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Final

AFM131 Study Guide - Final Guide: Customer Relationship Management, Mechanism Design, Sales Promotion


Department
Accounting & Financial Management
Course Code
AFM131
Professor
Robert Sproule
Study Guide
Final

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Chapter 14: Marketing: Building Customer and Stakeholder Relationships
What is marketing?
Marketing
oProcess of determining customers needs and wants and then developing goods and services that meet
or exceed those expectation
Green Marketing
oMarketing efforts to produce, promote and reclaim environmentally-sensitive products
Evolution of Marketing
The Production Era
From first European settlers arrived in Canada until the start of 1990s, general philosophy
of business was to produce as much as possible.
Manufactures focused on production, as most goods were bought as soon as they became
available. Greatest marketing need was for distribution and storage
The Sales Era
By 1920s, businesses developed mass production techniques and production capacity often
exceeded the immediate market demand.
Business philosophy turned from emphasis on production to an emphasis on selling. Most
companies emphasized selling and advertising in an effort to persuade consumers to buy existing
produces; few offered services after sale
Marketing Concept Era
After 1945, there was tremendous demand for goods and services among retuning soldiers
who were starting new careers and beginning families. Because the baby boom happened soon after,
businesses recognized the need to be responsive to consumers if they wanted to get their
business, and a philosophy called marketing concept emerged in 1950s
Process went slowly during 1960s and 1970s but during 1980’s this concept was pushed
more aggressively which lead to the focus on customer relationship management (CRM)
Marketing concept
Three part business philosophy
A customer orientation
Find out what consumers want and provide it for them
Service orientation
Ensure that everyone in the organization have the same objective: customer
satisfaction
Profit Orientation
Focus on those goods and services that will earn the most profit and enable
organization to survive and expand to serve more consumers wants and needs
Customer relationship era
1990s and early 2000s: Managers extended marketing concept by adopting the concept of
customer relationship management
Idea is to enhance customer satisfaction and stimulate long term customer loyalty
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Customer relationship management
Process of learning as much as possible about customers and doing everything you
can to satisfy them- or even exceed their expectations-with goods and services over time
Non Profit Organizations prospers from Marketing
oCharities use marketing to raise funds or to obtain other resources (recruiting 80,000 blood donors
through television campaign), Churches use marketing to attract new members and to raise funds,
politicians use marketing to get votes, provinces use marketing to attract new businesses and tourist,
schools use marketing to attract new students, and etc
The Marketing Mix
- Ingredient that go into a marketing program: product, price, place and promotion
- Managing the controllable part of the marketing process involves designing a want-satisfying product,
setting a price for the product, putting the product in a place where people will buy it and promoting the
product
Applying the Marketing Process
oBest ways to understand the entire marketing process is to take a product and follow the process that
led to its development and sale
oFindconduct research identify a target market design a product to met the need based
on research and then conduct product testingdetermine brand name and design a
package set a price select a distribution system design a promotional program build
a relationship with customers
Designing a product to meet needs
Product
Any physical good, service, or idea that satisfies a want or need
oConcept testing should be done to test the strength of the proposed product: one should develop an
accurate description of the product and as people whether the concept appeals to do.
Test marketing
Process of testing products among potential users
Brand name
Word, devices (design shape, sound, or colour) or combination of these used to distinguish a
seller’s goods or services from those of competitors
Setting an appropriate Price
Price
oMoney or other consideration (including other goods and services) exchanged for the ownership or
use of a good or service. Prices depends on a number of factors such as the costs involved in
producing, distributing, and promoting the product
Getting the Product to the Right Place
oGetting product to consumer when and where they want it is critical to market success
Intermediaries
In the middle of a series of organizations that distribute goods from producers to consumers
(tradition term is middlemen)
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