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Chapter 1 Lecture Notes
1. Marketing – An organizational function that consists of three components
a. Creating Value – Perceived benefits known as customer value. Also includes name
branding “Gordon Ramsay Burger.” Not necessarily knowing what is on the menu,
etc, just by the branding this can build value.
b. Communicating Value – Spreading the message, spreading the word.
c. Delivering Value – Supply Chain, Logistics. One of the main way’s marketers are able
to build value.
2. Needs Versus Wants
a. Needs – Finite (Shelter)
b. Wants – Infinite (Jewelry) – Limitless to the amount of things we want
i. Satisfying Needs & Wants
1. Cell Phone Example
a. Apple Vs Google Phone
i. Different products can satisfy different peoples
3. History of Marketing
a. Production Orientation
i. Prior to the 1920s
b. Sales Orientation
i. Especially important during Great Depression
ii. Continued to the end of WWII
iii. Concerned with satisfying customers wants
c. Marketing Concept
i. Era of expansion beginning in the 1950’s
ii. Customer orientation
iii. Relationship marketing
4. The Marketing Mix: The Four Ps – Centered in the concept of the customer. Need to
consider what the customer wants and what the customer needs.
i. What is my product?
ii. What features does it have?
iii. How long has my product existed?
b. Price – Broken up into retail/supply chain & logistics management
i. At what price should I sell my product?
ii. Should I offer customers a discount
iii. Should I price my product differently in another country?
i. What suppliers should I use?
ii. How should I deliver my products to customers?
iii. How much inventory should I hold?
i. Where should I advertise?
ii. Should I use sales promotion tools like coupons?
iii. Do I need to hire salespeople?
iv. How do I want to public to view my product?
5. Trends Affecting Marketing