Chapter 1 -- Overview

Question 1

What is the definition of marketing?

Answer 1

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

Question 2

What is the main focus of marketing?

Answer 2

It is on delivering value and benefits to customers, not on just selling goods, services, and/or ideas

Question 3

What are the 5 conditions that create an exchange?

Answer 3

1. There must be at least 2 parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the other party.

Question 4

What is product orientation?

Answer 4

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

Question 5

How does product orientation fall short?

Answer 5

It does not consider whether the goods & services that the firm produces most efficiently also meet the needs of the marketplace.

Question 6

What is sales orientation?

Answer 6

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

Question 7

What is the main issue with sales orientation?

Answer 7

There is often a lack of understanding of consumer needs and wants.

Question 8

What is market orientation?

Answer 8

The sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; AKA marketing concept

Question 9

What is a critical component of market orientation?

Answer 9

Understanding your competitive arena and competitors’ strengths and weaknesses is a critical component of a market orientation

Question 10

What is societal marketing orientation?

Answer 10

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)

Question 11

__ and the widespread use of ___ have accelerated the shift in power from manufacturers and retailers to consumers and business users.

Answer 11

Internet; social media

Question 12

What is the difference between sales-oriented firms and market-oriented focus?

Answer 12

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.

Question 13

What is customer value?

Answer 13

the relationship between benefits and the sacrifice necessary to obtain those benefits

Question 14

What do customers value in goods and services?

Answer 14

Goods and services that are of the quality they expect and that are sold at prices they are willing to pay.

Question 15

What is customer satisfaction?

Answer 15

The customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations

Question 16

What are the three ways that companies can expand market share?

Answer 16

1. attracting new customers
2. increasing business with existing customers
3. retaining current customers

Question 17

What is relationship marketing?

Answer 17

a strategy that focuses on keeping and improving relationships with current customers

Question 18

What do most successful relationship marketing strategies depend on?

Answer 18

1. Customer-oriented personnel
2. Effective training programs
3. Employees with the authority to make decisions & solve problems
4. Teamwork

Question 19

How is business defined by sales-oriented firms vs. marketing-oriented firms?

Answer 19

Sales-oriented: in terms of goods & services

Market-oriented: in terms of benefits its customers seek

Question 20

What are the advantages of looking at the benefits customers seek instead of the goods and services?

Answer 20

1. Ensures that the firm keeps focusing on customers and avoids becoming preoccupied w/G&S
2. Encourages innovation and creativity by reminding people that there are many ways to satisfy customer wants
3. It stimulates an awareness of changes in customer desires and preferences

Question 21

How is the sales-oriented firms limited?

Answer 21

They often miss opportunities to serve customers whose wants can be met through a wide range of product offerings instead of through specific products.

Question 22

How do sales-oriented organizations and market-oriented organizations aim products to people?

Answer 22

Sales-oriented: products targeted to “everybody” or “the average customer”
Market-oriented: products aimed at specific groups of people

Question 23

What is customer relationship management (CRM)?

Answer 23

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

Question 24

How do sales-oriented and market-oriented firms differ in their primary goals?

Answer 24

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

Question 25

How do sales-oriented and market-oriented firms differ in the tools they use to achieve goals?

Answer 25

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)