What is marketing

What is its objective?
To maximize profits through satisfying the needs and wants of the customers

Core marketing concepts
Needs, wants, demands
Marketing offers (products, services)‏
Value and satisfaction
Exchange, transactions, relationships
Markets

Needs
Physical (for food, clothes, safety)‏
Social (for belonging and affection)‏
Individual (for knowledge or self-expression)‏

What does a person do if a need is not satisfied?
Looks for an object that will satisfy it
Tries to reduce the need

Wants
The form human needs take under the influence of the culture and individual personality

Demands
Human wants that are backed by buying power

Understanding customer needs, wants and demands helps companies to design marketing strategies

Marketing offer
A combination of products, services, information, or experiences offered to a market to satisfy a need or want

Consumers make buying choice based on their perception of the value
that products and services give them

Customer value
The consumer’s assessment of the product’s capacity to satisfy his or her needs
The difference between the values the customer gains from using the product and the costs of obtaining the product

Customer satisfaction
Depends on the product’s performance relative to the customer’s (buyer’s) expectations

If the
product’s performance
matches the customer’s expectations
the customer is satisfied
doesn’t match the customer’s expectations
the customer is dissatisfied

Marketing occurs when people decide to satisfy needs and wants through exchange

Exchange
The act of getting a desired object from someone by offering something in return

What makes exchange possible?
At least two parties must participate
Each party must have something of value to offer the other
The parties must come to an agreement

Transaction
Consists of a trading of values between two parties
If exchange is the core concept of marketing, a transaction is marketing’s unit of measurement

Transaction marketing is part of
Relationship marketing
The process of creating, maintaining and enhancing strong relationships with customers

What is more profitable for the company?
- to attract new customers
or
- to keep current customers satisfied
It costs five times as much to attract a new customer as it does to retain a current one

The concepts of exchange and relationships lead to the concept of a
Market
The set of all actual and potential buyers of a product or service
The buyers have similar needs or wants that can be satisfied through exchanges and relationships

Marketing process
The process of analysing market opportunities, selecting target markets, developing the marketing mix, and managing the marketing effort

Market research
A specialised form of marketing that links the consumer to the marketer through information that is used to identify and define marketing opportunities and problems, to generate, evaluate marketing actions, to monitor marketing performance, and to improve understanding of the marketing process

Market segmentation
Dividing a market into distinct groups of buyers with similar needs, characterisitics or behaviour

Marketing segment
A group of consumers who respond in a similar way to a given set of marketing stimuli

Marketing targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter

Market positioning
Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. Formulating competitive positioning for a product and a detailed marketing mix

Product's position
the place the product occupies in consumers' minds relative to competing products

Market leader
The firm in an industry with the largest market share

Marketing mix
The set of controllable tactical marketing tools — product, price, place and promotion — that the firm uses to produce the response it wants in the target market.
The marketing mix consists of everything the firm can do to influence the demand for its product

Product
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organisations and ideas

Price
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service

Promotion
Activities that communicate the product or service and its merits to target customers and persuade them to buy