UGBA Ch. 13

the process of creating value for customers and building relationships with those customers in order to capture value back from them

marketing efforts to attract people and organizations to a particular geographic area

identification and marketing of a social issue, cause, or idea to selected target markets

differences between a person's actual state and his ideal state; they provide the basic motivation to make a purchase

specific goods, services, experiences, or other entities that are desirable in light of a person's experiences, culture and personality

the act of obtaining a desired object or service from another party by offering something of value in return

an exchange of value between parties

the power of a good or service to satisfy a human need

• when organizations change raw materials into finished goods, they are creating form utiltity
• ex: fruit snacks bars provide the nutritional value of real fruit in a form that is more convenient

making products available when consumers want to buy them. ex: lenscrafters with their on-the-spot, one hour service

ex: by offering convenient home delivery of the latest fasion apparel, delias are a favorite among teen girls

• the satisfaction that buyers get when they actually possess a product, both legally and physically.
• ex: rhapsody let customers buy individual songs

an approach to business management that stresses customer needs and wants,  seeks long-term profitability, and integrates marketing with other functional units withing the organization

focus on the production of goods and count on customer to figure out which products they needs and take the steps to find and purchase them. essentially means it's all about making stuff, not satisfying customers.

emphasizes building a business by generating as make sales transactions as possible. the customers is in the sales concept, but it is not a partner of mutual benefit, just the target.

the idea that companies should respond to customer's needs and wants while seeking long-term profitability and coordinating their own marketing to achieve the company's long term goals

a focus on developing and maintaining long-term relationships with customers, suppliers, and distribution partners for mutual benefit

the degree to which customers continue to buy from a particular retailer or buy the products of a particular manufacturer or service provider.

a type of information system that captures, organizes, and capitalizes on all the interactions that a company has with its customers

the creation and sharing of product-related information among customers and potential customers

the collection and analysis of information for making marketing decisions

• 1. observation - anything that monitors and records behavior
• 2. surveys - data collection that measure responses
• 3. interviews and focus groups - one-on-one or group discussions that probe deeper into issues that a survey. their real value is in uncovering issues that require further investigation
• 4. process data collection - any method of collecting data such as loyalty and customer service interactions
• 5. experiments - controlled scenarios to measure changes in products with customer behavior
• 6. ethnographic research - a branch of anthro that studies people in their daily lives to learn about their needs, wants and behaviors
• 7. neuromarketing studies - measures brain activity while customer are viewing or interacting with products, websites or other elements

a marketing approach in which firms first ask permission to deliver messages to an audience and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest

the delivery of marketing messages to people who are not aware that they are being marketing to: these messages can be delivered by either acquaintances or strangers, depending on the technique

• 1. must be recognized in order to understand consumers
• 2. it is made up of individuals and families who buy for personal or household use

composed of companies and a variety of noncommercial institutions, from local school districts to the federal government

offers insights into consumer behavior by incorporating a broader view of the way people really make decisions.

occurs when one's beliefs and behaviors dont match. a common form of this is buyer's remorse, in which one makes a purchase and then regrets it, sometimes immediately after the purchase.

• 1. culture
• shapes how people respond to the world
• 2. socioeconomic level
• people buy different  goods, listen to different entertainment, respond differently to ads
• 3. reference groups
• can be membership or aspirational. memeberships = consumers that belong to a family, a network, a work group.
• in contrast, aspirational reference groups are used as role models for style, speech, opinions, etc. ex: buying giants gear.
• 4. situational factors
• "retail therapy" is caused by certain situational factors
• 5. self-image
• people feel the need to express themselves through their clothing.

the value of a product increases with the number of consumers using it

The process of examining an organization's current markering situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives

involves selling more of your existing products into the markets you already serve

creating new products for those current markets

selling your existing product to new markets

involves creating new products for new markets

• overall plan; includes
• 1. idenitfication of target market segments
• 2. positioning strategy
• 3. marketing mix

all the customers that are interested in a product and can pay for it

most markets have subgroups, which are grouped by similar characteristics, behaviors and needs.

the point of segmentation: to understand why and how certain customer buy what they buy so that you can use your finite resources to create and market products in the most efficient manner possible

dividing your market based on things like race, ethnicity, income level

• study of people from the inside, not the outside.
• it's learning about why people do what they do.

customizing and selling products based on geographic regions.

selling things to appeal to a person's behavior, perhaps relating to a particular season. like marketing holiday flavored coffee

• there is
• 1. undifferentiated marketing (mass marketing that is simple and takes advantage of economies of scale)
• 2. differentiated marketing (pinpointed to more specific segments (incomes, etc))

• there is also
• 3. concentrated marketing: focuses on only a single market segment. Advantageous because you can focus all efforts on one segment, but also risky because it could be an unfruitful segment

4. micromarketing/individualized marketing: the narrowest strategy of all in which firms target one location or just one customer.

the total potential revenue from each customer over a certain time span minus the cost of attracting and keeping the,.

managing a business in a way designed to occupy a particular place in the minds of target audiences

• the four key elements of marketing strategy
• 1. product
• 2. price
• 3. distribution
• 4. customer communication

the bundle of value offered for the purpose of satisfying a want or a need

• wholesale-sells to other companies
• retail- sells to individuals

informing, persuading, reminding