Principles Of Marketing Flashcards
What is the Exchange of Value? Recognise that marketing involves a mutually beneficial exchange of value.
• Two or more parties must participate, each with something of value desired by the other party
• All parties must benefit from the transaction
• The exchange must meet both parties’ expectations (e.g. quality, price)
The essence of marketing is to develop mutually beneficial exchange. Exchange involves value creation for all parties to the exchange. Marketers must understand how customers perceive value. Value perceptions vary from one individual to another and they are ever changing.
The customer is the focus of all marketing activities and successful marketers are those who view their products in terms of meeting customer needs and wants.
Provide an overview of marketing and the marketing process.
Marketing involves a range of activities aiming to create valuable offerings that can satisfy customers and at the same time maximise returns for stakeholders.
Marketing has significant roles for companies (profit and non-profit), customers, and society at large.
Marketing is a philosophy or a way of doing business that puts the market — the customer, client, partner and society, and competitors — at the heart of all business decisions.
The marketing process is cyclical in nature and involves understanding the market to create, communicate and deliver an offering for exchange. Marketers start by understanding the consumers, the market and how they are currently situated. Armed with this understanding, marketers are next tasked with creating solutions, communicating the offering to the market, and delivering it at a time and place that is convenient for the customer.
What should marketers do?
Marketers should understand key marketing terms including exchange, value, relationship marketing, marketing concept, and marketing mix to appreciate core concepts of marketing
Marketers are expected to behave ethically and socially responsible ways
What is the definition of customers?
People who purchase goods and services for their own or other people’s use
What is sustainable marketing?
The marketing profession’s obligation to change marketing processes in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are made consistent with future as well as present needs.
In practice, sustainable marketing is simply about looking at your products and/or services, assessing how your products and/or services impact the environment, and then taking steps to minimise those impacts.
What is marketing mix?
Marketing mix is the term given to a set of variables that a marketer can exercise control over in cating an offering for exchange.
What is target marketing?
Target market is a group of customers with similar needs and wants.
Not all customers in a target group will have exactly the same needs and wants but they are more similar than different.
By narrowing their thinking to a target group, marketers can think about how they can best communicate, deliver and exchange their offerings with customers.
What is physical evidence? (7Ps)
Physical evidence refers to the tangible cues, including the physical environment, that customers use to evaluate products, particularly services. Because services are intangible, it is difficult to assess their quality and suitability until they are consumed.
Marketers can use physical evidence to reassure potential customers as to the quality of the service. Tangible cues should inspire confidence in the likely service product. Physical evidence includes architectural design, furniture, décor, shop fittings, colours, background music, staff uniforms, brochures, service or delivery vehicles and stationery.
Discuss the importance of ethics and corporate social responsibility in marketing.
Businesses exist primarily to generate profits and wealth for their owners. It is increasingly recognised, however, that businesses have an obligation to act in the best interests of the society that sustains them. They are obliged to act ethically, within the law, and to fulfil corporate social responsibility requirements, which may include philanthropy, protecting the natural environment, providing products that benefit society and generating employment and wealth. Businesses also need to be sustainable to ensure our future by meeting the needs of the present without compromising future generations.
Discuss how marketing improves business performance, benefits society and contributes to quality of life.
Organisations with a market orientation perform better than other organisations. Marketing creates employment and wealth for the benefit of individuals and society as a whole.
It improves people’s quality of life through better products and the promotion of consumer and social welfare.
An understanding of marketing helps you make better decisions as to the relative value of products offered to you.
Marketing can be a rewarding career path. While it can be lucrative work, it requires dedication and effort.
Marketers need good analytical, communication, and negotiation skills, the power of persuasion, and often a tertiary qualification in marketing or a related discipline.
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