Term
| AMA Definition of Marketing |
|
Definition
| An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. |
|
|
Term
| Previous Definition of Marketing |
|
Definition
| A process of planning and implementing the creation, pricing, promotion and distribution of goods, services, or ideas to create exchanges that satisfy individual and organizational objectives. |
|
|
Term
|
Definition
Creating exchanges to enhance utility of each party to make each party better off.
ie. I have an apple tree, you have a cow. I exchange some apples for milk. I am better off, you are better off. |
|
|
Term
| Requirements for Marketing to take place |
|
Definition
One party w/unsatisifed need
Another party w/good, service or idea that will satisfy need
Communication (promotion) of the available good, service or idea
A way to make the good, service, idea available where and when it is wanted
A price acceptable to both parties |
|
|
Term
| 4P's/Elements of the marketing mix |
|
Definition
Product (good, service, idea to satisfy need)
Price (exchange for the product)
Place (distribution)
Promotion (communication seller/buyer)
All are controllable factors (you choose) |
|
|
Term
|
Definition
| Find a combination of 4 P's that meets the needs/wants of enough people that is worthwhile (better than anyone else) in a given environment while following laws. |
|
|
Term
|
Definition
| Basic necessities such as food, shelter, clothing |
|
|
Term
|
Definition
Shaped by a person's knowledge, culture and personality
Most people purchase wants unless in a recession then they purchase needs which add to the recession. |
|
|
Term
| Uncontrollable Environmental Factors |
|
Definition
Beyond Marketers control
social (what consumers themselves want/need)
economic (state of the economy expanding/contracting)
technological (changing technology)
competitive (actions that competitors take)
regulatory (government restrictions) |
|
|
Term
|
Definition
Middle ages-trade guilds, individuals working to handcraft, could be personalized (ie. musket)
Industrialization-precision interchangeable parts, economies of scale, but all rifles the same-need large order of identical rifles (US Army WWII) |
|
|
Term
| Types of Marketing Orientations (approaches) |
|
Definition
Production Orientation
Sales Orientation
Marketing Conept Orientation
Societal Marketing Orientation |
|
|
Term
|
Definition
Creates its own demand (high quality/people will buy)
ie. Pillsbury (high quality flour), however it must follow the 4 P's or it will fail like the first satalite phones (Iridium) |
|
|
Term
|
Definition
Sale what the firm produces or has excess of
ie. End of year car sales |
|
|
Term
| Marketing Concept Orientation |
|
Definition
(Consumer Based View)
Find needs/wants first, then create product to meet it. |
|
|
Term
| Societal Marketing Orientation |
|
Definition
Marketers should be concerned about both the consumer and profits and potential impact on society.
Not clear and hard to do because who decides what the impact on society should be. |
|
|
Term
|
Definition
Must find and fill needs better than anyone else, big enough to be profitable using the 4P's.
Critical concept to success is having a sustainable differential advantage and be able to do it over time. Quality is not always important.
ie. McD (cheap/fast), Big Lots (cheap), Motel 6 (cheap/clean) none known for high quality. |
|
|
Term
| How do you find success in marketing |
|
Definition
| Fill needs better than anyone else using 4P's having a sustainable differential advantage over long period of time. |
|
|
Term
| Customer Relationship Management (CRM) |
|
Definition
Use information (research) to find needs
Use information (feedback) to determine customer satisfaction, alter 4P's to meet needs, or alter perception of offereing promotion
To track individual customers likes and dislikes and try to adopt their product. |
|
|
Term
|
Definition
Create value for customers by using information to find needs or a segment (large enough to be profitable), use 4P's to fill needs better than anyone else, use environmental scanning to understand environment and environmental changes.
ie. baby carrots (health needs/convience) example of marketing exchange. |
|
|
