Chapter 01: An Overview of Marketing

Question 1

AMA Definition of Marketing

Answer 1

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

Question 2

Exchange

Answer 2

People giving up something in order to receive something else they would rather have.

Question 3

What are the 4 Marketing Management Philosophies

Answer 3

Production, Sales, Market, Social Marketing Orientations

Question 4

Production Orientation

Answer 4

More of the focus is drawn on the internal capabilities of the firm rather than the desire of the marketplace.

Question 5

Sales Orientation

Answer 5

Centered around the belief that if the proper aggressive sales techniques are employed people will buy more goods and service, thus resulting in high profits.

Question 6

Marketing Orientation n

Answer 6

Belief is centered more on the satisfaction of the customers wants and needs while meeting organizational objectives. A sale is not dependent on agressive sales tactics but rather on a customers decision to purchase a product.

Question 7

Societal Marketing Orientation

Answer 7

Focused on society at large when creating a product or service. They exist not only to satisfy the customers wants or needs but also to serve societies long term best interests.

Question 8

How are Sales and Market Orientations Compared?

Answer 8

Organization’s Focus, Firms Business, Who the product is directed towards, Primary Goal, Tools Used to achieve goals.

Question 9

Customer Value

Answer 9

The relationship between benefits and the sacrifice necessary to obtain those benefits.

Question 10

Customer Satisfaction

Answer 10

The customers evaluation of a good or service in terms of whether that good or service has met their needs and expectations.

Question 11

Building Relationships: How do companies expand their share of the marketplace?

Answer 11

Attracting new customers, increasing new business with existing customers, and retaining current customers.

Question 12

What is relationship marketing?

Answer 12

A strategy that focuses on keeping and improving relationships with current customers.

Question 13

Customer Oriented Personnel: Why is it important that employees attitudes and actions be customer oriented?

Answer 13

An employee may be the only contact a particular person has with the firm. The employee is the firm.

Question 14

Empowerment: How might a market oriented firm giving employees more freedom an authority to act on their own be beneficial to the firm?

Answer 14

Employees develop ownership attitudes when they are treated like part-owners of the business and are expected to act the part. These employees manage themselves, are more likely to work hard, account for their own performance and that of the company, and take prudent risks to build a stronger business and sustain the company’s success.

Question 15

What is the difference between how a sales oriented firm defines its business compared to how a market oriented firm defines its business?

Answer 15

A sales-oriented firm defines its business (or mission) in terms of goods and services. A market-oriented firm defines its business in terms of the benefits its customers seek.

Question 16

What are the three important advantages to being more market oriented when it comes to the firms business?

Answer 16

1. It ensures that the firm keeps focusing on customers and avoids becoming preoccupied with goods, services, or the organization’s internal needs.
2. It encourages innovation and creativity by reminding people that there are many ways to satisfy customer wants.
3. It stimulates an awareness of changes in customer desires and preferences so that product offerings are more likely to remain relevant.

Question 17

What is, “On Demand Marketing?”

Answer 17

Delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process

Question 18

What is the difference between who sales oriented firms target their products/services towards versus market oriented firms?

Answer 18

Sales oriented firms target everybody or the “average customer” Market oriented firms are directing their product/ser towards the specific groups.

Question 19

What are the customers expectations and wants from firms selling a pro/ser

Answer 19

Consumers….
(1) want to interact anywhere, anytime;

(2) want to do new things with varied kinds of information in ways that create value;
(3) expect data stored about them to be targeted specifically to their needs or to personalize their experiences; and (4) expect all interactions with a company to be easy.

Question 20

What are the differences between the tools market oriented firms use versus sales oriented firms use when trying to achieve its goals?

Answer 20

Sales oriented firms use intensive promotional activities to achieve its goals.

Market oriented firms use a combination of 4 things to achieve its goals.

• product decisions,
• place (or distribution) decisions,
• promotion decisions
• pricing decisions.

Question 21

What are the reasons for studying marketing?

Answer 21

• Marketing plays an important role in society
• Marketing is important to businesses
• Marketing offers outstanding career opportunities
• Marketing affects your life every day.

Question 22

What does marketing offer that is vital to business operations in terms of growth, survivability, and profits?

Answer 22

• Assessing the wants and satisfactions of present and potential customers,
• Designing and managing product offerings,
• Determining prices and pricing policies,
• Developing distribution strategies, and
• Communicating with present and potential customers.