Prelim 1 outlines - Key Marketing Concepts 1) Price vs...

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Key Marketing Concepts 1) Price vs Value a) Benefits (perceived benefits, not reality) – include freshness, convenience, quality, etc… b) Divided by price – direct and indirect price 2) Economic Utility – degree to which customer needs and wants are satisfied a) Form – change in product’s form to create utility b) Time – quick and convenient c) Place – easy to find/get to d) Possession – easy to buy 3) Marketplace Orientations a) Production – what producers feel like producing, not what consumers want or need b) Sales – emphasis on selling the product, not producing (used car salesman) c) Marketing – emphasis on consumer’s wants and needs (see what consumer wants, then make product) – profit oriented (not sales), long run 4) TQM – an approach to business and marketing involving all employees in continually improving products and work processes to achieve customer satisfaction and world-class performance – must measure performance to continually improve a) Setting strategic directions – customers, competencies (comparative advantage, quality – TQM, benchmarking – TQM), competitors b) Top management c) Marketing audit d) Continuous improvement e) Benchmarking – finding out what other companies are doing with respect to management (not just competition) f) Consumer satisfaction 5) Customer Satisfaction a) Leads to loyalty leads to sales leads to greater profitability b) Apostles vs terrorists c) Internal marketing – employees as customers d) Training and education e) Teamwork (incentives) f) Employee empowerment – authority to make decisions and feel important 6) Marketing Mix Factors a) Product strategy (ethics involved) – abundance of US goods, role of brands b) Price strategy (economics) – how is price established (some ethics) c) Place – distribution strategy Producer manufacturer wholesale retailer consumer d) Promotion – advertising strategy 7) Problems with marketing concept a) Marketing myopia (narrow vision) – if you focus too narrowly on your business, you’ll miss technology and what else is going on b) Costs of information exceed revenues generated – need to conduct research
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Prelim 1 outlines - Key Marketing Concepts 1) Price vs...

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