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MKT 100 Study Guide - Garage Sale, Voice Of The Customer, Consumerism


Department
Marketing
Course Code
MKT 100
Professor
Thomas Barbiero

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What is marketing?
Marketing is a set of internal business practices designed to plan for and present an
organization’s products or services offers in ways that build effective long-term customer
relationships. (Pull and Stay)
The fundamental purpose of marketing is to create value for both the firm and customer.
Value is in essence what you get for what you give up
Marketing 6 core aspects
1. Satisfying Customer Needs and Wants
2. Marketing Entails Exchange
3. Marketing Requires Product, Price, Place, and Promotion Decisions
4. Marketing Can Be Performed by Both Individuals and Organizations
The computer you recently purchased from Best Buy (B to C) was purchased by
Best Buy from the manufacturer (B to B). If you sell your computer to your
roommate, you have engaged in C to C selling. Thus, the same product might be a
part of all three types of marketing.
Wholesaling- business to business
Retailing- business to consumer
Swapping, ebay garage sale- consumer to consumer
5. Marketing Occurs in Many Settings
6. Marketing Helps Create Value
Value Based Marketing
Firms must offer customers something in excess of that being offered by the
competitors and in excess of the price. I.e. more value
Firms must understand how each aspect of their product/service creates value for
customers. And how do you know if you exceed their expectations?
The production-oriented era took place around the turn of the 20th century, when most
firms believed a good product would sell itself.
In the sales-oriented era, production and distribution techniques improved and supply
outpaced demand. Firms found an answer to overproduction by focusing on sales.
In the market-oriented era, the focus was on what customers wanted.
Now, we are in the value-based era, which maintains the market orientation but also
includes a focus on giving greater value than the competition.
1. Value reflects the relationship of benefits to costs. Value-based marketing means
implementing a marketing strategy according to what customers value. Value-
based marketing isn’t just about low price, it is also about creating strong products
and services.
2. A relational orientation is based on the philosophy that buyers and sellers should
develop a long-term relationship for the benefit of both parties.
ProductGoods, Services, Ideas
Priceeverything the buyer gives up in exchange for the product (money, time, energy)
PlaceAll activities necessary to get the product to the right customer when that
customer wants it. Supply chain management is the field that examines these activities.
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PromotionThe communication activities of marketing. Used to inform, persuade and
remind potential buyers.Used to influence their opinions or elicit a response.
How Do Firms Compete on the Basis of Value?
Marketers must keep a vigilant eye on the marketplace so they can adjust their offerings
to meet customer needs and keep ahead of the competition.
Build relationships with customers
A transactional orientation regards the buyerseller relationship as a series of individual
transactions.
A relational orientation suggests buyers and sellers should develop long-term
relationships.
Customer relationship management (CRM) is a business philosophy and set of strategies,
programs, and systems that focus on identifying and building loyalty among the firm’s
most valued customers
Buy-buy consumerism ―Too much stuff‖
Chapter 2
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