Marketing Chapter 1 Notes.docx

5 Pages
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Department
Business Administration
Course Code
BADM 1040
Professor
John Simoulidis

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Description
Marketing Chapter 1 Notes Marketing: managing profitable customer relationships to capture value from the customer Marketing process: 1. Customer Wants, Needs and Demands Needs: State of deprivation Wants: Form human needs take as shaped by culture and individual experiences Demands: Human wants that are backed up by buying power - To determine N, W, D companies conduct consumer research and analyze mountains of customer data. 2. Market Offerings- Products, Services & Experiences - Fulfills Needs and wants Market Offering: Some combo of products, services, information or experiences offered to a market to satisfy a need or want. o Physical products and services (ie. Banking, airlines, hotels) o Other entities such as persons, places, organizations, information ideas Marketing Myopia: Mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Losing the underlying need, hence the customer wants the product but doesn‟t need it. - Important to look beyond the attributes of products and services to create a brand experience 3. Customer Value and Satisfaction - Customers form expectations about value and satisfaction that various market offerings will deliver and buy accordingly - Important to set the right level of expectations so that customers continue to want the product but are not disappointed by the value it delivers 4. Exchange and Relationships Exchange: Act of obtaining a desired object from someone by offering something in return  Politicians want votes  Churches want members - This allows you to retain customers and grow a business - Also provides superior customer value 5. Markets Market: Set of all actual and potential buyers of a product or service - Search for buyers, identify needs, design good market offerings, set prices, promote, store and deliver them - “How should our customers reach us?” - “How can our customers reach each other?” - Interact with customers to better understand their needs and follow through directly to the customers. - Markets can be affected by major environmental forces: o Demographic o Economy o Physical location o Technology available o Politics/ legality of the location o Social/ cultural aspects of the location Company Marketing Suppliers and/or Intermediaries Consumer Competitors Major environmental forces Designing a Customer Driven Market Strategy: Marketing management: The art and science of choosing target markets and building profitable relationships with them. Find, attract, keep and grow customers by creating, delivering and communicating superior customer value  “What‟s our target market?”  “How can we serve them best” o How to differentiate and position itself in the marketplace.  Provide a reason for the customer to choose YOU over the competitor. Production concept: Customers will favour products that are available and highly affordable. Organizations should therefore focus on improving production and distribution efficiency.  Can lead to market myopia o Thinking to narrowly and not focusing on customer needs. Product concept: Consumers will favour products that offer the most in quality, performance and innovative features.  Making continuous improvements  May cause marketing myopia o Ie. Not looking for a better mousetrap, but a different solution to mice  Must be designed, packaged and priced attractively. Selling concept: Consumers will not buy enough of the firm‟s products, unless it undertakes a large- scale selling and promo effort  For unsought goods such as blood donations  Sell on product benefits  Focuses on sales transactions rather than long-term, profitable relationships with customers Marketing concept: Achieving organizational goals depend on knowing the needs and wants of the target market and delivering the desired satisfaction better than the competitors.  Customer focus and value are the paths to sales and profits  „Sense and respond‟ not „make and sell‟  Find the right products for the customers Social Marketing Concept: Questions whether the pure marketing concept overlooks possible conflicts between consumer short-term wants and long-run welfare.  Improves both consumers and society‟s well-being  Socially and environmentally responsible marketing o Water bottle industry can harm the future because of the plastic.  Balance of 3 things: company profits, consumer wants and society‟s interests. Preparing an Integrated Marketing Plan and
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