Part 1
Who determines the value of a product?
The customer
What is a market?
Collection of buyers and sellers interested in making similar or related exchanges.
What are the different concepts that compete with the marketing concept?
Selling
Product
Production
Societal
What is the argument that consumers need protected rights and not to be held to a "buyer beware" mentality?
Information asymmetry; when 2 parties in an exchange have different information, and one party has more info that puts the other market at a disadvantage.
Does marketing theory apply to both for-profit and nonprofit organizations? Does marketing in practice differ between the two?
In theory they are the same. They have products/ideas they're selling. Target marketing & branding is similar. In practice they differ because nonprofits are held to a different standard and their marketing spending is checked
If companies don’t determine value, what do they do?
They offer product propositions- the set of values they promise to deliver to satisfy needs.
What is the unique contribution of marketing to a firm?
acquire cash flow from customers
Stimulate demand and manage customer value
What is a market orientation?
Implementation of the marketing concept throughout an organization. Represented as the generation, dissemination, and use of customer information across an organization
What is the Milton Friedman view of businesses' role in the world?
competition encourages innovation
What is marketing strategy?
The managerial process of creating and maintaining plans of action that facilitate exchanges that have value to both the customer and the company in an evolving market environment.
What is customer’s perceived value?
Customer’s evaluation of the difference between all the benefits and all of the costs of a marketing offering relative to those of competing offers
What is marketing?
Managing exchanges with customers
What is a shareholder concept?
focus on maximizing shareholder value over everything else
What is social responsibility?
Companies acting at least in part in the best interests of society rather than their own interests.
What is marketing myopia?
Occurs when a company defines their mission too narrowly and focuses on the company instead of the customer and potential future environmental trends.
What is satisfaction?
Satisfaction is a pleasurable fulfillment response to a consumption experience
What is marketing NOT?
Not just selling or advertising
What are potential problems with a focus on shareholders?
Products are rushed
Companies are not reinvesting back into their employees
Not finding growth opportunities
What is societal marketing?
When a business looks at
Consumers wants
Company requirements
Customer and societies long run interests
Competitive advantage
An advantage over competitors gained by offering customers greater value.
How is satisfaction determined? What does this tell us about McDonald’s?
Driven by disconfirmation.
How well the product meets the customers expectations
As a consumer, you expect a certain quality
We can be satisfied by mcdonald’s as long as they meet our expectations which are usually pretty low
What is the marketing concept?
Need to know the needs of your particular market and wants
Achieving the organization's goals depend on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
What are the consumer bill of rights current consumer "rights"?
Right to safety
Right to be informed
Right to choose
Right to be heard
Right to service
What does the consideration of organizations and institutions have to do with the contrast between Milton Friedman’s view of business’s role and the societal concept’s view?
Goal of organizations is to make profit but stay ethical and within your role according to Friedman.
Societal concept is that it’s open to go into directions to take on any problem. If we want businesses to do more or less can we make them do that
What is the marketing mix?
The unique combination of marketing activities used to encourage and facilitate exchanges by delivering value to the customer.