Ch 1 MTG 315

Marketing
an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Using exchange to satisfy needs)
Exchange
the trade of things of value between buyer and seller so that each is better off after the trade
Yes, it is because, you feel good about yourself
Go and give blood (Is that exchange?)
The diverse forces influencing marketing activities
Marketing focuses on discovering and satisfying consumer needs
How marketing discovers consumer needs?
1. Consumers may not know or can’t describe what they need or want (know what customer wants)
2. Most New product fails
3. The challenge: focus on the consumer needs and learn from the past
4. Marketing doesn’t create the need but, shapes a person’s wants
need
person feels physiologically deprived of basic necessities (food, clothing, shelter, etc.)
want
shaped by a person’s knowledge, culture and personality
market
consists of people with both the desire and ability to buy product
organizing marketing department (discovering consumer needs)
discover consumer needs (satisfy) -> information about needs (get info.) -> Potential Consumers: The market
target market
consists of one or more specific groups of potential customers toward which an organization directs its marketing program
4 P’s (marketing mix:Controllable factors)
Product, Price, Promotion and Place
Product
a good, service or idea to satisfy customer needs
Price
what is exchanged for product
Promotion
a means of communication between buyer and seller (advertising)
Place
getting the product to the customer (distribution)
Environmental forces
social: What society what and don’t want, Economic: Unemployment, Technological: Internet, Competitive: firms that compete and Regulatory: Political
Customer value
Unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery and both before-sale and after-sale (Best price, Best product and best service)
Relationship marketing
links the organization to individual customers, employees, suppliers and other partners for their mutual long-term benefits
Marketing Program
a plan that integrates the marketing mix to provide good, service or idea to prospective buyers
production era
covers the early years of United States uptill 1920s (build up)
sales era
the 1920s to 1960s, manufactures found they could produce more goods than they consume (sales)
Marketing concept era
what customers want
customers era
firms seek continuously to satisfy the high expectations of customers
marketing concept
1. strive to satisfy the needs of customers
2. while also trying to achieve the organization’s goals
market orientation
1. continuously collecting information for customer needs
2. sharing information across departments
3. using it to create customer’s value
social marketing concept
the view that an organization should satisfy the needs of consumers in a way that provides for society’s well-being
ultimate consumers
the people who use goods and services purchased for a household
organizational buyers
those manufactures, wholesalers, retailers, and governmental agencies that buy goods and services for own use for resale.
who markets?
everyone
what is being marketed?
goods, services and ideas
Who buys and uses what is marketed?
ultimate consumers and organizational buyers
Who benefits?
1. Consumers who buy
2. Organizations that sell
3. Society as whole
How do consumers benefit?
Form Utility, Time Utility, Place Utility and Possession Utility
Form Utility
the production of the good or service
Place utility
having the offering available where consumer needs it
time utility
available when needed
Possession utility
value of making an item easy to purchase through provision of credit cards or financial statements
goods
physical objects
services
complex intangible items, such as legal advice, a college education, or airline travel