BUS 348 Study Guide - Summer 2018, Comprehensive Midterm Notes - Marketing Mix, Internet, Walmart
12 Oct 2018
School
Department
Course
Professor
BUS 348
MIDTERM EXAM
STUDY GUIDE
Fall 2018
BUS 348
Chapter 1 Lecture Notes
Welcome to the World of Marketing: Create and Deliver Value
• The Value of Marketing
o Marketing is 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.
o Marketing seeks to deliver value to everyone who is affected by a transaction.
o For example, marketing creates value for society when they help to promote worthy causes.
• Marketing Meets Needs
o Marketing meets the needs of diverse stakeholders
• Stakeholders are buyers, sellers, investors, community residents, citizens, consumers
• Consumers are the ultimate users of a good or service
• Products and services are sold to satisfy both consumers' and marketers' needs - thus
consumers need items that provide value while marketers need to earn profits. While
the "customer is king" mentality is a good way to train your employees to think, it
must be implemented successfully and in a manner that allows the business to earn a
profit.
o Marketing Concept
• Identifying and satisfying consumer needs to ensure long-term profitability
• Firms that embrace the marketing concept constantly seek information about current
or changing needs from current and potential customers using company initiated
research efforts such as focus groups and survey research.
• Many firms also employ individuals who review blogs, newsgroup postings, and
Internet-based complaint websites, in addition to analyzing feedback from consumers
received via email, mail, or phone.
• Needs, Wants, and Benefits
o Needs - can be physical or psychological
• Needs are the difference between a consumer's actual state and some sort of ideal or
desired state.
o Features - a distinctive characteristic of a good or service
o Benefits - outcome sought by consumer that satisfies need or want and motivates buying
behavior
• Marketers try to motivate action (like purchases) that satisfy needs by providing
consumers with products that offer the benefits (need satisfying characteristics) they
seek.
• Benefits can often be a source of competitive advantage.
• "What is the product going to offer me?"
o Want - desire to satisfy needs in specific ways
• Wants relate to specific brands or types of products, and are often socially or
culturally influenced.
• Wants aren't always affordable or realistic.
o Demand - customers' desires for products coupled with the resources needed to obtain
them
• Demand includes only those consumers who have both the buying power and desire
(want) for a particular brand.
• What Can Be Marketed?
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o Product - any good, service, or idea
• Consumer goods/services
▪ Goods are items that are purchased for personal or family use.
▪ Services are intangible products that we pay for and use but never own.
• Business-to-business (B2B) goods/services
▪ Involves industrial goods such as raw materials, which are converted into goods
for sale or component parts that are integrated into manufactured goods.
▪ May also include finished goods that are distributed for resale, or finished
goods/supplies that are used in operating a business.
▪ The majority of e-commerce occurs in the B2B arena.
• Not-for-profit marketing
▪ Museums, zoos, churches, and organizations such as the YMCA are considered
not-for-profit entities, as the fees charged are used for offset costs rather than
to make a profit.
• Idea, place, and people marketing
▪ Anti-smoking and anti-drinking and driving campaigns promote ideas
▪ Ads for Disney World or the Bahamas market places
▪ Ads for people may promote political candidates, celebrities, or microcelebrities
(someone who is known by hundreds or thousands of Facebook, Twitters, or
MySpace followers)
• 15 Minutes of Fame
o People "package" themselves with their social media profiles
o A microcelebrity is someone who is a celebrity for a very short period of time or someone
who may not be known by millions of people, but may certainly have thousands of
followers.
• Marketing Creates Utility
o Utility - the sum of the benefits we receive from using a product/service
• Form utility - benefit provided by marketing when raw materials are transformed into
finished goods; e.g. oats transformed into oatmeal; rubber into tires
▪ Relates to product portion of marketing mix
• Place utility - benefit provided when marketing makes goods available where
customers want them; e.g. many things can be purchased over the Internet
▪ Relates to distribution/place portion of marketing mix
• Time utility - benefit provided by marketing when products are stored (or inventoried)
until they are needed. Stores inventory products, as do wholesalers/distributors, and
the manufacturers themselves.
▪ Also relates to distribution/place portion of marketing mix
• Possession utility - benefit marketing provides by allowing the consumer to own, use,
and enjoy the product. Promotional plans that offered deferred payment or even
those which feature a sale may be exactly what the consumer needs to own a
product. Retail stores and websites offer access to a bewildering array of products.
• Place Utility
o Rent the Runway is a new service that rents high-end dresses from fashion designers and
rents them at one-tenth of the cost of buying the same garment in store.
o Dresses are delivered directly to the renter's address, and the customer returns the dress in
a prepaid envelope, providing a great place utility.
o To further entice customers, women are able to rent the dress for four nights, and the rental
cost includes the cost of dry cleaning enhancing the customer's convenience.
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