Strategic Planning for Competitive Advantage

BOA Marketing Unit 1 Chapter 1 An Study Guide By Dinah

What does marketing do: Marketing entails processes that focus on delivering value and benefits to customers, not just selling goods, services, and/or ideas. It uses communication, distribution, and pricing strategies to provide customers and other stakeholders with the goods, services, ideas, values, and benefits they desire when and where they want them. It involves building long-term, mutually rewarding relationships when these benefit all parties concerned. Marketing also entails an understanding that organizations have many connected stakeholder "partners," including employees, suppliers, stockholders, distributors, and society at large.

1. Research shows that companies that reward employees with incentives and recognition on a consistent basis are those that perform best.

* The motto of Wegmans Food Markets, the Rochester-based grocery chain that has been ranked by Fortunemagazine as the best company to work for in America, states, "Employees first, customers second." The rationale is that if employees are happy, customers will be too.

What other marketing type: One desired outcome of marketing is an exchange ; people giving up something to receive something they would rather have. Normally, we think of money as the medium of exchange. We "give up" money to "get" the goods and services we want. Exchange does not require money, however. Two persons may barter or trade such items as baseball cards or oil paintings. An exchange can take place only if the following five conditions exist:

1. There must be at least two parties.

2. Each party has something that might be of value to the other party.

3. Each party is capable of communication and delivery.

4. Each party is free to accept or reject the exchange offer.

5. Each party believes it is appropriate or desirable to deal with the other party.

* Closing the deal will be the...