chapter one Flashcards
Types of Business philosophy
Product orientation Production orientation Sales orientation Marketing orientation Satisfaction of customer needs should be at the heart of the organisation
Attributes of successful exchange process
benefits must outweigh the costs for the customer
provided with value
organisation with supplier- benefit over sacrifice
Customer Retention
easier for org to sell to existing customers
cheaper to keep customers
longer relationships with customers will generate more profit in the long run
Leaky bucket theory
companies are always loosing customers so they must maintain an equal number of new customers to make the bucket full or stop loosing old customers (Stem the lack)
Customer satisfaction as a business objective
customer satisfaction achieved through successful initial exchange
Repeat exchange process to achieve customer retention
Existing satisfied customers recommend org to others =customer acquisition
What does marketing dept have to work with?
Production Finance research and development sales HR
Internal Marketing
communicating with all employees to understand marketing plans and goals
Importance of Internal marketing
Improves staff... commitment motivation productivity Staff become advocates of the organisation
External marketing
communicating with your customers and other groups of stakeholders who are outside of your org
Customer and Consumer def
Customers- a person who BUYS the product
Consumer- a person who USES the product
Societal marketing
marketers should take some responsibility for the needs of society at large
focus towards long term effects on society
Relationship marketing
focus on ‘lifetime value- of the customer
loyalty creates significant revenue
Amount it cost to attract new customer
five times more than to keep an existing customer
4 Ps + 3Ps
Marketing mix
Product, Place, Promotion, price
People, process, physical evidence
Segmentation and targeting
people can be grouped according to their needs, should focus on smaller groups instead of trying to please everyone
