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Chapter

Fundamentals of Marketing.doc


Department
Marketing
Course Code
MKT 2210
Professor
arbez

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The Core – Marketing 10/01/2013 20:22:00
CHAPTER 1 – Marketing Fundamentals
The Essence of Marketing:
Marketing success is from focusing on customers and providing values
through goods and services designed to meet customer needs
Competitive market
Marketer objective is to drive profits for a company, or if working in a non-
profit sector, to generate revenue and support to fund programs and run
operations
Focusing on Customer Needs:
Essence of marketing is focusing on customer needs
oThe digital world:
Adds another level of complexity to market research
Facilitates online gathering of information
Introduced new communication platforms that challenge
marketers to understand the biases that may exist in this new
environment
Initial point of contact for consumers with a brand is often online
on a company website
Must have top quality websites
Consumers must be able to quickly find a website through
search engines
Websites must therefore load quickly and be designed to
provide content within two or three clicks
Must have positive presence on social media sites
Creating Customer Value:
Added value versus competitive offerings
oCreating products with added value is achieved by:
Product design
Pricing strategies
Service elements
Reward customers for their loyalty
Customer value: the unique combination of benefits received by targeted
buyers that includes quality, price, convenience, delivery, and both before-
sale and after-sale service
Appealing to Target Markets:
Better to channel resources to consumers who are most interested in
purchasing the product, rather than target everyone who have little interest

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Target market: The specific group of existing and potential consumers to
which marketers direct their marketing efforts
oDecision-makers and influencers
Coordinating the Marketing Mix:
Marketing mix: 4 P’s
oProduct
oPrice
oPlace
oPromotion
Need to be carefully managed by marketers to ensure that they are well
coordinated and that each appeals to the distinct characteristics of the target
market
Online or offline environment
Product: Attributes that make up a good, a service, or an idea, including
product design, features, colour, packaging, warranty, and service levels
oBased on the wants and needs of different consumer groups
Price: Expected regular retail or sale price for a product
oIn line with consumer, company and competitive factors
Place: Distribution channels, retail formats, and merchandising used to sell a
product
oRetail locations reflect premium image and sports category
Promotion: Communication tools needs to inform consumers about a
product, including advertising, public relations, sales promotions, direct
response, event marketing and sponsorship, and personal selling
oInstead of mass media promotions
A product is never geared to appeal to everyone
Marketers define their target markets using elements such as, likes, dislikes,
motivations, interests and concerns
The Marketing Process:
Marketing process: the process of:
o1. Identifying consumer needs
o2. Managing the marketing mix to meet these needs
o3. Realizing profits
Marketing: the process of planning and managing goods, services, or ideas
to meet consumer needs and organizational objectives
oIncludes the conception of these products and the pricing, promotion
and distribution programs designed to make a profit and generate
revenue or support for an organization

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Exchange: the trade of things of value between buyers and sellers so that
each benefits
What can be Marketed?:
Product: a good, service or idea
Good: a product you can touch and own
Service: a product that is intangible, that you cannot touch
Idea: a concept that typically looks for support
What is a Market?:
Market: potential consumers with both the willingness and ability to buy
Consumers: the users of the product
Product orientation: focusing organizational efforts on the manufacture of
goods
oGoods in short supply
Sales orientation: focusing organizational efforts on selling as many
products as possible
oMore available
Marketing orientation: focusing organizational efforts to collect and use
information about customers’ needs to create customer value
oMarketing concept: the idea that an organization should strive to
satisfy the needs of consumers while also trying to achieve
organizational goals
Relationship marketing: when organizations create long-term links with
customers, employees, suppliers and other partners to increase loyalty and
customer retention
Evolution of business philosophies:
oProduction orientation (1930’s) Sales orientation (1960’s)
Marketing orientation (1990’s) Relationship marketing orientation
Social media: a form of online media that allows members to create their
own network of friends and contacts to share comments, videos, and images
as a form of self-expression
Customer relationship management (CRM): the overall process of building
and maintaining profitable customer relationships by delivering superior
customer value and satisfaction
Corporate social responsibility (CSR): when organizations voluntarily
consider the well-being of society by taking responsibility for how their
businesses impact consumers, customers, suppliers, employees,
shareholders, communities, the environment, and society in general
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