BUS203: Principles of Marketing (Saylor) Exam with complete Solutions 100% Verified

BUS203: Principles of Marketing (Saylor) Exam with complete Solutions 100% Verified What are the four components of marketing? creating, communicating, delivering, exchanging What is the definition of marketing? The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Creating The process of collaborating with suppliers and customers to create offerings that have value. Communicating Broadly, describing those offerings, as well as learning from customers. Delivering Getting those offerings to the consumer in a way that optimizes value. Exchanging Trading value for those offerings. Four activities (or Ps), or components, of marketing Product - Goods and services (creating offerings). Promotion - Communication. Place - Getting the product to a point at which the customer can purchase it (delivering). Price - The monetary amount charged for the product (exchanging). Another Name for the 4 Ps Introduced in the early 1950s, these were called the marketing mix, meaning that a marketing plan is a mix of these four components. Difference between 4 Ps and 4 Activities of marketing The Ps are nouns. As such, these words fail to capture all the activities of marketing. value the benefits buyers receive that meet their needs. In other words, what the customer gets by purchasing and consuming a company's offering. profitable the consumer's personal value equation is positive personal value equation value = benefits received - [price + hassle] hassle the time and effort the consumer puts into the shopping process. The marketing concept a philosophy underlying all that marketers do, requires that marketers seek to satisfy customer wants and needs. market oriented Firms operating with the marketing concept philosophy production orientation Beginning with the Industrial Revolution in the late 1800s, companies believed that the best way to compete was by reducing production costs. Example of production orientation Henry Ford's Model A automobile, the first product of his production line innovation. Ford's production line made the automobile cheap and affordable for just about everyone. Production Era lasted until the 1920s, when production-capacity growth began to outpace demand growth and new strategies were called for. There are, however, companies that still focus on production as the way to compete. selling orientation From the 1920s until after World War II, companies believed it was necessary to push their products by heavily emphasizing advertising and selling. Consumers during the Great Depression and World War II did not have as much money, so the competition for their available dollars was stiff. Selling Era The result of the selling orientation. Companies like the Fuller Brush Company and Hoover Vacuum began selling door-to-door and the vacuum-cleaner salesman (they were always men) was created. Just as with production, some companies still operate with a push focus. Product Orientation focus on product innovation Marketing Era After WWII, businesses began to develop brands to help consumers understand the differences among products value era a time when companies emphasize creating value for customers. one-to-one era meaning that the way to compete is to build relationships with customers one at a time and seek to serve each customer's needs individually. Modern business era value era or one-to-one era, or service dominant logic era Service Dominant Logic An approach to business that recognizes that customers do not distinguish between the tangible and the intangible aspects of a good or service, but rather see a product in terms of its total value. offering The entire bundle consisting of the tangible good, the intangible service, and the price supply chain includes a number of organizations and functions that mine, make, assemble, or deliver materials and products from a manufacturer to consumers. The actual group of organizations can vary greatly from industry to industry, and include wholesalers, transportation companies, and retailers. Logistics the actual transportation and storage of materials and products, is the primary component of supply chain management, but there are other aspects of supply chain management that we will discuss later. exchange the actual transaction social marketing Marketing conducted in an effort to achieve certain social objectives can be done by government agencies, nonprofit institutions, religious organizations, and others. What types of companies engage in marketing? For-profit organizations, nonprofit organizations, government entities, and individuals What is the difference between nonprofit marketing and social marketing? The latter uses marketing tactics to try and change society without promoting a product or service, but it still has a marketing plan. What does marketing offer individual people? Career opportunities Marketing Research Personnel in marketing research are responsible for studying markets and customers in order to understand what strategies or tactics might work best for firms. Merchandising In retailing, merchandisers are res