Chapter 5 Flashcards
Marketing definition
-A process whereby an organisation centers its activities on meeting the identified needs and wants of customers by offering products that customers want at an acceptable price to both parties and a place suitable for both the company and the customer and by informing the customer via the correct communication channels of these products and services
-Through the process, the organisation also aims to establish meaningful relationships with not only customers but all stakeholders involved with the company
What the concept of exchange entails
-Exchange is all the activities associated with somebody giving up something in order to receive something in return
-Exchange doesn’t necessarily require money
The 5 conditions required for exchange
-At least 2 parties must be involved
-Each party must have something that the other party values
-Each party must be able to communicate with the other party
-Each party must be free to accept or reject the others offer
-Each party must want to deal with the other party
Marketing gaps
-Space gap
-Time gap
-Information gap
-Ownership gap
-Value gap
Space gap
A geographical distance exists between the manufacturer and the consumer
Time gap
Distribution of seasonal products
information gap
Inform consumers with the correct information regarding a product
Ownership gap
The buyer becomes the owner of the product
Value gap
The seller and the buyer must agree on a acceptable exchange rate
Intermediaries
Activities intended to bridge the gap between the buyer and the seller usually involve intermediaries
Types of intermediaries
M-A-S
-Middlemen
-Auxiliary enterprises
-Sales intermediaries
Middle men
These organisations directly involved in taking title of products which are later sold to others
Sales intermediaries
-These are agents who don’t take title of products they sell
-They provide services to facilitate the sales process and are paid for those services
Auxiliary enterprise
They’re not directly involved in the transfer of title but provide support services to facilitate the selling process
Marketing activities definition
Activities used to transfer the market offering to the buyer
Types of marketing activities
P-E-A
-Primary
-Exchange activities
-Auxiliary
Primary marketing activity
The most basic activity
Auxiliary marketing activities
-Sourcing and supplying information
-Standardisation and grading
-Storage
-Financing
-Risk taking
Sourcing and supplying information
The seller must know who and where potential buyers are
Standardisation and grading
Close the gap between the buyer and seller, products must be designed to conform to specific norms or standards
Storage
Closes the time gap
