BUSN 70 Chapter Notes - Chapter 11: Marketing Mix, Marketing, Social Forces
5 May 2018
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Department
Course
Professor
Nature of Marketing
A group of activities designed to expedite transactions by creating,
distributing, pricing and promoting goods, services, and ideas
i.
A systematic approach to satisfying customers
ii.
The Exchange Relationship
The act of giving up one thing in return for something else
1)
Businesses exchange their goods, services, or ideas for money
or credit supplied by customers in a voluntary exchange
relationship
2)
a.
Functions of Marketing
Buying
i.
Selling
ii.
Transporting
iii.
Storing
iv.
Grading - standardizing products
v.
Financing
vi.
Marketing Research
vii.
Risk Taking
viii.
b.
Creating Value with Marketing
Value - a customer's subjective assessment of benefits
relative to costs in determining the worth of a product
1)
Customer benefits include anything a buyer receives in an
exchange
2)
Customer costs include anything a buyer must give up to
obtain the benefits the product provides
3)
c.
The Marketing Concept
Basic philosophy that guides all marketing activities
1)
The idea that an organization should try to satisfy customer's
needs through coordinated activities that also allow it to
achieve its own goals
2)
In order to apply a marketing concept, a firm must have good
information about what consumers want, adopt a consumer
orientation, and coordinate its efforts throughout the entire
organization
3)
d.
Evolution of the Marketing Concept
The Product Orientation
Second half of the 19th century, Industrial Revolution1)
i.
The Sales Orientation
Early part of the 20th century, supply outpaces demand1)
ii.
The Market Orientation
Business realize they have to determine what customers want
and then produce it, rather than making products first and
then trying to persuade customers that they need them
1)
Requires organizations to gather information about customer
needs, share that information throughout the entire, and use
it to help build long-term relationships with customers
2)
Customer Relationship Management - important in a market
orientation because it can result in loyal and profitable
customers
3)
iii.
e.
I)
Developing a Marketing Strategy
Plan of action for developing, pricing, distributing and
promoting products that meet the needs of specific
customers
1)
Selecting a Target Market
Market - group of people who have a need, purchasing
power, and the desire and authority to spend money on
goods, services and ideas
1)
Target Market - A more specific group of consumers whose
needs and wants a company focuses its marketing efforts
2)
Total-Market Approach - Try to appeal to everyone and
assume that all buyers have similar needs and wants
3)
Market Segmentation - Divide the total market into groups of
people
4)
Market Segment - A collection of individuals, groups, or
organizations who share one or more characteristics and thus
have relatively similar product needs and desires
5)
Market Segmentation Approaches
Concentration Approach - Company develops one marketing
strategy for a single market segment
1)
Multi-Segment Approach - the marketer aims its marketing
efforts at two or more segments, developing a marketing
strategy for each
2)
Niche Marketing - A narrow market segment focus when
efforts are on one small, well-defined group that has a
unique, specific set of needs
3)
i.
Bases for Segmenting Markets
Demographic1)
Geographic2)
Psychographic3)
Behavioristic4)
ii.
a.
Developing a Marketing Mix
Refers to the four marketing activities that the firm can
control to achieve specific goals within a dynamic marketing
environment
1)
Product
A complex mix of tangible and intangible attributes that
provide satisfaction and benefits
1)
i.
Price
A value placed on an object exchanged between a buyer and
a seller
1)
ii.
Distribution
Making products available to customers in the quantities
desired
1)
iii.
Promotion
A Persuasive form of communication that attempts to
expedite a marketing exchange by influencing individuals,
groups and organizations to accept goods, services and ideas
1)
iv.
b.
II)
Marketing Research and Information Systems
A systematic, objective process of getting info about potential
customers to guide marketing decisions
i.
Two Types of Data
Primary Data - observed, recorded, or collected directly from
respondents
1)
Secondary Data - compiled inside or outside the organization
for some purpose other than changing the current situation
2)
ii.
Online Marketing Research
Virtual Testing - combines sight, sound and animation to
facilitate testing of concepts as well as packaging and design
features for consumer products
1)
a.
III)
Buying Behavior
Refers to the decision processes and actions of people who
purchase and use products
i.
Includes the behavior of both consumers purchasing products for
personal or household use and organizations buying products for
business use
ii.
Psychological Variables of Buying behavior
Perception - person selects organizes and interprets the info
he receives
1)
Motivation - inner drive that directs a person's behavior
towards a goal
2)
Learning - brings about changes in a person's behavior based
on info and experience
3)
Attitude - knowledge and positive or negative feelings about
something
4)
Personality - refers to the organization of an individual's
distinguishing character traits etc.
5)
a.
Social variables of Buying Behavior
Social Roles - a set of expectations for individuals based on
some position they occupy (eg. Mother, student executive
etc.)
1)
Other social factors include reference groups, social classes
and culture
2)
b.
Understanding Buying Behavior
Extremely difficult, as tools and techniques are not exact1)
c.
IV)
The Marketing Environment
External Forces that directly or indirectly influence the development
of marketing strategies
Political, Legal and Regulatory forces1)
Social Forces2)
Competitive and Economic Forces3)
Technological Forces4)
i.
V)
Importance of Marketing to Business and Society
Marketing is a necessary function to reaching consumers, establishing
relationships and driving sales
a.
VI)
Saturday, May 5, 2018
4:03 PM
Document Summary
A group of activities designed to expedite transactions by creating, distributing, pricing and promoting goods, services, and ideas. The act of giving up one thing in return for something else. Businesses exchange their goods, services, or ideas for money or credit supplied by customers in a voluntary exchange relationship. Risk taking i. ii. iii. iv. v. vi. vii. viii. Value - a customer"s subjective assessment of benefits relative to costs in determining the worth of a product. Customer benefits include anything a buyer receives in an exchange. Customer costs include anything a buyer must give up to obtain the benefits the product provides d. The idea that an organization should try to satisfy customer"s needs through coordinated activities that also allow it to achieve its own goals. Second half of the 19th century, industrial revolution ii. Early part of the 20th century, supply outpaces demand iii.
