Introduction

Question 1

What are the four identified needs for marketing?

Answer 1

consumer heterogeneity, technology, product life cycles, communication dynamics

Question 2

What is the theoretical reason for marketing?

Answer 2

the basic definition of business is to create a customer, therefore the only two functions are to market and innovate

Question 3

Marketing and the profit function

Answer 3

three ways to increase profit: unit volume, unit price, or decrease costs
marketing helps increase primary demand and market share, increasing customer utility thus willingness to pay, and reduce wasteful spending

Question 4

What are the three approaches to winning customers???

Answer 4

A. production orientation
B. product orientation
C. marketing orientation

Question 5

Production orientation

Answer 5

“operational excellence” - the objective is to minimize costs and sell at lowest possible price (standardization)

• consumers are price sensitive
• undifferentiated products
• mass production

Question 6

Product orientation

Answer 6

“quality excellence” - produce state of the art products.

-consumers favor quality, newness, sophistication

Question 7

Marketing orientation

Answer 7

“customer knowledge” - achieve a deep understanding of desired benefits, assess market segments and customer lifetime value

Question 8

Why is marketing orientation important??

Answer 8

-consumers seek benefits rather than products, competition should be defined in this manner

Question 9

Summarize marketing

Answer 9

• a process with two way communication-

- the most virtuous thing a firm does-