Lecture 1 - The Nature of Marketing Flashcards
What is good marketing?
1- Not just about advertising.
2- Not about persuading people to buy things that they do not need.
3- Concerned with identifying and satisfying customers wants and needs.
What is a common mistake that people make when thinking about marketing?
They often just think that marketing is about making adverts and manipulating customers into buying things that they don’t need.
What is a vital process to ensuring that customers needs and wants are identified and the satisfied?
Market research.
What is a good definition of marketing?
The management process which identifies, anticipates and supplies customer requirements efficiently and profitably.
Where is emphasis placed in marketing?
On the customer.
What is the marketing concept?
The achievement if corporate goals through meeting and exceeding customer needs better than the competition.
(Fahy and Jobber, 2012)
What did Procter & Gamble state that the two moments of truth were with a customer.
1st in the shop when a customer selects a brand.
2nd at home when the customer uses the products.
What does the Procter & Gamble, 2 moments of truth statement suggest?
That customer satisfaction should be the driving force. It’s one thing winning a customer in the store but it is also important that the products works well when the customer uses it at home.
What is a customer orientation to marketing?
When corporate activities are focused upon providing customer satisfaction.
What is an integrated effort to marketing?
When all staff accept responsibility for creating customer satisfaction.
What is goal achievement in marketing?
It’s the belief that corporate goals can be achieved through achieving customer satisfaction.
What are the traditional alternative business orientations.
1- Sales orientation.
2- Product orientation.
3- Production orientation.
What is sales orientation?
The view that aggressive selling can sell any product.
What is a product orientation?
The view that a good product will sell itself. This is highlighted by the excessive focus upon the products features.
What is a production orientation?
It is when the organisation almost exclusively focuses upon production efficiency and effectiveness.
What is key to successful marketing within a company?
When it is viewed as a philosophy in a company and everyone becomes a “part time” marketer.
What did Drucker, 1973 suggest?
Marketing is so basic that it can not be considered to be a separate function. It is the whole business viewed from the point of view of its final result, that is, from the customer’s view point.
Jobber & Fahy reduce the marketing orientations into 2. What are their names.
1- Production Orientation (Traditional)
2- Marketing Orientation (Customer)
What are the stages of a production orientation?
Products and services - Aggressive sales effort - Customers
What are the stages of a marketing orientation?
Customers needs - Potential market opportunity - Marketing products and services - Customers
What are some of the aspects of a market driven business?
- Customer concern throughout the business.
- Match the marketing mix to the customer choice criteria.
- Segment customers by their differences (One size doesn’t fit all)
- They invest in marketing research and track market changes, marketing is seen as an investment.
- Embrace change, are fast changing and try to understand the competition.
- Innovation is rewarded as they strive for a competitive advantage.
What are some of the aspects of a internally orientated business?
- Convenience comes first, why rush attitude.
- Have the assumption that price and product performance are what makes sales thus, ignoring the competition.
- Segments by product.
- Rely on anecdotes and received wisdom, cherish the status quo.
- Innovation can be punished, sticks with the same, happy to “me too”.
What is the formula to work out customer value?
Perceived Benefits - Perceived Sacrifices
Discuss ‘must be’, ‘more is better’, ‘delighters’ model set out by Kano.
This model suggests that in order to satisfy customers a product or service must have the ‘must be, characteristics met or it will lead to dissatisfaction. ‘More is better’ can help elevate satisfaction for example a quicker than usual service. ‘Delighters’ on the other hand are characteristics that surprise the customer therefore their absence doesn’t create dissatisfaction but rather elevates it even higher.
What are the 4Ps in The Marketing Mix?
- Product
- Price
- Place
- Promotion
What are the other 3 Ps that are added to form the Service Extended Marketing Mix?
- People
- Processes
- Physical Evidence
What are the characteristics if an effective Marketing Mix?
- Matches the customer needs.
- It is well balanced.
- It creates a competitive advantage.
- Matches corporate resources.
Describe what is meant by an efficient company..
An efficient company is one that produces its good economically. The benefits of this are that they can achieve a low cost per unit on their output.
Describe what is meant by and effective company..
It is a company that does things right. They operate in attractive markets and make products that customers want to buy.
Why has their been an increase in marketing within not for profits and charities?
- The users of these organisations have rising expectations.
- The environment that they find themselves in is becoming more competitive.
