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York University (12,350)
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MKTG 2030 (84)
Ben Kelly (18)

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York University
MKTG 2030
Ben Kelly

Jessica Gahtan MKTG2030 1 CHAPTER 1: CREATE AND DELIVER VALUE Customer Value: the benefits a customer receives from buying and using a good or service in relation to the costs and sacrifices of buying and using it Marketing: (1) Marketing is the activity, set of institutions, and processes for creating, communication, delivering and exchanging offerings that have value for customers, clients, partners and society at large (2) Marketing is the process of achieving individual and organizational objectives by creating superior customer value for one or more target markets with a sustainable strategy (3) creating value for specific target markets Target market: the group(s) of consumers or customers on which an organization focuses its marketing plan and toward which it directs its marketing efforts MARKETING IS ABOUT CREATING CUSTOMER VALUE ­ Marketing creates value for diverse stakeholders Stakeholder: People or organizations who influence or are influenced by marketing decisions- who have a ‘stake’ in the outcome of an economic exchange Exchange: The process by which some transfer of value occurs b/w a buyer and a seller Consumer: The ultimate user of a g/s but not the only stakeholder whose needs need to be satisfied Marketing concept: A business orientation that focuses on achieving organizational objectives by understanding customer needs, and creating and delivering value in exchanges that satisfy the needs of all parties; organizational objectives such as long-term profitability are best met by first understanding what customers need (value sought) and then determining the associated costs of satisfying those needs (creating and delivering that that value- creating exchanges of mutual satisfaction) ­ Remember: orgs create value when it would be inefficient/ ineffective for the consumer to satisfy the need themselves Needs: the recognition of any difference b/w a consumer’s actual state and some ideal or desired state- the way they’re satisfied dep. on the individual’s history, learning experiences and cultural environment. Want- a desire for a particular product used to satisfy a need in specific ways that are culturally and socially influenced; customers make purchases based on wants Benefit: the outcome sought by a customer that motivates buying behavior (that satisfies a need or want); products need to provide at least one benefit The marketer’s value proposition: benefits offered in relation to the costs and sacrifices; needs to be seen as being more valuable than the money those customers have Demand: customers’ desire with the buying power of resources to satisfy/obtain a want Market: consists of all the consumers who share a common need that can be satisfied by a product purchase and who have the resources, willingness, and authority to make the purchase Marketplace: any location or medium used to conduct an exchange (could be in cyberspace) MARKETING AND EXCHANGE RELATIONSHIPS Exchange- occurs when something is obtained for something else in return; to occur, at least two entities must be willing to make a trade and each must have something the other wants; each party also must be free to accept or reject the other’s terms for the exchange • It’s more expensive to attract new customers than it is to retain current ones Lifetime value of a customer: How much profit companies expect to make from a particular customer, adding the contribution of each and every purchase s/he will make from them now and in the future and subtracting the cost to the company of maintaining the relationship. WHAT CAN WE MARKET? Consumer Goods and Services Product: any good, service, or idea that can be marketed Consumer goods: tangible products that individual consumers purchase for personal or family use Services: intangible products that we pay for and use but never own Popular culture: the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market Jessica Gahtan MKTG2030 2 Business-to-Business G/S Business-to-Business marketing: the marketing of g/s from one organization to another (can be to produce other g/s, for resale, to support their ops) Industrial goods: goods individuals or organizations buy for further processing or for their own use when they do business E-commerce: the buying or selling of g/s electronically, usually over the Internet Not-for-Profit Marketing Not-for-profit organizations: are organizations with charitable, educational, community, and other public service goals that buy g/s to support their functions and to attract and serve their members Idea, Place, and People Marketing ­ In addition to ideas, places and people are also marketable ­ The decisions you make in how you present yourself to others reflect a value proposition- what you have to offer in exchange for people’s time, thoughts, and in the case of potential employers, money Add Value through the Value Chain Understand the Marketing Strategy: Marketing Mix: Implementation & Op portunity Specify the Value Cr eate the Value Evaluation: Realize the Value Environmental Marketing Objectives Product (Objectives, Analysi s Concept, Product Plan the - External Target Market line, Service implementation Environment (Segmentation,
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