I have summarised all the topic of marketing which gives you a clearly and detailed understanding on the all the concepts of marketing. It is a good document for thorough revision before the exams as it covers all the topics.
Chapter 1 → Introduction to marketing
Objective 1
• Marketing is about delivering value to stakeholders.
• Organizations that look for long term profits adopt the marketing concept.
• Marketers work with Research and Development specialists to create products that
meet consumer needs
• Marketing provides value through satisfying the needs of diverse stakeholders
Key terms
consumer → the ultimate user of a good or service
marketing → the activity, set of institutions and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers
marketing mix → combination of the product, price, promotion and place that together
create a desired response among a set of predefined consumers
Four Ps → product, price, promotion and place
Product → a tangible good, service, idea or combination of these that is exchanged between
customer and company → and satisfies the customers needs
Promotion → organizations effort to persuade customer to buy the product → can take the
form of different promotional elements such as tv advertising, store coupons, billboards, ads,
etc..
Place → the availability of the product to the customer at the desired time and location. →
get a product from a producer to consumer → for clothing or electronice this includes local
retailers and outlets such as retail sites online.
Price → assigned value to be exchanged for the product
Exchange → the process by which some transfer of value occurs between a buyer and a seller
consumer goods → the goods individual consumers purchase for personal or family use
Services → intangible products that are exchanged directly between the producer and
customer
business-to-business marketing → the marketing of goods and services from one organization
to another
industrial goods → goods that individuals or organizations buy for further processing orr for
their own use when they do business
E-commerce → the buying or selling of goods and services electronically, usually over the
internet
,not-for-profit organizations/Non governmental organizations (NGO) → organizations with
charitable, educational, community, and other public service goals that buy goods and
services to support their functions and attract and serve their members
marketing concept → a management orientation that focuses on identifying and satisfying
consumer needs to ensure the organization’s long term profitability
Need → The difference between a consumers actual state and some ideal or desired state
Want → The desire to satisfy needs in specific ways that are culturally and socially influenced
Benefit → The outcome sought by a customer that motivates buying behavior that satisfies a
need or want
Demand → customers desires for products coupled with the resources needed to obtain them
(Desire + buying power)
Market → all the customers and potential customers who share a common need that can be
satisfied by a specific product → who have the resources, willing to make the exchange and
have the authority for such.
Marketplace → Any location or medium used to conduct an exchange
virtual goods → Digital products consumers buy for use in online contexts
Rentrepreneurs → enterprising consumers who make money by renting out their possessions
when they aren’t using them
collaborative consumption → A term used too refer to the activities practiced by
rentrepreneurs
Utility → The usefulness or benefit that consumers receive from a product → created by
marketing transactions
• Form utility → the benefit marketing provides by transforming raw materials into
finish products
• Place utility → the benefit marketing provides by making products available where
customers want them
• Time utility → the benefit marketing provides by storing products until they are
needed
• Possession utility → the benefit marketing provides by allowing the consumer to own,
use and enjoy the product.
Stakeholders → Buyers, sellers, or investors in a company, community residents and citizens
of the nations where goods and services are made or sold → any person or organization that
has a “stake” in the outcome
Objective 2
The evolution of the marketing concept
, • In the 1930s some firms adopted a selling orientation which encouraged salespeople to
aggressively sell products to customers
• In the 1950s this changed and they adopted a consumer orientation which focused on
customer satisfaction -> led to the development of the marketing concept
• Many firms now are moving towards triple bottom line orientation -> includes
commitment to quality and value and a concern for economic and social profit
• They must satisfy customers needs in ways that also benefit society and still
delivers a profit to the firm.
Key terms
production orientation
selling orientation
consumer orientation
total quality management (TQM)
instapreneur
triple-bottom-line orientation
societal marketing concept
sustainability
green marketing
return on investment (ROI)
attention economy
Objective 3
Understanding value from the perspectives of customers, producers and society
• Value = the benefits a customer receives from buying a good or service
• Marketing calls this the value proposition to the customer
• For customers value proposition = the bundle of benefits the product promises
to deliver -> not just the benefits of the product itself
• Sellers determine value by assessing whether transactions are profitable -> if they are
providing value to stakeholders and providing value through the value chain
• Customers generate value when they turn into retailers, advertising directors and new
product development consultants -> often times done through social media
• Society receives value from marketing activities -> when producers stress ethics and
social responsibility
Key terms
, value proposition -> A marketplace offering that fairly and accurately sums up the value that
will be realized if the good or service is purchased.
Brand Fests -> events that companies host to thank customers for their loyalty
lifetime value of a customer -> The potential profit a single customers purchase of a firms
product generates over the customer's lifetime
distinctive competency -> A superior capability of a firm in comparison to its direct
competitors
marketing scorecards -> feedback vehicles that report how the company or brand is doing
in achieving their goals
Metrics -> measurements/scorecards that marketers use to identify the effectiveness of
different strategies or tactics
differential benefit -> properties of products that set them apart from competitors’ products
by providing unique customer benefits
value chain -> a series of activities involved in designing, producing, marketing, delivering
and supporting any product. Chains in the link have the potential to add or remove value
from the product
Amafessionals -> consumers who contribute ideas to online forums for the fun/challenge ->
instead of money. Their motivation is psychic income instead of financial income
consumer-generated content -> everyday people functioning in marketing roles -> such as
participating in creating advertisements, providing input to new product development or
being a wholesaler or retailer
social media -> internet based platform that allows people to create their own content and
share it
social networking platforms -> Online platforms that allow users to represent themselves via
a profile -> provide and receive links
Web 2.0 -> New generation of world wide web -> incorporates social networking + user
interactivity
Folksonomy -> classification system that relies on users rather than pre established systems
to sort contents
wisdom of crowds -> in the right circumstances groups are smarter than the smartest people
in them -> large numbers of consumers can predict successful products
Crowdsourcing -> A practice where firms outsource marketing activities to a community of
users (such as choosing an ad)
open-source model -> a practice used in software industry where companies share their
software codes to assist in development of a better product
consumer addiction -> physiological or psychological dependency on goods or services ->
including alcohol, cigarettes
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