MKTG345 CH.1 (test 1) – Flashcards
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Marketing
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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.
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What was David Packard quoted to have said about marketing?
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"Marketing is too important to be left only to the marketing department."
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What are the 5 conditions that must occur for an exchange to take place?
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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.
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Exchange
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people giving up something in order to receive something else they would rather have.
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Production Orientation
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a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
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What does a production orientation mean?
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management assesses its resources and asks the following questions: "What can we do best?" "What can our engineers design?" "What is easy to produce, given our equipment?" and for service organizations: "What services are most convenient for the firm to offer?" "Where do our talents lie?"
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Why does a production orientation fall short?
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it does not consider whether the goods or services that the firm produces most efficiently also meet the needs of the marketplace. Sometimes what a firm can best produce is exactly what the market wants.
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When can a production-oriented firm best survive and prosper?
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When competition is weak or demand exceeds supply
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For a production-oriented firm to be successful, what must they focus on?
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what the customers want and then produce it, instead of focusing on what company management thinks should be produced and hope that the product is something customers want.
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Sales Orientation
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based on the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
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What is the fundamental problem with sales-oriented firms?
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a lack of understanding of the needs and wants of the marketplace (similar to production-oriented businesses)
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Market Concept
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the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.
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What defines a market-oriented business?
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what customers think they are buying (perceived value)
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The marketing concept includes what tactics?
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- focusing on customer wants and needs so that the organization can distinguish its product(s) from competitors' offerings. - integrating all the organization's activities, including production, to satisfy customer wants. - achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly.
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Societal Marketing Orientation
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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.
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What did a Nielson study discover when it came to customers' attitudes and actions toward environmentally friendly products?
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the study found that while 83% of consumers worldwide believe companies should have environmental programs, only 22% would pay more for an eco-friendly product.
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What is the key to consumer purchasing? (Hint: lies beyond labels)
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customers want sustainable products that perform better than their unsustainable counterparts.
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The Internet and widespread use of social media have accelerated what type of power shift?
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shifted power from the manufacturers and retailers to consumers and business users.
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What are the differences between sales and marketing orientations? (Hint: There are 5 characteristics)
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1.) the organization's focus 2.) the firm's business 3.) those to whom the product is directed 4.) the firm's primary goal 5.) the tools used to achieve the organization's goals
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How is the organization's focus different for sales orientation than for marketing orientation?
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sales orientation: personnel tend to be inward looking, focusing on selling what the organization makes rather than making what the market wants. (competitive advantage) market orientation: their competitive advantage is derived from external focuses, which allows them to put their customers at the center of their businesses.
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What is Customer Value?
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the relationship between benefits and the sacrifice necessary to obtain those benefits.
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What will marketers interested in customer value do?
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1.) offer products that perform 2.) earn trust 3.) avoid unrealistic pricing 4.) give the buyer the facts 5.) offer customer service programs 6.) offer support 7.) offer cocreation
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Customer Satisfaction
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customers' evaluation of a good or service in terms of whether it has met their needs and expectations.
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What is the focus of a firm that strongly encourages the practice of customer satisfaction?
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the focus is on delighting the customers rather than making the sale. Employees understand the link between their jobs and happy customers.
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Relationship Marketing
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a strategy that focuses on keeping and improving relationships with current customers.
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Most successful relationship marketing strategies depend on what?
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customer-oriented personnel, effective training programs, employees with the authority to make decisions and solve problems, and teamwork
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Customer-Oriented Personnel
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the employee IS the firm in the customer's eyes; their attitudes, actions, and overall interaction with the customer affects the way the firm is viewed; any person, department, or division that does not practice this orientation will weaken the positive image of the entire organization.
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How can customers and employees benefit from empowerment tactics?
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gives the customers the feeling that their concerns are being addressed and gives employees the feeling that their expertise matters.
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What is Empowerment?
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the delegation of authority to solve customers' problems quickly---usually by the first person the customer notifies regarding a problem.
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Teamwork
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collaborative efforts of people to accomplish common objectives (supporting and assisting each other and emphasize cooperation instead of competition)
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What is the difference between a sales-oriented business and a market-oriented business?
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sales-oriented business: defines its business (or mission) in terms of goods and services market-oriented business: defines its business in terms of the benefits its customers seek
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Answering the question: "What is this firm's business?" in terms of the benefits customers seek, instead of goods and services, offers at least what 3 advantages?
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1.) it ensures that the firm keeps focusing on customers and avoids becoming preoccupied with goods, services, or the organization's internal needs. 2.) it encourages innovation and creativity b reminding people that there are many ways to satisfy customer wants. 3.) it stimulates an awareness of changes in customer desires and preferences so that product offerings are more likely to remain relevant.
