Textbook Notes (368,107)
Canada (161,650)
MGTA02H3 (363)
Chapter 5

MGTA04- Chapter 5 - Class 7 and 8.docx

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Management (MGT)
Bill Mc Conkey

MGTA04 Class 78 March 1 2012 CHAPTER 5 UNDERSTANDING MARKETING PROCESSES AND CONSUMER BEHAVIORMARKETINGMarketing planning and executing the development pricing promotion and distribution of ideas goods and services to create exchanges that satisfy both buyers and sellers objectivesMarketing Concept The idea that the whole firm is directed toward serving present and potential customers at a profitFour activities that comprise the marketing mix developing pricing promoting and placing products Value and BenefitsValue compares a products benefits with its costsBenefits of a highvalue productthan costBenefits include not only the functions of the product but also the emotional satisfactions associated with owning experiencing or possessing it Value Marketing strategies focus on increasing value for customerMarketing resources are deployed to add value to products to satisfy customers needs and wantsSatisfying customersmay mean developing an entirely new product that performs better than existing products ormay mean keeping a store open extra hours during a busy seasonPrice reduction benefit of lower costValue and Utility Utility ability of a product to satisfy a human want or needProducts provide customers with utility Marketing strives to provide 4 kinds of utilityTime utilityPlace utilityOwnership utilityForm utility GOODS SERVICES AND IDEASConsumer goods products purchased by individuals for their personal useEngaged in consumer marketingIndustrial goods products purchased by companies to use directly or indirectly to produce other productsEngaged in industrial marketingServices intangible products such as time expertise or an activity that can be purchasedEngaged in service marketinghas become a major growth area in CanadaMarketers also promote ideasRELATIONSHIP MARKETINGRelationship Marketing a type of marketing that emphasizes lasting relationships with customers and suppliersStronger relationships incl stronger economic and social ties cangreater long term satisfaction and customer loyaltyBanks offer economic incentives to encourage longer lasting relationshipsTHE MARKETING ENVIRONMENT Marketing plans decisions and strategies are not determined unilaterally by any business They are influenced by stronger outside factorsExternal Environment outside factors that influence marketing programs by posing opportunities or threats5 factors politicallegal socialcultural technological economic and competitive environmentsCompetitive Environment need to convince consumers to buy their product Need to study competition and determine how to position their own products best for 3 types of competitionSubstitute products a product that is dissimilar from those of competitors but that can fulfill the same needBrand competition competitive marketing that appeals to consumer perceptions of similar productsInternational competition competitive marketing of domestic against foreign products
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