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Flashcards in Chapter 1 Deck (35):
0

What is marketing

The process by which companies create value for customers and build strong relationships in order to capture value from customers in return

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Needs

States of felt deprivation

2

Wants

The form humans needs take as they are shaped by culture and individual personality

3

Demands

Human wants that are backed by buying power

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Example of needs vs wants

Americans need food to live but want French fries from mcdonalds

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Exchange

The act of obtaining a desired object from someone by offering something in return

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Market

The set of actual and potential buyers of a product or service

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Production concept

Easily avaliabile and inexpensive. Therefore they should focus on improving the production and distribution efficiency.

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Disadvantage of production concept

Can lead to market myopia

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Product concept

Good quality products will sell itself. Therefore the organization should focus its energy to making improved products

A good product doesn't need marketing

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Disadvantage of product concept

Making the best mouse trap when really customers are looking for a different solution.

11

Selling concept

Aggressive selling and promotion

Overcapacity- when supply is higher than demand

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Disadvantage of selling concept

Focuses too much on creating sales transactions instead of developing long relationships with the customers

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The marketing concept

Knowing the needs and wants of target markets and delivering desired satisfactions better than the competitors.

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Disadvantage of marketing concept

Customers don't know what they want or what is even possible

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Societal marketing concept

Understanding society's well being and sustainable market. Should consider consumer wants the company's requirements and consumers and society's long run interest.

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Micro marketing

Perspective of company/organization

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Macro marketing

Big picture, how practiced in countries and society.

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Characteristics of micro marketing

How can we improve sales? Grab more customers from the company? Applies to non profit and profit organizations. Marketing from companies point of view.

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Characteristics of macro marketing

Broader view of marketing. Views marketing as a social process that matches supply with demand to satisfy society's objectives NOT specific companies, focuses on society's concern.

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Macro marketing systems

Planned economy and market orientated economy

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Utiltiy

Value that comes from satisfying human needs

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Production values utility

Form- creating tangible products from raw materials
Task-Intangible services

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Marketing values utility

Time-insuring customers get their products at the right time
Place-at the right place
Possession-transfers ownership

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Customer value

Benefits received-cost

* know how to calculate this

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Customer satisfaction

Products perceived performance-expectations

*know how to calculate this

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Marketing management philosophies

Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept

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Marketing decision variables

Product
Pricing
Promotion
Place

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Transaction

Actual terms of exchange specified times, prices,place etc

29

Consumer generated marketing

Brand exchanges created by the consumers themselves. Consumers are playing a role in shaping their own brand experince and those of other consumers

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Partner relationship management

Working closely with others inside and outside the company to jointly bring more value to customers

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Macro-micro dilemma

What is good for some consumers/companies isn't necessarily good for society.

Ex. Cigarettes, snow skiing, disposable packages

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Planned economy

Control what is produced and how much is

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Market oriented economy

Prices are set freely by supply and demand

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5 economic utilties

Form task time place and possession