University of Toronto (UTSC)MGMA01H3Principles of MarketingFall 2017 Term Test 1 Prof: Pankaj AggarwalExam Guide
IntroductionWhat is marketing?oAdvertisingoProductoPricingoPublic relationsoDirect mailoSales forecastsoResearchoIncentive programsoPromotionsoPlanningoProduction planningoServiceoDistribution strategyoWeb-site designoTrade relationshipsoSponsorshipsoDonationsMarketing is a transaction to satisfy needsoBuyers have needs that sellers satisfyFour factors are essential for marketingoTwo or more parties with unsatisfied needsoA desire and ability on their part to be satisfiedoA way for parties to communicate, and transactoSomething to exchangeWhat can we market?
oProductsoBrandsoCompanies3 C’s and 4 P’s of marketingo3 C’s: customer analysis, company assessment, competition analysiso4 P’s: product, price, placement, promotion, placeThe 4 P’s are implementations of the 3’sBarbie history videooBarbie deemed inappropriate due to societal standardsoBarbie had to appeal to both parents and kidsoMarketed to parents as a learning tool for young girlsoCompany: one woman visionoConsumer: parents and childrenoCompetition: existing beliefs, SindyoProduct: idea, shape/size, extensions, accessories, name, packaging, roleof KenoPrice: premiumoPromotion: ads, matching the changing environmentoPlace: worldwideoOther issues: ethical issuesUnderstanding consumer is key!!!!!!!!!!
Different Orientations to Marketing and Company AnalysisDifferent orientations to marketing: different companies have differentphilosophies to marketingoProduction orientationoProduct orientationoSales orientationoMarketing orientationProduction orientationoThe business is centered around manufacturing of a productoConsumers favour products that are affordable and widely availableoFocuses on operational efficiencies and cost reduction of manufacturing aproductoProduct quality isn’t the primary focusoManufacturers move overseas to China because it lowers their productioncostProduct OrientationoThe business is centered around the productoConsumers favour products that have the highest quality, bestperformance, and most innovative featuresoThere is a focus on design features and product excellenceoTech companies are product orientedoResearch and development focusedSelling OrientationoThe business is centered around salesoThe focus is on sale transactionsoTypically for unsought goods and driven by over capacityoAssumes that hard sell customers are satisfiedoThe focus is on clinching the ‘deal’
Marketing OrientationoBusiness is centered around customersoAssumes that customers have unmet need and the organization canprovide products and services that satisfy these needs at a profitoFocus is on providing ‘value’ to the customer; make the customer see thevalue in your productoSelling Vs. MarketingoCompany orientationoConsequences of outward orientationPricing: cost-plus or value based