Textbook Notes (363,040)
Canada (158,168)
MGMA01H3 (184)
Chapter 1

Chapter 1 Notes

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University of Toronto Scarborough
Management (MGM)
Alison Jing Xu

Chapter 1 Marketing: Creating and Capturing Customer Value Notes What is Marketing? marketing is managing profitable customer relationships goal is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction sound marketing is critical to the success of every organization Marketing Defined today, marketing must be understood not in the old sense of making a saletelling and sellingbut in the new sense of satisfying customer needs in a socially responsible and ethical manner if the marketer understands consumer needs; develops products that provide superior customer value; and prices, distributes, and promotes them effectively and ethically, these products will sell easily marketing marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large stakeholder groups include employees, unions, customers, members of the distribution channel, competitors, activists, government, and the press; thus, broadly defined, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others The Marketing Process in the first 4 steps, companies work to understand consumers, create customer value, and build strong customer relationships in the final step, companies reap the rewards of creating superior customer value by creating value for consumers, companies capture value in return in the form of sales, profit, and long-term customer equity Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands the most basic concept underlying marketing is that of human needs needs states of felt deprivation; they include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression wants the form human needs take as shaped by culture and individual personality wants are shaped by ones society as well as by marketing programs and are described in terms of objects that will satisfy needs demands human wants that are backed by buying power given their wants and resources, people demand products with benefits that add up to the most value and satisfaction Market OfferingsProducts, Services and Experiences market offerings some combination of products, services, info, or experiences offered to a market to satisfy a need or want more broadly, market offerings also include other entities, such as people, places, organizations, information, and ideas marketing myopia the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products; they focus only on existing wants and lose sight of underlying customer needs Customer Value and Satisfaction customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly satisfied customers buy again and tell others about their good experiences dissatisfied customers often switch to competitors and disparage the product to others customer value and customer satisfaction are key building blocks for developing and managing customer relationships Exchanges and Relationships marketing occurs when people decide to satisfy needs and wants through exchange relationships exchange the act of obtaining a desired object from someone by offering something in return www.notesolution.com
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