Class 1 Flashcards
What is Peter Drucker’s definition of Marketing
The only purpose of a business is to create a customer.
What is Guiltinan, Paul and Madden’s view on Drucker’s definition
Identifying customer’s needs, pinpointing the needs the the organization can satifsfy at a profit, and developing products and services that convert potential buyers into customers.
What is Kotler and Armstrong’s view of marketing
A social and managerial process by which individuals and groups obtain what they need and want through exchanges of products and services of value with others.
What is the AMA 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 production orientation
Focus on production efficiency that will lead to high quality products
What is product orientation
Thinking that consumers will always buy a good product at a reasonable price. The consumer is buying a solution. It also assumes that consumers are completely informed about everything on the market and that they are rational.
What is sales orientation
Thinking that a good sales and communication strategy to convince the consumer to buy a product. This implies overlooking the consumer’s needs and convincing the consumer to buy the product by skillfully applying components of the marketing strategy.
What is marketing orientation
Satisfy the customer while keeping the company’s goals in mind.
What are the two basic activities a company performs
Producing and selling
What is the role of the marketing function
Identify the appropriate consumers and try to sell them the product manufactured by the firm. It also discovers what products the consumers want and find what it needs to produce in what quantity and format.
In the Maslow pyramid, whast needs need to be fulfilled first
Psychological needs => Safety and protection => belongingness => esteem => self-actualize
What is a need
It is a state of lacking something
What is a want
It is a way to meet the need
What is a consumer
Economic agents
What is the customer
The entity that makes the purchasing decision. The consumer may be different from the customer.
What is the demand
Consumers buy products or services
How is market demand expressed
In transactions
- Units of quantity (volume)
- Monetary units ($)
Which demand expression represents more accurately the data
Volume since the results are not inflated. It is easier to compare data form one year to another.
What are current dollars
When we look at the change in demand in dollars without adjusting from the change in price
What are constant dollars
When we calculate the change in demand while eliminating inflation as a factor
What is company demand
It is the expression, in volume or dollars, of the transactions carried out to buy a product or service from a specific company
What is the market demand
The sum of individual company demand values
What is market share
The company’s share of demand
What are the two main types of demand
Actual and potential
What is actual demand
It is a company’s actual sales or volume at a specific point in time
What is potential demand
The maximum level that demand for a product can reach in a given context
What are potential customers
People who do not use a product, but might do so
When is the market saturation level attained
When the actual demand and potential demand are equal.
What is the market
A set of consumers, individuals or businesses that express wants and needs by buying products, services or even ideas
What are the 5 markets
- Consumer
- business
- intermediaries
- governement
- international
What is the consumer goods market
Products purchased to meet personal needs
What is the most important characteristic for marketing strategists
The size of Canada’s territory
What is the business market
An organization that buys products and services on order to use them to make other hoods, or to meet their internal needs.
What are the firm types in this sector
Processing, farm, construction, extraction
What is the distribution intermediaries market
Individuals and organizations situated between the producer and the consumer
As an intermediary, what is a key success factor
Location
What is a priority in the government market
Price is a priority
The concept of exchange rests on what four elements
- consumer’s needs
- satisfaction of this need
- relationship between the business and the consumer
- Optimization of business profits
What is the difference between optimizing and maximizing profits
Maximizing : generating the largest possible profit
Optimizing : obtaining the largest profit while taking into consideration organizational or environmental elements
What is customer service
Everything that customers experience when ongoing business with a company
What is customer approach
- The analysis and understanding of the expectations, wants, needs and behaviours of target customers.
- Creating a product that meets customer needs in a cost-effective way
- It also means innovating to go beyond the needs and expectations explicitly formulated by customers.
What is the first function of customer service
Satisfy existing customers and build loyalty
What is customer lifetime value
The sum total of the present values of all the profits that can be made from a particular customer over that person’s lifetime
What is value
The benefits perceived minus the monetary and non-monetary costs
What is satifaction
The difference between the customer’s expectations and their perception of performance
What is the behavioural definition of loyalty
The customer retention
What is the romantic definition of loyalty
Emotional attachment
Which definition of loyalty should we choose
Behavioral because the romantic does not apply in all situations
What are the aspects of loyalty
- Length of customer retention
- Customer share
What balance must companies find
Levels of satisfaction and costs
What are the elements of the marketing mix
Productm price, promotion and place
What is the price
It is expressed as the monetary value attributed to the product, and includes the effort consumers have to make when buying it.
What factors affect the price
Rarity, reputation and symbolic value
What is the fairest price
The one the consumer is willing to pay
What is the element of place
- Physical distribution
- Distribution networks
- Place of business
Marketing strategies must be consistent with what
The company’s mission and objectives
What is the MIS
Marketing information system. This allows the firm to compare its results with its objectives and to deal with discrepancies by taking the necessary corrective actions
What are some statements from the AMA code
- A product must be safe
- The price must be fair
- Distributors, producers and retailers must not abuse their power by imposing restrictive conditions on the rest of the network
- Advertising must not use fraudulent or inaccurate arguments
- Customer service quality must always be consistent, no matter who the customer is
How do you increase market share
- Increase the number of purchases per customer
- Increase the number of customers
What is demand projection
Based on consumers who might be receptive to the product, what might demand be in the future. You may look at historical information and expected or past industry growth
What is customer share
The proportion of a customer’s relevant purchases that come from your brand
