MGTA02H3 Chapter Notes - Chapter 5: Subculture, Psychographic, Burberry

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13 Apr 2012
Chapter 5 What is Marketing? 4/6/2012 7:27:00 PM
The process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods ad services to create
exchanges that satisfy individual and organization goals
Consumers are essential to marketing
Consumers need and wants are the forces that drive marketing
Marketing Concept
o The whole firm is coordinated to achieve one goal serve its
present and potential costumers and to do at a profit
o Firms must know what costumers want and closely follow the
o COMMON GOAL- Costumer satisfaction
Study of marketing focuses on providing value and unity for
Consumers buy products that offer that best value when it comes to
meeting their needs and wants
Value and benefits
o Value: compares a product’s benefits with its cost
o Benefits of high value product are much greater than its cost
o Benefits Include function of product and emotional
satisfactions associated with owning, experiencing or
processing it
o Marketing strategies focus on increasing value for customers
Value and utility
o Utility: Ability of a product to satisfy a human wants or needs
Time Utility: makes products available when consumers
want them
Place Utility: Makes product available where customers
can conveniently purchase them
Ownership Utility: Conveniently transferring ownership
from store to customers
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Form utility: making products available in the first place
by turning raw materials into finished ornaments
Consumer goods: Products that the consumers buy for personal
o Firms that sell these are engaged in consumers marketing
Industrial goods: Products used by companies to produce other
o These firms engage in industrial marketing
Services: Intangible products, such as time, expertise or an
activity that can be purchased
o Engage in Service Marketing
Ideas: Marketers also promote ideas
Relationship marketing
o It is a type of marketing that emphasizes lasting relationships
with customers and suppliers
o Strong relationships including stronger economic and social
ties; can result in greater long-term satisfaction and customer
Marketing decisions are strongly influenced by powerful outside
External Environment: Outside factors that influence marketing
programs by posing opportunities or treats; 5 Environmental factors
o Political and Legal Environment
Political activities, foreign and domestics has impact on
To gain public support they use advertising campaign
for public awareness on issues of local, regional,
national importance
o Social and cultural Environment
Changing social values forces companies to develop and
promote new products for both individual consumers
and industrial customers
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Example, our value privacy, web surfers are discovering
that a loss of privacy
o Technological Environment
New technology creates new goods and services
New products makes some existing products obsolete
(replace tap players with MP3s)
Many change our values and lifestyles
o Economic Environment
Economic conditions determine spending pattern by
consumers , business and government
They influence every marketing’s plans for products
offerings, pricing, and promotional strategies
They must monitor the general business cycle which
typically feature a pattern of transition from periods of
prosperity to recession to recovery
Consumer spending increases “consumers conflicts”
o Competitive Environment
Marketers must convince buyers that they should
purchase their products rather than those of some other
Each marketing program seeks to make its products the
most attractive
3 types of completion
Substitute products: A Product that is dissimilar
from those of competitors but that can fulfill the
same needs
Brand Competition: Competitive marketing that
appeals to consumers perception o similar
International Competition: Competitive
marketing of domestic against foreign products
Business requires marketing management
Marketing Mangers: Mangers responsible for planning and
implementing all the marketing-mix activities that results in the
transfer of foods and services of customers
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