MARK101 Study Guide - Midterm Guide: Marketing, Customer Service, Corporate Social Responsibility
13 Jun 2018
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MARK101 – MARKETING: EXAM STUDY
AUTUMN SESSION
What is marketing?
An organisational function and a set of processes for creating, communicating and delivering value to
customers and for managing customer relationships in ways that benefit the organisation and its
stakeholders. (relatively new discipline, which came into its own in the 1960s)
Maketig is the pefoae of atiities that seek to ahiee a ogaisatios ojeties atiipatig
customer or client needs and directing a flow of need satisfying goods and services from producer to
customer or client. Marketing starts with knowing your customer, or potential customer.
Brings many benefits to societies, including employment and the creation of wealth.
Marketing evolution:
Trade – mutually beneficial exchange (people exchanging what they have for what they wanted).
Formal definitions of marketing were non-existent.
Late 1800/early 1900s – concept of product orientation where aketes offerings were largely
determined by what could be made and people bought what was available.
1930s – increase in competition → sales orientation: focused on increasing profits through advertising
and one-to-one selling.
Mid to Late 1900s – itodutio of aket oietatio: usiesses worked to determine what
potential customers wanted then made products to suit. Marketing became mainstream business
practice.
2000s – businesses face with not only satisfying customer wants but ensuring they are socially
responsible corporate citizens. Competing products vying for attention → market orientation
broadened: not only view the market as their customers but a broader society. Consideration of issues
ascribed to sustainability of products and benefits to bring to society in general. Societal market
orientation: e.g., supermarkets offering to pack groceries in reusable bags. Companies with a societal
market orientation have practices and policies that seek to minimise their negative impact on society
and maximise their positive impact.
Now – Companies following service-dominant logic seek a deep understanding of their customers and
aptly utilise communication, particularly social media, to engage with their customers at all stages of
the marketing process.
The marketing approach to business:
• Marketing is an approach to business that puts the customer, client, partner and society at the
heart of all business decisions.
• Marketing is a science, a learning process and an art.
• Marketers need to learn what customers, clients, partners and society want.
• Marketers must be creative and able to develop new ideas.
The marketing process:
• The marketing process involves understanding the market to create, communicate and deliver an
offering for exchange.
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MARK101 – MARKETING: EXAM STUDY
AUTUMN SESSION
• The marketing process is an ongoing cycle and often marketers will be undertaking multiple tasks
simultaneously.
• Marketers need to undertake a situation assessment to understand how their company is
positioned relative to the competition.
The Exchange of Value:
• The aim of marketing is to develop mutually beneficial exchanges.
• To be considered a successful marketing exchange, the transaction must satisfy the following
conditions:
• Two or more parties must participate, each with something of value desired by the other party
• All parties must benefit from the transaction
• The ehage ust eet oth paties epetatios e.g. ualit, pie. – Value efes to the total
offeig.
The Market:
• A market is a group of customers with different needs and wants.
• Markets cover varying groups of customers from geographic markets (e.g. the Malaysian market),
product markets (e.g. the smartphone market) and demographic markets (e.g. seniors), to name a
few.
• Different marketers have to market to different groups.
Markets:
A market is the set of actual and potential buyers of a product. Marketing means managing markets to
bring about profitable customer relationships.
The Marketing Mix: the term given to a set of variables that a marketer can exercise control over in
creating an offering for exchange. Marketers cannot act with complete freedom in determining their
marketing mix.
Understand
Create
Communicate
Deliver
Understand: understanding consumer, market
and how they are currently situated. May
involve market research to gain insights into a
problem the marketer faces or reviewing sales
data to understand how the company is
performing. Analysis & assessment of
marketing environment + consumer &
business buying behaviour – understanding
internal & external factors → create solution
to meet the needs of consumer
Delivery: concerned with quality and
satisfaction – ensure the offering (product,
service or idea) satisfies the customer.
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find more resources at oneclass.com
MARK101 – MARKETING: EXAM STUDY
AUTUMN SESSION
Target market: a group of customers with similar
needs and wants. A business can also aim for
multiple target markets.
Pricing: a complex marketing decision that must
take account of many factors, including: –
Production, communication and distribution costs –
Required profitability – Pates euieets –
Copetitos pies – Custoes illigess to
pay.
Promotion: describes the marketing activities that
make potential customers, partners and society
aware of and attracted to the usiesss offeig.
The product might be: already established, modified, new, information or education.
Distribution: (or place) refers to the means of making the offering available to the customer at the right
time and place. The science (or art) of ensuring products are in the right place at the right time in the right
quantity is known as logistics and the various partners that contribute to the process make up what is
called the supply chain.
Physical evidence: includes architectural design, furniture, décor, shop fittings, colours, background music,
staff uniforms, brochures, service or delivery vehicles and stationery.
Customer Acquisition Cost: the process of persuadig a osue to puhase a opas goods o
services. Gaining new consumers.
• Selling costs
• Information gathering
• Supply of equipment
• Promotional costs
• Learning costs
Many marketing decisions involve ethical issues, in which a choice must be made between multiple
possible courses of action, which each involve different ethical, legal, social, economic and environmental
considerations.
Customer Retention: refers to the activities and actions companies and organisations take to reduce the
number of customer defections → help companies retain (keep) as many customers as possible, often
through loyalty initiatives.
5% decrease in retention:
1. 30% increase in profits for an industrial laundry
2. 47% increase in profits for an insurance broker
3. 84% increase in profits for a bank branch
Consumer Buying Roles
Key Family
Decision
Roles
Initiator
Influencer
DeciderBuyer
User
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find more resources at oneclass.com
Document Summary
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