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Lecture

Marketing Notes


Department
Management (MGM)
Course Code
MGMA01H3
Professor
Mcmulkin

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of 2
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Marketing Notes
Marketing t Marketing is the sum of all the activities involved in the planning, pricing, promoting,
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Industrial Goods t are products used in business to make other products or to assist in business
operations. They can be raw materials, processed goods, or finished goods.
x Raw Materials t are materials that are unchanged and taken straight from nature. These include
logs, oil, fish, wheat, etc.
x Processed Goods- are raw materials that are processed so they can be used or as an
intermediate step into creating the finished goods. These include wood into wood pulp, pressing
apples into juice, etc. (these are usually sold to industries)
x Finished Goods t are products that no longer require processing and are used to make another
product or provide a service. These include tires, spark plugs, and fan belts sold to an
automobile manufacturer so they can become a car.
x Marketing of industrial finished goods requires minimal advertising and promotion but requires
a great deal of personal contact.
Consumer Goods t are non industrial products intended for personal use by the general public. Retail
stores sell consumer goods. For example, baseball bats.
Industrial/Consumer Services
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Marketing Concept- is the idea that a business or organization must consider both its potential
customers and its competitors in every important business decision. The focus of production,
accounting, research, shipping, warehousing, distribution, sales and even office management should be
on satisfying the customer and overcoming the competition.
Supply and Demand t Low supply & High demand =no marketing, however, High supply & Low
demand=marketing.
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Regional Organization - within a city (North Vancouver), a region (Northern Ontario), or a group of
provinces (Atlantic Provinces). This type of organization allows a company to respond quickly to regional
differences.
International Organization - {North America} has to analyze the buying habits and customs of the local
consumers.
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Distribution Management t ways to get the product or service delivered to the customer. (i.e. food
sampling).
Marketing Activities t Research (product), Product Development (Product), Pricing (Price), Packaging
(Product), Branding (product), Sales (Promotion), Physical Distribution (Place), Inventory Management
(Place), Storage (place), and Promotion (promotion).
Consumer Market - Refers to all those consumers who are or may become interested in a particular
product or service.
x Target Market - at a specific group of consumers that the marketer most wants to attract.
x Aggregate Market- Everybody is your target.
x Differentiated Market- Characterize the targets by income, location, personal values, gender or
age.
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money within a specific category.
Marketing Mix - is divided into 4 categories.
x Product Mix t research, product development, packaging, and branding. ~/XXZD[(}
McDonalds).
x Promotion Mix - consists of advertising, sales promotion, and publicity. (I.e. flyers).
x Pricing Mix t Dµl}u]}[]]vP(}]u]o}µX
x Place Mix - includes physical distribution, storage, inventory management, and channel
selection.
Marketing Strategies t is the method selected to carry out a carefully devised plan of action in order to
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formula for achieving them.
Brand Strategy- Communicates value of product or service to consumer. Develops and communicates
benefits of brand, minimize costs and encourages consumer to set up positive value equation.
Value Equation - Adds together all of the benefits of a product and subtracts the costs involved in
obtaining the product.
Total Benefits t Total cost.
Distribution Strategies - focus on best way to deliver the product of service to target markets.
x Push - sells products to retailers, importers, or wholesalers, and not to end-use consumers.
(Displays to the store for advertising).
x Pull - attempts to communicate to consumers directly rather than relying on retailers.
x Combination t a use of both push and pull strategies.
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