Chapter 01: An Overview of Marketing Flashcards
AMA Definition of Marketing
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
Exchange
People giving up something in order to receive something else they would rather have.
What are the 4 Marketing Management Philosophies
Production, Sales, Market, Social Marketing Orientations
Production Orientation
More of the focus is drawn on the internal capabilities of the firm rather than the desire of the marketplace.
Sales Orientation
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.
Marketing Orientation n
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.
Societal Marketing Orientation
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.
How are Sales and Market Orientations Compared?
Organization’s Focus, Firms Business, Who the product is directed towards, Primary Goal, Tools Used to achieve goals.
Customer Value
The relationship between benefits and the sacrifice necessary to obtain those benefits.
Customer Satisfaction
The customers evaluation of a good or service in terms of whether that good or service has met their needs and expectations.
Building Relationships: How do companies expand their share of the marketplace?
Attracting new customers, increasing new business with existing customers, and retaining current customers.
What is relationship marketing?
A strategy that focuses on keeping and improving relationships with current customers.
Customer Oriented Personnel: Why is it important that employees attitudes and actions be customer oriented?
An employee may be the only contact a particular person has with the firm. The employee is the firm.
Empowerment: How might a market oriented firm giving employees more freedom an authority to act on their own be beneficial to the firm?
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.
What is the difference between how a sales oriented firm defines its business compared to how a market oriented firm defines its business?
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.
What are the three important advantages to being more market oriented when it comes to the firms business?
- It ensures that the firm keeps focusing on customers and avoids becoming preoccupied with goods, services, or the organization’s internal needs.
- It encourages innovation and creativity by reminding people that there are many ways to satisfy customer wants.
- It stimulates an awareness of changes in customer desires and preferences so that product offerings are more likely to remain relevant.
What is, “On Demand Marketing?”
Delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process
What is the difference between who sales oriented firms target their products/services towards versus market oriented firms?
Sales oriented firms target everybody or the “average customer” Market oriented firms are directing their product/ser towards the specific groups.
What are the customers expectations and wants from firms selling a pro/ser
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.
What are the differences between the tools market oriented firms use versus sales oriented firms use when trying to achieve its goals?
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.
What are the reasons for studying marketing?
- Marketing plays an important role in society
- Marketing is important to businesses
- Marketing offers outstanding career opportunities
- Marketing affects your life every day.
What does marketing offer that is vital to business operations in terms of growth, survivability, and profits?
- 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.
