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Terms in this set (40)
Two facets of marketing
1. Philosophy, attitude, perspective or a management orientation that stresses customer satisfaction
2. Activities and processes used to implement this philosophy
The American Marketing Associations definition of marketing focuses on which facet of marketing?
Activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large.
What does marketing entail?
An understanding that organizations have many connected stakeholder partners, including employees, suppliers, stockholders, distributors, and society at large.
People giving up something to recieve something they would rather have
An exchange can take place only if the following five conditions exist:
1. There must be at least two parties
2. Each party has something that might be of value to the other party
3. Each party is capable of communication and devlivery
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
Four competing philosophies:
Strongly influence an organizations marketing process
A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
Questions asked in production orientation?
"What can we do best?" "What can our engineers design?" "What is easy to produce, given our equipment?"
The idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
To sales oriented firms:
marketing means selling things and collecting money
Fundamental problem with sales orientation and production orientation:
A lack of understanding of the needs and wants of the marketplace
The idea that the social and economic justification for an organizations existence is the satisfaction of customer wants and needs while meeting organizational objectives
It is based on an understanding that a sale does not depend on an aggressive sales force, but rather a customers decision to purchase a product
Marketing concept includes the following:
1. Focusing on customer wants and needs so that the organization can distinguish its product from competitors offerings
2. Integrating all the organizations activities, including production, to satisfy these wants
3. Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly
Recipe for success:
Consistently deliver a unique experience that your competitors cannot match and that satisfies the intentions and preferences of your target buyers.
A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customers decision to purchase a product. It is synonymous with the marketing concept.
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
Firms known for delivering superior customer value:
LL Bean, Zappos, Amazon, Overstock, Blaie, Fairmont hotels, Lexus, and Trader Joes
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 best interest
Societal marketing orientation extends the marketing concept by:
Acknowledging that some products that customers want may not really be in their best interests or the best interests of society as a whole
How societal marketing concepts began:
Has been discussed for over 30 years, but did not receive widespread support until the early 2000s. Concerns such as climate change, the depleting ozone later, fuel shortages, pollution, and raised health concerns have caused consumers and legislatures to be more aware of the need for companies and consumers to adopt measure that conserve resources and cause less damage to the environment.
Top reasons customers did not buy environmentally friendly products:
3. lack of availability at convenient outlets
*Not willing to accept trade offs
Period where the number of "green" products released in the US more than doubled
Differences between sales and market orientations in the organizations focus:
Personnel in sales oriented firms tend to be inward looking, focusing on selling what the organization makes rather than making what the market wants. Market oriented companies put customers at the center of their business in way most companies do poorly or not at all.
The relationship between benefits and the sacrifice necessary to obtain those benefits. Is not simply a matter of high quality. Value can be used to sell a Mercedes-Benz as well as a Tyson frozen chicken dinner.
Marketers interested in customer value:
1. Offer products that perform- bare minimum requirement, requires listening to customers to determine the performance characteristics that are most important to them
2. Earn trust - a stable base of loyal customers enhances a firms ability to grow and prosper
3. Avoid unrealistic pricing
4. Give the buyer facts - sales people need to start with the needs of the customer and work toward the solution
5. Offer organization wide commitment in service and after sales support - organizations should incorporate customer service as a wide ranging business strategy in order to keep up with customer expectations.
6. Co-Creation - some companies and products allow customers to help create their own experience; TiVo
The customers evaluation of a good or service in terms of whether that good or service has met the customers needs and expectations
Companies can expand market share in three ways:
1. attracting new customers
2. increasing business with existing customers
3. retaining current customers
*Building relationships with existing customers directly addresses two of the three possibilities and indirectly addresses the other
A strategy that focuses on keeping and improving relationships with current customers. It assumes that many consumers and business customers prefer to have an ongoing relationship with one organization that to switch continually among providers in their search for value.
The most successful relationship marketing strategies depend on:
customer oriented personnel, effective training programs, employees with authority to make decisions and solve problems, and teamwork.
Customer oriented personnel
For an organization to be focused on building relationships with customers, employees attitudes and actions must be customer oriented.
Delegation of authority to solve customers problems quickly - usually by the first person that the customer notifies regarding the problem.
Employees develop ownership attigudes when they are treated like part owners of the business and are expected to act the part. These employees manage themselves, are more likely to work hard, account for their own performance and the company's and take prudent risks to build a stronger business and sustain the company's success.
Many organizations that are frequently noted for delivering superior customer value and providing high levels of customer satisfaction assign employees to teams and teach them team building skills.
Entails collaborative efforts of people to accomplish common objectives
Differences between sales and market orientations in the firms business:
A sales oriented defines its business in terms of goods and services, often misses opportunities to serve customers whose wants can be met through a wide range of product offerings instead of specific products.
A market oriented firm defines its business in terms of the benefits its customers seek.
Differences between sales and market orientations for those whom the product is directed:
A sales oriented organization targets its products at "everybody" or "the average customer".
A market oriented organization aims to specific groups of people. Recognizes that different customer groups want difference features or benefits, and carefully analyzes the market and divides it into groups of people who are failry similar in terms of selected characteristics.
Differences between sales and market orientations in the firms primary goal:
A sales 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. Place a higher premium on making a sale than on developing a long term relationship with a customer.
The ultimate goal of most market oriented organizations is to make a profit by creating customer value, providing customer satisfaction and building long term relationships with customers.
Differences between sales and market orientations in the tools the organization uses to achieve its goals:
Sales oriented organizations seek to generate sales through intensive promotional activities, mainly personal selling and advertising.
Market oriented organizations recognize that promotion decisions are only one of four basic marketing mix decisions that have to be made: product decisions, place decisions, promotion decisions, and pricing decisions. Recognizing that marketing is not just a responsibility of the marketing department.
Means that skills and resources throughout the organization are needed to create, communicate, and deliver superior customer service and value.
Reasons to study marketing:
1. Marketing plays an important role in society
2. Marketing is important to businesses
3. Marketing offers outstanding career opportunities
4. Marketing affects your life every day
Marketing includes the following activities, which are vital to business organizations:
1. assessing the wants and satisfactions of present and potential customers
2. designing and managing product offerings
3. determining prices and pricing policies
4. developing distribution strategies
5. communicating with present and potential customers
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