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Chapter 1

Chapter One Marketing.docx

3 Pages

Course Code
MKT 100
Laila Rohani

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Chapter One: Overview of Marketing - Marketing is essentially about creating value for consumers and the company’s shareholders - Marketing is a set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships - A marketing plan is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives, and strategy specified in terms of the four Ps - The buyer and seller should be satisfied with the value they obtained from a transaction Marketing Is About Satisfying Customer Needs and Wants - A need is when a person feels deprived of a basic necessity (food, clothing, shelter, safety) - A want is the particular way in which the person chooses to fulfill needs, shaped by knowledge, culture, personality - The market consists of all consumers who need or want a company’s products or services and have the ability and willingness to buy them - Marketers divide the market into subgroups of people to whom they are geared towards - A target market is the customer segment of group to whom the firm is interested in selling it’s products and services Marketing Entails Value Exchange - An exchange is the trade of things of value between the buyer and seller so that each is better off as a result - Sellers provide goods or services then communicate and facilitate the delivery of their offspring to consumers - Buyers complete the exchange by giving money and information to the seller - The goal is to facilitate a future exchange and solidify a relationship with the customer Marketing Requires Product, Price, Place, and Promotion Decisions The marketing mix is the controllable set of activities that the firm uses to respond to the wants of its target markets, comprised by the four Ps: Product, Price, Place, and Promotion Product: Creating Value - Value is created by developing a variety of offerings (goods, services, ideas) to satisfy customer needs - Goods are items that you can physically touch - Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer - Many offerings represent a combination of goods and services - Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed Price: Transacting Value - Price is everything the buyer gives up – money, time, energy – in exchange for the product - Marketers must determine the price of the product carefully on the basis of the potential buyer’s belief about its value - The key to determining prices is figuring out how much customers are willing to pay so that they are satisfied with the purchase and the seller achieves a reasonable profit Place: Delivering Value - Place describes all the activities necessary to get the product from the manufacturer or producer to the right customer when that customer wants it - Concerned with developing an efficient system for merchandise to be distributed in the right quantities, to the right locations, and at the right time in the most efficient way in order to minimize systemwide costs while satisfying the service level required by their customers. -Without a strong distribution system, merchandise isn’t readily available to customers, resulting in disappointment and suffering sales and profits Promotion: Communicating Value - Products and services will go unsold if marketers cannot communicate their value to customers - Communication by a marketer that informs persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response - Enhances a product or service’s value Marketers deliver value through these P’s individually, though greater value is delivered to consumers by configuring them as a whole rather than separately. The product or service must satisfy the target customer’s specific needs and wants, be priced appropriately, be available at locations where customers want it, and be promoted in a manner and through media that are consistent with the target consumers Marketing is Shaped by Forces and Players Within the Firm - A company’s marketing activities are shaped by internal and external factors - Consumer is at the centre, attracted band kept loyal by offering them the best value possible - Marketers must leverage the full potential of internal capabilities, work effectively with their partners, and constantly evaluate and respond to the competitive environment Marketing is Shaped by Forces and Players External to the Firm - External forces such as cultural, demographic, social, technological, economic, and political and legal changes shape a company’s marketing activities Marketing Can Be Performed by Both Individuals and Organizations - Marketing intermediaries accumulate merchandise from producers in large amounts then sell them in smaller amounts - B2C (business-to-consumer) marketing is the process in which businesses sell to consumers - B2B (business-to-business) marketing is the process in which businesses sell to other businesses - C2C (consumer-to-consumer) marketing is the process in which consumers sell to other consumers - Individuals can also undertake activities to market themselves (research done about a firm, resume, cover letter, the way one dresses themselves, etc) - Social media, the use of internet tools to easily and quickly create and share content to foster dialogue, social relationships, and personal identities, is quickly becoming an integral part of marketing and communications strategies Marketing Occurs in Many Settings - Marketing works well in the nonprofit sector as well as the profit sector - Marketing can also jump-start the economies of less developed countries by actually putting buyers and sellers together to create new markets - Marketing is often designed to b
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