Chapter 1 - an overview of marketing Flashcards
What is production orientation?
A focus on the internal capabilities of the firm rather than the desired & needs of the marketplace
What is a key limitation of production orientation?
It may not consider whether what a firm can produce efficiently meets market needs
When can a production-oriented firm succeed?
When competition is weak, or deman exceeds supply
What is sales orientation?
A belief that aggressive sales techniques will result in higher sales and profits
What is limitation of sales orientation?
It often lacks understanding of customers’ needs and focuses on selling rather than fulfilling market demand
What is market orientation?
Focusing on satisfying customer wants and needs while achieving organizational goals by integrating all organizational activities
How does a market-oriented firm view a sale?
A sale is based on the customers’ decision to purchase, not on aggressive sales tactics
What is societal marketing orientation?
It extends the marketing concept by considering the long-term best interests of society, beyong just satisfying customer wants and organizational objectives
How was the internet shifted power in marketing?
Power has shifted from manufacturers and retailers to consumers, who can shop smarter through widespread knowledge
What is the organizational focus of sales orientation?
Focused on selling products rather than meeting market needs
What is the organizational focus of market orientation?
Focuses on putting the customer at the center and creating customer value
What are the 3 ways companies can expand market share?
- attracting new customers
- increasing business with existing customers
- retaining current customers
What is relationship marketing?
Focus on maintaining and improving relationships with current customers
What is empowerment in a market-oriented firm?
Giving employees more authority to solve customrer problems on the spot
What does a sales-oriented firm focus on?
Selling goods and services
What does a market-oriented firm focus on?
The benefit that customers seek, ensuring they remain customer-focused
How do sales-oriented firms target their products?
They often target the average customer, but few customers are actually ‘average’
How do market-oriented firms target their products?
They target specific groups of people by analyzing the market and dividing it into similar segments
What is customer relationship management (CMR)?
A strategy to optimize profitability, revenue, and customer satisfaction by focusing on defined customer groups and linking all company processes to the customer
What is the primary goal of a sales-oriented firm?
Achieving profitability through sales volume, often convincing customers to buy products
What is the primary goal of a market-oriented firm?
- Creating customer value
- Providing satisfaction
- Building long-term relationships
What tools do sales-oriented firms use to achieve their goals?
Intensive promotional activities like personal selling and advertising
What tools do market-oriented firms use to achieve their goals?
- A comprehensive marketing mix (the 4 P’s)
- Recognizing marketing is everyone’s responsibility
