Chapter 1 Flashcards
What is the difference between a NEED and a WANT?
A need is one of the basic necessities of life (food, clothing, shelter, safety, etc.)
A want is the particular way the person chooses to fulfill their need
What are the 4 P’s of marketing? How does each relate to value
Product - Creating Value
Price - Transacting Value
Place - Delivering Value
Promotion - Communicating Value
D: Marketing Mix
The controllable set of activities that the firm uses to respond to the wants of its target markets
D: Goods
Items that you can physically touch
Services
Intangible customer benefits that are produced by people or machines and cannot be separated from the producer
Supply Chain Management
The set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction (e.g., transportation companies) into a seamless value chain.
A truly comprehensive and proactive approach to sustainability requires businesses to develop practices and policies around which 3 perspectives? What does this look like in practice?
Environmental
Governance
Social
-> Embedded in all facets of the organization, from human resource management to manufacturing, marketing, production, planning, investments, and corporate strategy.
-> Sustainability must involve all employees, in all areas and departments.
What are the four different marketing orientations or philosophies? Explain each one.
1) Product Orientation:
-Developing and distributing innovative products
-Little concern about whether the products best satisfy customers’ needs.
-Start with the product then figure out how to sell it.
2) Sales Orientation:
-View marketing as a selling function where companies try to sell as many of their products as possible rather than focus on making products consumers really want.
-Heavy doses of personal selling and advertising.
-Focus on making a sale or on each transaction rather than building long-term customer relationships.
-Profits come from sales volume rather than from repeat business from satisfied customers.
3) Market Orientation
-Start out with what customers want and need before they design, make, or sell their product/service
-Believe the market is a buyer’s market and customers wield a lot of power (“customer is king”)
-Role is to understand and respond to customer needs
-Focus on making marketing an integrated process throughout the entire company
-Satisfied customers become long-term loyal customers
4) Value-Based Orientation
-Goes beyond market orientation
-Focus on the triple bottom line: people, profits, planet
-Implements its strategy according to what its customer values
Value Cocreation
Customers act as collaborators to create the product or service
Customer Relationship Management (CRM)
A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers.
How does marketing contribute to a company’s successful global expansion?
The knowledge gained by analyzing new customers’ needs and wants on a segment-by-segment, region-by-region basis allows a frim to expand globally
What are the four general groups involved in a supply chain?
Raw Material Suppliers
Manufacturer
Distributor
Customer
The Five Step Marketing Process (5)
Research
Design Strategy
Implement
Monitor/Control
Equity
What are consumers basic needs? (3 categories w/ examples)
Physical: food, clothing, warmth, safety
Social: belonging, affiliation
Individual: self-esteem, self-expression, knowledge
