Marketing Notes General Introduction

Welcome to the World
of Marketing:
Create and Deliver Value
Chapter One
Chapter Objectives
I. Explain what marketing is and how value creation is
central to the marketing concept
II. Explain how marketing is a decision-making process and
describe the planning and the marketing mix tools that
managers use in the marketing process
III. Understand key issues relating to making ethical
marketing decisions in a sustainable world and be able
to discuss different perspectives of marketing
IV. Be able to discuss ethical issues related to marketing
decisions
Copyright
2013 Pearson Canada Inc.
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I. Explain what marketing is and

how value creation is central to
the marketing concept
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Chapter 1- In-class Activity 1

Introduction of the different facets of
marketing.
Write down the first word that pops into
your head when you hear these words: your
college name, soup, jeans, marketing, and
salesperson.
Write down how you would describe
marketing to a friend who asked you what
marketing is.
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What is Marketing?
Marketing is the activity, set of
institutions, and processes for
creating, communicating, delivering
and exchanging offerings that have
value for customers, clients, partners,
and society at large.
2007 American Marketing Association
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Marketing is about Creating

Customer Value
Value:
The benefits a customer receives from buying
a good or service
Value from customers perspective:

A bundle of benefits consumers seek to
satisfy needs or wants relative to costs
Value from sellers perspective
Lifetime value of a customer:
Total profit from a particular customer for a

firm over his/her lifetime
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Marketing Meets Needs

Marketing meets the needs of diverse
stakeholders
Stakeholders are buyers, sellers,

investors, community residents, citizens,
consumers
Marketing concept
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Identifying and satisfying consumer needs

to ensure long-term profitability
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Needs, Wants, Demands
Needs
Difference between an actual state and an

ideal state
Wants
Desire to satisfy needs in specific ways that

are culturally or socially influenced
Demand
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Desire for products coupled with the

resources to obtain them
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Market
In marketing, when we refer to
market, we mean consumers
Market
A group of consumers with a common need

that can be satisfied by a product
Target market
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The group(s) of consumers a company

chooses to serve
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Marketplace
Marketplace
Any location or medium used to conduct an

exchange
The modern marketplace takes many forms
Physical, online, or virtual marketplace
e.g., shopping malls, stores, mail-order, TV
shopping networks, eBay auction, online
stores, virtual worlds
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Marketing and Exchange

Relationship
The heart of marketing is an exchange
relationship.
Exchange
Transfer of value between a buyer & a seller
Buyer receives an object, service, or idea that
satisfies a need
Seller receives something of equivalent value
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In-class Activity 2
Relationship of Marketing in an
organization
Why do you think marketing needs to
be embraced by all employees and
departments of a company? For
example, why do a firms accountants
need to be concerned about the
marketing strategy of a company?
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The Who and Where of Marketing
Marketers
Come from many different backgrounds

Work in many locations
Maintain cross-functional relationships
within the firm
Enjoy exciting, diverse careers
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Think, Pear and Share

The role of Marketing in everyday life
What did you have for breakfast today?
Why did you have breakfast at all?
Why did you choose the foods that you
chose?
What benefit did you get out of your

breakfast?
How are products designed to deliver these
benefits?
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What Can We Market

Q: What can we market?
A: Any products (i.e., any goods, services,
or ideas )
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Consumer goods/services
business-to-business goods/services
Not-for-profit marketing
Ideas, places, people marketing
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In-class Activity 3
In groups of 4 or 5
come up with an
example of:
a consumer service
a business to business good/service
a not-for-profit organization,
a place and a person?
Discuss with your group and share
with the class.
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II. Explain how marketing is a

decision making process and
describe the planning and the
marketing mix tools that
managers use in the marketing
process
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Marketing: A Decision-Making
Process
Marketing is a decision-making
process that involves the following:
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Understand the opportunity-Env.

Analysis, SWOT.
Develop marketing strategySegmentation, Targeting, Positioning
Design marketing mix-4ps
Realize value-Implementation/Evaluation
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Marketing Strategy: Specify the

Value
Segmentation
Divide the overall market into groups of

consumers, with consumers within a group sharing
similar needs, wants, preferences, and behaviors
Targeting
Decide how many market segments to focus on
Positioning
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Arrange the brand to be know by customers as

being different and better than competitors
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Positioning a Brand Involves

Specifying the Following
Distinctive competency
What a brand does really well, and better

than its competition?
Differential benefit
What is the benefit that is uniquely offered

by the brand?
Brand personality
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What is the distinctive, desirable image of

the brand?
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Marketing Mix: Create the Value
The 4 Ps
Product
Price
Promotion (Communications)
Place (Distribution)
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Group In-class Activity 4
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In group develop two different marketing

mixes for bicycles designed for two different
target markets/purposesone bicycle is for
professional bicycle racers (think Lance
Armstrong) and the other bicycle is for
middle-aged women who want a little
exercise.
How will the marketing mixes for these two
products differ?
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Add Value Through the Value

Chain
Many players work together to create and deliver
value to customers through value chain
Value chain
A series of activities involved in designing,

producing, marketing, delivering, and supporting
any product
It includes
Inbound logistics, operations, outbound logistics,
marketing & sales, service
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Consumer-Generated Value
A recent development in marketing involves
consumers contribution to value creation.
People also generate value and content instead
of just passively accepting products.
http://www.crashthesuperbowl.com
Social networking continues to grow and

leverages Web 2.0.
Open source business models are on the rise.
http://www.moodle.com
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Think, Pear and Share -How marketers use

different elements of the marketing mix.
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Lets look at the cereals you ate this morning

and examine the different elements of the
marketing mix.
Product Think of Lucky Charms versus
Rice Krispies? How are these products
designed differently? Why? How do their
names relate to the product?
Do cereals come in different sizes? (regular,
single packs, and jumbo packs). Why?
What needs do these different sizes meet?
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Place - Where did you buy the cereal?

(e.g. club stores, grocery stores,
convenience stores, restaurant,
Internet).
Price - Was price a factor in your
selection? For example did you buy a
cereal that was on sale?
Promotion Do you recall seeing any
advertising for the cereal?
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III. Understand key issues relating

to making ethical marketing
decisions in a sustainable world
and be able to discuss different
perspectives of marketing
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The Global Environment of

Business
Forward thinking companies welcome new
concepts that promote the idea of
sustainable development
Triple bottom line

Customer relationship management (CRM)
Social marketing concept
Sustainability
Green marketing
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Triple Bottom Line

Is a perspective that emphasizes the need to
maximize three components:
Financial Bottom Line
Financial profits for stakeholders

ROI (return on investment) measures value
Social bottom line
Contributing to the communities
Environmental bottom line
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Creating sustainable business practices that

preserve the environment
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Customer Relationship
Management
Marketing uses customer relationship

management (CRM)
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CRM involves systematically tracking consumers

needs in ways that also benefit society and
delivers profit to the firm
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Social Marketing Concept
Social marketing concept
Sustainable development
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Management philosophy that marketers must

satisfy customers needs in ways that also benefit
society and deliver value to the firm
Creating products that meet present needs and
ensuring that future generations can meet their
needs
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Social Marketing Concept

(ctnd)
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Green marketing is one type of sustainable

business practice
Green marketing: the development of
marketing strategies that support
environmental stewardship
Visit Ads of the World to see examples of
Volkswagens green marketing and
sustainable business practices
ROI (return on investment) measures value
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Other Perspectives of
Marketing
Product orientation
Selling orientation
Consumer orientation
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Product Orientation
A management philosophy that emphasizes
the most efficient ways to produce and
distribute products
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Obsessed with low costs in production and

distribution
Not concerned with how to best to satisfy
consumers needs
Focus on products rather than consumers
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Selling Orientation
A managerial view of marketing as a
sales function, or a way to move
products out of warehouses
to reduce inventory
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Focus on aggressive selling, building

sales volumes, rather than satisfying
consumers needs
When product availability exceeds
demand, businesses may focus on a onetime sales of goods rather than repeat
business
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Consumer Orientation
A management philosophy that emphasizes
satisfying customers needs and wants
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More progressive than the previous two

orientations
Emphasize that marketers need to be
proactive & responsive in identifying &
satisfying consumers needs
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In-class Activity 6- How organizations

can adopt different orientations over
time
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Product Orientation Has anyone ever

ordered a burger with no pickles or no onions?
Consumer Orientation How has McDonalds
changed its menu in the past year and Why?
What about trans fats in its frying oils?
Social Marketing Orientation How has
McDonalds worked to help society? How about
the environment? (Move away from Styrofoam
containers)
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IV. Be able to discuss ethical

issues related to marketing
decisions
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Ethical Behavior in Marketing
Stressing socially responsible and ethical

decisions is good business
Companies should respect business ethics and
may develop their own code of ethics
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Business ethics
Rule of conduct in an organization (i.e., how
members of a firm judge what is right and
what is wrong for the firm)
Code of ethics
Written standards of behavior to which
everyone in the organization must subscribe
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The Dark Side of Marketing

When marketers break the bond of trust with
stakeholders, they move to the dark side
of marketing
Criticisms of marketing include the
following:
Marketing corrupts society

Marketing & advertising are unnecessary
Marketers manipulate consumers
Marketers support addictive consumption
Marketers exploit people
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People Fight Back

Consumerism
A social movement that attempts to protect

consumers from harmful business practices
Consumers Association of Canada (CAC)
Inform & educate consumers

Advocate on consumers behalf, e.g.
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Establish protective legislation for consumers

Fight negative-option marketing
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2013 Pearson Canada, Inc.

All rights reserved.
Copyright
1 - 42

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Welcome to the World

2013 Pearson Canada Inc.

I. Explain what marketing is and

2013 Pearson Canada Inc.

Chapter 1- In-class Activity 1

2013 Pearson Canada Inc.

2013 Pearson Canada Inc.

Marketing is about Creating

Value from customers perspective:

Value from sellers perspective

Lifetime value of a customer:

Total profit from a particular customer for a

2013 Pearson Canada Inc.

Marketing Meets Needs

Stakeholders are buyers, sellers,

Identifying and satisfying consumer needs

2013 Pearson Canada Inc.

Needs, Wants, Demands

Difference between an actual state and an

Desire to satisfy needs in specific ways that

Desire for products coupled with the

2013 Pearson Canada Inc.

A group of consumers with a common need

The group(s) of consumers a company

2013 Pearson Canada Inc.

Any location or medium used to conduct an

2013 Pearson Canada Inc.

Marketing and Exchange

2013 Pearson Canada Inc.

2013 Pearson Canada Inc.

The Who and Where of Marketing

Come from many different backgrounds

2013 Pearson Canada Inc.

Think, Pear and Share

What benefit did you get out of your

2013 Pearson Canada Inc.

What Can We Market

2013 Pearson Canada Inc.

2013 Pearson Canada Inc.

II. Explain how marketing is a

2013 Pearson Canada Inc.

Understand the opportunity-Env.

2013 Pearson Canada Inc.

Marketing Strategy: Specify the

Divide the overall market into groups of

Decide how many market segments to focus on

Arrange the brand to be know by customers as

2013 Pearson Canada Inc.

Positioning a Brand Involves

What a brand does really well, and better

What is the benefit that is uniquely offered

What is the distinctive, desirable image of

2013 Pearson Canada Inc.

Marketing Mix: Create the Value

2013 Pearson Canada Inc.

Group In-class Activity 4

In group develop two different marketing

2013 Pearson Canada Inc.

Add Value Through the Value

A series of activities involved in designing,

2013 Pearson Canada Inc.

Social networking continues to grow and

2013 Pearson Canada Inc.

Think, Pear and Share -How marketers use