MARK 3000 TEST 1 Chapter 1 An Overview of Marketing Marketing at large Marketing the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society o entails processes that focus on delivering value and benefits to customers not just selling goods services and or ideas Exchange people giving up something in order to receive something they would rather have o does not have to deal with money o exchange can occur if the following take place 1 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 with the other party o marketing can occur even if an exchange does not ex You place an ad in local newspaper stating you are selling a used car Some people may test drive it and others may make you an offer but unless you come to an agreement exchange will not take place Marketing did though in the advertisement you made Production Orientation a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace o management asses it resources and capabilities o falls short when it does not consider whether the goods and services that the firm produces most efficiently meets the need of the marketplace ex Apple has a history of production orientation as they create computers operating systems and other gadgets because they can in hopes of selling their results Sales Orientation based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits o fundamental problem is lack of understanding the needs and wants of the marketplace MARK 3000 TEST 1 ex after Toyota recalled millions of vehicles because of acceleration problems company implemented aggressive incentives to bring back customers like zero percent financing and cars for 169 a month compared to 279 a month Market Orientation philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer s decision to purchase a product o synonymous with the marketing concept o what consumers think they are buying the perceived value is what defines a business o marketing concept a simple and intuitively appealing philosophy that articulates a market orientation o marketing concept includes the following 1 focusing on consumer wants and needs sp that the organization can distinguish its products from competitors offerings 2 integrating all the organizations activities including production to satisfy 3 achieving long term goals for the organization by satisfying customer wants and customer wants needs legally and responsibly Social Marketing Orientation the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society s long term best interests o marketers have made substantial commitments to either producing products using more environmentally friendly processes or making more environmentally friendly products o adopting societal marketing orientation and clearly communicating this decision and the actions that support it help firms differentiate themselves from competitors and strengthen their positioning Sales vs Market Orientations difference between the two is substantial can be compared in terms of five characteristics 1 organization s focus 2 firm s business 3 those to whom the product is directed MARK 3000 TEST 1 4 firm s primary goal 5 the tools used to achieve those goals Organization s Focus o personnel in sales oriented firms tend to be inward looking focusing on selling what the organization makes rather than making what the market wants o customer value relationship between benefits and the sacrifice necessary to obtain those benefits lower income consumers are price sensitive but they will pay for products if they will pay for products if they deliver a benefit that is worth the money value is not about price alone ex Barne s and Noble relies on it s comfortable upscale book store to add more value to its books o marketers interested in customer value offer products that perform earn trust avoid unrealistic pricing give the buyer facts offer organization wide commitment in service and after sales support o customer satisfaction the customer s evaluation of a good or service has met their co creation needs and expectations or service example failure to meet needs and expectations results in dissatisfaction with the good ex companies like Dish and Comcast have damaged their relationship with customers as they have focused so heavily on lowering costs coming back from customer dissatisfaction is very tough take Walmart for o building relationships attract new customers increase business with existing customers and retain current customers o relationship marketing a strategy that focuses on keeping and improving relationships with current customers MARK 3000 TEST 1 ex USAA is a good example of a company focused on building long term relationships with customers with a 97 8 percent client retention rate customer oriented personnel employee s attitudes and actions must be the role of training employee training is customer service and relationship customer oriented building is important the spot empowerment giving employees more authority to solve customer problems on gives customers the feeling that their concerns are being addressed and gives employees the feeling that their expertise matters results in greater satisfaction for both customers and employees teamwork entails collaborative efforts of people to accomplish common objectives ex Southwest airlines and Walt Disney World job performance company performance product value and customer satisfaction all improve when people in the same department or work group begin supporting one another The Firm s Business o sales oriented firm defines its business in terms of goods and services o market oriented firm defines its business in terms of benefits its customers seek o customers preferences must be mediated by sound professional judgment as to how to deliver the benefits they seek Those to Whom the Product is Directed o sales oriented organization targets products at everybody or the