marketing 1

market orrientation: those whom product is directed

aims at specific groups of people

customer satisfaction

evaluation of a good or service in terms of whether that good has met their needs and expectations

societal marketing orientation

extends knowledge that some products customers want may not be in their best interest for society as a whole. wants to preserve/ enhance individuals and society's long term best intersts

While most marketing organizations rely on various forms of promotion to succeed, sales-oriented organizations make the most effective use of their entire marketing mix.

false

marketing concept

focus on customer wants and needs so firm can distinguish products from products of competitors. integrating all organizations activities to satisfy customer. (long term goals)

empowerment

in market oriented firms, more authority is given to solve customer problems

customers value goods that are

the quality they expect and sold at prices they are willing to pay

exchange will not necesarily take place even if all conditions exist

true

marketing can occur even if an exchange does not occur

true

Consumers can express interests and needs but often not their wants

true (preference for specific products)

Marketing orrientation: tools the organization uses to achieve its goals

uses four ps. needs interfunctional coordination to create, communicate and deliver customer service and value

what is the definition of marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

market oriented means

a sale does not depend on aggressive sales force but rather on customers decision to purchase product.

sales orrientation: firms primary goal

achieve profitability through sales volume and tries to convince potential customers to buy even if seller knows the customer and product are mismatched. higher prem on making sale than on developing long term relationship

companies can expand market share in 3 ways

attracting new customers, increase business with existing customers, retain current customers

sales orientation philosophy for business

based on belief that people will buy more goods if aggressive sales techniques are used, high sales results in high profits. intermediaries encouraged to push manufacturers products agressively

other types of exchange

college getting tuition, students having learning environment

customer relationship management

company wide business strategy designed to optimize profitabilty, rev and customer satisfaction by focusing on highly defined and precise customer groups. accomplished by organizing company around customer segments, establishing and tracking customer interactions and linking all procceses of company from customer through suppliers

marketing orientation: organizational focus

competitive advantage from external market. customer is at center of business

Market orientation: business definition

defines in terms of benefits its customers seek, wide range of products

sales orientation: business definition

defines in terms of goods and services

why does production orientation fall short

it does not consider whether goods that firm produces most efficiently also meet needs of marketplace

market orientation philosophy of a business

justification for the organizations existence is the satisfaction of customer wants and needs while meeting organizations objectives

problem with sales orientation

lack of understanding of needs and wants of marketplace. you cannot convince people to buy goods that are neither wanted or needed

market orrientation: firms primary goal

make a profit by increasing customer value, providing customer satisfaction, building long term relationships

promotion

means by which organizations communicate with present and prospective customers about merits and characteristics of their organization and products- essential part of effective marketing

sales orientation: organization focus

more inward looking, focus on selling what organization makes rather than making what market wants. sources of competitive advantage- technology, innovation, economies of scale

5 conditions of exchange

must be at least two parties, each party has something other party wants, each party is capable of communication and delivery, each party is free to accept or reject offer, each party believes it is desirable to deal with the other party

other organizations that use marketing

nonprofit, cause related (selling an idea), person marketing (job candidates), place marketing (CA) event marketing (superbowl)

marketers interested in customer value

offer products that perform, earn trust (loyal relationships such as receiving first item free), avoid unrealistic pricing (online prices typically cheaper, bargain prices), give the buyer facts (informative advertising, knowledgable salespeople) offer organization wide commitment in service and after sales: support (nordstorm), cocreation (creating their own experience, unique designs for phone cases)

production orientation philosophy for marketing

philosophy that focuses on internal capabilities of firm rather than on desires and needs of marketplace. what can we do best, disregard of customers

... is a component of value. ...is not the same as good value

price, low price

4 ps used to achieving marketing oriented goals

product, price, promotion, place (distribution)

four philosophies that influence marketing processes

production orientation, sales orientation, market orientation, societal marketing orientation

organizational focus on customer value

relationship between benefits and the sacrifice necessary to obtain those benefits.

shotgun vs rifle

scattering messages far and wide- shotgun. vs CRm rifle of communicating with each customer

Sales orrentation: tools the organization uses to achieve its goals

seek to generate sales volume through intensive promotional activites (personal selling and advertising)

situations where product orientation is successful

sometimes if competition is weak and demand exceeds supply

relationship marketing

strategy that focuses on keeping and improving relationships with current customers

what is marketing

stresses customer satisfaction, a philosophy an attitude a perspective a management orientation, a set of activities/ strategy (four ps)

sales orrientation: those whom the product is directed

targets its products at everybody or average customer