6. A Simple Model of the Marketing Process Note: These stages guide our thinking about what marketing is, what it represents in essence. The chapters in the text are built around these themes. Figure 1.1
12. What Satisfies Consumers’ Needs and Wants? Products Anything that can be Offered to a Market to Satisfy a Need or Want Persons Places Organizations Ideas Information Services Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything
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14. Value and Satisfaction If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high. Expectation Performance 8 10 Expectation Performance 10 8
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17. Elements of a Modern Marketing System Figure 1.4
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19. Segmentation and Target Marketing #1 #2 Market Segmentation: Divide the market into segments of customers Target Marketing: Select the segment to cultivate
20. Marketing Management Finding and increasing demand, also changing or reducing demand, such as in demarketing. Demand Management Temporarily or permanently reducing the number of customers or shifting their demand. Demarketing
24. Customer-Driven Marketing How many of us would have thought to ask for a “wearable” PC? Marketers must often understand customer needs even better than customers themselves do.
27. The Marketing Mix Customer Needs Product Price Promotion Distribution
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30. Customer Perceived Value Is FedEx’s service worth the higher price? FedEx thinks so. It promises reliability, speed, and peace of mind. FedEx ads say “Need to get it there or else? Don’t worry. There’s a FedEx for that.”
36. Customer Lifetime Value To keep customers coming back, Stew Leonard’s has created the “Disneyland of dairy stores.” Rule #1 — the customer is always right. Rule #2 —if the customer is ever wrong, reread Rule #1.