Principles of Marketing Chapter 1 to 3
Chapter 1
Discussing the Concepts 1. What is marketing and what is its primary goal? * One definition of marketing is, “a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.” * A much simpler definition would be, “managing profitable customer relations.” * Its primary goal is to create value for customers and capture from customers.
2. Compare and contrast customer needs, wants and demands. Describe the need versus the want for the following products: Gatorade, Nike shoes, and iPod. * A need is a state of felt deprivation and a want is the form a human need takes as shaped by culture and individual personality.
Need vs. Want
Gatorade: A person’s need is to quench his thirst and his want is to drink Gatorade. There are a lot of other alternatives to drink that will address his need but because of his wants, he chose Gatorade.
Nike shoes: A person is looking for footwear that he will use for athletic activities. This is his need. He chooses to buy a pair of Nike shoes because he wants a popular brand and he wants the added functions that Nike shoes promote. iPod: A person needs a source of musical entertainment, he can buy other brands that will address his need but due to his individual personality and how media and culture shaped him, he chose to buy an iPod because he wants to keep up with the trend.
3. Explain how a company designs a customer-driven marketing strategy. * A customer-driven strategy is designed when a company fully understands consumers and the marketplace. They then proceed to decide which customers it will serve and how it will bring them value. This is done through market segmentation and selecting which segments will go after, which is called target marketing. In doing this, the company can serve their customers well and profitably. The company must also decide how it will differentiate and position
Discussing the Concepts 1. What is marketing and what is its primary goal? * One definition of marketing is, “a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.” * A much simpler definition would be, “managing profitable customer relations.” * Its primary goal is to create value for customers and capture from customers.
2. Compare and contrast customer needs, wants and demands. Describe the need versus the want for the following products: Gatorade, Nike shoes, and iPod. * A need is a state of felt deprivation and a want is the form a human need takes as shaped by culture and individual personality.
Need vs. Want
Gatorade: A person’s need is to quench his thirst and his want is to drink Gatorade. There are a lot of other alternatives to drink that will address his need but because of his wants, he chose Gatorade.
Nike shoes: A person is looking for footwear that he will use for athletic activities. This is his need. He chooses to buy a pair of Nike shoes because he wants a popular brand and he wants the added functions that Nike shoes promote. iPod: A person needs a source of musical entertainment, he can buy other brands that will address his need but due to his individual personality and how media and culture shaped him, he chose to buy an iPod because he wants to keep up with the trend.
3. Explain how a company designs a customer-driven marketing strategy. * A customer-driven strategy is designed when a company fully understands consumers and the marketplace. They then proceed to decide which customers it will serve and how it will bring them value. This is done through market segmentation and selecting which segments will go after, which is called target marketing. In doing this, the company can serve their customers well and profitably. The company must also decide how it will differentiate and position