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