WEEK 1 LECTURE Flashcards
(9 cards)
What is 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 are the four p’s of marketing?
Pricing, promotion, distribution and product considerations. Also considered against the STP (segmentation, target and positioning)
What is the marketing exchange?
When people give up something to receive something of value they’d rather have.
What is required for marketing to occur?
Two or more parties that want to deal with one another, have unsatisfied needs/wants, with the ability to communicate with one another and the ability to accept/reject the offer.
What are the four marketing philosophies?
Product orientation
• Focuses on the internal capabilities of an organisation, rather than on the needs of the marketplace
• All about the economies of scale, the company knows best and mass production – make product then analyse market response
Sales orientation
• Focuses on selling existing products and using aggressive techniques for overcoming customer resistance
• The idea that people will buy more g/s if aggressive sales tactics are used, and that high sales = high profits
Market orientation
• Assumes that a sale depends on a customer’s decision to purchase a product
• The organisation is not defined by what the business thinks it produces, but by what the customers think they are buying (the perceived value) and focuses on consumer needs/wants
Societal orientation
• Environmental trends, shifting expectations, popular culture and competitive dynamics have caused organisations to shift to this marketing philosophy
What are the organisation’s focus depending on the marketing orientation?
Product and sales orientation - inward looking
Marketing and societal orientation - an external focus
Competitive advantage – the idea that a product can solve a set of customers problems better than any competitor’s product
What is customer value to a business?
The ratio of benefits for the firm to the sacrifice necessary to obtain those benefits are offering products that can perform, earning trust, avoiding unrealistic pricing, giving the buyers facts and offer organisation-wide commitment in service and after-sales support (and also co-creation/collaboration).
Firms aim to achieve customer satisfaction (customer satisfaction is the feeling that a product has met or exceeded a customer expectation).
What are different market orientations target audiences?
Sales orientation – target everybody
Product orientation – target no-one
Marketing orientation – target specific groups
Societal orientation – target specific groups but also those impacted by the brand
What are the different market orientations primary goal and the sales tools they use?
Sales orientation – profitability through sales volume
Production orientation – profitability by reducing cost
Market orientation – profitability by creating customer value
Societal orientation – balancing profitability with societal interests and customer satisfaction
The orientation adopted influences of organisations focus, perceptions of customer value, customer satisfaction approaches, how the business is defined, the target audience, the primary goal and the sales tools used
