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