Textbook Notes (362,734)
Canada (158,032)
RSM250H1 (18)
Chapter 1

RSM250H1 Chapter 1 Notes

6 Pages
Unlock Document

University of Toronto St. George
Rotman Commerce
Mengze Shi

RSM250H1 Textbook Notes Chapter 1: Marketing: Creating and Capturing Customer Value  Marketing is managing profitable customer relationships. o The two goals of marketing are to:  Attract new customers by promising superior value.  Keep and grow current customers by delivering satisfaction.  Marketing: the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.  Marketing mix: a set of marketing tools that work together to satisfy customer needs and build customer relationships.  The steps in the marketing process are: Understand Design a Construct a Build Capture value marketplace customer- marketing relationships customers to and customer driven program that and create create profits needsand marketing delivers customer and customer wants strategy superior value delight equity  Five core customer and marketplace concepts: o Needs, wants, and demands  Needs: states of felt deprivation.  Include:  Physical needs o I.e. needs for food, clothing, warmth, and safety.  Social needs o I.e. needs for belonging and affection.  Individual needs o I.e. needs for knowledge and self-expression.  Wants: the form human needs take as they are shaped by culture and individual personality.  I.e. we need food but we want pizza.  Demands: human wants that are backed by buying power. o Market offerings (products, services, and experiences)  Market offerings: some combination of products services, information, or experiences offered to a market to satisfy a need or want.  Can also include other entities such as, persons, places, organizations, information, and ideas.  Services: activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.  Marketing myopia: the mistake of paying more attention to the specific product a company offers than to the benefits and experiences produced by these products.  I.e. a drill bit manufacturer may think that the customer needs a ¼ inch drill bit when they really need a ¼ inch hole.  Brand experiences for customers are made when marketers orchestrate several services and products. o Value and satisfaction  By giving the customer the maximum value possible, they will satisfy customers and those customers will buy again and refer the products to others.  Opposite if little, to no value is given. o Exchanges and relationships  Exchange: the act of obtaining a desired object from someone by offering something in return.  Doesn’t have to be products.  Marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences involving a product, service, idea, or other object. o Markets  Market: the set of all actual and potential buyers of a product or service.  A modern marketing system looks like: Company Suppliers Marketing Consumers Intermediaries Company  Marketing management: the art and science of choosing target markets and building profitable relationships with them.  Marketing managers must answer two important questions: o What customers will we serve (what’s our target market)? o How can we serve these customers best (what’s our value proposition)?  Steps in selecting customers to serve: o Divide the market into segments of customers (market segmentation). o Select which segments it will go after (target marketing).  It will be those segments it can serve well and profitably.  A company must decide how it will differentiate and position itself in the marketplace. o Value proposition: a brand’s set of benefits or values it promises to deliver to consumers to satisfy their needs.  I.e. Rogers “Canada’s most reliable network.”  Five alternative concepts under which organizations design and carry out their marketing strategies: o The Production Concept  The idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.  Too much focus on operations can lead to marketing myopia. o The Product Concept  The idea that consumers will favour products that offer the most in quality, performance, and innovative features and that the organization should therefore devote its energy to making continuous product improvements.  Without making new and better products, marketing myopia may also occur (i.e. mouse trap example). o The Selling Concept  The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.  The aim is to sell what the company makes rather than making what the market wants. o The Marketing Concept  A philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.  Customer-driven companies research current customers deeply to learn about their desires, gather new product and service ideas, and test proposed product improvements.
More Less

Related notes for RSM250H1

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.