Midterm 2 (modules & text).doc

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Accounting & Financial Management
AFM 131
Robert Sproule

AFM NOTES Week 5: Module 7, Chapter 14 Module 7: Marketing - marketing is important to the existence of any business - Impact of WWII and families on marketing - Era of self sufficiency -> era of specializing in the production of a good/service -> resulted in more output that could be personally consumed -> develop an ability to sell goods - WWII developed a huge capacity to produce good s and services that supported the war - Families had a huge impact on demographics and consumer spending - Both created an environment where there was a capacity to produce and a consumer base that knew what they wanted and had the ability to pay Marketing Concept: Identify and satisfy customer needs -> company wide orientation to serve customers -> earn a profit allowing more needs to be satisfied Evolution of marketing (sliced bread video) - what did seth say was the main contributer to the current problem facing mass mar- kets? - Too many choices, too little time - Describe people who care - People with a problem - People who are innovators - What does it men to come up with the OTAKU for your bike - Come up with something remarkable that would encourage a user of your prod- uct to tell their friends Rise of the amateur professional - Why does Charles believe users or consumers are the innovators in terms of new products or services? - Incentive to innovate - Knowledgable - More user/consumer involvement - How could this approach be implemented in your business? - Staff requirements - Sponsorships - Advisory board Dewing it alone Social media usage - What would you have them do? - What features would we consider adding to the bikes? - Should we up-date the current bike model? - Should we consider other bike lines? Marketing: What is a product - What could our company do to convince retailers to buy? - Informative and responsive staff - Sales and bike repair training for staff - Provision of a test facility - Providing marketers with information - What types of segmentation is most appropriate for the end consumer? - Demographic segmentation - Psychographic segmentation - Behavioral segmentation Customer Relationship Management - strategy for understanding your cutomers and their needs in order to optimize your in- teraction with them - Using a CRM system you can keep track of key customer info such as contacts, com- munication, accounts, purchases and preferences - Helpful for Mikes Bikes : when do they buy? How many, what payments, payment his- tory, what sales promotions Business-to-business interations: - How would you get a bike shop to sell your line of bikes? - Giving them a sample - Consumer exposure - Third party testimonies - Packaging - What has been learned about the extra support? - Good website - After sales support - Proactive approach - Discount program Chapter 14: Marketing: the process of determining customer needs and wants and then developing goods and services that meet or exceed these expectations Green Marketing: marketing efforts to produce, promote and reclaim environmentally sensitive products Evolution Of Marketing (4 eras): 1) Production Era - general philosophy was to produce as much as possible - Manufacturers focused on production 2) Sales Era - 1920s business developed mass production (assembly line) - Emphasis switched to selling and advertisement 3) The Marketing Era - post ww2, demands for goods and services from returning soldiers - Baby boom created increased competition - Organizers recognized they needed to respond to customers to be successful -> mar- keting - 3 parts: customer orientation, service orientation, profit orientation 4) The Customer Relation Era - 1990s managers extended marketing concept by adding CRM - CRM: process of learning as much as possible about customers and doing everything you can to satisfy them - or even exceed their expectations - with good and services over time The four Ps of marketing: Product,Price, Place, Promotion 1) Product - any physical good, service or idea that satisfies a need or want - Test market: testing products among potential users - Brand name: word device (design, shape, sound or colour) or combination of these words used to distinguish a sellers goods or services from competition 2) Price - The money or other considerations (including other goods and services) exchanged for the ownership or used of a good or service - Charge less at first to gain customers - Charge more to seem high-quality (starbucks) - Promotion: all of the techniques sellers use to motivate customers to buy their prod- ucts Providing Marketers with Information (4 Steps): 1) Defining the question and determining the present situation - market researchers given freedom to help discover present situationop - Problems, oppertunities, alternatives, what info is needed 2) Collecting data - Secondary data: already collected, online, journal ect. - Primary Data: Data you collect yourself - Focus group: small group who meet under direction of a leader to communicate their opinions about the organization and other issues 3) Analyzing the Research data - Compare data - Implement this in your choice 4) Choosing the best solution and implementing it - alternative strategies, make recommendation - Take corrective actions Environmental scanning: process of identifying the factors that can affect market suc- cess Global factors, technological factors, sociocultural factors, competitive factors, economic factors, legal and regulatory factors B2B- business to business - all individuals and organizations that want goods and services to use in producing oth- er goods and services or to sell rent or supply goods to others The consumer market: - Market segmentation: dividing the total market into groups whose members have similar characteristics - Target Market: marketing directed towards those groups (market segmentations) and organization decides it can serve profitably - Eg. Geographically, demographic, psychographic, behavioral - Niche marketing: finding small but profitable market segments and desgining or find- ing products for them - One-to-one marketing (individual): developing a unique mix of goods and services for individual customers - Mass marketing: Developing products and promotions to please large groups of peo- ple - Relationship Marketing: individual products that exactly meet their requirements
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