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Econom的icsHandoutProfessorTomKL的定稿.doc
Economics 307 Handout 1 Professor Tom K. Lee
Section I: What is marketing economics?
Part 1: What is marketing?
(CH 1)
Marketing is the management of the process by which organizations create value for
customers and build strong customer relationships in order to capture value from
customers in return. It involves the delivery of price, quantity, quality, performance,
style and feature of existing and/or new products services to current and/or new
customers of organizations for the purpose of achieving organizational objectives
through understanding of customers needs, creating customers’ value, communicating
information to customers, sorting customers, delivering customers’ satisfaction and
extracting customers’ value.
The economic foundation of marketing is lowering transaction costs. Information is costly.
People are imperfectly informed. It is differentially costly for people to differentiate brands,
to make decision, to coordinate their decisions and to monitor enforce contracts.
Basic marketing questions:
-What are the customers’ needs and wants?
-How, when, how often and why do customers make decision to buy and to use?
-What group of customers to serve (market segmentation, target marketing market
positioning)?
-How to design customer-driven customer-driving marketing strategies?
-How to construct a marketing program to deliver superior value to customers?
-How to achieve long-term customer satisfaction and to build beneficial customer
relationships?
-How to capture value from customers and improve customer quality and equity?
-How to ensure an efficient and continual supply of superior products to customers?
Maslow’s hierarchy of needs:
1) Basic survival needs (physiological, e.g. food, clothing transportation)
2) Safety needs (e.g. housing, banking, security protection)
3) Social needs (sense of belonging love, e.g. clubs, restaura
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