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MKT 100 -notes.docx

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Ryerson University
MKT 100
Laila Rohani

MKT 100 CHAPTER 1 What is Marketing? A set of business practices designed to plan for an present an organization’s products or services in ways that build effective customer relationships. Core Marketing Concepts - Needs, Wants, and Demands - Target Markets, Positioning and Segmentation - Offerings and Brands - Value and satisfaction - Marketing Channels - Supply Chains - Marketing Environment - Competition Satisfying Customer Needs and Wants - A need is when a person feels deprived of the basic necessities of life (i.e. food, clothing, shelter, or safety). - A want is the particular way in which the person chooses to fulfill his or her need, which is shaped by a person’s knowledge, culture, and personality. - The company must first identify the customers or market for its product or service. - Marketers divide the market into subgroups or segments of people to whom they are interested in marketing their products, services, or ideas. - Marketers build marketing strategies to meet the needs and wants of target market. Marketing Entails Value Exchange Read in textbook A Simple Marketing System Marketing Requires Product, Price, Place, and Promotion Decisions Marketing Environment - Demographic - Economic - Socio-Cultural - Natural Environment - Technological - Political-legal Marketing can be performed by both individuals and organizations B2B:Wholesaling is often Business to Business  B2C: All retailing is business to consumer selling  C2C: Swap meets, ebay, yard sales, etc Marketing helps create value Production- oriented era: most firms believed a good product would sell itself. Sales-oriented era: firms found an answer to overproduction by focusing on sales Market-oriented era: the focus was on what customers wanted. Value-based era: maintains the market orientation but also includes a focus on giving greater value that the competition Value-Based Marketing - Value reflects the relationship of benefits to costs. Value-based marketing means implementing a marketing strategy according to what customers value. Value-based marketing isn’t about low price, it is also about creating strong products and services. - A relational orientation is based on the philosophy that buyers and sellers should develop a long-term relationship for the benefit of both parties How Firms compete on the Basis of Value - Constantly changing consumer perceptions - Firms must constantly monitor the marketplace in order to create value Why is Marketing Important? - Expands Global Presence - Can be Entrepreneurial - Enriches Society - Makes life easier - Pervasive Across organizations  Pervasive across supply chains Marketing as Pervasive Across the Supply Chain - Each step in the supply chain involves marketing - All members in the chain must ultimately focus on creating value for their customer and the end user consumer. Marketing makes Life Easier and provides Employment opportunities. - Choices of products and services choices as well as information about those choices. - Employment in diverse fields such as research, sales, promotions, global marketing. Chapter 2: Marketing Strategy Product Orientation Vs. Market-Orientation - Product-Orientation: What kind of product the company offers ex: Columbia picture “We make movies” - Market-Orientation: How they market their product ex. Columbia Pictures “We entertain people” The Strategic Marketing Planning Process Step 1: Defining the Mission and/or Vision Good Mission Statements - Focus on limited number of goals - Stress major policies and values - Define major competitive spheres - Take a long-term view - Short, memorable, meaningful Step 2: Conduct a Situation Analysis Using SWOT Step 3: Identifying and Evaluating Opportunities Using STP Segmentation  Targeting  Positioning Ex. Hertz Segmentation Step 4: Implement Marketing Mix and Allocate Resources *read more in textbook Step 5: Evaluate Performance by Using Marketing Metrics. - A metric is a measuring system that quantifies a trend, dynamic, or characteristic - Performance objectives and metrics o Many factors contribute to a firms overall performance  Compare a firm’s performance over time or to competing firms  View the firm’s product or services as a portfolio - Financial performance metrics o Revenues, sales, profits o Compare with competition - Social responsibility performance metrics o Impact on environment, ability to diversify work force, energy conservation initiatives, human rights, etc. Boston’s Consulting Group’s Portfolio Analysis Growth Strategies - Market Penetration o Existing marketing mix o Existing customers - Market Development strategy o What can a company do to continue to grow in a difficult retail environment? - Product Development o New Product or service o Current target market - Diversification o A diversification strategy introduces a new product or service to a market segment that currently is not served. Sustainable Competitive Advantage - Customer Excellence o Retaining loyal customers o Customer Service - Operational Excellence o Efficient Operations Excellent supply chain management  Ex. Walmart have achieved competitive advantage utilizing operational excellence (controlling price) - Product Excellence o Achieving effective branding and positioning - Location Excellence o The three most important things in retailing are location, location, location Analyzing the Market Environment The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers Types of Environmental Factors - Macro - Micro - The Microenvironment - Succesfully leveraging Company Capabilities o Core Competency o Existing knowledge, facilities, patents, etc (applied to)  New markets, new products, etc. - Competitors o Identify and analyze direct and indirect competitors o Know strengths & weaknesses o Competitive Intelligence (CI) used to collect and synthesize info  Competitive intelligence is the art of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors, individuals, concepts, information, ideas or data needed to support executives and managers in making strategic decisions for an organization. - Corporate partners o Firms are part of alliances o Align with competitors, supplies, etc o Just in Time Delivery System (JIT) The Macroenvironmental Factors - Culture o Culture: The shared meanings, beliefs, morals, values, and customs of a group of people o Country Culture: Entails easy-to-spot visible nuances that are particular to a country (i.e. dress, symbols, ceremonies, language, colors and food preferences). o Regional Culture: The region in a particular country affects the way they react to different cultural rituals, product category.  i.e. Quebec residents less likely to buy prepared food and prefer IGA/Metro to No Frills/Food Basics - Demographics o Provides an easily understood snapshot of typical consumer in a specific target market o Generational Cohorts: Tweens, Gen Y, Gen X, Baby Boomers and Seniors  Tweens:  Who are not quite teenager but are not young children either  9-12 years old  Food, drinks, electronics (gaming consoles, games, digital music players, cellphones and computers)  Learn about new products from TV shows and friends  Speeders: First generation born after the emergence of internet, technology  Value conscious  Generation Y (Millennial)  This group represent the next baby boom (echo boom) between the age 13 and 32  21% of Canadian population  The older half of this group grew up in prosperous times but the recent downturn in the economy is likely to leave a mark  Technology and internet will impact this generation in much the same way as television affected the Depression generation  Respect for ethnic and cultural diversity  They like the ability to customize products to convey their personality.  Generation X  This smaller generation is consumers between the ages of 36 and 47  15% of Canadian population  Reached adulthood during difficult economic times  Was the first generation to be raised in dual- income households (Latch-key kids)  View friends as
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