Topic 01-Introduction Flashcards
Definition: Marketing
Marketing is a process of creating value for customers and building strong customer relationships in order to capture value from customers in return.
Definition: Exchange
An exchange is defined as the transfer of goods between a minimum of two entities and is at the heart of marketing.
Criteria for Exchange (5)
1) Transfer of goods
2) Minimum of 2 Parties
3) Each brings value to the other
4) All act voluntarily (nobody is forced to buy or sell)
5) Lines of communication must be present (buyer to seller/seller to buyer)
Marketing Orientations (5)
1) Product Oriented
2) Production Orientation
3) Selling Orientation
4) Marketing Orientation
5) Societal Orientation
Steps/description marketing process (5)
1) Understand the marketplace and the customer (needs/wants)
2) Design a customer driven marketing strategy
3) Construct a integrated marketing program that delivers superior value
4) Build profitable relationships and create customer delights
5) Capture value from customers to create profits and customer equity
Definition: Product Orientation
- Quality is the most important factor, no mass production, priced higher
- Customer is not fucused
- Product oriented marketers think that customers will chose the product with best quality
- May not hit customers needs
Definition: Selling Orientation
Involves taking drastic measures to convince the customer that they have to buy a product, even if they may not necessarily need it
-Ex.: shark tank
Definition: Marketing Orientation
Due to the fact that customers have become more sophisticated, Marketing Orientation asks the customers what they want, putting their satisfaction at the forefront.
Definition: Societal Orientation
It calls for sustainable, socially and environmentally responsible marketing that meets consumers and businesses’ present needs while also preserving or enhancing future generations’ ability to meet their needs.
Definition: Needs
Needs are essential to human survival and are classed into physical, social and individual needs.
Definition: Wants
Wants describe the products or services that customers desire, but do not necessarily need. They are shaped by culture and individual personality.
Definition: Demands
Human wants that are backed by buying power (Needs/Wants + Money = Demand)
-Customer is willing to spend money for satisfy his need
Three Dimensions of the Societal Marketing Concept
Society wants human welfare, Consumers want satisfaction and the Company wants profits.
Definition: Production Orientation
Quality is not the most important factor, simply produce as much as possible to achieve maximum economies of scale to lower prices.
Marketing mix-the Four Ps
1) Product
2) Place
3) Price
4) Promotion
