MGMT 1000 Study Guide - Midterm Guide: Customer Relationship Management, Marketing Strategy, Organic Food

• School: University of Guelph
• Department: Management
• Course: MGMT 1000
• Professor: Kathleen Rodenburg

Document Summary

Mgmt 1000 midterm 2 review chapter 12 review notes. Chapter 12 understanding marketing and developing products. Customers buy products that offer the best value when it comes to meeting their needs and wants: financial resources force customers to limit their unlimited wants and desires. Value and benefits: value: a relative comparison of a product"s benefits versus its costs, benefits include not only the functions of the product, but also the emotional satisfaction associated with owning, experiencing, or possessing it. Every product has costs; its sale price, the expenditure of the buyer"s time, and the emotional cost of making a purchase decision. Satisfied customers perceive the benefits derived from the purchase to be greater than the costs. Important ratio for value: value = benefits / costs. The marketing strategies for firms focus on increasing value for customers. Marketing resources are deployed to add benefits and decrease costs of products to provide greater value.