Professional Documents
Culture Documents
What Is Marketing?
Exchange may not take place even if all of these conditions exist, but these conditions are
necessary for exchange to be possible.
A. Production Orientation
The production orientation focuses on internal capabilities of the firm rather than on the
desires and needs of the marketplace. The firm is concerned with what it does best, based
on its resources and experience, rather than with what consumers want.
B. Sales Orientation
A sales orientation assumes that more goods and services will be purchased if aggressive
sales techniques are used and that high sales result in high profits.
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C. Market Orientation
1. The marketing concept states that the social and economic justification for
an organization's existence is the satisfaction of customer wants and needs while
meeting organizational objectives.
2. This orientation extends the marketing concept to serve three bodies rather
than two: customers, the organization itself, and society as a whole.
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B. Customer Value
1. Customer value is the ratio of benefits to the sacrifice necessary to obtain those
benefits.
C. Customer Satisfaction
Customer satisfaction is the feeling that a product has met or exceeded the customer's
expectations. The organizational culture focuses on delighting customers rather than on
selling products.
D. Building Relationships
1. A sales-oriented firm defines its business in terms of the goods and services
it offers, like an encyclopedia publisher defining itself simply as a book
publisher/seller.
4. Focusing on customer wants does not mean that customers will always receive
the specific goods and services they want.
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1. A sales-oriented organization targets its products at "everybody" or "the average
customer." However, few "average" customers exist.
A. Understanding the organization’s mission and vision, and the role marketing
plays.
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D. Developing marketing strategy by deciding exactly which wants and whose
wants the organization will try to satisfy, and by developing appropriate
marketing activities to satisfy the desires of selected target markets.
E. Implementing the marketing strategy
The fundamental objectives of most businesses are survival, profits, and growth.
Marketing contributes directly to achieving these objectives.
1. Between one-fourth and one-third of the entire civilian work force in the
United States performs marketing activities.
2. Almost 50 cents of every dollar consumers spend goes to pay marketing costs
such as market research, product research and development, packaging,
transportation, storage, advertising, and sales-force expenses.