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Commerce (1,690)
Chapter 1

Chapter 1 Review Note

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Department
Commerce
Course
COMMERCE 2MA3
Professor
Stephen Charko
Semester
Fall

Description
Chapter 1 - The Art and Science of Satisfying Customers What is Marketing:  Based in economics, roots in psychology and sociology, mathematics and anthropology, etc.  Utility: satisfying power of a good or service; four basic kinds TYPE DESCRIPTION EXAMPLES ORGANIZATIONAL FUNCTION RESPONSIBLE Form Conversion of raw materials and Dinner at Swiss Chalet,Production* components into finished goods iPod, Gold Jewelry and services Time Availability of goods and services Dental appt., digital Marketing when consumers want them photographs Place Availability of goods and services aVending machines, Marketing convenient locations ATMs in stores Ownership Ability to transfer title to Retail sales (exchange Marketing (possession) goods/services from marketer to for currency/credit buyer payment)  Creating a Customer: 1. Identifying needs of marketplace 2. Finding which needs the organization can profitably serve 3. Developing goods/services to convert potential buyers in customers  Marketing Specialists responsible for: o Identifying customer needs o Designing products meeting those needs o Communicating information about those G/S to prospective buyers o Making items available at time and place meeting customers’ needs o Providing necessary service & follow-up, ensuring customer satisfaction after purchase Definition of Marketing  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 Today’s Global Marketplace  International trade regulations  E-Commerce  Interdependence  Opportunities in emerging economies (Latin America, central Europe, Middle East, Asia, Africa)  US is world’s largest market, followed by China  Mexico is lowest-cost country for outsourced production  US has made largest investment into Canada  3M, Lowe’s, GE, Dell, Walmart, etc.  75% of all CAN exports go to US // 50% CAN imports from US // $1.4 billion/day crosses border Four Eras in the History of Marketing:  Exchange Process: activity in which two or more parties give something of value to each other to satisfy perceived needs o Tangible - goods, product o Intangible - service Production Era  Production Orientation: business philosophy stressing efficiency in producing a quality product, with the attitude toward marketing that "a good product will sell itself."  Before 1925, peaked during early part of 20 century  Stressed production of quality products -- high-quality product would sell itself  H. Ford’s mass-production line  Over 80% of new products fail Sales Era  Sales Orientation - belief that consumers will resist purchasing nonessential goods and services, with the attitude toward marking that only creative advertising and personal selling can overcome consumers' resistance and persuade them to buy  Output grew during period from 1920s into early 1950s  Emphasis on effective sales; match output to potential number of customers wanting it Marketing Era and the Emergence of the Marketing Concept  Since 1950s  Switch from a Seller's Market - market in which there are more buyers for fewer goods and services  Into a Buyer's Market - market in which there are more goods and services than people willing to buy them  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 Relationship Era  Since 1990s  Emphasis on customer-organization and supplier-organization relations  Customer-driven marketing  Relationship Marketing - development & maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit Converting Needs to Wants  Something needed into something desired  branding Avoiding Marketing Myopia:  Marketing Myopia - management's failure to recognize the scope of its business  Product-orientation versus customer-orientation*  Ex/ Nokia (cell phone manufacturer) Motto: Connecting People Extending the Traditional Boundaries of Marketing: Marketing in Not-For-Profit Organizations  ~161,000 NPO/Charity in CAN  ~$80 billion (7.8%) GDP (larger than manufacturing sector)  Employs over 2 million CDNs, 2 largest NPO and voluntary sector in the world  Public and Private sector Characteristics of Not-For-Profit Marketing  Bottom Line - reference to overall company profitability o Most obvious distinction btwn NPO and for-profit (commercial) firms  NPO - gather as much revenue as possible to support its causes, focus on many publics (two major: clients and sponsors) o Possess some degree of monopoly power in given geographic area  Commercial - revenues > costs to make money for all stakeholders, employees, and the org, focus on one public (customers) Nontraditional Marketing: MARKETING TYPE DESCRIPTION EXAMPLES Person marketing efforts designed to cultivate the Athlete Steve Nash attention, interest, and preference of a Political Leader Stephen Harper target market toward a person Celebrity Nelly Furtado Place marketing efforts to attract people and Sask: Land of Living Skies organizations to a particular geographic area NS: Canada’s Ocean Playground Ma: Friendly Manitoba Cause identification and marketing of a social issue“Reading is fundamental” cause, or idea to selected target markets “Be a mentor” “Friends don’t let friends...” Event marketing of sporting, cultural, and Grey Cup charitable activities selected target markets 2010 Van Winter Olympics Calgary Stampede Organization marketing by mutual-benefit organizations, United Way: Without you, there service organizations, and government would be no way organizations intended to influence others toCanadian Red Cross: Anywhere. accept their goals, receive their services, oAnytime. contribute to them in some way From Transaction-Based Marketing to Relationship Marketing:  Traditional view of marketing as simple exchange process (transaction-based) changed by longer-term approach emphasizing building relationships with customers  LOYALTY -- customers and suppliers  Relationship Marketing: development, growth, and mainten
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