Contemporary Marketing
Autor: sahasrabhinaya • March 12, 2016 • Course Note • 1,150 Words (5 Pages) • 732 Views
Chapter-1: Marketing – The art and science of satisfying customers
Utility: The want-satisfying power of a good or service
Types of Utilities: There are 4 types of utilities.
1. Form*: Conversion of raw materials and component inputs into finished goods and services.
Ex: Gold into jewelry, fabric into clothes, leather into bags
2. Time: Availability of goods and services when the consumer wants them.
Ex: Doctor appointments, UPS delivery, photographs at Walmart
3. Place: Availability of goods and services at convenient locations.
Ex: Massages in the airport, banks in grocery stores, on-site day care
4. Ownership: Ability to transfer the title of goods and services from marketer to buyer at the time of purchase.
Ex: Retail sales in exchange for credit card/debit card transactions
*Marketing provides inputs related to consumer preferences but creating a Form Utility is the responsibility of the Production Function.
How does an organization create a customer?
• Three step approach:
1. Identifying needs in the market place
2. Finding out which needs the organization can profitably serve
3. Developing goods and services to convert potential buyers into customers.
• Marketing specialists are responsible for most of the activities necessary to create the customers the organization wants. These activities are:
1. Identifying customer needs.
2. Designing products to meet those needs
3. Communicating information about the goods and services to the prospective buyers
4. Making the items available at times and places that meet customer needs
5. Pricing merchandise and services to reflect the costs, competition and customer’s ability to buy
6. Providing the necessary service and follow-up to ensure customer satisfaction after the purchase.
Define Marketing and how it creates utility and describe its role in the global marketplace
Marketing: Organizational function and a set of processes for creating, communicating and delivering value to the customer and for managing customer relationships in
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