Chapter 1 - an overview of marketing

Question 1

What is production orientation?

Answer 1

A focus on the internal capabilities of the firm rather than the desired & needs of the marketplace

Question 2

What is a key limitation of production orientation?

Answer 2

It may not consider whether what a firm can produce efficiently meets market needs

Question 3

When can a production-oriented firm succeed?

Answer 3

When competition is weak, or deman exceeds supply

Question 4

What is sales orientation?

Answer 4

A belief that aggressive sales techniques will result in higher sales and profits

Question 5

What is limitation of sales orientation?

Answer 5

It often lacks understanding of customers’ needs and focuses on selling rather than fulfilling market demand

Question 6

What is market orientation?

Answer 6

Focusing on satisfying customer wants and needs while achieving organizational goals by integrating all organizational activities

Question 7

How does a market-oriented firm view a sale?

Answer 7

A sale is based on the customers’ decision to purchase, not on aggressive sales tactics

Question 8

What is societal marketing orientation?

Answer 8

It extends the marketing concept by considering the long-term best interests of society, beyong just satisfying customer wants and organizational objectives

Question 9

How was the internet shifted power in marketing?

Answer 9

Power has shifted from manufacturers and retailers to consumers, who can shop smarter through widespread knowledge

Question 10

What is the organizational focus of sales orientation?

Answer 10

Focused on selling products rather than meeting market needs

Question 11

What is the organizational focus of market orientation?

Answer 11

Focuses on putting the customer at the center and creating customer value

Question 12

What are the 3 ways companies can expand market share?

Answer 12

1. attracting new customers
2. increasing business with existing customers
3. retaining current customers

Question 13

What is relationship marketing?

Answer 13

Focus on maintaining and improving relationships with current customers

Question 14

What is empowerment in a market-oriented firm?

Answer 14

Giving employees more authority to solve customrer problems on the spot

Question 15

What does a sales-oriented firm focus on?

Answer 15

Selling goods and services

Question 16

What does a market-oriented firm focus on?

Answer 16

The benefit that customers seek, ensuring they remain customer-focused

Question 17

How do sales-oriented firms target their products?

Answer 17

They often target the average customer, but few customers are actually ‘average’

Question 18

How do market-oriented firms target their products?

Answer 18

They target specific groups of people by analyzing the market and dividing it into similar segments

Question 19

What is customer relationship management (CMR)?

Answer 19

A strategy to optimize profitability, revenue, and customer satisfaction by focusing on defined customer groups and linking all company processes to the customer

Question 20

What is the primary goal of a sales-oriented firm?

Answer 20

Achieving profitability through sales volume, often convincing customers to buy products

Question 21

What is the primary goal of a market-oriented firm?

Answer 21

1. Creating customer value
2. Providing satisfaction
3. Building long-term relationships

Question 22

What tools do sales-oriented firms use to achieve their goals?

Answer 22

Intensive promotional activities like personal selling and advertising

Question 23

What tools do market-oriented firms use to achieve their goals?

Answer 23

1. A comprehensive marketing mix (the 4 P’s)
2. Recognizing marketing is everyone’s responsibility