Chapter 1 for exam 1

With the creation of the internet now companies can distribute their products

without the need for warehouses in each country.

Relationship marketing refers to

"long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfy exchanges"

Firms frequently fail to attract customers with what they have to offer because they define their business as

"making a product" rather than as "helping potential customers satisfy their needs and wants."

Decision making environment for controllable variables dependent on:

- Competitive Forces - Economic Conditions - Political Forces - Laws and Regulations - Technology - Sociocultural

Before marketers can develop an appropriate marketing mix, they must collect in-depth, up-to-date information about customers needs such as:

- Data about the age - Income - Ethnicity - Gender - and Educational level of people in the target market.

Marketing Focuses on

Customers

Core stakeholders in developing a marketing strategy are

Customers and competitors

Marketers view Value as a

Customers subjective assessment of benefits relative to costs in determining the worth of a product (customer value = Customer benefits - customer costs)

The Sales Orientation time period was

During the first half of the 20th century competition increased and business realized that they would have to focus more on selling products to many buyers.

The production during the Production Orientation time period is

Electricity, Rail Transportation, Division of Labor, Assembly lines, and mass production made it possible to produce goods more efficiently

The seller has something of value to the buyer

Goods, Services, and Ideas

The Marketing concept philosophy affects

Production, Finance, Accounting, Human Resources, and Marketing departments, must work together.

In dealing with the distribution Variable, Marketing Managers makes products available in the

Quantities desired to as many target-market customers as possible, keeping total inventory, transportation, and storage costs as efficient as possible.

During the Sales Orientation period Business viewed sales as

The major means of increasing profits

A marketing Orientation requires

The organization wide generation of market intelligence pertaining to current and future customers needs, dissemination of the intelligence across departments, and organization wide responsiveness to it.

The price variable relates to

decisions and actions associated with pricing objectives and policies and actual product prices

Product variable decisions and related activities are important because they

directly relate to customers' needs and wants.

The process people use to determine the value of a product may differ widely, but many tend to get a feel for the worth of products based on

our own expectations and previous experience

A good is a

physical entity you can touch: Oakley Sunglasses, For F-150 trucks, and IPhone are all examples.

Often used as a competitive tool, and intense price competition sometimes leads to

price wars

Consumers develop a concept of value through the integration of their perceptions of

product quality and financial sacrifice

According to the Marketing Concept an organization should try to

provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals.

Customer benefits include anything a buyer

receives in an exchange

Marketing activities should attempt to create and maintain

satisfying exchange relationships

Customer Relationship Management (CRM) Focuses on

using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

Ideas Include

Concepts, Philosophies, Images, and Issues. For instance, a marriage counselor, for a fee, gives spouses ideas to help improve their relationship. Other examples: Political parties, churches, and animal protection groups.

The Marketing Mixed Variables are often viewed as

Controllable because they can be modified to some existent

Marketing Mixed Variables Are:

- Product - Distribution - Promotion - Price

Profits can be obtained through relationships in the following ways

- acquiring new customers - enhancing the profitability of existing customers - extending the duration of customer relationships

The Forces of the marketing environment affect a marketer's ability to facilitate value driven marketing exchanges in three general ways:

-First: They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products - Second: Marketing environment forces can determine whether and how a marketing manager can perform certain marketing activities. - Third: Environmental forces may shape a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix.

The evolution of marketing has gone through three time periods including

-Production - Sales - Market Orientation

Six values required by organizations striving to become more market oriented are

-Trust - Openness - Honoring promises - Respect - Collaboration - Recognizing the market as the raison d'etre

For an exchange to take place, Four conditions must exists.

1. Two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires. 2. The exchange should provide a benefit or satisfaction to both parties involved in the transaction. 3. Each party must have confidence in the promise of the "something of value" held by the other. 4. To build trust, the parties to the exchange must meet expectations.

Another risk reduction strategy is the offer of a

100 percent satisfaction guarantee.

Definition of a product

A good, a service, or an idea.

Marketing concept is not a second definition of Marketing it is

A management philosophy guiding an organization's overall activities.

The Market Orientation period was emphasized

Around the 1950s that marketers first need to determine what customers want and then produce those products rather than making the products first and then trying to persuade customers that they need them.

During the Production Orientation period competition became

Intense

Marketers refer to these activities - Product, Distribution, Promotion, and pricing - as the

Marketing Mix

Marketing Creates Value through the

Marketing Mix

Buyer has something of value to seller which is

Money, Credit, Labor, Goods

Market Orientation is linked to

New product innovation by developing a strategic focus to explore and develop new products to serve target markets.

The Technology during the Production Orientation is

New ways of using labor, products poured into the marketplace, where demand for manufactured goods was strong.

During the Sales Orientation period Businesspeople believed the most important marketing activities were

Personal selling, advertising, and distribution

Customer Lifetime Value (CLV)

Predicts the net value (profit or loss) for the future relationships with the customer.

Another non-monetary cost is

Risk, which can be reduced by offering good basic warranties or extended warranties for an additional charge.

The Production Orientation Time period is

Second half of the 19th century, the Industrial Revolution in full Swing

While engaging in marketing activities, the firm should be proactive and responsive to

Stakeholder concerns

Organizations generally focus their marketing efforts on a specific group of customers called

Target Market

Two Nonmonetary costs are

Time and Effort customers expend to find and purchase desired products.

Customer cost include

anything a buyer must give up to obtain the benefits the product provides.

Organizations define their products not as what the companies make or produce but

as what they do to satisfy customers

Marketing concept emphasizes that marketing

begins and ends with customers

Relationship marketing deepens

buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

Making changes in the size, shape, and design of most tangible goods is expensive; therefore, such product features

cannot be altered very often.

From a company's perspective there is a trade-off between

increasing the value offered to a customer and maximizing the profits from a transaction.

The promotion variable relates to activities used to

inform and persuade to create a desired response.

A service is

the application of human and mechanical efforts to people or objects to provide intangible benefits to customers: Air Travel, Education, Insurance, Banking, Health Care, and Day Care are examples.

Implementing the marketing concept means optimizing the exchange relationship, otherwise known as

the relationship between company's financial investment in customer relationships and the return generated by customers' loyalty and retention.

In developing marketing activities, it is important to recognize that customers receive benefits based on

their experiences

All companies must depend on intermediaries to move

their final products to the markets

Stakeholders include

those constituents who have a "stake", or claim, in some aspect of a company's products, operations, markets, industry, and outcomes; these include customers, employees, investors, and shareholder, suppliers, governments, communities, competitors, and many others.