Marketing Ch.1: An Overview of Marketing

Why study marketing?

1) Important to society. 2) Important to business. 3) Good career opportunities. 5) Marketing affects you every day.

An exchange can take place only if the following 5 conditions exist

1) there must be at least 2 parties. 2) Each party has something that might be of value to the other party. 3) Each party is capable of communication and delivery. 4) Each party is free to accept or reject the exchange offer. 5) Each party believes it is appropriate or desireable to deal with the other party.

Market Orientation

1)A simple and intuitively appealing philisophy that articulates a marketing concept. 2)A philosophy that assumes that a sale doesn't depend on an aggressive sales force but rather on a customer's decision to purchase a product.

Marketing Management Philosophies

4 Competing philosophies strongly influence an organizations marketing processes. These philosophies are commonly referred to as production, sales, market and societal marketing orientation.

Why does a Production Orientation fall short?

A production orientation falls short because it doesn't consider whether the goods and services that the firm produces most efficiently also meet the needs of the marketplace.

What is one desired outcome of marketing?

Exchange.

Marketing has 2 facets.

First it is a philosophy, an attitude, a perspective or a management orientation. Second, marketing is an organization function and a set of processes used to implement this philosophy.

What does marketing entail?

Marketing entails processes that focus on delivering value and benefits to customers not just selling goods, services, and/or ideas. It uses communication, distribution, and pricing strategies to provide customers and stakeholders w/ the goods, services, ideas, values and benefits the desire, when and where they want them. It involves building long term mutually rewarding relationships when these benefit all parties concerned.

American Marketing Association 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.

Marketing Concept

The idea that social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.

Customer Value

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

What is the fundamental problem with the sales orientation?

a lack of understanding of the needs and wants of the marketplace.

Production Orientation

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

Relationship Marketing

a strategy that focuses on keeping and improving relationships with current customers.

Sales Orientation

based on the idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.

Teamwork

collaborative efforts of people to accomplish common objectives.

Customer Satisfaction

customers' evaluation of a good or service in terms of whether it has met their needs and expectations.

Empowerment

delegation of authority to solve customers' problems quickly- usually by the first person the customer notifies regarding a problem.

exchange

people giving up something in order to receive something they would rather have.

What is an exchange?

people giving up something, in order to recieve something they would rather have.

marketing

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.

Societal Marketing Orientation

the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.