MARK804 - Lecture 1 Notes

Humber College **We aren't endorsed by this school
Apr 17, 2023
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What is Marketing? - The process by which marketing organizations engage customers, build strong customer relationships and create customer value in order to capture value from customers in return - A social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others Seth Godin - What is Marketing Today? Video What is Value in Marketing? - Creating value for customers and building customer relationships - Understanding the marketplace and customer needs, wants, and demands - Design a customer-driven marketing strategy - Construct an integrated marketing program that delivers superior value - Build profitable relationships and create customer delight - Capture value from customers to create profits and customer equity - Capture value from customers in return - Customers can provide positive reviews, another value Market O ff erings: - Goods - Services/Experiences - Persons - Places - Organizations - Information - Ideas Designing a customer-driven marketing strategy - Marketing management is the art and science of choosing target markets and building profitable relationship with them - To design a winning marketing strategy, the marketing manage must answers two important questions: 1. What customers will we serve? (Who is our target market?) 2. How can we serve these customers best? (i.e. what is our value proposition?) Marketing Management Orientations - There are five alternative concepts under which organizations may conduct their marketing activities: 1. Production The production concept holds that consumers will favour products that are available and highly a ff ordable. Therefore, management should focus on improving production and distribution e ciency 2. Product The product concept holds that consumers will favour products that o ff er the most quality, performance and innovative features. Thus, an organization should devote energy to making continuous product improvements 3. Selling The selling concept holds that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion e ff ort 4. Marketing
The marketing concept holds that achieving organizational goals depends on determining the needs and wants to target markets and delivering the desired satisfaction more e ff ectively and e ciently than competitors fo 5. Societal marketing The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare More interested in customer satisfaction. By achieving customer satisfaction, sales volume will follow. Marketing Mix 7 aspects (7 P's) 1. Product: Goods, Services and experiences - variety, quality, design, features, brand name, packaging, sizes, add-ons, warranties, returns 2. Price - list price, discounts, allowances, settlement and credit terms 3. People - relationships are important in marketing 4. Placement Logistics - demand chain mgmt, logistics mgmt, channel mgmt 5. Promotion - advertising, personal selling, direct marketing, online marketing 6. Process - customers are often involved in process of creating and enjoying experiences
7. Physical Evidence - services are mostly intangible. The meaning of other tools and techniques used in measures of satisfaction is important The changing marketing landscape The growth of not for profit marketing - not for profit marketing is a kind of marketing that is practised by a variety of orgs whose aim is to make surpluses to as to continue their operations, but that do not seek to make profits for shareholders Rapid Globalisation - geographical and cultural distances have shrunk with the advent of such technological advances as: jet airliners, telephone links, digital satellite tv broadcasting, email and messaging, social networking, internet capable smartphones, VOIP phone services Sustainable marketing: the call for more environmental and social responsibility - todays marketing environment obligates companies to take responsibility for the social and environmental impact of their actions - Corporate ethics have become an important matter in almost every business arena, from the corporate boardroom to the business school classroom - Sustainable marketing: social and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs Social Criticisms of Marketing - deceptive prices - High pressure selling - Harmful or unsafe products - Planned obsolescence - Poor service to disadvantaged consumers - High prices - Impact on society: too much materialism, too few social goods, cultural pollution (constant ads) Consumerism : an organized movement of citizens and govt agencies whose aim is to improve the rights and power of buyers in relation to sellers Sellers Rights - the right to introduce any product providing its not hazardous - The right to charge any price - The right to promotion - The right to use any product message provided it is not misleading - The right to us buying incentive programs Traditional Buyers Rights - the right not to buy a product - The right to expect the product to be safe - The right to expect the product to perform as claimed
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