study guide

13 Pages
114 Views
Unlock Document

Department
Management (MGT)
Course
MGTA02H3
Professor
Chris Bovaird
Semester
Winter

Description
Chapter 5: Understanding Marketing Processes & Consumer Behaviour WHAT IS MARKETING -marketing: planning and executing the development, prices, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy both buyers and sellers objectives -our needs and wants are the forces that drive marketing -marketing concept: the idea that the whole firm is directed toward serving present and potential customers at profit -this concept means that a firm must get to know what customers really want -various departments of the firm (marketing, production, finance, and human resources) must operate as a system -the system should be well coordinated and unified in reaching its common goalcustomer satisfaction Providing Value and Satisfaction -consumers buy products that offer the best value when it comes to meeting their needs and wants Value and Benefits -value: relative comparison of a products benefits versus its costs -benefits of a higher value product are much greater than its cost -benefits include the function of the product, emotional satisfactions, experiencing, and possessing it -cost includes sales price, expenditure of the buyers time, and emotional cost of making a purchase decision Value= Benefits Cost -marketing strategies focus on interesting value for customers -adding value to products to satisfy customers needs and wants may mean: 1) developing an entirely new product that performs better (provides greater benefits) 2) having a store open extra hours during a busy season (provides benefits of shopping convenience 3) price reductions (benefits of a lower cost) 4) informational promotion explaining how a product can be used in new ways www.notesolution.comValue and Utility -utility: the ability of a product to satisfy a human or need -marketing strives to provide four kinds of utility: 1) time utility: it makes products available when consumers want them (season wise) 2) place utility: it makes products available where customers can conveniently purchase them (seasonal departments, example: Christmas department) 3) ownership utility: by conveniently transferring ownership from store to customer 4) form utility: by turning raw materials into finished goods; by making products available in the first place Goods, Services, and Ideas -consumer goods: products purchased by individuals for their personal use -firms that sell products to consumers for personal consumption are engaged in consumer marketing -industrial goods: products purchased by companies to use directly or indirectly to produce other products -examples: surgical instruments, earthmovers, unformed plastic -firms that sell products to other manufactures are engaged in industrial marketing -services: intangible products, such as time, expertise, or an activity that can be purchased -marketers also promote ideas -television ads and other ads remind us and stress the importance of things, such as the importance of drinking sober Relationship Marketing -relationship marketing: a type of marketing that emphasizes lasting relationships with customers and suppliers -stronger relationshipsincluding economic and social tiescan result in greater long term satisfaction and customer loyalty -banks offer economic incentives to encourage longer lasting relationships with customers -customers who purchase more of a banks products are offered reduced-price services, and discounts The Marketing Environment -marketing plans, decisions, and strategies are not determined by any business nor experienced marketers -they are strongly influenced by powerful outside forces www.notesolution.com
More Less

Related notes for MGTA02H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit