ADMS 2200 Lecture Notes - Lecture 8: Nelly Furtado, Marketing Myopia, Marketing
19 Oct 2016
School
Department
Course
Professor
Marketing Notes
Chapter 1
Caeat Emptor: buyer beare
Utility: want-satisfying power of a good or service
Four types of utility:
Type
Description
Examples
Organizational function
responsible
Form
Conversion of raw
materials and components
into finished goods and
services
Dinner at Swiss Chalet,
iPod, shirt
Production
Time
Availability of goods and
services when consumers
want them
Dental appointment,
Canada post, digital
photographs
Marketing
Place
Availability of goods or
services at convenient
locations
Onsite day care, banks in
stores,
Marketing
Ownership
Ability to transfer title to
goods or services from
marketer to buyer
Retail sales (in exchange
for currency or credit)
Marketing
How does an organization create a customer?
1. Identify needs In the marketplace
2. Find out which needs the organization can profitably serve
3. Develop goods or services to convert potential buyers into customers
Marketing: an organizational function and a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the organization and its stakeholders
Global Marketplace
1. International agreements are being negotiated in attempts to expand trade among nations
2. The growth of electronic commerce and related computer technologies is bringing previously isolated countries
into the marketplace for buyers and sellers around the globe
3. The itedepedee of the old’s eooies is a ealit eause o atio podues all the a ateials and
finished goods its citizens need or consumers all its output without exporting some to other countries. I.e. the
euro is now a common currency to facilitate trade among the nations of the European Union and the creation of
trade agreements such as NAFTA and WTO
Exchange process: activity in which two or more parties give something of value to each other to satisfy perceived needs
(good for service, good for money, etc.)
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Four Eras of Marketing History:
1. The Production Era → A good podut ill sell itself. Put pessue i good ualit podut ad Production
Orientation: business philosophy stressing efficiency in producing a quality product, with the attitude toward
marketing that a good product will sell itself
2. The Sales Era → Sales Orientation: the belief that consumers will resist purchasing nonessential goods and
services, with the attitude toward marketing that only creative advertising and personal selling can overcome
osues’ esistae ad pesuade the to u
3. Marketing Era: began after the World Wars and the Great Depression. Marketing was in demand because less
people were willing to purchase items
“eller’s Market: one in which there were more buyers for fewer goods and services
Buyer’s Market: one in which there were more goods and services that people willing to buy them
Consumer Orientation: business philosophy incorporating the marketing concept that emphasizes first
determining unmet consumer needs and then designing a system for satisfying them
Marketing Concept: company wife consumer orientation with the objective of achieving long-run success
4. The Relationship Era: long term, value-added relationships developed over time with customers and suppliers
for mutual benefit
QR Codes: Quik Respose odes is a type of barcode that can be scanned using your smart phone, which provides
up to date background information about the product
Marketing Myopia: aageet’s failue to eogize the sope of its usiess. This ous he aages ae
more product oriented as opposed to customer-oriented. (I.E. Apple working on solar powered devices so battery
life can be longer + environmentally friendly)
Avoiding Myopia: Though ottos that oet people. I.e. Nokia’s oetig people, Miheli a ette a
foad, et.
Characteristics of Not-For-Profit Marketing:
• Bottom Line: reference to overall company profitability
• Want to make enough money to pay back shareholders and employees, as well as their causes
• They want to find the most cost efficient way of doing things
• Promotional products such as PINK products that donate money to breast cancer
• Hae to deal ith thei liets ad thei sposos ad ot just ustoes like fo-profit organizations
Non-traditional Marketing
• Person Marketing: designed to cultivate the attention and preference of a target market toward a person (Steve
Nash, Nelly Furtado)
• Place Marketing: designed to attract visitors to a particular area (Saskatchewan, Manitoba)
• Cause Marketing: marketing of a social issue, cause, or idea to a aket (Fieds do’t let fieds die duk, e
a mentor, reading is fundamental)
• Event Marketing
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find more resources at oneclass.com
• Organization Marketing: marketing efforts of mutual-benefit organizations, service organizations, and
government organizations that seek to influence others to accept their goals, receive their services or contribute
them in some way (United way, red cross)
Transaction-Based Marketing: buyer and seller exchanges characterized by limited communications and little or no
ongoing relationships between the parties
Mobile Marketing: marketing messages transmitted via wireless technology
Interactive Marketing: buyer-seller communications in which the customer controls the amount and type of
information received from a market through such channels as the Internet and virtual reality Kiosks (mainly on social
networking sites)
Social Marketing: the use of online social media as a communications channel for marketing messages
Buzz Marketing: word of mouth messages that bridge the gap between a company and its products
Strategic Alliances: partnerships in which two or more companies combine resources and capital to create
competitive advantages in a new market
Exchange functions: buying and selling
8 Universal Marketing Functions:
1. Buying: ensuring product offerings are available in sufficient quantities to meet customer demands
2. Selling: using advertising, personal selling and sales promotion to match products to customer needs
3. Transporting: moving products from their point of production to locations for purchasers
4. Storing: Warehousing products until needed for sale
5. Standardizing and Grading: ensuring product offerings meet quality and quantity controls of size, weight and
other variables
6. Financing: Providing credit for channel members and consumers
7. Risk Taking: dealing with uncertainty about future customer purchases
8. Securing Marketing Information: collecting information about consumers, competitors, and channel members
for use in marketing decisions
Sustainable Products: products that can be produced, used, and disposed of with minimal impact on the environment
Chapter 2
Planning: process of anticipating future events and conditions and of determining the best way to achieve organizational
goals
Marketing Planning: implementing planning activities devoted to achieving marketing objectives (product lines, pricing
decisions, selection of appropriate distributed channels, etc.)
Virtual Conferences: teleconferences with computer interfaces
Strategic Planning: process of deteiig ad ogaizatio’s pia ojeties ad adoptig ouses of atio that ill
achieve these objectives
Tactical Planning: planning that guides the implementation of activities specified in the strategic plan (usually focus on
shorter term action)
Management Level
Types of Planning
Examples
Top Management
Board of directors, CEO,
divisional vice presidents
Strategic Planning
Organization-wide
objectives, fundamental
strategies, long term plans,
total budget
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find more resources at oneclass.com
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ADMS 2200 Full Course Notes
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Document Summary
Utility: want-satisfying power of a good or service. Retail sales (in exchange for currency or credit) Conversion of raw materials and components into finished goods and services. Availability of goods and services when consumers want them. Availability of goods or services at convenient locations. Ability to transfer title to goods or services from marketer to buyer. Identify needs in the marketplace: find out which needs the organization can profitably serve, develop goods or services to convert potential buyers into customers. Marketing: an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. I. e. the euro is now a common currency to facilitate trade among the nations of the european union and the creation of trade agreements such as nafta and wto.
