BA370 Chapter 1 – Flashcards

exchange: the trade of things of value between the buyer and the seller so that each is better off as a result sellers provide products or services, then communicate and facilitate the delivery of their offering to consumers. buyers complete the exchange by giving money and information to the seller.

marketing mix or four P's: product, price, place, promotion; they comprise the controllable set of decisions or activities that the firm uses to respond to the wants of its target markets

create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. goods: items that you can physically touch services: intangible customer benefits that are produced by people or machines and cannot be separated from the producer (many offerings in the market combine goods and services) ideas: thoughts, opinions, and philosophies; intellectual concepts such as these also can be marketed

price: everything the buyer gives up - money, time, and/or energy - in exchange for the product everything has a price - it doesn't always have to be monetary marketers carefully determine the price on the basis of the potential buyer's belief about its value

all the activities necessary to get the product to the right customer when that customer wants it place more commonly deals specifically with retailing and marketing channel management AKA supply chain management

the 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

promotion: communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response can generally enhance a product's or service's value

B2C (business-to-consumer): process by which businesses sell to consumers B2B (business-to-business): process of selling merchandise or services from one business to another C2C (consumer-to-consumer): consumers sell to other consumers individuals can undertake activities to market themselves

marketing can affect several other stakeholders (supply chain partners, society at large) partners in the supply chain: wholesalers, retailers, or other intermediaries such as transportation or warehousing companies marketing can also aim to benefit an entire industry or society at large

value: the relationship of benefits to costs, or what you get for what you give value cocreation: a creative way to provide value to customers - customers can act as collaborators to create the product or service marketing has evolved into an integral business function of creating value Production-Oriented Era: around the turn of the 20th century; most firms believed that a good product would sell itself Sales-Oriented Era: between 1920 and 1950; found answer to overproduction by depending on heavy doses of personal selling and advertising Market-Oriented Era: After WW2; manufacturers began to focus on what consumers wanted and needed Value-Based Marketing Era: before the turn of the 21st century; give customers greater value than their competitors did *most successful firms today are market oriented

Sharing Information: marketers share information about customers and competitors and integrate it across the firm's various departments Balancing Benefits with Costs: constantly measures the benefits that customers perceive against the cost of their offerings Building Relationships with Customers: achieved through relational orientation and the belief that buyers & sellers should develop a long-term relationship; customer relationship management (CRM): business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firms most values customers; firms usually collect information about customers needs then use that information to target their best customers Connecting with Customers Using Social and Mobile Media: 93% of marketers assert that they use social media tools for their business

Marketing Expands Firms' Global Presence Marketing is Pervasive across Marketing Channel Members - supply chain or marketing channel: a group of firms that make and deliver a given set of foods and services Marketing Enriches Society Marketing Can Be Entrepreneurial - entrepreneur: people who organize, operate, and assume the risk of a business venture