Week 1/ Chapter 1/2 Chapter 1: Introduction to Marketing What Is Marketing? The term is used in a variety of ways. The term is misrepresented in many others. Without marketing, there is no customer. Marketing:about understanding theneeds of the customer. Marketing Concept Focus oncustomer wants and needsso that theorganization can distinguish its offeringsfrom those of its competitors. Integrate all the organization's activities, including production, to satisfy customer wants. Achieve long-term goals for the organizationby satisfying customers' wants and needs legally and responsibly. The Evolution of Marketing Production Era: Focuses on products because of alack of optionsin the marketplace. A focus on manufacturing and production quantity in which customers are meant to choose based on what is most abundantly available. "If you build it, they will come" Sales Era: hard sellingto the consumer, who has greater choice thanks to more competition in the marketplace. Consumer choice. Convince consumers to buy. The focus is on the hard sell. Sales pitches are encouraged The Marketing Company Era: The job of this department is to better understand the customers rather than trying to sell to them Customers aregroupedinto segments. Marketers work tounderstand the segments. Segments becometargets. Persuasionandmarketingbecome intermixed. Marketing concept:linking the need of customers with the competencies of an organization seeking to meet those goals.
Societal Marketing Era: Looking at not only customers but expanding marketing efforts toinclude aspect from the external environmentthat beyond a company's customers, suppliers, and competitors. What if giving what the consumer wants is actually not good for the consumer or for the environment? New movements have resulted in oRecyclingandwaste reduction oSafetyanddietaryissues Long term impactson the customers and the environment Relationship Marketing Era: From interruption to interaction Engagement is the focus. oCustomer-based strategiesencourage the engagement: Customer satisfaction Relationship marketing Customer Satisfaction: Focuses on delighting the customer Retention oGreat ROI: 2 percent increase in retention is equal to a 10 percent decrease in costs. Customers Attrition/Churn rate: customers removing themselves from relationships with businesses due to concerns or issues they feel go unaddressed. Relationship Marketing: Keepingand improving relationships with current customers Customers' preference— longstanding relationship Customers Relationship Management (CRM):
Key Marketing Terms Exchange: People giving up one thing to receive another that they would rather have Customers Value: Therelationship between benefits and the sacrificeto achieve the benefits Customers value goods and services that are oof thequalitythat they expect osold atprices they are willing to pay
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