MKTG 327 CHAPTER 1

_____ is the extent to which a firm fulfills a customers needs, desires and expectations.

Customer satisfaction

Time Utility

Having a product available at certain times of the year or a convenient time of day

Place utility

Having a product where customers can buy it. It involves location and transporting.

Macro-marketing

is a social process.

Customer satisfaction

the extent to which a firm fulfills a consumer's needs, desires, and expectations.

In a market-directed economy:

Consumers make all important economic decisions

Possession utility

The exchange of a product for some monetary value

Of the following headlines from the WALL STREET JOURNAL, which is most likely to be about a MACRO-marketing topic?

"Thailand Has Unusually Large Number of Wholesalers."

5 era marketing evolution

1. Simple trade era-a time when families traded or sold their "surplus" output to local distributors, who resold the goods to other consumers or other distributors. 2. Production era: a time when a company focuses on production of a few specific products--perhaps because few of these products are available in the market. 3. Sales era: a time when a company emphasizes selling because of increased competition 4. Marketing department era: a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities 5. Marketing company era: a time when in addition to short-run marketing planning, marketing people develop long range plans--sometimes five or more years ahead--and the whole company effort is guided by the marketing concept.

What is Utility? What are the various types

Added value Form, place, time, progression, information

Form utility

Changing raw materials or putting parts together to make them more useful- making and producing things

Information utility

Involves communication with the consumer

Where should marketing begin?

It should be begin with potential customer needs, not with the production process

Looking at marketing as a social process focuses on:

Macro Marketing

Which of the following statements best describe the modern view of marketing?

Marketing begins with anticipating potential customer needs

AMA 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.

What is Marketing? the current definition

Marketing is the needed direction for production in order to get the right goods and services into the right hand ( the customers looking for them)

Marketing vs Production orientation

Marketing orientation--Focuses on understanding customer needs and wants and building products and services to satisfy them. Production orientation--Focuses on products and how to make them efficiently, assuming better products are more likely to be purchased. Also focus on how these products are delivered to locations where they can be purchased.

Micro vs Macro marketing

Micro-view as a set of activities performed by organizations Macro- Viewed as a social process

Which of the following is the BEST example of the micro-macro dilemma?

Paper cups for soft-drinks are convenient, but they often end up as litter along the highway.

During the "production era" a company focuses on production-because few products are available in the market.

True

The text credits L.L. Bean's success to its offering good customer value.

True

To develop lasting relationships with customers, marketing-oriented firms need to focus on customer satisfaction both before and after each sale.

True

Economies of scale

as a company produces larger numbers of a particular product, the cost of each unit of the product goes down.

Micro Marco dilemma

What is good for one firm may not be good for society

The advantages of working with an intermediary usually increase when there is

a greater number of customers.

Marketing concept and its elements

an organization aims all its efforts at satisfying its customers while making a profit. -Take the customer's point of view -Customer value reflects benefits and costs

Functions of Marketing

buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information.

Functions of marketing

buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information.

the fact that producers usually prefer to produce in large quantities, while most consumers prefer to buy in small quantities, results in:

discrepancies of quantity

According to the text, marketing means:

much more than just selling and advertising.

Discrepancies of assortment happen when:

producers specialize in producing a narrow assortment of goods and services, but consumers need a wide variety

The universal functions of marketing do NOT include

producing

exchanges between producers and consumers are more difficult in an advanced economy because of:

separation in time, separation in values, spatial separation and separation of information. (all the above)

Which of the following practices would suggest that Acme Tools practices a marketing orientation:

sets inventory levels with customer requirements and costs in mind.

Micro-Marketing:

tries to accomplish a company's objectives by anticipating customers' needs and trying to satisfy them.

Macro-marketing:

tries to effectively match supply and demand.

marketing will not happen unless:

two or more parties each have something they want to exchange for something else