AFM131 Chapter Notes - Chapter 14: Baby Boomers, Customer Relationship Management
26 Jun 2018
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Chapter 14 afm 131
What is marketing?
Much more than just selling and advertising.
The Canadian Marketing Association defines marketing as a set of business practices designed to
plan for and present an organization`s products or services in ways that build effective customer
relationships.
Or think of it as activities buyers and sellers perform to facilitate mutually satisfying exchanges.
A market is defined as a group of people with unsatisfied wants and needs who have the resources
and the willingness to buy.
This `find a need and fill it` concept is core to marketing
Today, much of marketing is instead about helping the buyer buy, rather than helping the sellers sell.
The websites have helped the buyer buy.
Wise marketers provide a wealth of information online and even cultivate customer relationships
using blogs and social networking sites
Much of the future of marketing lies in mining such online conversations and responding
appropriately.
Retailers and other marketers who rely solely on traditional advertising and selling are losing out to
the new ways of marketing.
The evolution of marketing- 5 era
Production
Back in the days when European sellers arrived in Canada. Demand exceeded supply, so
people produced as much as possible.
They needed to produce more and more, so their goals centred on production
Same process occurring in the oil industry today, sell as much as they can produce.
The greatest marketing need for this industry is for production and less expensive
distribution and storage
The sales era
Developed mass production techniques, often exceeded the immediate market demand, so
turned from producing to selling.
Persuade customers to buy existing products.
The marketing concept era
Baby boomers after WWII, increase in consumer spending
Businesses recognized that they needed to be responsive to customers if they wanted to get
their business, and a philosophy called the marketing concept emerged
The marketing concept had three parts
Customer orientation: find out what consumers want and provide it for them.
Service orientation: make sure that everyone in the organization has the same
objective- customer satisfaction.
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