Lecture notes
Marketing Notes
Marketing real people, real choices by Michael R Solomon notes. The whole book constructed into 70 pages of notes. Has everything you need to do well in your exam.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
Content preview
CHAPTER 1MARKETING
- Marketing (is the activity, set of institutions and processes for creating, communicating, delivering and
exchanging o erings that have value for for customer, clients, partners and society at large).
- Marketing includes a great number of activities, at the heart of every marketing act there is an
exchange (is the process by which some transfer of value occurs between a buyer and a seller).
This exchange involves:
• Consumer goods > Are the goods individual consumers purchase for personal or family use.
• Services > Are intangible products that are exchanged directly between the producer and the
customer.
• Ideas
- Business-to-business marketing (is the marketing of goods and services from one organization to
another). Businesses purchase industrial goods (are the goods that individuals or organizations buy for
further processing or for their own use when they do business). In the area of business-to-business
marketing there is e-commerce (the buying or selling of goods and services electronically, usually over
the internet).
- Not-for-pro t organizations or nongovernmental organizations NGOs (are organizations with
charitable, educational, community and other public service goals that buy goods and services to
support their functions and to attract and serve their members). Not-for-pro t organizations include
museums, zoos, churches…
- Most successful rms today practice the marketing concept (is a management orientation that focuses
on identifying and satisfying consumer needs to ensure the organization’s long-term pro tability).
Practicing the marketing concept requires that marketers understand the most basic elements
of successful marketing. These elements are:
• Need > Is the di erence between a consumer’s actual state and some ideal or desired state.
Needs are general, desires are speci c.
• Want > Is the desire to satisfy needs in speci c ways that are culturally and socially in uenced.
• Bene t > Is the outcome sought by a customer that motivates buying behavior that satis es a need
or want.
• Demand > Is customers’ desires for products coupled with the resources needed to obtain them.
• Market > Is all the customers who share a common need that can be satis ed by a speci c product
and who have the resources, willingness and authority to make the purchase.
• Marketplace > Is any location or medium used to conduct an exchange. Marketplaces continue to
evolve.
- Rentrepreneurs (enterprising consumers who make money by renting out their possessions when they
aren’t using them). The activities practiced by rentrepreneurs are called collaborative consumption.
- Marketing transactions create utility (is the usefulness or bene t that consumers receive from a
product). Utility is what create value. Marketing processes create several di erent kinds of utility to
provide value to consumers:
• Form utility > Is the bene t marketing provides by transforming raw materials into nished products.
• Place utility > Is the bene t marketing provides by making products available where customers want
them.
• Time utility > Is the bene t marketing provides by storing products until they are needed.
• Possession utility > Is the bene t marketing provides by allowing the consumer to own, use and
fi fiff fffi fififi fi fi fi fi fifffi fi fl fififi
, enjoy the product.
- Marketing doesn’t just meet the needs of consumers, it meets the needs of diverse stakeholders (are
buyers, sellers or investors in a company, community residents and even citizens of the nations where
goods and services are made or sold, in general any person or organization that has a stake in the
outcome).
MARKETING HISTORY
- Marketing is not natural and hasn’t always been around. Before 1950 organizations only needed to
make products faster and cheaper to be successful. Marketing discipline has developed a lot since
then. The existence of consumers and consumerism is a sociohistorical formation that has happened
over time.
1. PRODUCTION ERA (1900-1920)
- Consumers had to take whatever was available, marketing played a relatively insigni cant role because
of lack of choice. Monopoly doesn’t need marketing.
Production orientation (is a management philosophy that emphasizes the most e cient ways to
produce and distribute products).
2. SALES ERA (1920-1950)
- Manufacturers realized that the innovative production apparatus created huge surplus, so they needed
to nd ways to entice buyers or to keep production in line with demand.
Selling orientation (is a managerial view of marketing as a sales function, or a way to move products
out of warehouses to reduce inventory).
3. RELATIONSHIP ERA (1950-1980)
- Firms began to develop more of an appreciation for the ways they could contribute to pro ts. Fostering
sustainable relationships with the customers: the main idea is to keep the consumer coming back again
and again.
Customer orientation (is a business approach that priorities the satisfaction of customers’ needs and
wants).
Total quality management TQM (is a management philosophy that focuses on satisfying customers
through empowering employees to be an active part of continuous quality improvement).
4. TRIPLE-BOTTOM-LINE ERA (1980-till now)
- Business emphasizes the need to maximize three components:
• The nancial bottom line > Financial pro ts to stakeholders.
• The social bottom line > Contributing to the communities in which the company operates
• The environmental bottom line > Creating sustainable business practices that minimize
damage to the environment or that even improve it.
- Triple-bottom-line orientation (is a business orientation that looks at nancial pro ts, the community in
which the organization operates and creating sustainable business practices). One result to this new
way of long-term thinking is the societal marketing concept (is a management philosophy that
marketers must satisfy customers’ needs in ways that also bene t society and deliver
pro t to the rm).
fi fi fi fi fi fi fi fi fiffi fi
, - Firms now focus on:
• Sustainability > Is a product design focus that seeks to create products that meet present consumer
needs without compromising the ability of future generations to meet their needs. One way to think
about this philosophy is “doing well by doing good”. For example green marketing (is a marketing
strategy that supports environmental stewardship, thus creating a di erential bene t in the minds of
consumers).
• Accountability > Is a process of determining just how much value an organization’s marketing
activities create and their impact on the bottom line.
• Return on investment (ROI) > Is the direct nancial impact of a rm’s expenditure of a resource,
such as time or money.
MARKETING MIX
- Marketing mix (is a combination of the product itself, the price of the product, the promotional
activities that introduce it and the place where it is made available, that together create a desired
response among a set of prede ned consumers). Decisions about any single one of the four are
a ected by and a ect every other marketing mix decision. All the pieces in the marketing mix must work
together.
It is also called the four Ps, it involves:
1. Product > Is a tangible good, service, idea or some combination of these that satis es consumer or
business customer needs through the exchange process; a bundle of attributes including features,
functions, bene ts and uses. Creating new products is vital to the success and the life of an
organization.
2. Price > Is the assignment of value or the amount the consumer must exchange to receive the
o ering. Marketers often turn to price to increase consumers’ interest in a product. Marketers try to
sell a product with higher price than people are used to if they want to communicate that it’s high
quality or cutting edge.
3. Promotion > Is the coordination of a marketer’s communication e orts to in uence attitudes or
behavior. Promotion includes many di erent activities, such as personal selling, TV advertising, store
coupons, magazine ads, social media sites…
4. Place > Is the availability of the product to the customer at the desired time and location.
EXCHANGE
- There is a di erent value from the di erent perspectives of the parties that are involved in an exchange:
the customers, the sellers and the society.
• Value from the customers’ perspective > Marketers communicate the bene ts to the customers in
the form of a value proposition (a marketplace o ering that fairly and accurately sums up the value
that will be realized if the good or service is purchased). A large part of the marketer’s role in
delivering the value proposition deals with understanding and developing e ective distribution
strategies.
• Value for the sellers’ perspective > Sellers experience value by determine whether the exchange is
pro table for them. Marketers measure value with marketing scorecards (feedback vehicles that
report how the company is actually doing in achieving various goals).
Companies calculate the life time value of a customer (the potential pro t a single customer’s
purchase of a rm’s products generates over the customer’s lifetime).
They provide value through:
Gaining competitive advantage > Is an edge over its competitors that allows it to have higher
sales, higher pro ts and more customers. There are two steps to gain competitive advantage:
1. Identify a distinctive competency (is a superior capability of a rm in comparison to its direct
competitors).
ff fffi ff fifffi fi fi ff fffi ff fifi ff ff fl fi ff fifi
, 2. Turn a distinctive competency into a di erential bene t (properties of products that set them
apart from competitors’ products by providing unique customer bene ts).
Value chain > Is a series of activities involved in designing, producing, marketing, delivering and
supporting any product. Each link in the chain has the potential to either add or remove value from
the product the customer eventually buys. The main activities in the value chain are:
Inbound logistics > Bringing in materials or component parts necessary to make the product.
The activity includes receiving the input materials, warehousing and inventory control.
Operations > Converting the materials into another form or the nal product. The company
conducts activities to transform the materials into nal product form, such as by machining,
packaging and assembly.
Outbound logistics > Shipping out the nal product. The company conducts activities needed
to ship the product out to customers.
Marketing > Promoting and selling the nal product.
Service > Meeting the customer’s needs by providing any additional support required. The
company conducts activities to enhance or maintain the value of the product such as
installation or repair.
Using social networking platforms > Are online platforms that allow a user to represent himself
or herself via a pro le on a website and provide and receive links to other members of the network
to share input about common interests.
• Value for the society’s perspective > Every company’s activities in uence the world around it in
ways both good and bad. Marketing transactions add and subtract value from society.
fi fffifi fi fi fi fi fl
, CHAPTER 2
ENTER GLOBAL MARKETS
- The increasing amount of world trade (is the ow of goods and services among di erent countries; the
value of all exports and imports of the world’s nations) may take place trough cash, credit payments and
countertrade (is a type of trade in which goods are paid for with other items instead of with cash).
- The decision to go global often comes when further domestic growth opportunities dwindle and the rm
perceives likelihood for success in foreign markets as a result of a competitive advantage.
After a rm has decided to go global, it must follow three steps:
1. Step 1: Consider which markets are the most attractive to enter
2. Step 2: Choose what market-entry strategy is best to use
3. Step 3: Decide how to best develop the marketing mix
- Some governments adopt policies of protectionism (a policy adopted by a government to give
domestic companies an advantage).
Governments to give domestic competitors an advantage in the marketplace by setting:
• Import quotas > Limitations set by a government on the amount of a product allowed to enter a
country on foreign goods.
• Sometimes an embargo > Is a quota completely prohibiting speci ed goods from entering or leaving
a country.
• Tari s > Are taxes on imported goods.
However, group of countries may also build economic communities (are groups of countries that
band together to promote trade among themselves and to make it easier for member nations to
compete elsewhere).
ff
fi fl fi ff fi
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller aneshkajenthiran. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.24. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now