Principles of Marketing - Chapter 1 Key Concepts

Flashcards covering key concepts from the Principles of Marketing lecture notes, focused on definitions, core concepts, and model explanations.

What is marketing?

The performance of activities that seek to accomplish objectives by anticipating customer needs from producer to customer, and directing a flow of need-satisfying goods and services.

What is macro-marketing?

An approach that emphasizes the whole system, matching supply and demand to satisfy society’s needs and required by every society.

What are the universal functions of marketing?

Buying, Selling, Transporting, Storing, Standardization & Grading, Financing, Risk Taking, and Market Information.

Who performs marketing functions?

Transport firms, ISPs, product testing firms, ad agencies, research firms, wholesalers, retailers, other specialists, consumers, and producers.

What is the Marketing Concept?

Profit (or other long‑term success) as the objective, total company effort, and customer satisfaction guiding all decisions.

What is customer value?

Benefits minus costs from the customer’s point of view, including functional, emotional, life-changing, and world-changing benefits, minus monetary and inconvenience costs.

What are the benefits categories of customer value?

Functional (time savings, simplicity, information), Emotional (entertainment, reduced anxiety, design), Life-changing (hope, motivation, belonging), World-changing (contributing to a better world).

What are the costs in customer value?

Monetary costs (price, fees) and Inconvenience (time and effort required).

What is the Triple Bottom Line?

Economic (financial), Social (people), and Environmental (planet) outcomes.

What are the steps to build profitable customer relationships?

Attract customers, Satisfy customers with superior value, Retain customers, Increase sales to customers.

What is the micro–macro dilemma?

The tension between satisfying individual customer needs and considering broader societal impacts; ethics and the marketing concept guide this balance.

How do production, marketing, and purpose orientations differ?

Production orientation: focus on making what can be produced; Marketing orientation: customer needs determine company plans; Purpose orientation: customer, employee, and community needs determine plans.

What eras mark the evolution of marketing practices?

Simple trade era, Production era, Sales era, Marketing department era, Marketing company era (shift from selling surplus to long-term customer satisfaction).

What is the role of intermediaries and collaborators in marketing?

They perform universal marketing functions and help overcome producer–consumer gaps, creating value and directing the flow of goods.

What is the market-directed macro-marketing system?

A model where many producers and consumers interact through intermediaries and collaborators to satisfy needs, with checks like dollars, feedback, public interest, and government rules.

How has marketing’s role changed over the years?

From selling surplus (earlier eras) to focusing on long-run customer satisfaction and value; progression through Production, Sales, Marketing Department, and Marketing Company eras.

What is the example of marketing driving innovation given in the notes?

Marketing supports innovations like Covid‑19 vaccine distribution, food delivery services (e.g., DoorDash), and campaigns against texting and driving.

How are social responsibility and ethics related to the marketing concept?

They guide conduct so that satisfying needs does not harm society; ethics and social responsibility are integral to pursuing customer value and long-term success.

What is a market-driven economy?

An economy guided by customer demand, with the macro-marketing system adjusting to meet those needs.

What does the wedding registry scenario illustrate about the marketing concept?

It highlights the importance of total company effort in satisfying customer needs and delivering good service; failure reflects a lapse in the marketing concept.

How is customer satisfaction related to the marketing concept?

Customer satisfaction is a key indicator of how well a firm meets needs and expectations, contributing to long-term profitability and relationships.

What is advertising focus across orientations?

Production: emphasize product features; Marketing: emphasize need-satisfying benefits; Purpose: communicate the organization’s purpose to customers and employees.

How should nonprofits measure success in marketing?

By impact and outcomes (e.g., social and environmental impact), often using frameworks like the Triple Bottom Line.

What is the meaning of “customer value equals benefits minus costs”?

Customer value is the net benefit to the customer, considering functional, emotional, life-changing, and world-changing benefits minus monetary and time/effort costs.