MGM 301- Exam #1 Study Guide

Chapter 1- Creating Customer Relationships and Value Through Marketing
Marketing: the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, it’s stakeholders, and society at large - more broad than advertising and selling - stresses the importance of delivering genuine benefits to customers
To serve buyers and sellers, marketing needs to:
1.) discover the needs and wants of prospective customers
2.) satisfy these needs
Exchange: the trade of things of value between buyer and seller so that each is better off after the trade
- many diverse factors influence marketing activities
(relationships with customers, shareholders, suppliers, environmental forces)
4 Factors for Marketing to Occur 1. Two or more parties (individuals or groups) with unsatisfied needs 2. A desire and ability on their part to be satisfied 3. A way for the parties to communicate 4. Something to exchange
Meeting Consumer Needs with New Products 1. Focus on the customer benefit 2. Learn from the past
Consumer Need: occurs when a person feels deprived of basic necessities such as food, clothing, and shelter
Consumer Want: a need shaped by a person’s knowledge, culture, and personality
Market: people with both the desire and ability to buy a specific offering
Target Market: one or more specific groups of potential consumers toward which an organization directs its marketing program
The 4 P’s of Marketing Product: a good, service, or idea to satisfy the consumer’s needs Price: what is exchanged for the product Promotion: means of communicating between seller and buyer Place: means of getting the product to the customer
- these are all elements of the “marketing mix,” the controllable factors that can be used to solve a marketing