MGTA02H3 Chapter Notes - Chapter 5: Product Differentiation, Marketing Mix, Psychographic
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MGTA02H3 Full Course Notes
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Chapter 5: understanding marketing processes and consumer behaviour. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Consumers are the essential ingredient in the marketing process. The benefits of a high-value product are much greater than its costs. Benefits include not only the functions of the product, but also the emotional satisfaction associated with owning, experiencing, or possessing it. The satisfied buyer perceives the benefits derived from the purchase to be greater than its costs. Thus, the simple but important ratio for value: value = benefits/ costs. Marketing strategies focus on increasing value for customers by creating entirely new products that perform better than existing products. It can also mean keeping a store open for extra hours during a busy season: value and utility. Utility ability of a product to satisfy a human want or need.
