MKTG Chapter 1: An Overview of Marketing

AMA def. of Marketing (2nd facet)

activity, set of institutions, and processes for creating communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

1st facet of marketing

philosophy, attitude, perspective, or mgmt orientation that stresses customer satisfaction

Conditions of Exchange

1) at least 2 parties
2) each party has something of value to other party
3) each is capable of communication and delivery
4) each are free to accept/reject offer
5) each believes it is desirable to deal with the other party

production orientation

philosophy that focuses on internal capabilities of the firm, does not consider whether goods/services meet the needs of the marketplace

sales orientation

idea that people will buy more goods/services if aggressive sales techniques are used, high sales=high profits, lack of understanding needs/wants of marketplace

marketing concept (orientation)

social and economic justification for an orgs existence is the satisfaction of customers wants and needs while meeting organizational objectives, integrates all orgs activities, and achieves longterm goals by satisfying customers legally and responsibly

societal orientation

an org exists not only to satisfy customers wants and needs and meet orgs objectives but also to preserve/enhance individuals' and society's longterm best interests.

customer value

relationship between benefits and 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 organization-wide commitment in service and after-sales support
6) co-creation

customer satisfaction

customers evaluation of a good/service in terms of whether that good/service has met their needs and expectations

relationship marketing

strategy that focuses on keeping and improving relationships with current customers, depends on
1) customer-oriented personnel
2) effective training programs
3) empowered employees
4) teamwork

empowerment

delegation of authority to solve customers' problems quickly--usually by the first person that the customer notifies regarding a problem

promotion

the means by which orgs communicate with present and prospective customers about the merits/characteristics of the org and products

why study marketing?

1) plays important role in society
2) important to businesses
3) offers career opportunities
4) affect your life everyday

4 Ps of Marketing

1) product
2) place
3) promotion
4) pricing