MKTG1203 Study Guide - Final Guide: Retail, Critical Success Factor, Institute For Operations Research And The Management Sciences
Overview of Marketing
What is Marketing?
• Marketing → the activity, set of institutions and processes for creating,
capturing, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large
• Good marketing is not a random activity
• Requires thoughtful planning with an emphasis on the ethical
implications of any of those decisions on society in general
• Firms create a marketing plan → specifies marketing activities for a
specific period of time
o How the product will be conceived/designed
o How much should it cost
o Where and how it will be promoted
o How it will get to the consumer
Elements of Marketing:
• Marketing is about satisfying customer needs and wants
o Marketplace → world of trade
o Can be segmented into groups of people who are pertinent to an
organization for a particular reason
o Not practical to sell a company’s good/service to everyone
o Good marketers carefully seek out potential customers who have
both an interest in the product and an ability to buy it
• Marketing entails an exchange
o Exchange → the trade of things of value between the buyer and the
seller so that each is better off as a result
o Sellers provide goods/services, then communicate and facilitate
the delivery of their offering to consumers
o Buyers complete the exchange by giving money and information to
the seller
o Sellers use the information buyers provide to facilitate further
exchanges and solidify their relationship with them
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• Marketing requires product, price, place and promotion decisions
o 4 P’s → controllable set of decisions/activities that the firm uses to
respond to the wants of its target audience
o Product → creating value
▪ Fundamental purpose of marketing is to create value by
developing a variety of offerings (goods/services/ideas) to
satisfy customer needs
▪ Goods → any item you can physically touch
▪ Services → intangible customer benefits that are produced
by people or machines and cannot be separated from the
producer
▪ Ideas → concepts, opinions and philosophies → intellectual
concepts
o Price → capturing value
▪ Price → everything the buyer gives up in exchange for the
product → money, time, energy
▪ Marketers must determine the price of a product on the
basis of the potential buyer’s belief about its value
▪ Key to determining price is to figure out how much
customers are willing to pay so they are satisfied with the
product, and the seller achieves profit
o Place → delivering value
▪ Place → all the activities necessary to make the product
available to the right customer when the customer wants it
▪ Deals with marketing channel management
▪ MCM → set of approaches/techniques to ensure that
merchandise is produced/distributed in the right
quantities, to the right locations at the right time
▪ Without a strong MCM, merchandise isn’t available when
customers want it
o Promotion → communicating value
▪ Promotion → communication by a marketer that informs,
persuades and reminds potential buyers about a product to
influence their opinion and elicit a response
find more resources at oneclass.com
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