MarketingConcerns methods by which each party to a transaction attempts to influence certain behavior of other parties to the transactionsTransactionsTransaction are an exchange of goods and services among buyers and sellers possibly assisted by third partiesTransactions are characterized in many ways (legal/not, purchase/barter, spot/future, domestic/international, market/transfer, type of good)Characteristics must exist for transaction to occurAtleast 2 partiesParties must have something of value to the other partyParties are capable of communicating with the other – direct or notParties must be capable of delivering the good to the other party or make it available for deliveryParties must believe it is appropriate/desirable to deal with the other partyExchange occurs as a means to increase the benefit of all parties to the transactionAll parties believe they will be better off after the transactionWe assume all transactions are spotAll parties = buyers, sellers, AND third partiesSell labor – firm must have need for employee with skills, stike a deal so exchange labor for salaryEmployee is better off with job and salary than with no jobFirm is better off with employees labor than withoutBeing better off doesnt mean optimally better offBona 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)ProductsPeoples needs and wants can be satisfied by productsProduct – an offering by one party to a transaction that can satisfy a need of the other party to the transactionTypes of products: goods and servicesGoods – physical (tangible) and usually transportable offerings - clothesServices – 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 carInformation – offering of structured sets of data and other materialExperiences – offerings constructed of multiple goods and services organized to create and provide a particular “feel” – DisneylandEvents – offerings of specific time based occurrences- constructed of a combination of goods and services (concert – music, buy cds)Places – offerings of physical locations, facilities, and amenitiesProperties – offerings of the rights of ownership to real or intellectual property – house/ patentsPersons – offerings of the rights to the time and activities of a personOrganization – offerings of the benefits of joining a firm, association, or institution – universitiesIdeas – offerings of concepts, opinion, or principlesMany products have aspects of more than one of these typesBrandBrand is an identifier – identifying a product from a known sourceAssociationsBeliefs (organized bits of knowledge – Rolex is expensive)Attitudes (positive or negative emotions – I like juicy)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 imageValue satisfaction and rationalityIf you feel “better off” you should experience some level of satisfactionPost transaction experience may condition satisfaction (up or down)Satisfaction has many degrees – valueValue is “how much” one party gets relative to what that party gives in order to strike and consummate the transactionPaying an extra dollar for a good meal – good value“Value purchase” and “value choice” are synonyms for “best buy”Some parties are sensitive to value – tend to seek transactions that produce the greatest satisfaction for the price – VALUE BUYERSSome 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 BUYERSSome parties are sensitive to satisfaction alone – seek transactions that provide the greatest satisfaction as long as some budget constraint is not exceeded – STATUS BUYERSIn periods of recession, status buyers become more value sensitive and many buyers become increasingly price sensitiveWe assume parties in a transaction are rational about seeking and striking transactions they think achieve a criterionCriterion – may vary, some parties are more sensitive to price, value, or statusConsistent – for any class of transactions, parties are consistent in their sensitivities of productsTransactions parties believe availableWe assume buyers know all sellers, so they can search all sellersBuyers usually don’t know all sellers, they usually search only among a subset of sellersChannelsChannels are complex links among parties to transitionsSupply channels – an entire set of links that trace from raw material suppliers to end-users (for any part of the overall chain of links), where the end user is the actual user of the productBuy burger at Burger king  cattle raisers, paper producers, etcMarketing channels – shorter set of links between potential sellers and buyers ar any point in the entire supply chainBurger king  you or paper supplier  BKCommunication channels – provide info that could range from advertising to inquires about products via the internetDistribution channels – display and deliver productSelling channels – effect transactions (drive through, walk up, internet)Relationship marketing orientation“What drives” products made by the firm?Opportunity – make whatever is new/hot stuffTechnology – make what we know best how to makeProduction – make what we can best make with existing equipmentSales – make what we know best how to sellCustomer – make what our target market most wantsThe dominant view today is to focus on the customerImplementing thins by focusing the firms activities on satisfying our target customers – relationship marketing orientation. Focuses on creating, communicating, and delivering more value to target customerCustomer relationship marketing – actual set of activities to accomplish thisA market is an area within which transactions occurAmerican 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 goalsA market is the arena within which the exchange