Marketing Midterm Notes.docx - Chapter 1 What is marketing Utility \u2013 want satisfying power of a G&S 4 basic kinds of utility 1 Form utility \u2013 when

Marketing Midterm Notes.docx - Chapter 1 What is marketing...

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Chapter 1 What is marketing? Utility – want satisfying power of a G&S 4 basic kinds of utility: 1. Form utility – when firm convert RM into F/G & S 2. Time and place utility – when consumers find G&S available when and where they want to purchase them 3. Ownership utility – transfer of title of G or S at the time of purchase 3 steps approach: 1. Identifying the needs in marketplace 2. Find out which needs the organization can profitably serve 3. Develop G&S to convert potential buyers into consumers Activities necessary to create the customers the organization wants: 1. Identify consumer needs 2. Design products that meet those needs 3. Communicate innovation about those G&S to prospective buyers 4. Make items available at time and places meet consumers’ needs 5. Price merchandise and services to reflect costs, competition, and consumers’ ability to buy 6. Provide the necessary service and follow-up to ensure customer satisfaction after purchase Marketing – organization function and a set of process for creating, communicating and delivering value to consumers and for managing consumer’s relationships in ways that benefit the organization and its stakeholders Marketing Variables – product, price, promotion and place Several factors forced marketers and entire nations to extend their economic views to events outside their own national borders: 1. International agreements being negotiated in attempt to expand trade among nations 2. Grow of electronic commerce and computer technologies is brining isolated countries into marketplace for buyers and sellers around the globe 3. Interdependence of world’s economies, because no nation produces all the RM and F/G its citizens need or consumers all its output without exporting to other countries 4 eras in the history of marketing Exchange process – activity in which two or more parties give something of value to each other to satisfy perceived needs 1. Production era a. Before 1925, firms focused on production manufacturers stressed production of quality products and looked for people to purchase them b. Reached its peak during early 20 th century
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c. Building new product is not guarantee of success, and marketing history is cluttered with bones of miserable product failures despite major innovations more than 80% of new products fail d. Production orientation – business philosophy stressing efficiency in producing a quality product, with the attitude toward marketing that a good product will sell itself 2. The sales era a. 1920s to 1950s b. Manufacturers increase their emphasis on effective sales forces to find consumers for their output c. Firms attempted to match their output to the potential number of consumers who would want it d. Sales orientation – belief that consumers will resist purchasing non-essential G&S, with attitude toward marketing only creative advertising and personal selling can overcome consumer’s resistance and persuade them to buy 3. The marketing era a. Shift in focus from products and sales to satisfying consumer needs b.
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