What is Marketing? What is marketing? The common misconception of marketing is that it is merely a collection of communication tools businesses use once products have been developed. Chances are at this stage, you might also think of it as simply advertising, sales, events, zany PR stunts, and of course, social media. Post-secondary business programs try to dispel this misunderstanding. Courses like this one will walk you through a rigorous breakdown of the role and function of marketing beginning with the concept of value, finding out what people need, then making products to satisfy those needs. We'll then go through a journey addressing things like how we discover what people want, who these people are, and how we reach them. We talk about how marketing takes those wants wanted by those people and flushes out specific product ideas eventually developing something either tangible like an automobile, or something intangible, like automobile repair, to satisfy those wants. Marketing's next job is to calculate how much it will cost to build such products and then make sure they could be provided to those who want them at a price they can afford. But also at a price that delivers profit to the company who makes them. Profit comes from marketing. Accounting only calculates profit. After establishing price, marketing must then determine how and where those people who want the product will actually find it and make the purchase. This function of distribution following wildly changing buying habits of people from stores to websites is marketing. Supply chain and logistics only executes the maps marketing draws out. Finally, yes. The products that have been made for people who want them priced according to what people are willing to pay, placed in locations online or elsewhere people can purchase them, now it's true. Marketing puts its promotional hat on and complete the transactions through myriad strategies aimed at informing, persuading, and reminding people that they desire these products in the first place. Yet, somehow, despite everything touched on in these last couple of minutes, most of the world sees marketing as communicating and most business students opt in or out of marketing careers based upon whether or not they feel they are creative. This is not a perception that can be changed without undoing the mindset of business. For now though, what you should really consider is that marketing is where business ideas, business success and failures begin and end. Marketing is the intersection between human activities and the need to discovery within those activities and the delivery of solutions to those needs. In other words, marketing is parallel with life and that's what marketing is. - What is the goal of marketing? Meeting and understanding a customer's needs - Which term refers to a state of being where we desire something that we do not possess but yearn to acquire? Needs - In the evolution of marketing, how many distinct stages have characterized the development of the discipline in the 20th and early 21st centuries? - The current state in which marketing finds itself is heavily influenced by which modern business concept? 5 Corporate Social Responsibility - Which concept is described as customer's evaluation of a good or service in terms of whether that good or service has met the customer's needs and expectations? customer satisfaction - CRM is a term that is used to describe certain aspects of building customer relationships and to represent the idea of tracking customers through a database via customer relationships. Its more current incarnation is a focus more on dissecting and understanding customer interactions over time. Which term refers to this newer version of CRM? Customer Relationship Management - What is the relationship between benefits and the sacrifice necessary to obtain those benefits called? customer value - Which item listed below is not part of a company's marketing mix? Partnership - How do marketers that are interested in increasing customer value conduct their business? Earn trust through loyalty programs - In marketing it is important to find the right customer on which to focus. Which term refers to this process of determining needs and then finding groups with similar needs? market segmentation - To be successful in marketing, it is important to combine which two factors that relate to learning? skills, abilities - Which term refers to a set of activities that develop an offering in order to satisfy a customer need? Marketing The following is the opening paragraph of Johnson & Johnson's credo, which they have published in place of a mission statement. Our Credo We believe our first responsibility is to the doctors, nurses, and patients, to mothers and fathers, and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. - The opening paragraph of the credo shows that Johnson & Johnson considers business customers, consumers, and suppliers to be among their stakeholders. True - In this paragraph, Johnson & Johnson discusses the marketing of ideas as well as goods. False - Which orientation is a philosophy that focuses on the internal capabilities of a firm rather than on the desires and needs of the marketplace? production orientation - To a sales-oriented firm, what is marketing? convincing people to buy things and collecting money - Omega Inc. offers a wide range of home appliances. The company puts a lot of effort into promoting its products aggressively. Omega employs a team that is specifically assigned with the task of ensuring that a large number of products are sold. In this scenario, Omega Inc. is most likely to be a ________ firm. sales-oriented - Organizations using a marketing concept orientation define products in terms of Satisfying customer needs and wants - When describing the Walt Disney Company, Making people happy is consistent with the customer centric definition of marketing - Select each company's product-oriented statement of business and customer-oriented statement of business to the description. - Based on each scenario, choose the correct marketing management orientation. WoodCurve is a small Etsy shop specializing in fanciful wood furniture, such as a bookshelf shaped like an inchworm and a bookshelf that looks like four teacups stacked inside one another. Scott makes each bookshelf and lists it on Etsy. Product orientation - Nordstrom's offers a similar range of clothing as other upscale department stores but also meets and greets every customer to find out what they are shopping for and their budget. The sales associate then pulls clothing based on the customer's complexion and style until they find what they are looking for. Marketing Company Orientation - Humana supplies individual health insurance. Its huge sales team is paid on commission for each policy sold. If quotas aren't met, employees have to face remedial action. Sales Orientation - Some of the elements that differentiate a marketing company orientation from a sales orientation are Customer value, relationship marketing, customer satisfaction and empowerment N7 is the name of Nike's fund for Native American and Aboriginal communities, which is inspired by the Native American wisdom of the Seven Generations: "In every deliberation we must consider the impact of our decisions on the seventh generation." Nike's description of the N7 Fund and the Air Native N7 reads, "Nike N7 is our commitment to bring sport and all of its benefits to Native American and Aboriginal communities in the U.S.A. and Canada. Through activity, competition, and play you can unleash the power of your generation…. When one generation realizes its potential, future generations are much stronger for it." - Nike believes that offering shoes and products built specifically for Native American and Aboriginal builds will give youths an opportunity to change their generations. This suggests Nike has A societal marketing orientation - Based on each description, choose the characteristic determining the difference between sales and marketing company orientations. The organizations focus - Mission statements based on goods and services versus mission statements in terms of benefits to the customer. The firms business - Generating sales through intensive promotional activities versus generating sales through developing a marketing mix. The tools used to achieve the organizations goals - Products directed at the "average customer" versus products directed at specific groups of people. Those to whom the product is directed - Customer value Is built on truth, commitment to service and products that perform Gil has been a Rogers customer for the past 10 years. When asked to switch to another phone service company, Gill replies, "Every time I've called with a question, Rogers has responded promptly and courteously. Every issue has been resolved quickly and I have never had a problem with their service. I wouldn't dream of switching to anyone else." - Gil's reasons for being unwilling to switch to another phone company show that Rogers is successful at Relationship marketing - In the context of relationship marketing, which statement best describes employees who are empowered? They develop ownership attitudes. Choose the best reason for the person in the following scenarios to study marketing and answer the questions that follow. - Since she was a little girl, Wanda has been interested in how television shows get on the air. Now she's in college and wants to learn everything about TV production, from initial show idea to broadcast. Promoting TV shows to target audiences and selling advertising within TV shows are both important parts of television show production. - Maggie is a great student who is very motivated. She isn't sure what she's motivated to do—she just knows that she'll do anything! Marketing has a growing set of career fields and could give Maggie the leg up she needs. - If (There must be at least two parties) is not met, the other conditions can still exist. False - In what order do you determine if the conditions of exchange are met? There must be at least two parties Each party has something of value to the other party Each party must be capable of communication and delivery Each party is free to accept or reject the offer Each party believes it is appropriate to deal with the other party - Martin needs a new pair of sneakers but is strapped for cash, so he looks on Kijiji for some fresh kicks. He sees some great Pumas for $25. Martin emails the poster, but never hears back. Which conditions of exchange were met? There must be at least two parties and each party has something of value to the other party - Which marketing orientation uses aggressive promotion techniques to increase sales? Sales orientation - Which orientation would motivate a company to create a points program for repeat customers? Relationship marketing orientation - Which marketing orientation aims to achieve long-term organizational goals by satisfying customer needs? Marketing company orientation - Customer Relationship Management is the execution rather than the planning which means taking something the marketer knows to be true about their client and using it in a specific way. What does the marketer transform his/her knowledge into? something the customer can use - Customer Relationship Marketing requires the marketer to understand the needs of the customer today and in the future. True “What can we make or do best?” represents the production marketing management philosophy. “How can we sell more aggressively?” represents the sales marketing management philosophy. “What do customers want and need?” represents the market marketing management philosophy. “What do customers want and need, and how can we benefit society?” represents the societal marketing management philosophy.
