Principles of Marketing -- Dr. Price -- Mississippi College

Customer value

the relationship between benefits and the sacrifice necessary to obtain those benefits.

For exchange to occur:

- each party believes it is appropriate or desirable to deal with the others

- each party is capable of communication and delivery

- each party is free to accept or reject the exchange offer

- each party must have something the other party considers to be valuable

is money required for exchange to occur?

no

marketing management philosophies

market orientation

production orientation

societal marketing orientation

sales orientation

Which marketing management philosophies have an external focus?

The Market Orientation and Societal marketing

Marketing

This is defined as 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.

Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:

what the customer thinks he or she is buying is what is important

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.

production

Starbucks has a policy of operating their stores in eco friendly ways while still serving customer needs. They most likely have a ____ marketing orientation

societal marketing

Which marketing management philosophy is often adopted by organizations using aggressive selling techniques to sell products such as life insurance or preplanned funeral services?

Sales orientation

In the past, PajamaGram marketed pajamas only to women. Now the company offers pajamas for men and children. This is an example of which type of strategy?

market development

Chrysler has a financial unit that is responsible for vehicle leases to consumers. It has a distinct mission, control over its resources, and plans independent of the other divisions of Chrysler. This financial unit is an example of a(n):

strategic business unit

Of the following, which is the best stated objective for Purina cat food? a. To increase sales of Purina brand cat food between January 1, 2018, and December 31, 2018

b. To increase sales of Purina brand cat food

c. To increase sales of Purina pet food

d. To increase sales of Purina brand cat food by 15 percent over 2017 sales of $300 million

e. To increase sales of Purina brand cat food from $300 million to $345 million

d

marketing plan

A written document that acts as a guidebook of marketing activities for the marketing manager

Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-Lives as a(n):

question mark

Making sure products are available when and where customers want them is the job of which element of the marketing mix?

Place strategies

Strategic planning

This is the managerial process for creating and maintaining a fit between the organizations objectives and resources and the evolving marketing environment

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves after they have bought a drink. Critics of these vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n):

threat

Yoplait sends yogurt coupons to its existing customers is an example of

Market penetration

Increasing competition from overseas firms and the fast growth of digital technology essentially ended Kodak's consumer film business. These factors represented _______ in a SWOT analysis.

threats

Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it had a dominant market share. The small appliance industry is a slow-growth one. The small appliances product line is most likely a __________ for Black & Decker.

cash cow

The Boston Consulting Group Model analyzes the strategic business units of a firm using two criteria. What are they?

Market growth rate and relative market share

Make sure you know how to draw and apply all planning techniques discussed in class (e.g., Boston Consulting Group Model, Ansoff's Opportunity Matrix, SWOT Analysis, the components of a Marketing Plan)

ok

Marketing orientation

Entails processes that focus on delivering value and benefits to customers, not just selling goods and services

What basic "processes" are mentioned in the definition?

processes for creating, communicating, delivering, and exchanging offerings

What is customer value? Is customer value about pricing alone?

Customer value is the relationship between benefits and the sacrifice necessary to obtain those benefits; no, a low price doesn't make something a good product

Exchange

People giving up something in order to receive something they would rather have

Five conditions of exchange

There must be at least two parties.

2. Each party has something that might be of value to the other party.

3. Each party is capable of communication and delivery.

4. Each party is free to accept or reject the exchange offer.

5. Each party believes it is appropriate or desirable to deal

production orientation

Is a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

sales orientation

Is a philosophy based on the belief that people will buy more products if aggressive sales techniques are used.

market orientation

focuses on satisfying customer needs at the same time it meets organizational objectives.

societal marketing orientation

- Satisfy customer wants

- Preserve or enhance individuals' and society's long-term best interests

Can marketing occur even if an exchange does not?

yes

What are the fundamental problems with a production and sales orientation?

A production orientation can fall short if it does not consider whether the goods and services that the firm produces most efficiently also meet the needs of the marketplace. On the other hand, sometimes what a firm can best produce is exactly what the market wants. The fundamental problem with a sales orientation, as with a production orientation, is a lack of understanding of the needs and wants of the marketplace. Sales-oriented companies often find that, despite the quality of their sales force, they cannot convince people to buy goods or services that are neither wanted nor needed

Give an example of a company that follows a

production orientation

Henry Ford Model T

Give an example of a company that follows a market orientation

Zappos

Give an example of a company that follows a sales orientation

telemarketing firms

Give an example of a company that follows a societal marketing orientation

Whole Foods

Marketing Mix

Creating new products and service (Product)

Communicating information (Promotion)

Delivering - getting products and services to the right (Place)

(Pricing) products and services.

Unlike a production-oriented firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.

F

Market orientation is a philosophy that assumes that a sale depends on a customer's decision to purchase a product, not on an aggressive sales force.

T

Sales-oriented firms tend to focus on long-term relationships, whereas market-oriented firms focus primarily on short-term relationships.

F

The focus of a production-oriented firm is on what it can make or do best.

T

"Consumers don't know what they want until we tell them."

Production

"This is warfare: Let's launch campaigns and bombard our targets with messages."

Sales

"If you really watch the consumer, they'll tell you what they wish. And if you listen hard, you can create better products for them."

Market

Why would a course in marketing be helpful even if you don't pursue marketing as a career?

Plays an Important Role in Society, Is Important to Businesses, offers outstanding career opportunities, and is used in everyday life all the time!