Transcript Market - simion.ca

Chapter 1
Instructor Shan A. Garib, Fall 2012
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◦ an organizational function
◦ a set of processes for creating, communicating, and
delivering value to customers
◦ managing customer relationships in ways that benefit
the organization and its stakeholders
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1.
2.
Discover the needs and wants of prospective
customers
Satisfy the needs of customers
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Exchange Outcome: ultimately, marketing works to
bring about an exchange of something desired
Eg. Money for car, apple for orange
Conditions of Exchange:
1.
2.
3.
4.
5.
Two or More Parties with Unsatisfied Needs
They posess something desired by the other
A Way for the Parties to Communicate
Freedon to accept or reject offer
Desire to deal with other party
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Market:
Any place where buyers and sellers can
exchange goods and services
Eg. Ebay, supermarket, classroom
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
1.
2.
3.
4.

Four competing philosophies influence how
and what a company markets:
Production
Sales
Market
Social
Philosophy: a way of living, thinking, being
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
Four competing philosophies influence how
and what a company markets:
Production – focusses on the internal
capabilities of the firm not on desires of
marketplace
-managment asseses resources
regarding how to produce more
-does not take into consideration
what the marketplace needs
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
Four competing philosophies influence how
and what a company markets:
Sales – based on the idea that more people
will buy more goods if aggressive sales
techniques are used
-selling things and collecting money
-lack understanding of needs of
consumer
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
Four competing philosophies influence how
and what a company markets:
Market – based on the idea that the company
exists to produce goods and services that
the consumer whats
-consumer wants to buy the product
-firms use this to differentiate
-all activities dedicated to this
-long term goals achived
Market orientation: obtaining info about
consumers, competitiors
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
Four competing philosophies influence how
and what a company markets:
Societal – based on the idea that the
company exists to produce goods and
services that the consumer whats AND to
preserve societies long run best interest
eg. Non toxic bottles
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
Main differences are between:
-the organization’s focus
-the firm’s business
-whom the product is for
-firm’s primary goal
-tools to achieve the firm’s goal
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1. The organization’s focus:
-Sales orientated firms are inward looking, selling what the
firm makes and not what the market wants
eg. North American car makers
-Market orientated firms are outward looking, selling what
the market desires
-customers at centre of business focus
eg. Dell Computers
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1. The organization’s focus:
-Market orientated firms interested in offering products
with high customer value
-products that have quality customers expect and are at a
price they are willing to pay
Firms Must:
-offer products must perform
-earn trust
-avoid unrealistic pricing
-give the buyer facts about the product
-offer after-sales support eg. Apple Support
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1. The organization’s focus:
-Market orientated firms interested in offering products
with high customer satisfaction
-products that have met the customers needs and
expectations
-culture of firm focussed on delighting customers, not
selling products
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1. The organization’s focus:
-Market orientated firms interested in building relationships
-get a new customer and retain them -long term
-Three ways to expand market share:
a) Attract new customers
b) Increase new business with existing customers
c) Retaining current customers
This is done through relationship marketing, b&c.
eg. Toyota car club for servicing, ask questions, informed
of recalls
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1. The organization’s focus:
-Market orientated firms interested in building relationships
-Relationship marketing depends on:
a) customer-oriented personnel eg. Walmart Greeter
b) training programmes eg. Walt Disney University courses
on traditions, philosophy, operational procedures
c) empowered employees – with the authority to solve
customer problems on the spot and act like owers to get
sales making customers feel that their concerns were
addressed
d) and team work – collaborative efforts easier to
accomplish goals of greater customer satisfaction
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2. The organization’s business:
-Sales orientated firms define their business in terms of
goods and services
-Market orientated firms define their business in terms of
the benefits it’s customers seek
Three advantages:
a) focuss stays on customers
b) encourages innovation by seeking different ways to
satisfy customers
c) Keep abreast of changes in customer tastes and offer
relevant products
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3. Whom the product is for:
-Sales orientated firms targets products at everyone
-Market orientated firms target their products at specific
groups through research and analysis
-realize that different people want different features
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4. The firms primary goal:
-Sales orientated firms seek profits through sales volumes
-Market orientated firms make a profit through creating
customer value, satisfaction, building long term
relationships
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-Marketing plays and important role in society
because makes products available:
-when you want
-in desirable quantities
-accessible locations
-convenient packages
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-Marketing is important to businesses because it
allows for survival, profits and growth:
This is achieved through:
-assessing wants and needs of customers
-designing and managing products
-determining prices
-determining distribution
-communicating with customers
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-Marketing offers great career opportunities
eg. Sales, research, advertising, buying,
distribution
-Marketing affects your dailiy life
-you encounter marketing and participate in the
marketing process as a consumer
-by understanding marketing, you will be better
informed and will make better buying decisions
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