Class notes
Marketing MOS 2320
- Course
- MOS 2320 (MARKETING)
- Institution
- University Of Western Ontario (UWO )
ALL NOTES - Textbook and lecture combined into one doc!
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WEEK 1Lecture AND Textbook Notes (merged tg)
Chapter 1 : Introductions/Overview of Marketing
Building Value
- Build and maintain a loyal customer base
- Distinguish from competitors
- Strong brand, customer appeal
- Constantly need to protect the brand
What is Marketing?
- Marketing is a set of business practices designed to plan for and present an
organization’s products or services in ways that build effective customer relationships
- Good marketing requires thoughtful planning with an emphasis on ethical implications of
any of those decisions on consumers and society in general
- Marketing plan involves creating a SWOT analysis and determining strategies specified
in the four P’s
Core Aspects of Marketing
- 1. Helps create value
- Fundamental purpose of marketing is to create value for the consumer
and capture value from the consumer
- 2. Occurs in many settings
- 3. Can be performed by both individuals and organizations
- Business to business (B2B)
- Business to consumer (B2C)
- Consumer to consumer (C2C)
- 4. Requires product, price, place, and promotion decisions (marketing mix)
- 5. Entails a marketing exchange
- At the core of any marketing activity is the voluntary trade of things of
value between two parties so that each may benefit, and both might
prosper
- The exchange can occur between any 2 parties
- Not simply a buyer and seller exchanging money for a good/service, it
can be an exchange of information for convenience
- 6. About satisfying customer needs and wants
- Effective marketing seeks to understand and satisfy the different ways
that different consumers will want to meet their needs
- Need : basic necessities of life, i.e. food, shelter, safety, etc
- Want : the particular way in which the person chooses to fulfill his need,
this is shaped by culture, knowledge, and personality
Marketing Mix (4 P’s create the marketing mix)
,*areas of decision making and activities necessary to deliver value as we satisfy the needs and
wants of our target market(s)
^ your target market is consumers who want and can afford such a product that you are
offering
^ the 4 P’s work best when they are combined together rather than working alone individually
- Product; Creating Value
- Goods (items you can physically touch)
- Services (intangible customer benefits that are produced by people or machines)
- I.e. buying air plane ticket, you are paying for the service, not the actual
ticket
- Ideas (thoughts, opinions, philosophies, and intellectual concepts)
- I.e. promoting bicycle safety, the exchange occurs when the students sit
in the presentation then they ride bikes with helmets, they have adopted
or “purchased” the idea of bicycle safety
- Price; Transacting Value (everything the buyer gives up)
- Time
- Energy
- Money
- ^ i.e. booking a trip in advance will be cheaper in comparison to booking a trip
last minute, you exchange a cheaper price for convenience when booking in
advance, taking up your time, energy and money
- Place; Delivering Value (from manufacturer to the right customer)
- All activities necessary to get the product to the right customer when that
customer wants it
- Supply chain management is the field that examines these activities → the set of
approaches and techniques that firms employ to efficiently and effectively
collaborate with all firms, warehouses, producers, etc involved in the transaction
- Promotion; Communicating Value
- The communication activities of marketing
- Used to inform, persuade, and remind potential buyers
- Used to influence their opinions or elicit a response
*Marketing can be performed by both organizations and individuals
- B2B : wholesaling is business to business
- B2C : all retailing is business to customer
- C2C : eBay, yard sales
Marketing Impacts Many Stakeholders
- Both profit and non-profit entities
- Developing economies
- Entire industries
The 4 Orientations of Marketing (how marketing has changed overtime)
- Product Orientation
, - Companies focus on developing and distributing innovative products with little
concern about whether the products best satisfy customers’ needs
- Little concern on whether the products best satisfy customers’ needs
- They generally start thinking about the product they need to build then try selling
the product after development rather than understanding the customer needs
prior to development
- Sales Orientation
- View marketing as a selling function where companies try to sell as many of their
products as possible rather than focus on making products consumers really
want
- Everything the buyer gives up in exchange for the product
- Try to sell as many products as possible rather than focusing on what customers
actually want
- Depend heavy on personal selling and advertising to attract new customers
- Focus on making transactions, not building relationships
- Profit comes from sales volume rather than from repeat business of satisfied
customers
- Market Orientation
- Companies start out by focusing on what consumers want and need before they
design, make, or attempt to sell their products and services
- They believe consumers have voice and that they make purchase decisions
based on quality, convenience, and price
- “The customer is king”
- Understand and respond to needs of customers and do everything possible to
satisfy them
- Value-Based Orientation
- Value reflects the relationship of benefits to costs, what you get for what you
give
- Implements strategies according to what customers value and think is worth the
price
- Provide value to customers by involving “cocreating,” i.e. Nike giving option to
customize their own sneakers
- Offers the consumer greater value than their competitors can
- Value is not just about large quantity or low prices, it is about better products but
also focus on increased CSR, societal marketing concepts, and the “triple
bottom line”
- To compete successfully, firms focus on the triple bottom line :
- People (consumer needs & wants)
- Curate ongoing consumer relationships rather than unique sales
transactions
- Profits (long-term profitable relationships)
- Strengthen the connection between consumer and brand
- Planet (social and environmental responsibility)
, How Do Firms Become More Value Driven?
- Firms focus on 4 activities :
- 1. Sharing information
- 2. Balance customer benefits and costs
- Understand the key benefits
- Focus on those key benefits
- Eliminate cost of the less strategic benefits
- 3. Build relationships with customers
- Take a long term view of customer relationships
- Use data to assist in maintaining the relationship
- 4. Use technology to connect with customers
- Embrace social media to better connect with customers
- Users are driving the way brands and stores are interacting with social
media
Marketing Expands Firms’ Global Presence
- Goods are available to consumers from many countries worldwide
- Must understand customers needs and wants, region by region
Marketing is Pervasive Across Channel Members
- Each step in the supply chain involves marketing
- All members in the chain must ultimately focus on creating value for their customer and
the end user consumers (RM→M→D→C)
Chapter 2 : Developing Marketing Strategies and a Marketing Plan
What is a Marketing Strategy?
- Identifies a firm’s target market(s)
- Identifies a related marketing mix (4 P’s)
- Identifies the bases upon which the firm plans to build a sustainable competitive
advantage
- ***Marketing strategy leads to sustainable competitive advantages
Sustainable Competitive Advantage
*this is something the firm can consistently do better than its competitors
- Strong brand
- Technology
- Strong customer base
- Loyal customers
Developing Customer Value
- Customer Excellence
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