Marketing Chapter 1: Marketing in the Modern Organization – Flashcards
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What is the traditional marketing concept?
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that companies achieve their profit and other objectives by satisfying customers
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What does the traditional marketing concept neglect?
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the aspect of competition to achieve success
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What is the modern marketing concept?
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the achievement of corporate goals through meeting and exceeding needs and expectations better than the competition
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What three conditions must be met to apply the marketing concept?
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company activities should be focused on customer satisfaction, the belief that customer needs are central to the operation of a company should run through all departments, and management must believe that corporate goals can be achieved through satisfied customers
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In production orientation, management becomes what focused?
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cost
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In production orientation, how does management believe that they should attain economies of scale?
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by producing a limited range of products in a form that minimizes production costs
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Production orientation involves the belief that the business should be defined in terms of what?
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its production facilities
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What is the purpose of a production orientated company?
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to manufacture products and aggressively sell them to unsuspecting customers.
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What is the focus of marketing orientated companies?
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customer needs
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Market driven companies seek to adapt their product and service offerings to the demands of what markets?
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current and latent
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Marketing orientated companies get close to who and adopt a what search for market opportunities?
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customers and proactive
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Market driven companies display blank throughout the business; in internally focused businesses blank comes first.
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customer concern; convenience
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Market driven businesses know their product and services are being evaluated against those of the what?
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competition
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Market driven businesses understand the what customers are using and make sure their what matches the criteria better than their competition.
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choice criteria; marketing mix
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Market driven businesses base their segmentation analyses on what?
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customer differences that have implications for marketing strategy
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Internally orientated businesses segment by what?
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product
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Internally orientated businesses do not value market research and instead rely on what?
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anecdotes and received wisdom
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Marketing orientated businesses welcome the blank changes that typically occur when an organization moves to maintain blank fit between its environment and its strategies.
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organizational; strategic
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Internally orientated businesses resist what and cherish what?
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change; the status quo
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Market driven businesses search for blank markets.
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Latent
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Market driven businesses strive for competitive advantage, while internally orientated businesses do what?
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are happy to produce copies of offerings already on the market
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Market driven businesses are blank and blank, while internally driven businesses are only blank.
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efficient and effective; efficient
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Efficiency is concerned with what?
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inputs and outputs
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Efficiency is what focused?
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cost
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An effective economy has the ability to what?
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attract and retain customers
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Effectiveness implies what?
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operating in attractive markets and making products that consumers want to buy
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Effectiveness is what focused?
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customer
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Customer value is dependent on what?
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how the customer perceives the benefits of an offering and the sacrifice that is associated with its purchase
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What is the formula for customer value?
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perceived benefits-perceived sacrifice
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What is perceived sacrifice?
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the total cost associated with buying a product
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This can come from the product, the associated service, the image of the company, or the relationship between customer and supplier
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perceived benefits
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This consists of monetary cost, time, and energy involved in the purchase, and also the potential psychological cost of not making the right decision.
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perceived sacrifice
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What does customer satisfaction depend upon?
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the product's perceived performance compared to the buyer's expectations
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When does customer satisfaction occur?
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when perceived performance matches or exceeds expectations
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What are the four major elements of the marketing mix?
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product price promotion place
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The product decision involves what?
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deciding what goods or services should be offered to a group of customers
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What is an important element of the product decision?
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product development
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What are some product decisions?
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brand names, guarantees, packaging, and the services that should accompany the product offering
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What does price represent?
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on a unit basis what the company receives for the products or services that is being marketed
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What does the promotional mix include?
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advertising, personal selling, sales promotions, public relations, direct marketing, Internet and online promotions
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What does place involve?
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decisions concerning the distribution channels to be used and their management, the location of outlets, methods of transportation, and inventory levels to be held
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What is the objective of place decisions?
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to ensure that products and services are available in the proper quantities, at the right time and place
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What is competitive advantage?
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the achievement of superior performance through differentiation to provide superior customer value by managing to achieve lowest delivered cost
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The marketing mix should be well blended to form a what?
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consistent theme
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The marketing mix should match blank resources.
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corporate
