Marketing Concepts and Orientations (Lecture Notes)

Flashcards covering key concepts from lecture notes on marketing definitions, philosophies, customer value, CRM, big data, on-demand marketing, and more.

What are the two facets of marketing?

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

What is the AMA's definition of 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.

Who said marketing is too important to be left only to the marketing department?

David Packard, cofounder of Hewlett-Packard.

Beyond selling goods, services, or ideas, what does marketing aim to do?

Deliver value and benefits to customers using communication, distribution, and pricing strategies; build long-term, mutually rewarding relationships with customers and other stakeholders.

What five conditions must exist for an exchange to be possible?

Two or more parties; each party has something of value; both can communicate and deliver; each is free to accept or reject; each believes it is appropriate or desirable to deal with the other.

Can marketing occur if no exchange actually takes place?

Yes. Marketing activities such as advertising can occur even when no sale or exchange is completed.

Name the four competing marketing orientations.

Production orientation; Sales orientation; Market orientation (marketing concept); Societal marketing orientation.

What is a production orientation?

A focus on a firm's internal capabilities rather than on marketplace needs; asks what we can do best and what is easy to produce; may fail if offerings do not meet market needs.

What is a sales orientation?

The belief that people will buy more if aggressive sales techniques are used; emphasizes selling and collecting money; can overlook actual customer needs.

What is a market orientation (the marketing concept)?

A philosophy focusing on satisfying customer wants and needs while meeting organizational objectives; integrates all activities to deliver superior customer value and achieve long-term goals.

What is a societal marketing orientation?

An extension of the marketing concept that seeks to preserve or enhance society's long-term best interests in marketing decisions.

What are five key differences between sales and market orientations?

1) Focus: internal capabilities vs. external customer needs; 2) View of business: deliverer of goods/services vs. satisfier of customer needs; 3) Target market: everyone vs. specific segments; 4) Primary goal: sales volume vs. long-term customer value and relationships; 5) Tools: promotion-focused vs. coordinated, cross-functional activities.

How is customer value defined?

The relationship between the benefits received and the sacrifices required; value depends on perceived quality, price, and service.

What is customer satisfaction?

The customer's assessment of whether a good or service met needs and expectations; dissatisfaction results if needs are not met.

What is relationship marketing?

A strategy focused on keeping and improving relationships with existing customers, often through ongoing customer insight, service, and customization.

What is CRM (Customer Relationship Management)?

A company-wide strategy to optimize profitability, revenue, and customer satisfaction by focusing on defined customer groups, tracking interactions, and aligning processes across the firm.

What does the rifle vs. shotgun analogy describe in CRM?

CRM concentrates messages and offerings toward individual customers (rifle) rather than blasting messages to a broad audience (shotgun).

What is big data in marketing?

The discovery, interpretation, and communication of meaningful patterns in large datasets generated by digital footprints and interactions.

What is on-demand marketing?

Marketing that delivers relevant experiences throughout the customer's decision journey and across all touchpoints, using data and technology to personalize interactions.

What are common on-demand marketing examples?

Instacart (groceries), Grubhub (online food delivery), Uber/Lyft (on-demand transportation) and Uber Eats (delivery).

What is the firm's primary goal for market-oriented vs. sales-oriented organizations?

Market-oriented firms seek profit by creating customer value, satisfaction, and long-term relationships; sales-oriented firms seek profitability primarily through sales volume.

What are the four basic marketing mix decisions and why is interfunctional coordination important?

Product, Place (distribution), Promotion, and Pricing decisions; these must be coordinated across the organization, not left to the marketing department alone.

Why study marketing?

Marketing affects society and business, offers diverse career opportunities, helps you understand consumers and markets, and improves everyday decision-making as a consumer.

How does marketing affect everyday life?

Marketing helps make goods available, influences purchasing decisions, and about half of every dollar spent goes to marketing costs such as research, packaging, transportation, and advertising.

What does the phrase 'the customer is boss' imply?

Customers, through information and choices, control a company's decisions; leaders like A. G. Lafley and Sam Walton highlighted the customer’s central role.