Ch1 – Flashcard

what is marketing?
marketing is a philosophy or a management orientation that stresses the importance of customer satisfaction, as well as the set of activities used to implement this philosophy.
American Marketing Association definition of marketing:
marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
concept of exchange
means that people give up something in order to receive something that they would rather have.
5 conditions must be satisfied for an exchange to take place
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 desirable to deal with the other party.
4 marketing management philosophies
4 competing philosophies strongly influence an organization’s marketing activities. these philosophies are production, sales, marketing, and societal orientations.
production orientation
focuses on internal capabilities of the firm rather than on the desires and needs of the marketplace. the firm is concerned with what is does best, based on its resources and experiences, rather than with what consumers want.
sales orientation
assumes that more goods and services will be purchased if aggressive sales techniques are used and that high sales result in high profits.
market orientation
states that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.
the marketing concept involves
1. focusing on customer wants and needs so the organization can differentiate its products from competitors’ offerings
2. integrating all the organization’s activities, including production, to satisfy these wants and needs
3. achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly.
Market orientation
involves obtaining information about customers, competitors, and markets; examining the information from a total business perspective; determining how to deliver superior customer value; and implementing actions to provide value to customers.
societal marketing orientation
states that an organization exists not only to satisfy customer wants and needs and to meet organizational but also to preserve or enhance individual’s and society’s long-term best interests.
this orientation extends the marketing concepts to serve 3 bodies rather than 2: customers, the organization itself, and society as a whole.
Differences between sales and market orientations
organization’s focus
1. sales- oriented firms tend to be inward-looking. they focus on satisfying their own needs rather than those of customers.

market-oriented firms derive their competitive advantage from an external focus. Departments in these firms coordinate their activities and focus on satisfying their customers.

2. customer value is the ratio of benefits to the sacrifice necessary to obtain those benefits.
creating customer value is a core business strategy of many successful firms.

3. marketers interested in customer value-offer products that perform, give consumers more than they expect, avoid unrealistic pricing, give the buyer facts, offer organization-wide commitment in service and after-sales support.

customer satisfaction
is the feeling that a product has met or exceeded the customer’s expectations. the organizational culture focuses on delighting customers rather than on selling products.
relationship marketing
involves forging long-term partnerships with customers and contributing to their success.
most successful relationship marketing strategies involve the following features
customer-oriented personnel: employees’ attitudes and actions are geared toward the customer’s best interests.
training: employees receive specialized training in building relationships with customers.
empowerment: employee are “empowered” or “enabled” to make key decisions when necessary in order to fix problems or meet customer needs.
teamwork: entails collaborative efforts of people to accomplish common objectives.
why study marketing?
marketing plays an important role in society

marketing plays an important role in society
marketing provides a delivery system from a complex standard of living. the number of transactions needed everyday in order to feed, clothe, and shelter a population the size of the one in the U.S. is enormous and requires a sophisticated exchange in mechanism.

Marketing is important to businesses
the fundamental objectives of most businesses are survival, profits, and growth. marketing contributes directly to achieving these objectives.

marketing provides the following vital business activities: assessing the wants and satisfactions of present and potential customers

marketing offers outstanding career opportunities
between one-fourth and one-third of the entire civilian work force in the United States performs marketing activities.
marketing offers career opportunity in areas such as professional selling, marketing research, advertising, retail busying, distribution management, product development, and wholesaling.

marketing affects your life every day
as customers of goods and services, we participate in the marketing prices every day.
almost 50 cents of every dollar consumers spend goes too pay marketing costs such as market research, product research and development, packaging, transportation, storage, advertising, and sales-force.

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