Theproduction conceptholds that consumers will favor products that are available and highlyaffordable. Theproduct conceptholds that consumers will favor products that offer the most quality,performance, and features. Theselling conceptrefers to the idea that consumers will not buy enough ofthe firm’s products unless the firm undertakes a large-scale selling and promotion effort. Themarketingconceptis a philosophy in which achieving organizational goals depends on knowing the needs andwants of target markets and delivering the desired satisfactions better than competitors do. The finalalternative is thesocietal marketing conceptwhich holds the idea that a company’s marketing decisionsshould consider consumers’ wants, the company’s requirements, consumers’ long-run interests, andsociety’s long-run interests.This figure contrasts the selling concept and the marketing concept.The selling concept takes an inside-out view that focuses on existing products and heavy selling. The aimis to sell what the company makes rather than making what the customer wants.The marketing concept takes an outside-in view that focuses on satisfying customer needs as a path toprofits. It starts with a well-defined market, focuses on customer needs, and integrates all the marketingactivities that affect customers.As Southwest Airlines’ colorful founder puts it, “We don’t have amarketing department, we have a customer department.”This figure shows that companies should balance three considerations in setting their marketingstrategies: company profits, consumer wants, and society’s interests.For example, Cosmetics retailer Lush knows that doing what’s right benefits both customers and thecompany. “We believe in happy people making happy soap,” says the company’s mission statement.The marketing mix is the set of marketing tools, the four Ps, the firm uses to implement its marketingstrategy.The major marketing mix tools are product, price, place, and promotion. To deliver on its valueproposition, the firm must first create a need-satisfying market offering (product). It must then decidehow much it will charge for the offering (price) and how it will make the offering available to targetconsumers (place). Finally, it must communicate with target customers about the offering and persuadethem of its merits (promotion).The firm must blend each marketing mix tool into a comprehensiveintegrated marketing programthatcommunicates and delivers the intended value to chosen customers.
Chapter 1 Vocabulary
| Marketing- Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at-large. |
| Needs- State of felt deprivation |
| Wants- The form human needs take as shaped by culture and individual personailty |
| Demands- Human wants that are backed by buying power |
| Market offering- some combination of products, services, information, or experiences offered to a market to satisfy a need or want |
| Marketing myopia- The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. |
| Exchange- The act of obtaining a desired object from someone by offering something in return. |
| Market- The set of all actual and potential buyers of a product or service. |
| Marketing management- The art and science of choosing target markets and building profitable relationships with them. |
| Production concept- The idea that consumers will favor products that are available and highly affordable and the organization should therefore focus on improving production and distribution efficiency. |
| Product concept- The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements. |
| Selling concept- the idea that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. |
| Marketing concept- The marketing management philosophy that holds that holds that achieving organizational goals depends on knowing the needs and wants of target market and delivering the desired satisfactions better than competitors do. |
| Societal marketing concept- The idea that a company's marketing decisions should consider consumers' wants, the company;'s requirements, consumers' long-run interests, and society;'s long-run interests. |
| Customer relationship management- The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. |
| Customer-perceived value- The customers' evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those competing offers. |
| Customer satisfaction- The extent to which a product's perceived performance matches a buyer's expectations. |
| Consumer-generated marketing- Marketing messages, ads, and other brand exchanges created by consumers themselves-both invited and uninvited. |
| Partner relationship management- Working closely with partners in other company departments and outside the company to jointly bring greater value to customers. |
| Customer lifetime value- The value of the entire stream of purchases that the customer would make over a lifetime of patronage. |
| Share of customer- The portion of the customer's purchasing that a company gets in it's products categories. |
| Customer equity- The total combined customer lifetime values of all of the company's customers. |
| Internet- A vast public web of computer networks, which connects users of all types all around the world to each other and to an amazingly large information repository. |