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Define the term marketing

A philosophy whose main focus is providing customer satisfaction, and help business to
reach their marketing goals affectively along with increasing sales and profits.
Elements of marketing marketing mix
Product, price, place, and promotion
How the employee satisfaction impacts the marketing?
When an organization creates a high level of employee satisfaction, this leads to greater
effort, which leads to higher quality, and repeat business, growth and profit, stockholders
satisfaction, more investment, respectively.
Example: The saying of Wegmans Food Markets, states, Employees first, customers
second. The rationale is that if employees are happy, customers will be too.
What is Exchange?
Exchange is defined by people giving up something to receive something they would rather
have.
Example: Does not require money, however. Two persons may barter or trade such items
as baseball cards or oil paintings
EXCHANGE five condition must take place
1. There must be at least two parties.
2. Each party has something of value
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party has a desirable to deal with the other party.
Notes:
1. An exchange may not take place even if all conditions are met. An agreement
between buyer and seller is required before an exchange occurs.
2. Marketing can occur even if exchange does not take place.
Example: placing an advertisement to sale your car. Several people may call you to ask
about the price, some may test-drive it, and some may make you an offer. All five
conditions are necessary for an exchange to exist. But unless you reach an agreement with a
buyer and actually sell the car, an exchange will not take place.

Describe four marketing management philosophies PSMS


1. Production Orientation: focuses on the internal abilities of the firm rather than on the
needs of the customers. Example: Henry Fords Model T availability in any colour as long
as it was black.
Sometimes what a firm can best produce is exactly what the market wants. For example, the 3Ms
developed the Post-It Notes a year before a commercial application was identified.
In other situations, as when competition is weak or demand exceeds supply, a production-oriented
firm can survive and even grow. More often, however, firms that succeed in competitive markets
have a clear understanding that they must first determine what customers want and then produce it,
rather than focusing on what company management thinks should be produced.

2. Sales Orientation: focuses on, that people will buy more goods and services if aggressive
sales used, and that high sales result in high profits. Example: Many so-called dot-com
businesses that existed in the late 1990s are no longer around because they focused on the
technology rather than the customer.
3. Market Orientation: focuses on finding and meeting the needs of its customers, and
meeting companys objectives. Example: American Express, Lexus
The marketing concept includes the following
Aiming on customer wants to classify its
products from competitors
Combine all the organizations activities to
satisfy these wants
Achieve the organizations long-term goals

To Achieving a Marketing Orientation


Get info about customers, competitors, markets
Examine the information
Define how to deliver superior customer value
Implement actions to offer value to customers

NOTE: Understanding your competitors strengths and weaknesses are a critical


component of a market orientation. Example: Western Union failed to define its
competitive as telecommunications, concentrating instead on telegraph services, and was
eventually outflanked by fax technology.
4. Societal Marketing Orientation: a philosophy that focused not only finding and meeting
the needs of its customers, meeting companies objectives, but also to improve individuals
and societys long-term best interests, such as less toxic, more durable, refillable materials,
recyclable materials. The reasons customers dose not follow the environmental friendly
product are:
Doubts about effectiveness
Expense
Lack of availability at convenient outlets
Example:
Coca-Cola committed to spending $44 million to build the worlds largest plastic-bottle-tobottle recycling plant. Also set a goal of returning to communities an equivalent amount of
water used in its beverages. Home Depot, UPS, and Wal-Mart are leaders in the eco-

friendly movement.
Discuss the differences between sales and market orientations FBPGT
It can be compared in five characteristics: firms focus, business, product pointed to
whom, primary goal, and tools used to achieve those goals.
1. The firms Focus: VSR
Sales-oriented firms tend to be inward looking, focusing on selling what the organization
makes rather than what the customers wants. Example: A sales orientation has led to the
demise of many firms including Urban Box Office.
Market-oriented firms tend to be outward looking focusing on customers wants rather
than the selling what the organization makes. Example: helped companies such as the
Royal Bank of Canada and Southwest Airlines outperform their competitors. The firms
focus has three major aspects:

Customer Value: is the relationship between benefits and the cost to obtain those benefits.
Value can be used to sell a Mercedes-Benz as well as a Tyson frozen chicken dinner.
Marketers interested in customer value:
1. Offer products that perform, P&G in Mexico Downy Softener
2. Earn trust Starbucks 80% of sales come from clients who visit the store 18 time per/month
3. Avoid unrealistic pricing Auction sites such as E-Bay and Amazon.com
4. Give the buyer facts informative advertising and knowledgeable salespeople
5. Offer organization-guaranteed service and after-sales support
6. Co-Creation creates their own experience. For example, OSN, watch based in your schedules

Customer Satisfaction: is the customers evaluation of a good or service, in terms of


whether that good or service has met the customers needs and expectations. Failure to
meet that results in dissatisfaction. Example: Dell pcs failed, and Nordstrom succeeded
High Customer Satisfaction occurs in firms where:

Top management focuses on Customer Satisfaction

Employees understand how their jobs affect customer satisfaction

Organizational culture focuses on satisfying customers

Building Relationships: is a strategy that focuses on attracting, improving, and keeping


relationships with current customers. Examples: USAA believes so strongly in the
importance of customer retention that managers and executives bonuses are based, in part,
on this dimension.
Most successful relationship marketing strategies depend on:

Customer-oriented personnel: In the customers eyes, the employee is the firm. Four
Seasons hotel chain says, How you treat your employees is how you expect them to treat the
customer.

Effective training programs


Empowerment: solving customer problems on the spot by giving employees an

authorities FedEx and Ritz-Carlton hotels


Teamwork: includes joint efforts of people to complete common objectives. For
example, Walt Disney. Performance is also enhanced when cross-functional teams align their jobs

with customer needs. For example a team of telecommunications service representatives and

the back-office people whom will assets him.

2. The Firms Business:

A sales-oriented firm defines its business in terms of selling goods and services.
Often misses opportunities to serve customers whose wants can be met through a wide range
of product offerings instead of specific products For example Britannica

A market-oriented firm defines its business in terms of satisfying the customers


wants and needs. Customers preferences must be mediated by sound professional judgment
as to how to deliver the benefits they seek, for example, to successfully profitably
manufacture and market automobile tires that will last for 100,000 miles for $25!!!

Answering the question What is this firms business? in terms of the benefits customers
seek, instead of goods and services, offers at least three important advantages:
It ensures that the firm keeps focusing on customers
It supports innovation and creativity
It stimulates an awareness of changes in customer preferences
3. Those to Whom the Product is directed:

A sales-oriented organization targets its products to everybody Example:


Consider the market for shampoo.

A market-oriented organization aims at specific groups of people. Example: Back


in the 1920s, General Motors began designing cars for every lifestyle

4. The Firms Primary Goal:

A sales-oriented seeks to achieve profitability through sales volume, and tries to


convince potential customers to buy, even if the seller knows that the customer and
product are mismatched.

A market-oriented, make a profit by creating customer value, providing customer


satisfaction, and building long-term relationships with customers

5. Tools the Organization Uses to Achieve Its Goals:

Sales-oriented organizations seek to generate sales volume through intensive


promotional activities, mainly personal selling and advertising.

Market-oriented, seek to achieve profit through organized marketing and


interfunctional activities

Describe several reasons for studying marketing


1.

Plays important role in society; marketing affects the distribution of goods and services
that impact a country's economy and standard of living.
Marketing makes food available when we want it, in needed quantities, at accessible locations, and
in healthy and convenient packages and forms (such as instant and frozen foods).

2.

Marketing is important to businesses, profits and growth: an understanding of


marketing is crucial to understanding most businesses
The fundamental objectives of most businesses are survival, profits, and growth Marketing includes
the following activities, which are vital to business organizations:
Evaluating the wants and satisfactions of the customers
Communicating with present and potential customers.
Designing and managing product offerings
Determining prices and pricing policies
Developing distribution strategies
Marketing is not just a job done by people in the marketing department of an
organization, but rather a part of everyones job. Therefore, a basic understanding of
marketing is important to all businesspeople.

3.

Career opportunities: career opportunities in marketing are diverse, profitable, and


expected to increase significantly during the coming decade
Marketing offers great career opportunities in such areas as, professional selling, marketing
research, advertising, retail buying, distribution management, product management, product
development, and wholesaling. Also engaged on a nonbusiness organizations, including hospitals,
museums, universities, the armed forces, and various government and social service agencies.

4.

Affects your life every day: understanding marketing makes consumers more informed
We participate in the marketing process as a consumer of goods and services. About half of every
dollar you spend pays for marketing costs, such as marketing research, product development,
packaging, transportation, storage, advertising, and sales expenses

REVIEW
Define the term marketing.
A philosophy, whose main focus is providing customer satisfaction, and help business to
reach their marketing goals, along with increasing sales and profits.
Describe four marketing management philosophies.
The role of marketing and the character of marketing activities within an organization are
strongly influenced by its philosophy and orientation.
A production-oriented organization focuses on the internal abilities of the firm rather
than on the needs of the marketplace.
A sales orientation is based on the beliefs, that people will buy more products if aggressive
sales techniques are used and that high sales volumes produce high profits.
A market-oriented organization focuses on satisfying customer wants and needs while
meeting organizational objectives.
A societal marketing orientation goes beyond a market orientation to include the
preservation or enhancement of individuals and societys long-term best interests.
Discuss the differences between sales and market orientations.

Organizational
Firms Business
Product to whom
Primary Goal
Tools

Sales oriented
Inward Focus on their own needs
Selling goods and services
To everyone
Maximum sales volume
Through intensive promotion

Market-oriented
Focus on customers needs and preferences
Customer satisfaction
Certain segments of the population
Customer satisfaction
Through coordinated activities

Describe several reasons for studying marketing.


Marketing affects the distribution of goods and services that impact a country's
economy and standard of living.
An understanding of marketing is an understanding of businesses.
Career opportunities in marketing are diverse, profitable

Understanding marketing makes consumers more informed.