Activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Specifies the marketing activities for a specific period of time.
World of trade
Helps create value
Occurs in many settings
Is about satisfying customer needs and wants
It entails an exchange
Requires product, price, place, and promotion decisions
Can be performed by both individuals and organizations
Trade of things of value between the buyer and the seller so that each is better off as a result.
Underpinning of Seller-Buyer Relationships
Goods/ Services Producers (Sellers)
Customers/ Consumers (Buyers)
Information / Money
Cannot be separated from the product
Can also be marketed
What consumers give up: Money, time, energy... in exchange for the product.
Potential buyer's belief of a products value.
Delivering the value proposition
All activities necessary to get the product to the right customer when that customer wants it.
Supply chain management
Set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers.
Communicating the value proposition
Inform, persuade, and remind
Accumulate merchandise from producers in large amounts and then sell it to the customer in smaller amounts
Supply chain partners
Undertaking maketing research to understand what potential employees are seeking, as well as what they think about the firm.
Developing a value proposition and an employment brand image
Communicating that brand image to potential employees
Production-Oriented Era (1900-1920)
A good product would sell itself
"Customers can have any color they want so long as it's black" - Ford
Sales-Oriented Era (1920-1950)
Manufacturers had the capacity to produce more than customers really wanted or were able to buy.
Answer to overproduction.
Depended on personal selling and advertising.
Market-Oriented (Post WWII)
Customers had more choices
Production focused on what the consumer wanted and needed
Firms discovered marketing
Value Based Marketing Era
More than simply providing what consumers wanted
Providing greater value than competitors
Relationship of benefits to costs
What you get for what you give
Customers can act as collaborators to create the product or service
Value Based Marketing
Providing benefits to customers and keeping costs down
To become value driven
Share information about customers and competitors across their organization and with other firms
Strive to balance their customers' benefits and costs
Concentrate on building relationships with customers
Value Oriented Marketers
Constantly measure the benefits that customers perceive against the cost of their offerings.
Anything that happened before or after any transaction is of little importance
Based on the philosophy that buyers and seller should develop long term relationships
Lifetime profitability is what matters, not how much money is made during each transaction.
(CRM) Customer Relationship Management
Business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.
Collect information about their customers' needs and then use it to target their best customers with the products, services, and special promotions that appear most important to them.
Marketing is important because...
Advises production about how much of the company's product to make
Tells logistics when to ship the product.
Creates long lasting, mutually valuable relationships between the company and the firms from which it buys.
Identifies those elements that local customers value and makes it possible for the firm to expand globally.
Group of rims that make and deliver a given set of goods and services
Marketing and research firms
Corporate Social Responsibility
Recognizes that including a strong social orientation in business is a sound strategy that is in both in its own and its customer's best interest.
Shows the consumer marketplace that the firm will be around for the long run and can be trusted with their business.
People who organize, operate, and asume the ris of a new business venture.
They identify and aim to satisfy unfilled needs.
Conduct thorough examinations of the marketplace, and develop and communicate the value of their products and services to potential customers.
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