Chapter 1 - Defining Marketing Flashcards
What is value?
Everything a customer gets for what they give up
What is the value formula?
Benefits received - [price + non financial costs]
What are the 4 Ps?
Product Promotion Price Place
Market oriented
Philosophy that marketers seek to satisfy customer wants and needs
Production oriented
The best way to compete is by reducing production costs
Selling oriented
Emphasizing aggressive sales techniques
Product oriented
Creating many products that serve the same basic function but with a slight twist to appeal to different customers
Value orientation
Creating the best value for customers
Why study marketing?
Marketing delivers value to customers and the organization because it develops a reliable customer base
Marketing’s role in the organization
Marketing is a functional area but some marketing functions like sales can be handed over to another department. Marketing flows with the company’s overall strategy
Criticisms of marketing
Creates needs among customers for products and services that aren’t needed
