Chapter 1 Marketing

Front 1

What is marketing?

Back 1

Determining the needs of a targeted group of consumers and satisfying those needs by using the 4 P’s
of marketing to create an immediate exchange of value and a long term relationship.

Front 2

What is a target market/group?

Back 2

Specific subset of consumers who share similar needs/wants

Front 3

What are the four P's?

Back 3

product, price, promotion, place

Product –physical good, service, idea

–Price –value to be exchanged

–Promotion –how communicated

–Place –where available

Front 4

During the immediate exchange, what should both parties see?

V

Back 4

Both parties must see value during the immediate exchange.

Front 5

Important concept of marketing is the LTR. True or false: LTR is guaranteed as you win customers.

Back 5

False; LTR is not guaranteed; must focus and build life time value of customer.

Front 6

What is the idea of "how to sell soap?"

Back 6

Word-of-mouth is powerful. Better than most all other advertisements like billboards.

Front 7

A marketer's company philosophy should focus on...? What type of orientation or concept is this?

Back 7

Meeting the needs of customer.

Marketing orientation.

Front 8

What is the marketing concept/market orientation?

Back 8

Purpose of the organization is to satisfy consumer needs/wants, while meeting organizational objectives

Key question –what does the customer want?

Front 9

What is at the center of the marketing concept?

Back 9

The customer is the center of the universe.

Front 10

Define the production orientation

Back 10

–Focus is on internal capability and technology
–Key question: what does the firm do best?

Front 11

Define the sales orientation

Back 11

–Focus is on aggressive sales techniques

–Key question: how can we sell more of what we have?

Front 12

Marketing concept:
"____ what you can ___ rather than _____ what you can ____"

Back 12

Make what you can sell rather than sell what you can make

Focus on making what consumers desire.

Front 13

Define 'Societal Marketing Orientation'

Back 13

–Focus is on enhancing benefits to society

–Key question: how can I meet consumer needs and benefit society?

Front 14

AMA Definition of Marketing

Back 14

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.

Front 15

Define 'exchange'

Back 15

People giving up something to receive something they would rather have.

Front 16

True or false; Marketing is a process that focuses on delivering value and benefits to customers, not just selling goods, services, and/or ideas.

Back 16

True

Front 17

True or False; Marketing is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. Second, is an organization function and a set of processes used to implement this philosophy.

Back 17

True

Front 18

What are the conditions of exchange?

Back 18

1) There must be at least two parties
2) Each party has something that might be of value to the other.
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.

Front 19

What orientation focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace?

Back 19

Production

Manager asks "what can we do best? What can our engineers design? What is easy to produce, given our equipment?"

EX: Furniture industry.

Front 20

Why does a production orientation fall short?

Back 20

Because it does not consider whether the goods and services that the firm produces most efficiently also meets the needs of the marketplace.

Front 21

What 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?

Back 21

Sales orientation.

Sales to the final buyer are emphasized and intermediaries are encouraged to push manufactureres products more aggressively.

To sales orientation =marketing = selling things and collecting money.

This orientation does not understand the needs and wants of the marketplace.

Front 22

What concept states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives?

Back 22

Marketing concept.

Front 23

Sale does not depend on an aggressive sales force, but rather on a customer's decision to purchase a product. What type of orientation?

Back 23

Marketing.

What a business thinks it produces is not of primary importance to its success. Instead, what customers think they are buying - the perceived value - defines a business.

Front 24

This concept:

Focuses on customer wants and needs so that the org. can distinguish its products from competitors offerings

Integrates all org. activities, including production, to satisfy these wants.

Achieves long-term goals for the organization by satisfying customer wants and needs legally and responsibly

Back 24

Marketing

Front 25

What is involved in achieving a market orientation? ...obtaining...?

Back 25

obtaining information about customers, competitors, and markets.

Understanding your competitive area and competitors' strengths and weaknesses is a critical component of a market orientation.

Front 26

What orientation?

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 LT best interests.

Back 26

Societal.

Marketing products that are less toxic, more durable, reusable, or recyclable.

Front 27

Personnel in _____ firms tend to be inward looking, focusing on selling what the organization makes rather than making what the market wants.

Back 27

Sales-oriented.

Front 28

What do customers value?

Back 28

Customers value goods and services that are of the quality they expect and that are sold at prices they are willing to pay.

EX: Lexus emphasizes service. Zero defects in manufacturing... etc...

Front 29

What do marketers interest in customer value do?

Back 29

1) Offer products that perform
2) earn trust
3) Avoid unrealistic pricing
4) Give the buyer facts
5) Offer organization-wide commitment in service and after sales support.

Front 30

Define customer satisfaction

Back 30

The customer's evaluation of a good or service in terms of whether that good or service has met the customer's needs and expectations.

Failure to meet needs and expectations = dissatisfaction with good or service.

Customer satisfaction is very important!

Front 31

How can companies expand market share? 3 ways...

Back 31

1) attract new customers
2) increase business with existing customers
3) retaining current customers

Front 32

Define relationship marketing

Back 32

strategy that focuses on keeping and improving relationships with current customers.

Assumes that consumers prefer to have an ongoing relationship with one org. rather than switching among providers in search of value.

Front 33

Define customer-oriented personnel

Back 33

An employee may be the only contact a particular customer has with the firm. In that customer's eyes, the employee is the firm. Any person, department or division that is not customer oriented weakens the positive image of the entire organization.

Front 34

Define the role of training

Back 34

"If you take care of your employees, they'll take care of the customer - and that will take care of your shareholders".

Corporate training is very important and a lot of money is spent on it.

Front 35

What role is this?

When market oriented firms give employees more authority to solve customer problems on the spot.

Employees develop ownership attitudes when they are treated like part-owners of the business.

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.

Back 35

Empowerment

It means employees can create an envornment where they can do the right thing, unburdened by heirarches.

Makes customers feel their concerns are being addressed and gives employees the feeeling that their expertise matters.

= Greater satisfactions for customer and employee

Front 36

What is this?

_____ entails collaborative efforts of people to accomplish common objectives.

Back 36

Teamwork

Job performance, company performance, product value, and customer satisfaction all improve when people in the same department or work group begin supporting and assisting each other and emphasize cooperation instead of competition.

Front 37

What does a sales-oriented firm define its business (or mission) in terms of?

A market-oriented firm?

Back 37

Goods and services.

Market: in terms of the benefits its customers seek.

Front 38

Who does a sales-oriented organization target its products to?

A market oriented organization?

Back 38

Sales: "everybody or the average customer"

Market Oriented: "aims at specific groups of people."

Front 39

What orientation is recognizes this?

Recognizes that different customer groups want different features or benefits.

Back 39

Market-oriented.

Market-oriented organization carefully analyzes the market and divides it into groups of people who are faily similar in terms of selected characteristics.

Front 40

Primary goal of a sales oriented firm:

And a market-oriented:

Back 40

Sales: 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 high premium on making a sale than on developing a LTR with customer.

Market: make a profit by creating customer value, providing customer satisfaction, and building LTR with customers.

Front 41

What tools does a sales-oriented organization seek to generate sales with?

Back 41

Promotional activities, personal selling and advertising.

Front 42

What tools does a market-oriented organization seek to generate sales with?

Back 42

Promotion decisions are only one of four basic marketing mix decisions that have to be made (product, place, promotion, and pricing).

Market oriented recognizes that each of these four components is important.

Front 43

What are four sets of norms to consider before making a decision?

Back 43

Societal,
General Business Norms,
Company Norms,
and Personal Norms/Values.

Front 44

Define social culture norms?

Back 44

Basic set of values of the society.

AJC Test - How would you feel if your face were on the front page of the AJC?

Front 45

Define general business norms

Back 45

What is attitude of business people, of professionals in the field?

The basic business values
EX: Consumer has right to safety, to be informed, to choose, and to be heard

No longer caveat emptor (no longer let the buyer beware)

Front 46

List the AMA Code of ethics

Back 46

Basic norms - do no harm.
Foster trust in the marketing system
Practice ethical values that will improve consumer confidence in the integrity of the marketing exchange system.

Front 47

List the basic values of the AMA code of ethics

Back 47

Honesty,
Responsibility
Fairness
Respect
Openness
Citizenship

Front 48

Define company norms

Back 48

What would those in your company say about this decision?

Front 49

Define personal norms

Back 49

"how do you feel about this decision?"

Front 50

What moral philosophy is this?
If any bad occurs, then the action is
unethical

Back 50

Moral Idealism

The potential for bad to occur, regardless of how much good comes out of it = action is unethical

EX: 3m lining...dog food. product line dumped.

Front 51

What moral philosophy is this?
Balance good versus bad

Back 51

Utilitarianism

You weigh pros and cons. If there is more good than bad, lets keep the product.

EX: Nestle baby powder "hypoallergenic"

Front 52

Defined planned obsolescence.

Back 52

It is an ethical issue in marketing where the firm holds back on the next generation product.

Versus: disposable products when you know a product will expire.

Front 53

Determining the needs/wants of consumers and satisfying those needs through the use of the 4P's to create an exchange of value and a long term relationship

Back 53

Marketing (within environment)

Front 54

Define Marketing environment

Back 54

Uncontrollable elements outside of any organization that may affect its performance.

Front 55

Define systematic scanning

Back 55

Systematic analysis of elements outside of marketer's control (i.e. uncontrollable elements that may affect performance)

Front 56

List 6 external environmental factors

PECS TD

Back 56

1)Political and legal - local, state, and federal laws and rulings
2)Economic - income and economic health of the country
3)Competitive - number, size, and type of competitors
4)Social - attitudes, values, and lifestyles
5)Technological - science based advances
6) Demographic - characteristics of the population such as age, race, ethnicity, location

Front 57

Current U.S. demographic statistics
– 305 million people (2007 Census estimate)
– 115 million households
– 49.2 % men/50.8% women
– Median age ~ 36
– Approximately 27% have a college degree
– 20% have incomes over $100,000
Marketers often group consumers by age and/or
race

Back 57

Current U.S. demographic statistics
– 305 million people (2007 Census estimate)
– 115 million households
– 49.2 % men/50.8% women
– Median age ~ 36
– Approximately 27% have a college degree
– 20% have incomes over $100,000

Marketers often group consumers by age and/or race