Chapter 1 – An Overview of Marketing (MKTG, 14e)

These flashcards cover the chapter’s definitions, philosophies, key terms, and reasons for studying marketing, providing a comprehensive review for exam preparation.

According to the AMA, how is the term “marketing” defined?

Marketing is 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 two key facets of marketing?

(1) A philosophy or management orientation that stresses customer satisfaction; (2) an organizational function and set of processes used to implement this philosophy.

What does the marketing process seek to deliver to customers and stakeholders?

Value and benefits—through communication, distribution, and pricing strategies—when and where they are desired.

What term describes people giving up something to receive something they would rather have?

Exchange.

State the five conditions required for an exchange to occur.

(1) At least two parties; (2) each has something of value; (3) ability to communicate and deliver; (4) freedom to accept or reject; (5) belief that it is desirable to deal with the other party.

Name the four marketing management philosophies.

Production orientation, Sales orientation, Market orientation, Societal marketing orientation.

What question best summarizes a production-oriented firm’s focus?

“What can we make or do best with our current capabilities?”

Why can a strict production orientation fall short?

It may ignore whether efficiently produced goods actually meet marketplace needs.

What core belief drives a sales-oriented organization?

People will buy more if aggressive sales techniques are used, leading to high profits.

What is the fundamental problem with a sales orientation?

A lack of understanding of customer needs and wants.

Define the marketing concept.

The idea that an organization’s reason for existence is to satisfy customer wants and needs while meeting organizational objectives.

How does a market orientation view the role of a sales force?

A sale results primarily from a customer’s decision, not aggressive selling.

List the four activities involved in achieving a market orientation.

(1) Gathering information on customers, competitors, and markets; (2) examining it from a total-business view; (3) determining how to deliver superior value; (4) acting to provide that value.

What additional responsibility does the societal marketing orientation add to the traditional marketing concept?

Preserving or enhancing the long-term best interests of individuals and society.

Give an example of a practice consistent with societal marketing orientation.

Designing recyclable packaging or less-toxic products.

How have the Internet and social media shifted marketing power?

Power has moved from manufacturers and retailers toward consumers and business users.

Identify the five comparison dimensions between sales and market orientations.

Organization’s focus, firm’s business, target market, primary goal, and tools used.

What is customer value?

The relationship between the benefits received and the sacrifice necessary to obtain them.

What are the four elements of value customers assess?

Functional, emotional, life-changing, and social impact value.

Define customer satisfaction.

A customer’s evaluation of a good or service in terms of whether it met needs and expectations.

What is relationship marketing?

A strategy focusing on keeping and improving relationships with current customers.

Name four organizational factors essential to successful relationship marketing.

Customer-oriented personnel, effective training programs, employee empowerment, and teamwork.

What is empowerment in a marketing context?

Delegating authority to employees to solve customer problems quickly, often by the first person notified.

Define teamwork.

The collaborative efforts of people to accomplish common objectives, improving performance and satisfaction.

How does a sales-oriented firm define its business?

In terms of goods and services it offers.

How does a market-oriented firm define its business?

In terms of the benefits customers seek.

State three advantages of defining a business by customer benefits rather than products.

(1) Keeps focus on customers; (2) encourages innovation; (3) alerts firm to changing customer desires.

What is Customer Relationship Management (CRM)?

A company-wide strategy to optimize profitability, revenue, and customer satisfaction by focusing on highly defined customer groups.

Define big data in marketing.

The discovery, interpretation, and communication of meaningful patterns in data.

What is on-demand marketing?

Delivering relevant experiences, integrated across physical and virtual environments, throughout the consumer’s decision and buying process.

What is the primary profit goal of a sales-oriented firm?

Achieving profitability through high sales volume.

What three objectives guide market-oriented firms toward profit?

Creating customer value, providing satisfaction, and building long-term relationships.

List the four basic marketing mix decisions acknowledged by market-oriented organizations.

Product, Place (distribution), Promotion, and Price.

Which option in the Coca-Cola mascot example represents soliciting employee ideas for a replacement?

Co-creation.

Give four broad reasons to study marketing.

(1) Its role in society; (2) its importance to business; (3) outstanding career opportunities; (4) impact on everyday life.

Roughly what proportion of U.S. civilian workers perform marketing activities?

Between one-fourth and one-third of the workforce.

How can understanding marketing help you as a consumer?

You’ll negotiate better, recognize value, and demand satisfaction when products fail to meet promised standards.