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Lecture 6: Marketing
Productivity and Quality:
Productivity: minimizing ratio of inputs (labour, parts, etc.) to outputs (finished products).
In other words: making a product quickly, efficiently and cheaply.
Productivity: ratio of inputs (hours of labour or numbers or parts, dollars worth of
parts) gone in to make a finishing product. A firm minimizing the amount of parts
and investment that goes into a product. Canadian economy is less productive than
the US economy at least 20%. Average worker turns out less than 20% of the
American worker. His maybe because; Canadian managers dont invest on, on the job
training, dont invest in capital equipment (machinery), American managers are
prepared to try new interesting technologies.
Quality: making a product that us fit for use
In other words: making a product that works as it should
Quality: giving the customer what they are expecting; what they want; the product
they think they are paying for. Making a product that is going to work like its
supposed to. Example of Quality: (Honda recall- air bags dont work); Toyotas:
breaks do not work, had to do a recall. Shares slide as reputation loses steam
(headlines). High quality reliable vehicles known as, pay a little more than the US
vehicles but it is worth it. If you sell cars that do not work, and when customers get
disappointed; sales of Chevy cobalt have increased to about 149.7 % and Toyota`s
have fallen gone into the negative percentages. Have to go back to factory and
repairing product if makes a mistake, reputation takes a major hit.
Marketing: Target Markets & Market Segmentation
Marketing Concept
-Well managed businesses:
-Do not sell what they have (product focus)
-Sell what customers want (customer focus)
-Focus on customer is called the `marketing concept`
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business: and organized to make or supply or produce something which you then try and
sell to customers with a view towards making a product.
Doesnt sell what it think you should have, it tries and sells what you want, what you
think you need, what you think should be useful. That is preoccupying yourself with he
customer, well managed business asks what you want, and what you need. Customer focus.
-The Business is directed towards serving existing and potential customers, while
making profit.
Target Markets
-No business has ultimate time
-No business has ultimate resources
-No business can sell to everybody
-Marketing Begins with determining: Who is the target market?
-The specific group of people the business targets as the most likely/intended customers
-People with similar needs and wants
People who do not have teeth cannot buy tooth paste. People who cannot read will not buy
text books. People who are vegetarians will not buy meat. There will always buy people who
will not buy your product. An intelligent business man realizes you cant be all things to all
people. Giving my customer what they wants/need/what they tell us they want begins with
question. Identify ages, gender, what people are interested in ect., concentrate efforts to
specific groups of people
Market Segmentation:
-Marketers divide world into smaller and smaller groups of similar people.
-People whose needs, wants, attitudes to product likely to be similar
-Called `Market Segmentation`
-Some ways markets can be segmented:
-Demography: external traits
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