Customers form expectations about the value and

Customers form expectations about the value and satisfaction that various market
offerings will deliver and buy accordingly
4. Exchanges and relationships
o Exchange = is the act of obtaining a desired object from someone by offering something
in return
o Marketing consists of actions taken to build and maintain desirable exchange
relationships with target audiences involving a product, service, idea or other object
5. Markets
o Market = the set of actual and potential buyers of a product or service

3. identify the two key questions to answer in the design of a
marketing strategy, and explain the five marketing
management orientations that guide marketing strategy.
(textbook, pp. 9–13)
Two important questions:
 What’s our target market?
 What’s our value proposition (how can we serve these customers best?)
Marketing Mix – the set of marketing tools the firm uses to implement its marketing strategy.
4 P’s of Marketing:
1. Product
2. Price
3. Place
4. Promotion
Marketing Management Orientations
5 Alternative Concepts to carry out a marketing strategy:
 The Production Concept – holds that consumers will favour products that are available
and highly affordable
o Risk = focusing too narrowly on their own operations
 The Product Concept – holds that consumers will favour products that offer the most in
quality, performance, and innovative features
