Marketing is much more than advertising or selling. It involves understanding customers and coordinating the activities that create, communicate, deliver, and exchange value. This lesson introduces marketing and explains why identifying, anticipating, and satisfying customer needs are central to it.
The American Marketing Association defines marketing as the activity, institutions, and processes involved in creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society. In simpler terms, marketing includes the processes that move a product or service from an organization to the people who may use it.
All flashcards
What is marketing?
Marketing is the set of activities and processes used to create, communicate, deliver, and exchange valuable offerings, including identifying and satisfying customer needs profitably.
What are the four dimensions of customer value?
Functional value concerns what an offering does; monetary value concerns cost relative to worth; social value concerns connection with others; psychological value concerns how it makes a customer feel.
What does it mean to anticipate customer needs?
It means using information and analysis to predict how customer needs may develop and how an offering may need to change, adapt, or improve.
What is market segmentation?
Market segmentation is the practice of identifying groups of potential customers who share relevant characteristics so that offerings and marketing can be made more relevant to them.
How can marketers distinguish segmentation from stereotyping?
Segmentation uses group-level information to guide decisions, while stereotyping assumes individuals have certain traits simply because they belong to a group. Responsible marketers also recognize individual differences.
Quiz questions
In the five-step marketing process, what follows understanding the marketplace and customers?Answer: Developing a customer-driven marketing strategy.
What is the purpose of internal marketing?Answer: To promote organizational objectives, products, and services to internal constituents, especially employees.
A business offers evening and weekend hours so customers can shop when convenient. Which utility does this create?Answer: Time utility.
What does customer relationship management (CRM) focus on?Answer: Building and maintaining relationships with customers.
What does customer equity represent for a company?Answer: The potential profits from its current and prospective customers.
Based on Principles of Marketing by Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.