01 - Fundamentals of Marketing Flashcards
Definition: Marketing
Marketing is a process of creating value for customers and building strong customer relationships in order to capture value from customers in return.
Definition: Exchange
An exchange is defined as the transfer of goods between two entities and is at the heart of marketing.
Criteria for Exchange (5)
1) Transfer of goods
2) Minimum of 2 Parties
3) Each brings value to the other
4) All act voluntarily (nobody is forced to buy or sell)
5) Lines of communication must be present (buyer to seller/seller to buyer)
Marketing Orientations (5)
1) Product Oriented
2) Production Orientation
3) Selling Orientation
4) Marketing Orientation
5) Societal Orientation
Definition: Production Oriented
Quality is not the most important factor, simply produce as much as possible to achieve maximum economies of scale to lower prices.
Definition: Product Orientation
Quality is the most important factor, whilst some features are added to the main product without it being mass produced and thus priced higher.
Definition: Selling Orientation
Involves taking drastic measures to convince the customer that they have to buy a product, even if they may not necessarily need it.
Definition: Marketing Orientation
Due to the fact that customers have become more sophisticated, Marketing Orientation asks the customers what they want, putting their satisfaction at the forefront.
Definition: Societal Orientation
This orientation affects society in the process through pollution or smoking. This means that it is not necessarily affecting the customer, however the marketer needs to consider the societal impact, so that his consumers are not using the product in the wrong way.
Definition: Needs
Needs are essential to human survival and are classed into physical, social and individual needs.
Definition: Wants
Wants describe the products or services that customers desire, but do not necessarily need. They are shaped by culture and individual personality.
Definition: Demands
Human wants that are backed by buying power (Needs/Wants + Money = Demand)
Three Dimensions of the Societal Marketing Concept
Society wants human welfare, Consumers want satisfaction and the Company wants profits.
The Four Ps
1) Product
2) Place
3) Price
4) Promotion
Factors affecting the environment of Marketing
1) Economic climate (Inflation Rates, Unemployment)
2) Culture
3) Globalization of markets and businesses
4) Different ethics and social responsibility standards
6) Location and Timing
7) Impact of Technology
