Marketing Theory and Practice/Market Research Flashcards
Give some definitions of marketing.
AMA definition:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, marketers, and society at large
American Marketing Association(2007)
CIM’s Definition of Marketing
“Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”
CIM (2005)
Kotler and Armstrong
“We define marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”
Armstrong,G. and Kotler, P. (2007)
What are the core concepts of marketing?
Needs, wants and demands>Marketing offers (products, services and experiences)>Value and Satisfaction>Exchange, transactions and relationships>Markets and it returns to the beginning and continues to circle around.
Define marketing needs and wants
- Basic Needs are the things humans must have to keep them alive
- Advanced needs – social interaction self-fulfillment
- Wants are how humans would like to fulfill those needs
Discuss the Marketing Concept according to Blankson and Cheng, (2005)
“The marketing concept holds that the key to organizational success is through the determination and satisfaction of the needs, wants and aspirations of target markets
These must be pursued more effectively and efficiently than that of competitors and with the intention of achieving profitability and/or satisfying objectives.
In other words, the marketing concept states that if a business is to achieve profitability and/or satisfy its objectives, the entire organization must be oriented towards satisfying consumer needs, wants, and aspirations”
Discuss the marketing orientation according to Narver and Slater, 1990.
Market orientation is defined as “the business culture that most effectively and efficiently creates the necessary behaviors for the creation of superior value for customers” (p. 20). Three possible ways: Customer orientation competitor orientation and Interfunctional coordination.
Discuss customer orientation
Customer commitment activities Creation of customer value Understanding customer needs Measuring customer satisfaction Offering after sales service
Discuss competitor orientation
Salespeople share competitor information
Responding rapidly to competitors’ actions
Top managers discuss competitors’ strategies
Targeting opportunities for competitive advantage
Discuss Interfunctional Co-ordination
Sharing information among functions
Integrating all functions in strategy
Contribution of all functions to customer value
Sharing resources with other functions.
What are the Characteristics of Market Orientated Organisations?
More results oriented, employee oriented,
Professional, open, loosely controlled, and pragmatic
Characterised by the basic features of marketing,
Learning organisation,
Committed to marketing,
Will know about their markets (customers and competitors),
Will know about market orientation and act on it,
The better their relative quality will be, the more market orientated they are,
Good at collecting and disseminating market information
Successful launching new products and services.
Kasper 2001
How to measure marketing orientation
[1] we are committed to our customers,
[2] we create value for our customers,
[3] we understand customer needs,
[4] we are concerned with customer satisfaction,
[5] our employees share competitor information,
[6] we respond rapidly to competitors’ actions,
[7] management is concerned with competitive strategies. Heiens and Pleshko, (2011)
Discuss the links between the marketing concept and business strategy and performance and the research behind this
Positive links between marketing concept and business strategy and performance including return on assets, organizational learning and ability to rapidly respond to environmental changes, new product innovation and success. Blankson et al 2001
American Research found a link between marketing orientation and performance.
Studies in UK and Ireland market orientation and firm performance - uncertain
Define orientation
Philosophical concepts to the marketplace have guided and continue to guide organizational activities.
What are the five different concepts?
1.The Production Concept
2.The Product Concept
3.The Selling Concept
4.The Marketing Concept
5.The Societal Marketing Concept
Kotler, P.(2000)
What are the characteristics of the production concept?
Producing more, selling high volumes, controlling costs and production efficiency. E.g. Ford and Ryanair
What are the characteristics of the selling orientation?
Aggressive sales and promotion to sell whatever the organisation, wants to make or distribute. Sellers’ needs come first, and products are ‘pushed’, Ethos – if the price is low enough, customers will buy the product whether they like it or not.
Production concept - how does it create success?
Production oriented firms generally technologically proficient.
Emphasis on product development, success is achieved by producing technically advanced or high quality products, which then have to be sold in sufficient quantities and at a price that makes a satisfactory profit.
Esslemont and Lewis (1991)
What behaviours does Andreasen say in 2012 that marketing can apply to?
Start a behavior Switch a behavior Stop a behavior Not start a behavior Continue a behavior Increase a behavior Decrease a behavior
Define Market Research
The systematic gathering, recording, and analyzing of data with respect to a particular market, where market refers to a specific customer group in a specific geographic area (Marketing Power)
The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better-informed decision-making. (CIM)
