Class Notes (921,692)
CA (542,563)
UTSG (45,898)
Rotman Commerce (1,107)
RSM100Y1 (287)
Lecture

chapter 15 notes

8 Pages
110 Views

Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Szlachta

This preview shows pages 1-3. Sign up to view the full 8 pages of the document.
What is Marketing?
1. Marketing: planning and executing the development, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy both buyers'
and sellers' objectives.
2. Consumer needs and wants drive marketing.
3. Marketing Concept: the idea that the whole firm is directed toward serving the
present and potential customers at a profit.
oA firm must get to know what the consumers want.
Providing Value and Satisfaction
4. Consumers want to buy the product that would offer the best value.
5. Value: relative comparison of a product's benefits vs. its costs.
oBenefits include function, emotional satisfaction.
oCosts include sales price, buyers time, and emotional cost of purchasing a
product.
Value= (Benefits) / (Costs)
6. Utility: ability of a product to satisfy a human want or need. (4 kinds of utility)
oTime Utility: offering products when consumers want them.
Xmas lights in December
oPlace Utility: making a product available where customers can conveniently
purchase them.
A store opens up a Christmas department.
oOwnership Utility: conveniently transferring ownership from store to
consumer.
oForm Utility: by making products available in the first place, turning raw
materials into finished ornaments.
Goods, Services, and Ideas
7. Consumer Goods: products purchased by individuals for their personal use.
oEx. Cars, perfume, medicine.
8. Industrial Goods: products purchased by companies to use directly or indirectly to
produce other products.
oEx. Surgical instruments or earth movers.
9. Services: intangible products, such as time, expertise, or an activity that can be
purchased.
oEx. Insurance companies, airlines, health clinics
10. Marketers also try to promote ideas
oDont drink and drive
11. Relationship Marketing: a type of marketing that emphasizes lasting
relationships with customers and suppliers.
oStrong relationships can create customer loyalty and strong economic/social
ties
www.notesolution.com
The Marketing Environment
12. External environment: outside factors that influence marketing programs by
posing opportunities or threats.
o5 environmental factors
1
Political and
Legal
Environment
oLegislation and laws can greatly influence the
destiny of industries.
oMarketing managers will sometimes influence the
outcomes of new laws.
2Social an
Cultural
Environment
oValues, beliefs and ideas of society are constantly
changing.
oSuccessful marketers will answer to the new
demands
3Technological
Environment
oNew products are constantly replacing old ones.
4Economic
Environment
oDetermine the spending patterns by consumers,
businesses, and governments.
Influence a company's plan to product offer,
pricing, and promotional strategies.
oMust also monitor economic cycles
Consumers spend more as economic
conditions improve and spend less during a recession.
oMust be aware of global economy if the company has
products overseas.
5Competitive
Environment
oMarketers convince consumers to purchase their
products over the competitors'.
oSubstitute Products: a product that is dissimilar
from those of competitors but that can fulfill the same need.
Ex. Fitness program vs diet
oBrand Competition: competitive marketing that
appeals to consumer perceptions of similar products.
Ex. Large accounting firms: KPMG vs. Ernst
and Young
oInternational Competition: competitive
marketing of domestic against foreign products.
Ex. Air Canada vs. Southwest
13. Marketing Mangers: managers responsible for planning and implementing all the
marketing-mix activities that result in the transfer of goods or services to customers.
14. Marketing Plan: a detailed strategy for gearing the marketing mix to meet
consumer needs and wants.
15. Marketing begins when a company identifies a consumer need and develops a
product to meet it.
www.notesolution.com
16. Marketing Mix: the combination of product, pricing, promotion, and distribution
strategies used in marketing a product. (4 P's of Marketing)
17. Look for Opportunities (Uncontrollable 3Cs)
oConsumer
oCompetition
oCompany
18. Product: a good, service, or idea that satisfies a buyer's needs and demands.
oA challenge because there is always changing technology, consumer needs.
oMust change product constantly to keep up with trends
19. Product Differentiation: the creation of a product or product image that differs
enough from existing products to attract consumers.
20. Price: the part of the marketing mix concerned with choosing the appropriate price
for a product to meet the firm's profit objectives and buyer's purchasing objectives.
oSeller must be able to sell a product to cover a firm's cost of producing and
marketing, but the price must be reasonable so that the consumer doesnt turn to
a competitor.
21. Place (Distribution): the part of the marketing mix concerned with getting
products from the producer to the buyer, including physical transportation and choice of
sales outlets.
22. Promotion: techniques for communicating information about products.
oAdvertising, personal selling, sales promotions, and public relationships.
Target Marketing and Market Segmentation
23. Companies cannot satisfy everyone because people have different tastes, interests,
goals, lifestyles, etc.
24. Target Markets: any group of people who have similar wants and needs and may be
expected to show interest in the same products.
25. Market Segmentation: dividing a market into categories according to traits
customers have in common.
oGeographic Variables: geographic units that may be considered in
segmentation strategy.
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
What is Marketing? 1. Marketing: planning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy both buyers and sellers objectives. 2. Consumer needs and wants drive marketing. 3. Marketing Concept: the idea that the whole firm is directed toward serving the present and potential customers at a profit. o A firm must get to know what the consumers want. Providing Value and Satisfaction 4. Consumers want to buy the product that would offer the best value. 5. Value: relative comparison of a products benefits vs. its costs. o Benefits include function, emotional satisfaction. o Costs include sales price, buyers time, and emotional cost of purchasing a product. Value= (Benefits) (Costs) 6. Utility: ability of a product to satisfy a human want or need. (4 kinds of utility) o Time Utility: offering products when consumers want them. Xmas lights in December o Place Utility: making a product available where customers can conveniently purchase them. A store opens up a Christmas department. o Ownership Utility: conveniently transferring ownership from store to consumer. o Form Utility: by making products available in the first place, turning raw materials into finished ornaments. Goods, Services, and Ideas 7. Consumer Goods: products purchased by individuals for their personal use. o Ex. Cars, perfume, medicine. 8. Industrial Goods: products purchased by companies to use directly or indirectly to produce other products. o Ex. Surgical instruments or earth movers. 9. Services: intangible products, such as time, expertise, or an activity that can be purchased. o Ex. Insurance companies, airlines, health clinics 10.Marketers also try to promote ideas o Dont drink and drive 11.Relationship Marketing: a type of marketing that emphasizes lasting relationships with customers and suppliers. o Strong relationships can create customer loyalty and strong economicsocial ties www.notesolution.com
More Less
Unlock Document


Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit