ADM2320- Lecture 1 summer 2021 PDF

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Summer 2021 lecture notes for lecture 1...

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ADM2320- Lecture 1 1. Does Marketing Satisfy Needs? ● Needs- difference between a consumer's actual and some ideal or desired state ● Wants- desire to satisfy need in ways that are influenced by culture and society ● Benefits- outcome sought by a consumer that motivates buying behaviour 2. Does Marketing Create Needs? ● Have you ever been influenced by a marketer to buy something you didn't need? ○ Ex. Smart homes:anyone interested? ● Who is most likely to be victimized by marketers? 3. Are All Customers Alike?

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Not all customers are alike, they are very different

Business Functions Discipline

Prime responsibility

Accounting

Reporting financial state

Finance

Raising or managing capital

Management

Human resources

Information systems

Organizing information

What is Marketing? ● The process which subject to constraints (ex. legal, technological), attempts to establish mutually satisfying product exchange relationships between any two interested parties Doggy delight example ● What are they selling (from marketing standpoint) ○ Spoil the pet

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Enough focus groups in market It is guilt relief for pet owners (makes you feel better because the dog has treat)

Cosmetics Example ● Selling dreams to consumers Product exchange relationships

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Augmented product: ○ What makes the product package attractive ■ Ex. ikea has a kids drop off to make parents lives easier ■ Ex. fly now pay later or freebies

Marketing View of a Product ●

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Brand name is important ex. Microsoft Lawsuit against contact lens company because of price discrimination (company said they sell vision systemscleaning stuff, instructions) Government

started another lawsuit against milk companies because they said milk shouldn't be selling milk A and milk B at different prices. Company argued that the packaging and product are not identical and shouldnt be the same price. Evolution of Business: Marketing missions: Pre-1945 to today 1. Production (pre-1945) a. Demand > Supply 2. Sales (1945 to Mid 1960s) a. Supply ≥ Demand 3. Marketing Orientation (mid 1960s to early 1970s) a. Supply > Demand 4. Marketing Concept (1970s to 1990s) a. Consumer satisfaction is main goal for all departments/divisions with objective of profit maximization What do large and highly admired companies have in common? ● Understand customers needs and wants ● They want to satisfy all customers ● They are master knowledge makers- don't believe in information. They take information into actionable and usable knowledge. (ex. data mining) ○ Ex. walmart puts similar products close together based on data mining (any relationships between products are considered) ● Create knowledge based products or use knowledge to create better products ● These companies do not communicate ○ Ex. they do not do surveys, they do research ○ They dialog Business Today ● Super fast marketing ○ Ex. TD bank, Motorola, Levi-strauss ● Super value marketing ● Guaranteed Marketing ○ Warranty marketing ○ Service contracts ○ Extraordinary guarantees ● Network marketing ● Synergistic marketing ● Marketing engineering ● Upside down/ crowd marketing Relationship Marketing ● Drivers of relationship marketing: ○ Technology ○ Need for real time MR

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Need for integrating design and manufacturing Need for knowledge Need for dialogue and integrated communication Need for knowledge

Profs first encounter with relationship marketing story: ○ 1992/3/4 was when building relationships internationally began ○ Went on holiday to mexico ○ Wanted beer at the resort he stayed at and enjoyed it (dosakai i think) ○ Came back to canada and tried to buy the same beer here ○ Went to Ritz and asked for the beer from mexico and one cube of ice and asked for non-feather pillows ○ Went to China later and was tipsy off beer he had before on flight ○ Hears a knock at door from hotel room and waiter came in with mexico beer with one ice cube at 2am and non feather pillows (another ritz hotel) ○ Came back to ottawa and received hand written letters wishing happy birthday to him from worker at Ritz ○ Prof called back and explained he couldn't afford another stay at hotel Where marketing is today ○ Companies have lots of information about customers and people...