Textbook Notes (363,566)
Canada (158,433)
Commerce (1,634)
Chapter 1

Chapter 1 Textbook Notes.docx

4 Pages
Unlock Document

McMaster University
Stephen Charko

Chapter 1: Marketing: The Art and Science of Satisfying Customers What is Marketing… • Production and marketing of goods and services are the essence of economic life in any society • Utility: want-satisfying power of a good or service o Form Utility is created when the firm converts raw materials and component inputs into finished goods and services o Marketing creates time, place, and ownership utilities Type Description Examples Organizationa l Function Responsible Form Conversion of raw materials Dinner at a restaurant; Production and components into finished iPod; shirt from store goods and services Time Availability of goods and Dental appointment; digital Marketing services when consumers photographs; LensCrafters want them eyeglass guarantee, Canada Post Xpresspost Place Availability of goods and Vending machines; on-site Marketing services at convenient day care; ATM machines locations Ownership Ability to transfer title to goods Retail sales (in exchange Marketing (Possession or services from marketer to for currency or credit card ) buyer payment) o Marketing specialists are responsible for most of the activities necessary to create the customers the organization wants, including: • Identifying customer needs • Designing products that meet those needs • Communicating information about those goods and services to prospective buyers • Making the items available at times and places that meet customers' needs • Pricing the merchandise and services to reflect costs, competition, and customers' ability to buy • Providing the necessary service and follow-up to ensure customer satisfaction after the purchase • 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 o The marketing variables that combine to provide customer satisfaction are: • Product • Price • Promotion • Distribution Four Eras in the History of Marketing… • The essence of marketing is the exchange process o Exchange Process: activity in which two or more parties give something of value to each other to satisfy perceived needs • The Four Eras of Marketing: 1. The Production Era • Before 1925, most firms focused narrowly on production  Production Orientation: business philosophy stressing efficiency in producing a quality product, with the attitude that "a good product will sell itself" • Henry Ford's mass production line exemplifies this orientation 1. The Sales Era • With a growth in sophistication, output also grew during the period from the 1920's to the early 1950's  Manufacturers began to increase emphasis on effective sales forces to find customers who could match the output  Sales Orientation: belief that consumers will resist purchasing non-essential goods and services, with the attitude toward marketing that only creative advertising and personal selling can overcome consumers' resistance and persuade them to buy 1. The Marketing Era • Due to a drop in incomes (Great Depression), more importance was given to the marketing role • Shift from a seller's market to a buyer's market  Seller's Market: market in which there are more buyers for fewer goods and services  Buyer's Market: market in which there are more goods and services than people willing to buy them  Created the need for consumer orientation • Consumer Orientation: business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them  Marketing Concept: company-wide consumer orientation with the objective of achieving long-run success 1. The Relationship Era • Relationship Marketing: development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit Avoiding Marketing Myopia… • Marketing Myopia: management's failure to recognize the scope of its business o Coined by Theodore Levitt o Product-oriented rather than customer-oriented endangers future growth Characteristics of Not-For-Profit Marketing… • Bottom Line: reference to overall company profitability o Characterised in "for-profit" organizations but lacking in "not-for-profit" organizations Non-Traditional Marketing… • Five major categories of non-traditional marketing include: Type Brief Description Examples Person Marketing Marketing
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.