Chapter 1 Flashcards
Needs
States of felt deprivation
What is marketing
The process by which companies create value for customers and build strong relationships in order to capture value from customers in return
Wants
The form humans needs take as they are shaped by culture and individual personality
Demands
Human wants that are backed by buying power
Example of needs vs wants
Americans need food to live but want French fries from mcdonalds
Exchange
The act of obtaining a desired object from someone by offering something in return
Market
The set of actual and potential buyers of a product or service
Production concept
Easily avaliabile and inexpensive. Therefore they should focus on improving the production and distribution efficiency.
Disadvantage of production concept
Can lead to market myopia
Product concept
Good quality products will sell itself. Therefore the organization should focus its energy to making improved products
A good product doesn’t need marketing
Disadvantage of product concept
Making the best mouse trap when really customers are looking for a different solution.
Selling concept
Aggressive selling and promotion
Overcapacity- when supply is higher than demand
Disadvantage of selling concept
Focuses too much on creating sales transactions instead of developing long relationships with the customers
The marketing concept
Knowing the needs and wants of target markets and delivering desired satisfactions better than the competitors.
Disadvantage of marketing concept
Customers don’t know what they want or what is even possible
Societal marketing concept
Understanding society’s well being and sustainable market. Should consider consumer wants the company’s requirements and consumers and society’s long run interest.
Micro marketing
Perspective of company/organization
Macro marketing
Big picture, how practiced in countries and society.
Characteristics of micro marketing
How can we improve sales? Grab more customers from the company? Applies to non profit and profit organizations. Marketing from companies point of view.
Characteristics of macro marketing
Broader view of marketing. Views marketing as a social process that matches supply with demand to satisfy society’s objectives NOT specific companies, focuses on society’s concern.
Macro marketing systems
Planned economy and market orientated economy
Utiltiy
Value that comes from satisfying human needs
Production values utility
Form- creating tangible products from raw materials
Task-Intangible services
Marketing values utility
Time-insuring customers get their products at the right time
Place-at the right place
Possession-transfers ownership
