Chapter 1: Marketing and the Organization Flashcards
Define Commodity Businesses.
those firms which sell goods and materials that are freely traded, e.g. agricultural products - rice, coffee, grain, raw materials, metals
Describe Competitive Advantage.
the achievement of superior performance through differentiation to provide superior customer value or by managing to achieve lowest delivered cost
What is Customer Satisfaction?
the fulfilment of customers’ requirements or needs
Define Customer Value.
perceived benefits minus perceived sacrifice
Describe Effectiveness.
doing the right thing, making the correct strategic choice
Define Efficiency.
a way of managing business processes to a high standard, usually concerned with cost reduction; also called ‘doing things right’
What is Exchange?
the act or process of receiving something from someone by giving something in return
Define the Four-Ps.
four key decision areas for marketing: product, price, promotion and place
Describe Latent Markets.
Markets not yet served by existing products and service offers. These markets present opportunities for market-orientated companies
What is Market Orientation?
companies with a market orientation focus on customer needs as the primary driver of organizational performance
Define the Marketing Concept.
The achievement of corporate goals through meeting and exceeding customer needs better than the competition.
Describe a Marketing Mix.
A framework for the tactical management of the customer relationship, including product, place, price, promotion (the Four-Ps); in the case of services, three other elements to be taken into account are process, people, and physical evidence.
What are Non-Commodity Businesses?
Those which are involved in facilitating processes and exchanges, but are not in themselves commodities. For example, when you buy electricity, a large proportion of the cost is attributed to the network of cables used to deliver the supply. In the UK, the National Grid owns the electricity transmission system.
Define Place.
The distribution channels to be used, outlet locations, methods of transportation.
Define Price.
(1) The amount of money paid for a product; (2) The agreed value placed on the exchange by buyer and seller.
