Chapter 1: Defining Marketing for New Realities

Marketing

• identifying and meeting human and social needs.

Core concepts of Marketing


Needs, Wants, and Demands

• Need- the basic human requirements such as for air, food, water, clothing, and shelter.
• Wants- specific objects that might satisfy a need.
• Demands- wants for a specific product backed by an ability to pay.
• Stated needs- The customer wants an expensive car
• Real needs- The customer wants a car whose operating cost, not initial price, is low.
• Unstated needs- The customer expects good service from the dealer
• Delight needs- The customer would like the dealer to include an onboard GPS system
• Secret needs- The customer wants friends to see him or her as a savvy consumer

Target Markets, Positioning, and Segmentation

• Target Markets- the part of the qualified available market the company decides to pursue.
• Segments- identify demographic, psychographic, and behavior differences
• Positioning- designing the company's offering and image to occupy a distinctive place in the minds of the target market.

Offerings and Brands

• Offerings- a combination of products, services, information, and experiences.
• Brands- a name, term, sign, symbol, or design, or a combination of these, intended to identify the offering of one seller group and differentiate it from competing offers.
• Value Proposition- a set of benefits that satisfy customer needs.

Market Channels

• sets of interdependent organizations participating in the process of making a  product or service available for use or consumption; also called trade channels or distribution.
• Communication Channels- deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, smart phone, billboards, posters, and the Internet.
• Distribution Channels- help display, sell, or deliver the physical product or service(s) to the buyer or user.
• Service Channels- warehouse, transportation companies, banks, and insurance companies.

Paid, Owned, and Earned Media

• Paid Media- TV, Magazines and display ads, paid search, and sponsorships, all of which allow marketers to show their ad or brand for a fee.
• Owned Media- communication channels marketers actually own, like a company or brand brochure, Web site, blog, Facebook page, or Twitter account.
• Earned Media- streams in which consumers, the press, or other outsiders voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing methods.

Impressions and Engagement

• Impression- occurs when a consumer views a communication, a useful metric for tracking the scope or breadth of a communication's reach that can also be compared across all communication types.
• Engagement- the extent of a customer's attention and active involvement with a communication.

Value and Satisfaction

• Value- the sum of the tangible and intangible benefits and costs
• Customer value triad- value, a central marketing concept, is a primarily a combination of quality, service, and price.
• Satisfaction- a person's judgment of a product's perceived performance is relationship to expectations.

Supply Chain

• a longer channel stretching from raw materials to components to finished products carried to final buyers.

Competition

• all of the actual and potential rival offerings and substitutes a buyer might consider.

Marketing Environment

• Task Environment- the actors engaged in producing, distributing, and promoting the offering.
• company
• suppliers
• distributors
• dealers
• target customers
• Broad Environment- consists of the components:
• demographic environment
• economic environment
• social-cultural environment
• natural environment
• technological environment
• political-legal environment

The production Concept

• Production concept- one of the oldest concepts in business. Consumers prefer products that are widely available and inexpensive.
• Product concept- consumers favor products offering the most quality, performance, or innovative features.
• Selling concept- consumers and business, of left alone, won't buy enough of the organization's products.
• Marketing concept- emerged in the 1950's as a customer-centered, sense-and-respond philosophy.

Marketing Management Tasks

•  Developing and implementing marketing strategies and plans - identify and plan for the organization's potential long-run opportunities, given its market experience and core competencies.
• Capturing marketing insights- Each organization should closely monitor its marketing environment, continually  assess market potential, and forecast  demand
• Connecting with customers- Management must decide how to best create value for the firm's chosen  target markets and how to develop strong, profitable, long-term  relationships with customers
• Building strong brands- The organization must divide the market  into  major  market segments, evaluate each one, and target  those  it can best serve
• Creating value- At the heart of the marketing program is the product- the firm's tangible offering to the market-which includes the product quality, design, features, and packaging.
• Delivering value- Based on its products and services, how ca n the firm deliver value to its target market?
• Communicating value- Each marketer needs to communicate to the target market the value embodied by its offerings. This requires an integrated marketing program that maximizes the individual and collective contribution of all communication activities.
• Managing  the marketing organization for long term success- The marketing strategy should take into account changing global opportunities and challenges as well as social responsibility and ethics