Hanjunglee

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CHAPTER 1: Marketing and Strategy: An Introduction
Development of the Marketing concept
* Production orientation: focus on reducing cost and increasing efficiency * Product orientation: focus on quality and product features. * Selling orientation: use of aggressive and sometimes devious sales techniques. * Marketing: focus on defining what customers want, and arranging corporate activities so that customers are satisfied. Antecedents of marketing

* Economics: The study of supply and demand
* Sociology: The study of group behaviour
* Psychology: The study of thought processes
* Anthropology: The study of culture
* Corporate strategy: The study of industrial competition and positioning Scope of Marketing
* Consumer marketing
* Industrial marketing
* Service marketing
* Not-for-profit marketing
* Small business marketing
* International marketing
Basic Marketing Concepts: Marketing Defined
* Marketing is an organisational function and a set of business processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders. (AMA 2005) * Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (AMA 2007) Basic Marketing Concepts: What is Market ?

* Market
* A collection of buyers and sellers; a group of individuals or institutions that have similar needs that can be met by a particular product * Marketspace
* Electronic marketplace that are not bound by time or space such as Amazon, eBay * Metamarket
* A cluster of closely related goods and services that center around a specific consumption activity. For example one product demand on another product such as cars consists of petrol, wheel, battery * Metamediary

* Provides a single access point where buyers can locate and contact many different sellers in the metamarket. For example, one stop service in website

Basic Marketing Concepts: What is Exchange ?
* Exchange
* The process of obtaining something of value by offering something in return; typically obtaining products for money * Five conditions of Exchange
* There must be at least two parties to the exchange.
* Each party has something of value to the other party. * Each party must be capable of communication and delivery. * Each party must be free to accept or reject the exchange. * Each party believes it is desirable to exchange with the other party. Basic Marketing Concepts: What is a Product ?

* Product
* Something that can be acquired via exchange to satisfy a need or a want * * People
* Places
* Experiences and events
* Real or financial property
* Organisations
* People
* Places
* Experiences and events
* Real or financial property
* Organisations
Examples of Products
* Goods
* Services
* Ideas
* Information
* Digital products
Basic Marketing Concepts: Utility
* Utility
* The ability of a product to satisfy a customer’s needs or wants * Five types of Utility
* Form utility – attributes or features that set the product apart * Time utility – products available when customers want them * Place utility – products available where customers want them * Possession utility – transfer of ownership or title; ease of acquisition * Psychological utility – positive experiential attributes that customers find satisfying Transactional and Relationship Marketing

* Transactional marketing is to complete a large number of discrete exchanges with individual customers. The focus is on acquiring customers and marketing the sale, not necessarily on attending to customer’s needs and wants. * Relationship...
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