Chapter 1 -- Overview Flashcards
What is the definition of marketing?
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
What is the main focus of marketing?
It is on delivering value and benefits to customers, not on just selling goods, services, and/or ideas
What are the 5 conditions that create an exchange?
- There must be at least 2 parties.
- Each party has something that might be of value to the other party.
- Each party is capable of communication and delivery.
- Each party is free to accept or reject the exchange offer.
- Each party believes it is appropriate or desirable to deal with the other party.
What is product orientation?
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
How does product orientation fall short?
It does not consider whether the goods & services that the firm produces most efficiently also meet the needs of the marketplace.
What is sales orientation?
based on the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
What is the main issue with sales orientation?
There is often a lack of understanding of consumer needs and wants.
What is market orientation?
The sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; AKA marketing concept
What is a critical component of market orientation?
Understanding your competitive arena and competitors’ strengths and weaknesses is a critical component of a market orientation
What is societal marketing orientation?
The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long term best interests (environmentally friendly products)
__ and the widespread use of ___ have accelerated the shift in power from manufacturers and retailers to consumers and business users.
Internet; social media
What is the difference between sales-oriented firms and market-oriented focus?
Sales-oriented firms tend to be inward looking, focusing on selling what the organization makes rather than making what the market wants. Market-oriented focus help companies to outperform their competitors and put customers at the center of business.
What is customer value?
the relationship between benefits and the sacrifice necessary to obtain those benefits
What do customers value in goods and services?
Goods and services that are of the quality they expect and that are sold at prices they are willing to pay.
What is customer satisfaction?
The customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations
What are the three ways that companies can expand market share?
- attracting new customers
- increasing business with existing customers
- retaining current customers
What is relationship marketing?
a strategy that focuses on keeping and improving relationships with current customers
What do most successful relationship marketing strategies depend on?
- Customer-oriented personnel
- Effective training programs
- Employees with the authority to make decisions & solve problems
- Teamwork
How is business defined by sales-oriented firms vs. marketing-oriented firms?
Sales-oriented: in terms of goods & services
Market-oriented: in terms of benefits its customers seek
What are the advantages of looking at the benefits customers seek instead of the goods and services?
- Ensures that the firm keeps focusing on customers and avoids becoming preoccupied w/G&S
- Encourages innovation and creativity by reminding people that there are many ways to satisfy customer wants
- It stimulates an awareness of changes in customer desires and preferences
How is the sales-oriented firms limited?
They often miss opportunities to serve customers whose wants can be met through a wide range of product offerings instead of through specific products.
How do sales-oriented organizations and market-oriented organizations aim products to people?
Sales-oriented: products targeted to “everybody” or “the average customer”
Market-oriented: products aimed at specific groups of people
What is customer relationship management (CRM)?
a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
How do sales-oriented and market-oriented firms differ in their primary goals?
Sales-oriented: place higher premium on making a sale than on developing a long-term relationship with a customer
Market-oriented: make profit by creating customer value, providing customer satisfaction, and building long-term relationships with customers
How do sales-oriented and market-oriented firms differ in the tools they use to achieve goals?
Sales-oriented: generate sales through intensive promotional activities, mainly personal selling and advertising
Market-oriented: recognize that promotion decisions are only one of the four basic marketing mix decisions that must be made (4 P’s)
