Marketing Transactions Concerns methods by which each party to a transaction attempts to influence certain behavior of other parties to the transactions Transaction are an exchange of goods and services among buyers and sellers possibly assisted by third parties Transactions are characterized in many ways legal not purchase barter spot future domestic international market transfer type of good Characteristics must exist for transaction to occur o Atleast 2 parties o Parties must have something of value to the other party o Parties are capable of communicating with the other direct or not o Parties must be capable of delivering the good to the other party or make it available for delivery o Parties must believe it is appropriate desirable to deal with the other party Exchange occurs as a means to increase the benefit of all parties to the transaction o All parties believe they will be better off after the transaction We assume all transactions are spot All parties buyers sellers AND third parties o Sell labor firm must have need for employee with skills stike a deal so exchange labor for salary Employee is better off with job and salary than Firm is better off with employees labor than with no job without o Being better off doesnt mean optimally better off Products Bona fide transaction is freely entered exchange among parties that have some form of communication and produces benefits to all parties typically assisted by third parties who expect to benefit Peoples needs and wants can be satisfied by products o Product an offering by one party to a transaction that can satisfy a need of the other party to the transaction Types of products goods and services o Goods physical tangible and usually transportable offerings clothes o Services offerings that are intangible and created at the same time as they are provided haircut banking legal advice medical treatment Most have a service component many have no discernable goods component maintenance and repair services on a car o Information offering of structured sets of data and other material o Experiences offerings constructed of multiple goods and services organized to create and provide a particular feel Disneyland o Events offerings of specific time based occurrences constructed of a combination of goods and services concert music buy cds o Places offerings of physical locations facilities and amenities o Properties offerings of the rights of ownership to real or intellectual property house patents o Persons offerings of the rights to the time and activities of a person o Organization offerings of the benefits of joining a firm association or institution universities o Ideas offerings of concepts opinion or principles Many products have aspects of more than one of these types Brand Brand is an identifier identifying a product from a known source Associations expensive o Beliefs organized bits of knowledge Rolex is o Attitudes positive or negative emotions I like juicy o Predisposition to act I search for vans Firms invest resources to create positive brand images positive associations and try to avoid anything that will tarnish their positive image Value satisfaction and rationality satisfaction If you feel better off you should experience some level of o Post transaction experience may condition satisfaction up or down Satisfaction has many degrees value o Value is how much one party gets relative to what that party gives in order to strike and consummate the transaction Paying an extra dollar for a good meal good value Value purchase and value choice are synonyms for best buy o Some parties are sensitive to value tend to seek transactions that produce the greatest satisfaction for the price VALUE BUYERS o Some parties are sensitive to the price alone seek transactions that are the lowest price as long as it reaches some minimum level of satisfaction PRICE BUYERS o Some parties are sensitive to satisfaction alone seek transactions that provide the greatest satisfaction as long as some budget constraint is not exceeded STATUS BUYERS o In periods of recession status buyers become more value sensitive and many buyers become increasingly price sensitive We assume parties in a transaction are rational about seeking and striking transactions they think achieve a criterion may vary some parties are more sensitive to o Criterion price value or status consistent in their sensitivities of products o Transactions parties believe available o Consistent for any class of transactions parties are Channels We assume buyers know all sellers so they can search all sellers Buyers usually don t know all sellers they usually search only among a subset of sellers Channels are complex links among parties to transitions Supply channels material suppliers to end users for any part of the overall chain of links where the end user is the actual user of the product an entire set of links that trace from raw o Buy burger at Burger king cattle raisers paper producers etc Marketing channels sellers and buyers ar any point in the entire supply chain shorter set of links between potential o Burger king you or paper supplier BK o Communication channels from advertising to inquires about products via the internet o Distribution channels o Selling channels walk up internet display and deliver product effect transactions drive through provide info that could range Relationship marketing orientation What drives products made by the firm o Opportunity make whatever is new hot stuff o Technology make what we know best how to make o Production make what we can best make with existing equipment o Sales make what we know best how to sell o Customer make what our target market most wants The dominant view today is to focus on the customer A market is an area within which transactions occur o Implementing thins by focusing the firms activities on satisfying our target customers relationship marketing orientation Focuses on creating communicating and delivering more value to target customer o Customer relationship marketing actual set of activities to accomplish this American Marketing Association defines marketing as the process and executing conception pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational goals o A market is the arena within which the exchange occurs Marketing emphasizes 2 ideas o Functions of marketing conception pricing promotion distribution o Integrated goal of these functions the