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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.
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
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-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.
with customer needs. For example a team of telecommunications service representatives and
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
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:
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.
3.
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