Chapter 5.2 Flashcards
Financing
Costs are incurred in the transfer of products and services from seller to buyer
Risk taking
-The owner of the product is exposed to the risk of loss or damage
-The risk is carried by both the seller and buyer
Exchange marketing activities
B-O-B
-Buying and selling
-Ownership is transferred from one person to the other
-Buying activities are not regarded as a marketing task but rather as the responsibility of the purchasing department
Marketing orientations
P-S-M
-Product orientation
-Sales orientation
-Marketing orientation
Product orientation
-Producing the products as efficiently as possible
-Consumers will favour products that are readily available and highly affordable
Sales orientation
Focuses on the selling of products and services rather than on whether or not they’re actually needed
Marketing orientation
Organisations should focus on meeting the needs of customers, and ensure that all departments and people in the organisation are focused on satisfying the needs of the consumer and in the process making a profit
The essence of the marketing concept lies in 4 principles
-C-P-S-S
-Customer orientation
-Profit orientation
-System orientation
-Social responsibility
Customer orientation
All marketing actions should be aimed satisfying consumer needs, demands and preferences
Profit orientation
All marketing actions should be aimed at making a profit
System orientation
A group of units work together to achieve a joint objective
Social responsibility
-A concept that mentions that businesses are part of a bigger society in which they exist and are accountable to society for the organisation’s performance
Green marketing
-It involves the promotion of products and services based on environmental factors
-It incorporates a broad range of activities
The focus of relationship marketing
-To identify core customers, establish relationships with these customers; maintain and enhance those relationships and if and when necessary terminate those relationships so that the objectives of all parties are met
The marketing process definition
Analysing marketing opportunities, selecting appropriate target markets, developing the most suitable marketing mix and managing the marketing efforts through implementation and control activities
Marketing process
-Understand the marketplace and customer demand
-Formulate a marketing strategy that carries on the customer
-Design a marketing strategy that conveys superior value
-Make profitable relationships and generate customer desire
-Gather value from customers in order to make profits and customer equity
-Generate value for customers and build customer relationships
Functions in an organisation
-Operations function
-Financial function
-Purchasing function
-Public relations function
-Administration function
Marketing management
The process of setting marketing goals for an organisation, the planning and execution of marketing activities needed to meet these goals and measuring progress toward their achievement
Operations functions
Focuses on the activities and processes of an organisation that involve the production of goods or the provision of services sold to customers
Human resource function
People and tasks performed by human resource function that relate to the acquisition, training utilisation and retention of a sufficient number of competent personnel
