MKT1705D Week 1 Introduction

Marketing

Social & Managerial Process by which companies CREATE VALUE for customers by satisfying their NEEDS & WANTS; build strong customer relationships in order to CAPTURE VALUE from customers in return

Transaction

Trading values between 2 parties

Types of Marketing Transactions

1) Commercial Transaction

2) Employment Transaction

3) Civic Transaction

Commercial Transaction

Buyers will give money; Sellers will provide goods or services

Employment Transaction

Employers will provide wages; Employees will provide productive services

Civic Transaction

Police will provide protective services; Citizens will provide taxes & cooperation

Product

Anything offered to a market for attention, acquisition, use, or consumption

Market

Set of actual & potential buyers for a product

Marketing Management Philosophies

1) Societal Market Concept

2) Marketing Concept

3) Selling Concept

4) Product Concept

5) Production Concept

Production Concept

Focus on production & distribution efficiency

Assumes consumers prefer products that are available & highly affordable

- Works when demand > supply

- Works when cost are highly & improved productivity will lower costs

Product Concept

Focus on making continued product innovations

Assumes consumers prefer products with the highest quality, best features, and performance

- May lead to Marketing Myopia (over-narrowing of business)

Selling Concept

Focus is on selling & promotion

Assumes consumers will not buy enough unless stimulated aggressively

Normally used for unsought goods

Marketing Concept

Determines needs & wants of target markets & delivering them more EFFECTIVELY & EFFICIENTLY than competitors

Create, build, & maintain beneficial exchanges with target buyers to achieve organizational objectives

Focus on Buyer's Needs vs Seller's Needs

Customer Driven

Understand customers deeply about what they want

Create products that meet current needs

Customer Driving

Understand customers needs better than customers themselves do

Create products that meet needs now and in the future

Example: Tesla, BYD

Societal Marketing Concept

Determines needs, wants, & interests of target consumers & deliver them more effectively & efficiently than competitors in a way that preserves/enhances the consumer's & society's well-being

- Maximize Consumer Satisfaction

- Maximize Choice

- Maximize Quality of Life

Customer Relationship Management

Process of building and maintaining profitable customer relationships by delivering SUPERIOR CUSTOMER VALUE and SATISFACTION

Attract, keep, and grow PROFITABLE CUSTOMERS

Customer Relationship Groups

From most profitable to least

1) True Friends

2) Butterflies

3) Barnacles

4) Strangers

3Cs in Business

Understand your CUSTOMERs needs & trends

Know your COMPANYs strengths and weaknesses

Analyse your COMPETITION for opportunites and threats