Chapter 1-MKT

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.
Exchange
people giving up something in order to receive something they would rather have.
True
Marketing can take place even if an exchange does not exist
Production Orientation
philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
Production Orientation
A ________________ falls short because it does not consider whether the goods and services that the firm produces most efficiently also meet the needs of the marketplace.
Sales Orientation
is based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
Market Orientation
the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs, while meetings organizational objectives.
Market oriented
a company is _______ meaning they assume that a sale does not depend on aggressive sales force but rather on customer’s decision to purchase a product.
3 Components of Market Orientation
1. focus on customer wants 2. Integrate organizations activities to satisfy customers 3. Satisfy customers needs legally and responsibly
Market Orientation
Understanding your competitive arena and competitors strength’s and weaknesses is a critical component of a market orientation.
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 interests
Sales Oriented
Personnel in __________________ firms tend to be inward looking, focusing on selling what the organization makes rather than making what the market wants.
Customer value
the relationship between benefits and the sacrifice necessary to obtain those benefits
Marketers interested in customer value:
1. offer products that perform 2. Earn Trust 3. Avoid unrealistic pricing 4.give the buyer facts 5. Offer service after sales 6. Co-creation
Customer Satisfaction
customer’s evaluation of a good or service in terms of whether it has met their needs and expectations
Companies can expand market share by:
1. Attracting new customers 2. Increasing business with existing customers 3. Retaining current customers
Relationship Marketing
is a strategy that focuses on keeping and improving relationships with current customers
Most successful relationship marketing strategies depend on
1. customer oriented personnel 2. Effective training programs 3. Employees with authority to make decisions 4. and teamwork
Empowerment
delegation of authority to solve customer’s problems quickly—usually by the first person the customer notifies regarding the problem
Teamwork
collaborative efforts of people to accomplish common objectivies
Market Oriented
defines its business in terms of the benefits its customers seek
Sales Oriented
defines its business in terms of goods and services
market
A _____ oriented organization recognizes that different customer groups want different features or benefits
market
A_______oriented organization carefully analyzes the market and divides it into groups of people who are fairly similar in terms of selected characteristics
Customer Relationship Management
is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
Sales
A ______oriented organization seeks to achieve profitability through sales volume and tries to convince potential customers to buy, even if the seller knows that the customer and product are mismatched.
Market
An ultimate goal of most_____ oriented organizations is to make a profit by creating customer value, providing customer satisfaction, and building long term relationships
Sales
______oriented organizations seek to generate sales volume through intensive promotional activities
Market
_______oriented organizations recognize that promotion decisions are only one of four basic marketing mix decisions that have to be made.