategy -suggests that “prime directive” of marketing is to achieve objectives -do that by creating super Customer Value: what the customer gets in a purchase, use/ownership of a product relative to the costs/sacrifices incurred -challenge to marketer is to create, price, distribute and communicate an attractive value proposition to customer to get the most value in return -also want to develop sustainable strategy, in the sense of making a set of decisions that will allow us to compete effectively until objectives have been achieved Marketing Is about Creating Customer Value Stakeholders: ppl or organizations who influence or are influenced by marketing decisions Exchange : process by which some transfer of value occurs between a buyer/seller -one important stakeholder is the consumer Consumer : ultimate user of a g/s -can be individuals or orgs; marketing is about satisfying all needs in the exchange, not just customer Marketing Concept: a business orientation that focuses on achieving organizational objectives by understanding customer needs/creating/delivering value in exchanges that satisfy the needs of all -orgs exist to create value for consumers where it is neither efficient nor effective for consumers to attempt to satisfy their needs themselves Need : recognition of any difference b/t a consumer’s actual state/some ideal or desired state -when diff is big, consumer is motivated to take action to satisfy the need Want : desire to satisfy needs in specific ways that are culturally/socially influenced Benefit : outcome sought by a customer that motivates buying behavior (that satisfied a need or want) -for marketers to be successful, they must develop products that provide one or more benefits -customers care more about benefits and less about particular features or functions -when you couple desire with buying power or resources to satisfy a want, result is demand Demand : customers’ desire for products coupled with the resources to obtain them Marketplace : any location or medium used to conduct an exchange -successful firms realize that the basic marketing concept applies to all aspects of firm’s activities -at the heart of every marketing act- is an exchange relationship
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