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Chapter 1

MKT 100 Chapter Notes - Chapter 1: Breast Cancer Awareness, Customer Relationship Management, Marketing


Department
Marketing
Course Code
MKT 100
Professor
Paul Gillespie
Chapter
1

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Markeng – Chapter 1
(Overview of Markeng)
What is marketing?
“Markeng is a set of business pracces designed to plan for and present an organizaon’s products or
services in ways that build eecve customer relaonships.
oMarkeng is used to create value in products and services
oThe interrelated markeng mix – or the 4 P’s – creates, transacts, communicates and
delivers value.
oGood markeng is not a random acvity – it requires though!ul planning with an emphasis
on the ethical implicaons of decisions made on the consumer and society in general.
Markeng is about sasfying customer needs and wants
oNeed: When a person feels deprived of the basic necessies of life such as food, clothing,
shelter or safety
oWant: The parcular way in which the person chooses to ful&ll his or her need
oIn order to understand customer needs and wants, the company must &rst idenfy the
market (groups of people who need or want a company’s products or services and have the
ability and willingness to buy them) or target market (customer segment or group to whom
the &rm is interested in selling its products and services) for its products and services.
Markeng entails as exchange
oExchange: The trade of things of value between the buyer and the seller so that each is
be*er o+ as a result.
oExchanges can occur in nonpro&t se-ngs such as lecture
oEach party to the exchange gives up something of value; the customer gives up not only
money but also me and informaon, and the &rm gives up the good or service.
oExample: when you purchase a new Jusn Bieber album, you are engaging in a markeng
exchange. You get the songs, and the exchange partners get money and informaon about
you.
Markeng requires product, price, place and promoon decisions
oMarkeng Mix (4 P’s): Product, price, place and promoon – the controllable set of
acvies that a &rm uses to respond to the wants of its target markets.
oProduct: Creang Value
-Main purpose of markeng is to create value by developing a variety of o+erings such as
goods, services and ideas, to sasfy customer needs.
-Example (Goods): Items that you can physically touch such as clothing, beer, Kra3
Dinner, meats – raised, processed, and delivered using appropriate animal health
pracces
-Example (Services): Intangible customer bene&ts that are produced by people or
machines and cannot be separated from the producer; air travel, banking,
entertainment.
-Example (Ideas): Thoughts, opinions, philosophies, intellectual concepts such as “drunk
driving prevenon”. There are organizaons such as Mothers Against Drunk Driving or
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Students Against Drunk Driving where they promote to consume alcohol in a manner
that is consistent with safety which means giving up consumpon or drinking
responsibly – do not get behind the wheel if you drink.
oPrice: Transacng Value
-Price: Everything the buyer gives up – money, me, energy – in exchange for the product
or service.
-Example: Air travel; the prices can vary based on demand for the :ight, ming and
desnaons.
oPlace: Delivering Value
-All the acvies necessary to get the product from the manufacturer or producer to the
right customer when that customer wants it.
-Concerned with developing an e<cient system for merchandise to be distributed in the
right quanes, to the right locaons and at the right me in the most e<cient way in
order to minimize system wide costs while sasfying the service levels required by their
customers.
oPromoon: Communicang Value
-Even the best products and services will go unsold if marketers cannot communicate
their value to customers
-Promoon is communicaon by a marketer that informs, persuades and reminds
potenal buyers about a product or service to in:uence their opinions or elicit a
response
-Example: Parasuco Jeans – the ad is targeted to a youthful audience; the provocave
adversing has helped create an image that is &lled with youth style and sex appeal.
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