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Overview of Marketing (S)

This document provides an overview of the textbook and course materials for a marketing course. The recommended textbook is the 3rd Canadian Edition of Marketing by Grewal, Levy, Lichti & Persaud from 2015. Additional materials like slides, handouts and announcements will be posted on the course's Brightspace page. The document then summarizes key concepts from Chapter 1 on the overview of marketing, including definitions of marketing, the four Ps of the marketing mix (product, price, place and promotion), and how marketers discover and satisfy consumer needs and wants through these controllable marketing factors.

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0% found this document useful (0 votes)
94 views70 pages

Overview of Marketing (S)

This document provides an overview of the textbook and course materials for a marketing course. The recommended textbook is the 3rd Canadian Edition of Marketing by Grewal, Levy, Lichti & Persaud from 2015. Additional materials like slides, handouts and announcements will be posted on the course's Brightspace page. The document then summarizes key concepts from Chapter 1 on the overview of marketing, including definitions of marketing, the four Ps of the marketing mix (product, price, place and promotion), and how marketers discover and satisfy consumer needs and wants through these controllable marketing factors.

Uploaded by

aziz spam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 70

Course Material

Textbook: recommended
Marketing, 3rd Canadian Edition
McGraw-Hill-Ryerson by Grewal, Levy,
Lichti & Persaud (2015)

You do not need Connect


It’s your choice, but this class is based
on 2015 edition..

Handouts, slides, announcements etc.:


Will be posted on Brightspace
Ch.1 Overview of Marketing
Chapter 1: Overview of Marketing

LEARNING OBJECTIVES
LO1 Define the role of marketing and explain its core concepts
LO2 Describe how marketers create value for a product or service
LO3 Summarize the four orientations of marketing
LO4 Understand the importance of marketing both within and outside the
firm
What is Marketing
Marketing is satisfying consumer needs and wants
profitably.
The delivery of Customer Satisfaction in a way that benefits
the organization and its stakeholders!
• Personal Selling
• Advertising
• Making products available in stores
• Managing relationship with customers
• Designing new products

All of the above, plus much more!


Key concepts in Marketing: Market

Where do I buy “ Baby strollers”?

6
What is a Market?

• Traditional view
• A Market is a physical place where buyers and sellers
gathered to buy and sell good.

7
What is a Market?

• Traditional view
• A Market is a physical place where buyers and sellers
gathered to buy and sell good.

8
What is a Market?

Market: set of actual and potential buyers of a product


(or/and service).
What is Marketed?

Products Services Ideas Experiences

What is Marketed?
Everything that can be exchanged!
What is Marketing?

• Why do I buy a new Harry Potter book?


• Can I afford them?

11
What is Marketing?

= Marketer’s Task
=What marketers are doing in the market!

12
Marketer’s First Task|
Discover consumer’s needs
Marketer’s Second Task|
Satisfying consumer needs
• Satisfying consumer needs by finding the right combination of
Product, Price, Promotion and Place.

Controllable
factors
What is Marketing?
I need/want
...

Marketer Market

I can afford it.


15
What is Marketing?
I need/want
...
How to assess
Marketer consumer Market
needs/wants?

Understand
consumers and
the environment

I can afford it.


16
What is Marketing?
I need/want
...
How to satisfy
Marketer consumer Market
needs/wants?

Develop a proper
Marketing Mix

I can afford it.


17
What is Marketing?
I need/want
...

Marketer Offering Market

I can afford it.


Creating
Delivering
Suppose Anna is looking for
a Harry Potter Book.
Anna’s unsatisfied needs is Harry
Potter book

William ’s unsatisfied needs is a


customer to buy a book Finally, Anna purchases the
Harry Potter book.
Anna will not buy the book if she does
not want to read and have enough
money.
William will not sell the Potter book
to Julia if he does not want to sell
and have the book stocked on
shelve.
Communicating

Anna decides to go to a Notting Hill bookstore.


Anna will not go to the Notting Hill bookstore if she does
not know that the Potter’s book is there.
Exchanging Offerings
Requirements for Marketing to Occur

• Two or more parties (individuals or organizations) with


unsatisfied needs

• A desire and ability on their part to be satisfied

• A way for the parties to communicate

• Something to exchange
LO1

Marketing entails an exchange

Communications/Delivery

Money/Information
Customers/
Consumers (Buyers)
Goods/Services
Producers (Sellers)
LO1

Marketing entails an exchange

• The exchange can occur


between any two parties

• Not simply a buyer and


seller exchanging money
for a good or service

• Can be an exchange of
information for
convenience
Key concepts in Marketing:
Exchange and relationship

Exchange: the act of obtaining a desired object from


someone by offering something in return

What is exchanged for the product?


=> Price

Marketing consists of actions taken to build and maintain


desirable exchange relationships with target audiences involving
a product, a service, and idea, etc..
LO1

Satisfying customer needs & wants

• Need: basic necessities


• Want: how to fulfill that need
Needs vs. Wants vs. Demands

Exercise:

• Needs occur when a person feels physiologically


deprived of necessities.
• Wants are needs shaped by culture and individual
personality.
• Demands are needs/wants combined with buying
power.

It’s marketer job to discover CONSUMER NEEDS and WANTS


It’s marketer job to discover CONSUMER NEEDS and WANTS

How can marketers discover consumer needs?


- Create Needs: Market research/New product development
- Listen to Needs: Consumer Behavior
Should marketing try to
satisfy consumer needs or
consumer wants?
How Marketing Discover and Satisfies
Consumers’ Needs and Wants?
=> with Controllable Factors| Four Ps

• The Four Ps: Controllable Marketing Decisions

Price/promotion/place/product

“Marketing Mix”: 4Ps are the marketing mix.


With 4Ps=> Marketers create, communicate, transacting and
deliver value.

Details of each 4Ps will be covered through the term.


LO2

Marketing requires marketing mix


decisions
Creating value: Product
Value Delivering
Suppose Anna is looking for
a Harry Potter Book.
Anna’s unsatisfied needs is Harry
Potter book

William ’s unsatisfied needs is a


customer to buy a book Finally, Anna purchases the
Harry Potter book.
Anna will not buy the book if she does
not want to read and have enough
money.
William will not sell the Potter book
to Julia if he does not want to sell
and have the book stocked on
shelve.
Communicating Value

Anna decides to go to a Notting Hill bookstore.


Anna will not go to the Notting Hill bookstore if she does
not know that the Potter’s book is there.
Transacting value
Key concepts in Marketing: Product

Product: Anything that can be offered to a market for attention,


acquisition, use, or consumption, that might satisfy a need or a want.
Key concepts in Marketing: Price

money

time

energy

Price: Price is everything the buyer gives up in exchange for the


product.
Key concepts in Marketing: Place

Place: A means of getting the product into the consumer’s hands


Key concepts in Marketing: Promotion

Promotion: A means of communication to inform, persuade and remind


potential buyers about product or service to influence their opinions or
elicit a response
The 4 P’s (Marketing Mix)

Marketing Mix

Product Price Promotion Place

Target
customers
Uncontrollable Factors:
The Marketing Environment

The Marketing Environment: uncontrollable events involving


social, economic, technological, competitive, and regulatory
forces.
Details will be covered in Ch.3.
LO1

What is marketing?

Marketing is a set of business practices designed


to plan for and present an organization’s products
or services in ways that build effective customer
relationships.
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.

American marketing association


(2013)
Creating value: Product
Value Delivering
Suppose Anna is looking for
a Harry Potter Book.
Anna’s unsatisfied needs is Harry
Potter book

William ’s unsatisfied needs is a


customer to buy a book Finally, Anna purchases the
Harry Potter book.
Anna will not buy the book if she does
not want to read and have enough
money.
William will not sell the Potter book
to Julia if he does not want to sell
and have the book stocked on
shelve.
Communicating Value

Anna decides to go to a Notting Hill bookstore.


Anna will not go to the Notting Hill bookstore if she does
not know that the Potter’s book is there.
Transacting value
LO2

Key concepts in Marketing:


Value Creation

• The fundamental purpose of marketing is to


create value for both the firm and customer.
• Value is in essence what you get for what you give
up.
LO2

Product: creating value

Goods

Services

Ideas
LO2

Price: transacting value

Price is everything the


money buyer gives up in energy
exchange for the
product.

time
LO2

Place: delivering value

• All activities necessary to get the product to the


right customer when that customer wants it.
• Supply chain management is the field that
examines these activities.
• Where would you find this product in the store?
LO2

Promotion: communicating value

• The communication activities of marketing


• Used to inform, persuade and remind potential
buyers
• Used to influence their opinions or elicit a response
Marketing helps create value.:
Building value
 Build & maintain a loyal
customer base
 Distinguish from
competitors
 How do Tim Hortons &
Starbucks do it?
 Strong brand, customer
appeal
 Constantly need to
protect the brand
The value Tim Hortons provides
customers?
• New product and services:

• Remain high reputation:

• Community involvement:

• Promotions:

• Social media activities:


Same 5-6 people on the same
paper.
http://www.theglobeandmail.com/report-on-business/industry-
news/marketing/tim-hortons-presidents-choice-top-list-of-canadians-most-
trusted-brands/article25067708/ “5 min”
LO3

The four orientations of marketing

Product Orientation Market Orientation

Sales Orientation Value-based Orientation


Product Orientation

• Consumers prefer the best product that offer the


most quality, performance, or innovative features.
• Focus on making superior products and improving
them over time

49
Product Orientation

The Product Orientationuntil the 1920s


• Focus on production and economies of scale

• Profit is from Production methods


“Focus on the producing the best product.

• Profits from Quality of the product


“if we build it, they will come”

Products will sell themselves


Product Orientation

“You can have


any color… as
long as it’s
black.”

Henry Ford and Model T


51
Sales Orientation

• The Sales Orientation up to the 1960s


• Consumers, if let alone, will not buy enough of our
products.
• Focus on selling
Selling techniques
“Sell, sell, sell”

“Hire more salespeople to find more consumers”

52
Market Orientation

The Market Orientation


• Focus on customer wants and needs
• “We’re not satisfied until you are”
• Customer is King!
• Focus on 4Ps

=> This is NOT easy.

53
Market Orientation
=> Value-based Orientation
• Focus on customer satisfaction

• Provide the right 4Ps collectively


• Deliver more effectively and efficiently than competitors
• Build long-term profitable relations with customers
LO3

Value-based orientation

To compete successfully, firms focus on the triple bottom


line:
• People (consumer needs & wants)
• Profits (long-term profitable relationships)
• Planet (social and environmental responsibility)
Value & Satisfaction

Value:
Safety
Dependability
Courtesy service
In-flight
entertainment
Online check-in

Customer value = the unique combination of benefits received by the


customer that include quality, price, convenience, on-time delivery, and
both before sale and after-sale service.
LO3

How do firms become more value driven?

Firms focus on four activities:


• Sharing information
• Balance customer’s benefits & costs
• Build relationships with customers
• Use technology to connect with
customers
LO3

Sharing information

Why is sharing and coordinating information such a


critical success factor for any firm?
LO3

Balancing benefits with costs

• Understand key
benefits.
• Focus on key
benefits.
• Eliminate cost of
less strategic
benefits.
LO3

Building customer relationships

 Take a long term view of customer relationships


 Use data to assist in maintaining the relationship
Building customer relationships:
Value-Based Concept

“We are not


satisfied until
you are.”

61
Value-Based Concept

Customer
Life-Time Value

62
LO3

Connect with customers using social


media
 Embrace social media to connect
better with customers
 ¾ of North American companies
now use social media for marketing
purposes
 Users are driving the way brands &
stores are interacting with social
media
LO2

Social media & marketing

The use of digital tools to easily &


quickly create & share content
to foster dialogue, social
relationships & personal
identities.
LO4

Why is marketing important?


LO4

Marketing expands firms’ global presence

• Good are available to consumers from many


countries from the far reaches of the globe
• Must understand customers needs & wants
• Segment-by-segment, region-by-region
LO1

Core aspects of marketing


Questions?

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