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Chapter Final

Chapter Summaries (1-8) Easy to read chapter summaries that uses tables, diagrams and charts to list steps, describe steps, and describe similarities/differences of certain concepts. Textbook chapter summaries for chapters: 1: Overview of Marketing 2

42 Pages

Course Code
ECON 344
Brent Barr

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Chapter 1 Define marketing and explain its core concepts: Marketing is a set of business practices designed to plan for and present an organization's products/servicesin ways that build effective customerrelationships Creates value Satisfying customerneeds and wants Value exchange Performedby individuals and organizations The marketing mix (the 4 P's) Product(/Services) Creating value Brand, size, quality, features, packaging, warranty Price Transacting value Everything the buyer gives up (money,time, energy) in exchange for the product List price, discounts, allowances,costs, payment period, credit terms Types of pricing strategies Cost-based pricing: firms determine cost of producing product then add a fixed amount above that total to arrive at selling price Competitor-basedpricing: prices below, at or above a competitor'sprice Value-based pricing: determining the value of the product from a customers point of view and pricing accordingly Place Delivering value Developing efficient systems to get merchandise in the right quantities, to the right location at the right time in the most efficient way to minimize costs and satisfy service levels required by customers Marketing channels, distribution intensity, locations:retailers online, supply chain, logistics Promotion Communicatingvalue Advertising, sales promotion,personal selling, public relations, direct marketing and electronic media Marketing is shaped by forces and players Competitors external to the firm: Social (Environment/Obesity) Technological Economic Competitive Political/ Product Price Demographics Regulatory changes Regulatory Target Market Promotion Place Social/ Cultural Economic Trends Technology Explain the 4 orientations of marketing: Production-Oriented Era (1900-1920s) Believed a good product would sell itself Concerned with product innovation, not with satisfying needs of individual customers Retail stores were a place to hold merchandise until customerswanted it Sales-Oriented Era (1920-1950) Production and distribution techniques became moresophisticated Manufacturers had capacity to produce more than customerswanted to buy Tried to sell as much as possible of products they make rather than focus on making products consumersreally want Market-Oriented Era (After WWII) Manufacturers and retailers focused on what consumers wanted/needed before designing, making or attempting to sell products/services Value-Based Marketing Era Market oriented- attempt to discover and satisfy customer needs/wants To competesuccessfully - give customersgreater value than their competitors Discusshow marketers create value for a product or service: Share Information About customersand competitors Example: Zara collects purchase information and researches customertrends to determine what their customerswill want to wear in the next few weeks Balancing Benefits with Costs Use of available customerdata to find opportunities in which they can better satisfy customersand develop long-term loyalties Examples:Wal-Mart, WestJet and SouthwestAirlines Building Relationships with Customers Need to think of customersas relationships, not transactions Transactional orientation: is a series of individual transactions, so anything that happened before or after the transaction is of little importance (Ex. Used car sales) Relational orientation: is based on the idea that buyers and sellers should develop long- Relational orientation: is based on the idea that buyers and sellers should develop long- term relationships (Ex. UPS works with shippers to develop efficient transportation solutions) Customer Relationship Management (CRM) Discussthe role of customer relationship management in creating value: Customer Relationship Management (CRM): focus on identifying and building loyalty among the firms most valued customers.Systematicallycollect informationabout customersand target the best ones with products, servicesand special promotionsthat appear most important to them Discussthe importance of marketing both within and outside the firm: Ensures high-quality, innovativeproducts that meet customersneeds are available in the right quantity, price and place when they want to purchase it Creates mutually valuable relationships between the company and its suppliers, distributors and other external firms Identifies elementsthat local customersvalue and allows the possibility of global expansion Chapter 2 Levels of Strategic Planning: Levels of Planning Scope Duration Strategic Focus Notes Corporate Planning Entire Firm 5 yrs Define mission Done by top management Set goals Focuses on overall direction of Establish portfolio entire company Direction updated regularly to respond to changes SBU/DivisionPlanning Single SBU 3 to 5 yrs Set goals Can be managed somewhat (large firms with more within the Establish portfolio of independently from other than one distinct line firm products and markets divisions of business) Functional Planning Product 1 to 3 yrs Developmarketing plan portfolio for specific products, Single brands or markets product Brand Market Describe how a firm develops and implements a marketing plan: The strategic marketing planning process is a set of steps used to develop a strategic marketing plan (a written document of an analysis of the current marketing situation, opportunities and threats, marketing objectives and strategy specified in the 4 P's, action programs and projected financial statements) The Planning Phase Step 1: Define Mission and/or Vision statement What type of business are we? What do we need to do to accomplish our goals and objectives? Sustainable CompetitiveAdvantage: What the firm persistentlydoes better than its competitors Step 2: Situation Analysis SWOT Internal: Strengths, Weaknessesand External: Opportunities and Threats Environmental,Market Trend and CompetitiveAnalysis Step 3: Identify and evaluate opportunities using segmentation,targeting and positioning (STP) process Developing the marketing mix using the 4 P's Product and Value Creation: develop products/servicesthat customers believe are valuable enough to buy Price and Value for Money: Giving customersgood bang from their buck Place and Value Delivery: Make the product readily accessible when and where the customerwants it Promotion and Value Communication: Communicatethe value of their offering The Implementation Step 4: Implement the marketing mix strategy Phase Design marketing organization Developbudget
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