Chapter 1: Intro To Marketing Flashcards
What are the key characteristics of marketing
Profit & non-profit, Building Relationships, Involving Changes, More than Persuasion, BEGINS WITH NEEDS, doesn’t go at it alone
What is the marketing concept?
The marketing concept is a mixture of customer satisfaction, total company effort,& profit(or another measure of long term success ) as in objective
Creates customer satisfaction
Marketing (makes sure right goods and services are produced)
&
Production (Making goods and performing services)
Exhibit 1 differences: Attitude toward customers
Marketing Orientation: Customer needs determine company plans
Production Orientation: They should be glad we exist, trying to cut costs and brining out better products
Exhibit 2 Differences: Product Offering
Marketing: Company makes what it can sell
Productions: Company sells what it can make
Exhibit 3 Differences: Role of Marketing Research
Marketing Orientation: To determine customer needs and how well company is satisfying them
Production Orientation: To determine customer reaction, if used at all
Exhibit 4 Differences: Interest in Innovations
Marketing Orientation: Focus is on locating new opportunities
Production Orientation: Focus is on technology and cost cutting
Exhibit 5 differences: Customer Service
Marketing Orientation: Satisfy customers after the sale and they’ll come back again
Production Orientation: An activity required to reduce customer complaints
Exhibit 6 differences: Focus of advertising
Marketing Orientation: Needs-satisfying benefits of goods and services
Production Orientation: Product features and how products are made
Exhibit 7 Differences: Relationship with customer
Marketing Orientation: Customer satisfaction before and after sale leads to a profitable long-run relationship
Production Orientation: Relationship ends when a sale is made
Exhibit 8 Differences: Costs
Marketing Orientation: Eliminate costs that do not give value to the customer
Production Orientation: Keep costs as low as possible
Costumer Value Equation
Customer Value = Benefit - Cost
What is Customer Value?
When customers believe that the benefits outweigh the costs
Price Index for Brand A
Price index Price of Brand A
for Brand A = ________________________ x 100
Market Average Price
Benefit Index for Brand A
Benefit Index Benefit Rating of Brand A
for Brand A = ________________________________ x 100
Market Average Benefit Rating
Customer Value Index for Brand A
Customer Benefit Index Price Index
Value Index = For Brand A - For Brand A
For Brand A
What are the Characteristics of Non Profit Organizations?
- Newcomers to Marketing (usually don’t have a marketing budget)
- Will “satisfied” customers offer support?
- May not be organized for Marketing
- The bottom Line?
Benefits
target customer needs in a firms goods and services
Costs
Target customer needs to obtain benefits
What is the Micro-Macro dilemma?
What is “good” for some producers and consumers may not be good for society as whole.
Social Responsibility or CSR
A company communicates socially responsible initiative’s to its audience.
Consumers care
Examples of CSR
- Dove: Every age should feel this beautiful campaign
- The Macy’s Believe Campaign, for every letter from children in the mailbox, they donate $1 to different non-profits
- Sienfeild gave names to their cows, shared the stories of the cows and its farmers to show how much care went into their organic milk
- Tom’s donated shoes to less fortunate areas when consumers bought a pair of shoes.
