Lesson 1 Flashcards
Lu1 to Lu2
What is the definition of Marketing?
Marketing can be defined as all the activities performed by an organisation to ensure that they are continually meeting customer needs, thereby establishing long term customer relationships whilst meeting the organisation’s objectives.
What was the focus during the Production Era?
Companies focused on production, i.e., if we can make it, we can sell it.
Why is Profit considered the only real measure of success?
Profit indicates the ability to satisfy customer needs and allows the company to survive into the future.
What characterizes the Simple Trade Era?
Families traded their surplus (extra goods) with local middlemen.
What are the five stages in the Marketing Evolution?
- Stage 1: The Simple Trade Era
- Stage 2: The Production Era
- Stage 3: The Sales Era
- Stage 4: The Marketing Department Era
- Stage 5: The Marketing Company Era
What was introduced in the Marketing Company Era?
Companies compiled both short-term and long-term plans and started being guided by the marketing concept.
Internal Environmental (Micro Envirnoment)
The Company itself e.g. strengths and weaknesses
What was the significance of the Marketing Department Era?
Marketing activities were brought under the control of one department to improve short-term planning.
How does Customer Value relate to customer satisfaction?
Customer Value is determined by the benefits received versus the costs incurred when purchasing a product.
What occurred during the Sales Era?
Companies emphasized selling in order to beat the competition due to having more production capability.
What does Customer Satisfaction refer to in marketing?
It is the central focus that must guide the entire company – not just marketing.
What is the micro-macro dilemma?
It occurs when something that is good for some producers and consumers is not necessarily good for society as a whole.
Why is marketing important?
Marketing offers exciting careers and is used in both profit and non-profit organisations.
Marketing encourages competition and leads to the development of new products, offering the consumer variety and choice.
External envirnoment (Macro environment)
Political/Governmental
Economic
Socio-cultural
Technological
Environmental/Natural
Legal
International
What is Customer Value?
Is what a product or service is worth to customer based on its benefits compared to its cost
What is meant by Total Company Effort?
All departments must work together by breaking down inter-departmental barriers to meet customer needs.
What are the four main components in the definition of the marketing concept?
- Customer satisfaction
- Total company effort
- Profit
- Social Responsibility
External envirnoment ( Market environment )
Competitors
Customers
Intermediaries
Suppliers
What is Social Responsibility in marketing?
The firm should improve its positive effects on society and reduce its negative effects while meeting consumer needs.
What is the Marketing Concept?
The marketing concept is a philosophy which a company buys into, focusing efforts on satisfying customers at a profit while being socially responsible.
