Class 1 Flashcards
What is Peter Drucker’s definition of Marketing
The only purpose of a business is to create a customer.
What is Guiltinan, Paul and Madden’s view on Drucker’s definition
Identifying customer’s needs, pinpointing the needs the the organization can satifsfy at a profit, and developing products and services that convert potential buyers into customers.
What is Kotler and Armstrong’s view of marketing
A social and managerial process by which individuals and groups obtain what they need and want through exchanges of products and services of value with others.
What is the AMA definition of marketing
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.
What is production orientation
Focus on production efficiency that will lead to high quality products
What is product orientation
Thinking that consumers will always buy a good product at a reasonable price. The consumer is buying a solution. It also assumes that consumers are completely informed about everything on the market and that they are rational.
What is sales orientation
Thinking that a good sales and communication strategy to convince the consumer to buy a product. This implies overlooking the consumer’s needs and convincing the consumer to buy the product by skillfully applying components of the marketing strategy.
What is marketing orientation
Satisfy the customer while keeping the company’s goals in mind.
What are the two basic activities a company performs
Producing and selling
What is the role of the marketing function
Identify the appropriate consumers and try to sell them the product manufactured by the firm. It also discovers what products the consumers want and find what it needs to produce in what quantity and format.
In the Maslow pyramid, whast needs need to be fulfilled first
Psychological needs => Safety and protection => belongingness => esteem => self-actualize
What is a need
It is a state of lacking something
What is a want
It is a way to meet the need
What is a consumer
Economic agents
What is the customer
The entity that makes the purchasing decision. The consumer may be different from the customer.
What is the demand
Consumers buy products or services
How is market demand expressed
In transactions
- Units of quantity (volume)
- Monetary units ($)
Which demand expression represents more accurately the data
Volume since the results are not inflated. It is easier to compare data form one year to another.
What are current dollars
When we look at the change in demand in dollars without adjusting from the change in price
What are constant dollars
When we calculate the change in demand while eliminating inflation as a factor
What is company demand
It is the expression, in volume or dollars, of the transactions carried out to buy a product or service from a specific company
What is the market demand
The sum of individual company demand values
What is market share
The company’s share of demand
What are the two main types of demand
Actual and potential