MKTG chapter 1 notes
MKTG chapter 1 notes Mar 3023
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This 4 page Class Notes was uploaded by Brittanie Bakken on Sunday August 7, 2016. The Class Notes belongs to Mar 3023 at University of South Florida taught by M. Luckett in Fall 2016. Since its upload, it has received 61 views.
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Date Created: 08/07/16
MKTG Chapter 1 Notes What is marketing? Marketing is set of ideas and processes that seek to satisfy the client, customer, partner, and / or the rest of society as a whole. Marketing is so important that it cannot be left to a single department. One of the biggest goals in marketing is to provide value to the customers. Marketing uses pricing, communication, and distribution to better satisfy the wants and needs of the customer. Marketing takes into consideration that there are many “partners” within the business (this includes employees, suppliers, distributers, and so on). Companies that constantly reward and recognize their employees end up with the best performance record. (ex. Google) The Exchange An exchange is a desired result that happens when people give up something that they have for something that they want. (Goods for goods, etc.)(Money for goods is an option, but it is not required.) Marketing can occur even if there is not an exchange. There a 5 conditions that must exist in order for an exchange to occur: 1. Must have at least two parties (individuals or groups). 2. Each party has something the other party might value/want. 3. Each party is able to communicate the terms and follow through on the delivery of what they are offering. 4. Each party can freely chose to accept or decline the offer. 5. Each party believes that it is a reasonable and good decision to be involved in an exchange with the other party. Even if all of the conditions are meet, there is still a chance that the exchange will not occur. The four types of marketing orientation Production Orientation Production orientation focuses on what the company is able to do rather than the needs and wants of the marketplace (customers). Business that follow this philosophy tend to focus on what they can do best and what is most convenient to them. This orientation has been referred to as a Field of Dreams (movie reference). Apple and various furniture stores are perfect examples of production orientation. This orientation normally does not do well in most businesses because it does not consider the needs and wants of the consumer. Sales Orientation Sales orientation is the belief that people will buy more good or services if they take an aggressive approach to sales. (Classic salesmen). Sales associates are encouraged to “sale, sale, sale” to the customer. The main goal is to collect as much money as possible. The biggest problem with this orientation is that the needs and wants of the customers are not taken into consideration. Even will the best sales associates, customers may still refuse to buy the product. Market Orientation The marketing concept is very simple; satisfy the customer’s wants and need while meeting the organizations goals. Businesses under this orientation focus on the customer’s perceived value of the product they are selling. There are three main goals under this orientation: o Focus on the customers’ needs and wants in order to stand out from the rest of the competitors. o Focus all company activities and productions toward satisfying the wants of the customers. o Satisfy the wants and needs of the customer legally and responsibly (this is the company’s long term goal). Understand your customers and competitors. The market oriented mindset is a belief that sales depend on the customer’s decision to buy a certain product (sales do not depend on aggressive selling). Seek to obtain information about the market and customers you are trying to sell to as was as your competitors. Blackberry is an example of a company that lost its footing because it did not maintain a market oriented mindset. Societal Marketing Orientation Societal marketing orientation expands on the marketing concept. This orientation makes the distinction that sometimes the things consumer’s want may not be in their best interest or the society’s best interest. This is where many of the “green” companies stem from. Many companies under this orientation tend produce goods that are less toxic, reusable, recyclable, etc. This orientation became more widely used in the 2000’s as climate change, ozone layer depletion, pollution, and other environmental problem became more of a concern. Though many people believe we should have more environmentally friendly products, only small amount of people are willing to pay more for ecofriendly products. Unilever is an example of a company that uses this technique. Who is in Charge? The customer is the boss. Differences between sales and market orientation Market Orientation Sales Orientation Focus Focus o Selling what the company makes instead o Providing the customers (market) with what of making what the market wants. they want. The way the business is defined The way the business is defined o Goods and service success. o Providing benefits to the customer success. To whom is the product directed? To whom is the product directed? o Everyone o Specific target market Primary goal Primary goal o Convince the customer to buy regardless o Create customer value, build customer of whether they want or need the relationships, and maintain customer product. Sell as much as possible to satisfaction in order to make a profit. receive maximum profit. Tools to achieve company goals Tools to achieve company goals o Providing people with elite customer o Aggressive personal selling and service and value. advertising. Customer value is the balance between quality and price. Businesses should aim to sell products that have good customer benefits at a price people would be willing to pay. o There are 6 main goals of customer value: 1. Earn the customers trust. 2. Avoid unrealistic pricing. 3. Offer products that preform. 4. Offer quality customer service before, during, and after the sale. 5. Work with the customer whenever possible to create the desired result. 6. Give the customer the facts and information they are seeking. Customer satisfaction is based on the customers opinion of whether or not the product/service meet his/her needs and expectations. Relationship marketing is where a business focuses on creating, keeping, and building on their relationship with their customers. o Relationship marketing involves: 1. Having customeroriented personnel (friendly and helpful workers) 2. Employee training in customer service. 3. Empowerment (giving employees more power to solve customers’ problems immediately). 4. Teamwork amongst employees (this includes teamwork training). Customer relationship management (CRM) is a strategy meant to increase customer satisfaction, profit, and revenue by focusing on a very specific target market. Ondemand marketing is a step up from CRM. It allow the customer to have consent access to the products/services the company offers (think online orders, etc.). Why study Marketing? 1. It plays an important role in society. 2. It is important to business. 3. Outstanding career opportunities. 4. It is part of everyday life. Citation Lamb, Charles W., Joseph F. Hair, and Carl McDaniel. MKTG. 9th ed. Boston: Cengage Learning, 2014. Print.
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