Textbook Notes (363,501)
Canada (158,383)
MGTA02H3 (361)
Chapter 5

chapter 5 note

4 Pages
Unlock Document

University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Chapter 5 Understanding Marketing Processes and Consumer Behaviour Notes What is Marketing? N marketingplanning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy both buyers and sellers objectives N marketing conceptthe idea that the whole firm is directed toward serving present and potential customers at a profit N various departments of firmmarketing, production, finance, and human resourcesmust operate as a system, well coordinated and unified in the pursuit of a common goalcustomer satisfaction Providing Value and Satisfaction Value and Benefits N valuerelative comparison of a products benefits versus its costs N benefits include not only functions of product, but emotional satisfactions associated with owning, experiencing, or possessing it N satisfied buyer perceives benefits derived from the purchase to be greater than its costs N thus the simple but important ratio for value: value = benefits costs Value and Utility N utilityability of a product to satisfy a human want or need N marketing strives to provide four kinds of utility: time utility (make products available when consumers want them), place utility (make products available were customers can conveniently purchase them), ownership utility (conveniently transferring ownership from store to customer), form utility Goods, Services, and Ideas N consumer goodsproducts purchased by individuals for their personal use N firms that sell products to consumers for personal consumption are engaged in consumer marketing N industrial goodsproducts purchased by companies to use directly or indirectly to produce other goods N firms that sell products to other manufacturers are engaged in industrial marketing N servicesintangible products, such as time, expertise, or an activity that can be purchased N firms that sell services to other consumers are engaged in service marketing Relationship Marketing N relationship marketinga type of marketing that emphasizes lasting relationships with customers and suppliers N stronger relationshipsstronger economic and social tiescan result in greater long-term satisfaction and customer loyalty The Marketing Environment N external environmentoutside factors that influence marketing programs by posing opportunities or threats Political and Legal Environment N political activities, both foreign and domestic, have profound effects on business N marketing managers try to maintain favourable politicallegal environments in several ways N such activities sometimes result in favourable laws and regulations and may even open new international business opportunities Social and Cultural Environment N people are working at home, women are entering workforce, number of single-parent families is increasing, food preferences and physical activities reflect growing concern for healthful lifestyles, growing recognition of cultural diversity continues N these and other issues reflect values, beliefs, and ideas that form Canadian society today, which have direct effects on businesses N changing social values force companies to develop and promote new products for individual consumers and industrial consumers Technological Environment N new technologies affect marketing in several waysobviously, they create new goods and services N new products make some existing products obsolete, and many of them change our values and lifestyles N in turn, they often stimulate new goods and services not directly related to the new technology itself Economic Environment N economic conditions determine spending patterns by consumers, businesses, and governments N thus they influence every marketers plans for product offerings, pricing, and promotional strategies N among the more significant economic variables, marketers are concerned with inflation, interest rates, recession, recovery N traditionally, analysis of economic conditions focussed on national economy and governments policies for controlling or moderating it; however, increasingly as nations form more and more economic connections, global economy is becoming more prominent in the thinking of marketers everywhere Competitive Environment N marketers must convince buyers that they should purchase their products rather than those of some other seller N by studying the competition, marketers determine how best to position their own products for 3 specific types of competition: o substitute producta product that is dissimilar from those of competitors but that can fulfil the same need o brand competitioncompetitive marketing that appeals to consumer perceptions of similar products o international competitioncompetitive marketing of domestic against foreign products Strategy: The Marketing Mix N marketing managersmanagers responsible for planning and implementing all the marketing-mix activities that result in the transfer of goods or services to customers www.notesolution.com
More Less

Related notes for MGTA02H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.