Textbook Notes (363,569)
Canada (158,433)
Commerce (1,634)
Chapter 1

Marketing Chapter 1.docx

6 Pages
Unlock Document

McMaster University
Ambika Badh

Marketing Chapter 1 Utility • Want-satisfying power of a good or service • Form utility is created when the firm convert raw materials and component inputs into finished goods and services o Example: Gold for jewellery and cellphones , glass and plastics for cameras and LED televisions • Time and place utility occur when consumers find goods and services available when and where they want to purchase them o Example: Vending machines at a University, all season gold facility • Ownership utility is the transfer of title to goods or services at the time of purchase o Example: purchasing a smartphone, signing up for a cruise Three-step approach for an organization to create a customer • Identifying needs in the marketplace • Finding out which needs the organization can profitably serve • Developing goods and services to convert potential buyers into customers Marketing • Organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders • Assumes that organizations conduct their marketing efforts ethically and that these efforts serve the best interests of both society and the organization • Identifies the marketing variables – product, price, promotion, and distribution – that combine to provide customer satisfaction • Factors that forced marketers and nations to extend their economic views to events outside their boarders 1. International agreements are being negotiated in attempts to expand trade among nations 2. The growth of electric commerce and related computer technologies is bringing previously isolated countries into the marketplace for buyers and sellers Marketing 2MA3: Chapter 1 1 3. The interdependence of the world’s economics is a reality because no nation produces all the raw materials and finished goods its citizens need or consumes all its output without exporting some to other countries Exchange process • Activity in which two or more parties give something of value to each other to satisfy perceived needs o Example: money for tangible goods Production era • Production orientation o Business philosophy stressing efficiency in producing a quality product, with the attitude toward marketing that “a good product will sell itself” • Henry Ford’s mass production line exemplifies this orientation Sales era • Sales orientation o Belief that consumers will resist purchasing nonessential goods and services, with the attitude toward marketing that only creative advertising and personal selling can overcome consumers’ resistance and persuade them to buy Marketing era and the Marketing concept • Seller’s market o Market in which there are more buyers for fewer goods and services • Buyer’s market o Market in which there are more goods and services than people willing to buy • Consumer orientation o Business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them o Companies had to market goods and services, not just produce and sell them • Marketing and selling would no longer be synonymous terms • Marketing concept 2 Marketing 2MA3: Chapter 1 o Company-wide consumer orientation with the objective of achieving long- run success o All levels of the organization must contribute to assessing and then to satisfying customer wants and needs Relationship era • Relationship marketing o Development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit Marketing myopia • Managements failure to recognize the scope of its business • Product-oriented rather than customer-oriented management endangers future growth • Dry c
More Less

Related notes for COMMERCE 2MA3

Log In


Don't have an account?

Join OneClass

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

Sign up

Join to view


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.