Chapter 1 Flashcards
Define Marketing
-“marketing is an organizational function and a set of processes for creating, communicating, delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
-Market is involved with developing and managing the companies products, services and ideas; promoting and pricing the companies offerings, and distributing the companies offerings. (4 P’s of marketing)
- • Creating, communicating and delivering value –> conditions of exchange
• Manage relationships
What are the conditions of exchange?
- At least two parties
- Something of value involved
- Communication and delivery
- Freedom to accept of reject
- Desire to deal with other party
What are the four philosophies of marketing?
- Production
- sales
- marketing
- societal
Production -oriented philosophy
- internal capabilities of the firm rather than the desires and needs of the market place
What can we do best? What can our Engineers design? What can we make give out equipment?
Sales- oriented philosophy
aggressive sales techniques and belief that high sales result in high profits
Often do not take the needs and desires of the market into consideration - it is hard to make a sale on something that is not wanted
market-oriented philosophy
satisfying customer needs and wants while meeting objectives
○ What customer thinks they are buying- the perceived value- is what defines the business
i. Focus on customer needs so that organization distinguish its products from competitor offerings
ii. Integrating all the organizations activities, including production, to satisfy customer wants
iii. Achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly
societal -oriented philosophy
satisfying customer wants and needs while enhancing individuals’ and society’s long-term well-being
Difference between sales and market-oriented philosophies
The two can be compared using five characteristics
i. The organizations focus
ii. the firm’s business
iii. Those to whom the product is directed
iv. The firm’s primary goal
v. the tool’s to achieve those goals.
Difference between sales and market-oriented philosophies : The organizational focus
• Sales oriented are “inward looking” - focusing more on what they are selling rather than who they are selling to.
• Market-oriented businesses put their customers needs at the center of their business.
□ Customer value- elevating customer experience, improving customer satisfaction, pay attention to customer feedback.
□ Customer satisfaction - evaluation of you goods and services based on whether they have met customer needs
□ building relationships- building long-term relationships by understanding who your customers are, what they value, what they want to buy, and how they prefer to interact and be served by you
□ Customer-oriented personnel- train employees to be customer oriented
□ The role of training- leading marketers recognize the role of employee training in customer service and relationship building
□ Empowerment- give employees more authority to solve customer problems on the spot
Team work- job performance, product value and customer satisfaction all improve when people in the same department or work group begin support and assisting each other and emphasize cooperation instead of competition.
Difference between sales and market-oriented philosophies : The firm’s business
• Sales- oriented— defines it business (or mission) in terms of goods and services
- Market-oriented- defines its business in terms of the benefits its customers seek
Difference between sales and market-oriented philosophies : those to whom the product is directed
• Sales- oriented– targets its products at everybody (whoever they can make the sale to) or the “average customer”
-Marketing-oriented– aims at specific groups of people
Difference between sales and market-oriented philosophies : the firm’s primary goal
• Sales oriented- seeks to achieve profitability through sales volume and tries to convince potential customers to buy, even if they know they customer does not match product.
-Market-oriented– make a profit by creating customer value, providing customer satisfaction, and building long-term relationships with customers
Difference between sales and market-oriented philosophies : the tool’s to achieve those goals
• Sales-oriented
□ Seek to generate sales volume through intensive promotional activities, mainly person selling and advertising
-Market-oriented- recognize that promotion decisions are only one of four basic marketing mix decisions to be made. (place, product, price, promotion)
Why should we study marketing?
• Plays an important role in society
• Vital to business survival, profits and growth
• Offers career opportunities
-Affects you life every day
