Transcript 1 - Week One

Week ONE
Overview of
Marketing
Deborah Reyner
p.s NO
computers/iPads or
cell phones during
class!
Copyright © 2012 McGraw-Hill Ryerson Limited
SBE Research Participation System
• A maximum of 3 bonus marks (out of 100)
(1) participate in 3 research studies or
(2) review 3 journal articles
• For either option, you must create an account at:
http://sbe.sona-systems.com
– Request a “new participant” account on the left side
– If you are taking multiple courses that have this bonus
option, make sure to select all courses
– Indicate your section code accurately
• Last day to receive/reassign bonus marks: Dec.
3 (Mon)
1-2
(1) Research Study Participation
• Sign up for any study of your choice on
http://sbe.sona-systems.com
– 1 mark for each offline study participation
– ½ mark for each online study participation
• Participation is guaranteed on a first-come-firstserved basis
• Studies will be available throughout the term (it
is your job to keep checking for postings…)
1-3
(2) Journal Article Review
• You must still create a sona-systems account
• For BU352, review an article from one of these
journals:
–
–
–
–
Journal of Consumer Research
Journal of Marketing
Journal of Marketing Research
Marketing Science
• Summarize the following in 3-5 double-spaced pages:
– (1) the phenomenon being studied, (2) the hypotheses, (3)
the independent and dependent variables, (4) how the
hypotheses are tested, (5) the results of the research, (6)
criticisms of the research, (7) solutions
• 1 review = 1 bonus mark
1-4
Chapter Roadmap
1-5
LO1,02
Building Value





BlackBerry launched in
2000
available on 595 networks
in over 175 countries
sales of over $19.9 billion,
53% outside North
America
satisfies demand for
information in real time
fierce competition from
Apple, Android and others
1-6
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.
1-7
LO1
Marketing is NOT
Just about buyers and
sellers exchanging money
for goods and services
or about making
a profit
1-8
LO1
Marketer’s Responsibility
Marketers must address the ethical implications
of their actions on society in general.
1-9
LO2
Value
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.
1-10
Test Your Knowledge
Which of the
A)
B)
C)
D)
following statements about marketing is NOT true?
Marketing entails an exchange.
Marketing is simply about making a profit.
Good marketing requires thoughtful planning.
Because marketing costs money, good marketers
carefully seek potential customers who have both
an interest in the product and an ability to buy.
1-11
LO1
Marketing’s Core Aspects
1-12
LO1
Core One:
Satisfying Customer Needs and Wants
• Begins with
understanding their
needs and wants
• Developing products
and services
1-13
LO1
Satisfying Customer Needs and
Wants
How does a company address the diverse
needs and wants of consumers for dental care
products?
1-14
LO1
Case in Point:
Crest
Challenge
Answer
Results
Address the diverse needs and
wants of consumers for dental
care products.
Develop a deep understanding of
what benefits consumer are
seeking in their dental care
products and develop brands
designed to deliver those
benefits.
Crest provides a wide variety of
dental care products to deliver
the desired benefits.
1-15
LO1
Case in Point:
Crest
1-16
LO1
Core Two:
Marketing Entails 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
1-17
LO1
Marketing Entails an Exchange
Communications/Delivery
CHAPTERS.ca
Money/Information
Customers/
Consumers (Buyers)
Goods/Services
Producers
(Sellers)
1-18
Test Your Knowledge
Which of the
A)
B)
C)
D)
following is NOT part of a marketing exchange?
Sellers provide products or services.
Sellers communicate and facilitate delivery.
Marketers assess the effectiveness of their
advertising.
Buyers complete the exchange by giving money
and information to the seller.
1-19
LO2
Core Three:
Marketing Requires Product, Price,
Place, and Promotion Decisions
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LO2
Product
Goods
Services
Ideas
1-21
LO2
Price
time
money
Price is everything
the buyer gives up
in exchange for the
product.
energy
1-22
LO2
Place
• 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?
1-23
LO2
Place: Marketing Channels
Distribution Strategy
How does a
company get
the product to
the right
customer
when and
where they
want it?
1-24
LO2
Case in Point:
Country Grocer
Challenge
Answer
Results
To expand distribution beyond the
Ottawa area.
Using an online distribution
system to allow customers all
over Canada to order directly
from its store in Ottawa.
• Canadian Federation of
Independent Grocers award of
merit for 8 consecutive years
• Awarded the National Silver
Award as the best store in Canada
in the small surface category.
1-25
LO2
Case in Point: Country Grocer
1-26
LO2
Promotion
• The communication
activities of marketing
• Used to inform,
persuade and remind
potential buyers
• Used to influence
their opinions or elicit a
response
1-27
Test Your Knowledge
Promotion is ____________ by a marketer that informs,
persuades, and reminds potential buyers about a product or
service to influence their opinions or elicit a response.
A)
smoke-and-mirrors
B)
coercion
C)
teasing
D)
communication
1-28
LO2
Marketing Shaped by External Forces
1-29
LO2
Core Four:
Marketing Can Be Performed by Both
Individuals and Organizations
B2B: Wholesaling is often only Business to Business
B2C: All retailing is Business to
Consumer selling
C2C: Swap Meets,
EBay, yard sales, etc.
ETSY Website
1-30
LO2
Core Five:
Marketing Occurs in Many Settings



Both profit and non-profit
entities
Developing economies
Entire industries
1-31
LO2
Social Media Marketing
Facebook – social utility
or marketing tool?
• > 46 million members
• used by TD Bank,
Molson, AOL Canada,
Boston Pizza, LouLou
magazine to reach
target audiences
• privacy concerns?
1-32
LO2,03
Core Six:
Marketing Helps Create Value
Production-oriented era
Sales-oriented era
Market-oriented era
Value-based marketing era
1-33
LO2,03
Value-Based Marketing
• Firms must offer customers something in excess of
that being offered by the competitors.
• Firms must understand how each aspect of their
product/service creates value for customers.
1-34
LO2,03
Value is in the Eye of the Beholder
That movie
was a waste
of money.
That movie
was so worth
seeing!
Discussion question
If they saw the same
movie, what could
account for the
difference in value
derived from the
experience?
1-35
LO2,03
How Firms Compete on
the Basis of Value
• Constantly changing
consumer perceptions
• Firms must constantly
monitor the
marketplace in order to
create value
1-36
Test Your Knowledge
What must firms do to become value driven?
A)
Share information, balance benefits and costs,
and build customer relationships.
B)
Set low prices, put profit above service, and use
effective marketing strategies.
C)
Make logistics a priority, expand globally, and
always offer new goods and services.
D)
Keep a vigilant eye on the market-place,
undercut competitors, and provide competitive
salaries.
1-37
LO2
Entrepreneurial Marketing
• Carmen Creek Gourmet
Meats based in Calgary
• specializes in grade A
Canadian bison
• distributes in Canada, US
and Europe
• brings value to
consumers, retailers and
food service businesses
1-38
LO4
Becoming Value Driven:
Sharing Information
Information technology such as
Customer Relationship
Management (CRM) programs
are increasingly used by
marketers to ensure that data is
transmitted throughout the firm.
1-39
LO4
Sharing Information
Why is sharing and coordinating information
such a critical success factor for any firm?
1-40
LO4
Case in Point:
Zara
Challenge
Answer
Results
How does the flagship brand of
Europe’s fastest growing apparel
retailer keep up with the latest
trends?
By implementing sophisticated
information technology into its
customer tracking and supply
chain functions.
Zara now has over 1500 women’s
clothing stores in 78 countries.
Products move from design
through the supply chain and onto
the stores shelves in about two
weeks.
1-41
LO4
Zara: Conquering Fashion with IT
1-42
LO4
Becoming Value Driven: Balancing
Benefits and Cost
• Understand key
benefits
• Focus on key benefits
• Eliminate cost of less
strategic benefits
1-43
LO4
Becoming Value Driven: Building
Relationships With Customers

Take a long term view of customer relationships

Use data to assist in maintaining the relationship
1-44
LO5
Why is Marketing Important?
1-45
LO5
Marketing Expands Firms
Global Presence
Starbucks often promotes the same product in different
countries. What products do you see in common?
Starbucks Canada
Starbucks Australia
Starbucks Germany
Starbucks Taiwan
1-46
LO5
Marketing As Pervasive Across
the Supply Chain
• Each step in the supply chain involves marketing
• All members in the chain must ultimately focus on
creating value for their customer and the end user
consumer
1-47
Test Your Knowledge
Which of the following would NOT be considered part of a
supply chain?
A)
consumer
B)
retailer
C)
manufacturer
D)
customer service representative
1-48
LO5
Marketing Makes Life Easier and
Provides Employment Opportunities

Choices of products and
services choices as well
as information about
those choices

Employment in diverse
fields such as
research, sales,
promotions, global
marketing
1-49
LO5
Marketing Enriches Society
Discussion question
Why do you think breast
cancer is a good cause
for Avon Foundation to
support?
1-50
LO5
Marketing Can Be Entrepreneurial
Though important to large firms, marketing is
equally important to the success of small
ventures—especially new ventures.
1-51
Chapter 2
Developing
Marketing
Strategies
Ajax Persaud
Dhruv Grewal
Copyright © 2012 McGraw-Hill Ryerson Limited
Shirley Lichti
Michael Levy
Chapter Objectives
LEARNING OBJECTIVES
LO1 Describe how a firm develops and
implements a marketing plan
LO2 Conduct a SWOT analysis and explain its
use in marketing planning
LO3 Explain how a firm chooses what group(s) of
people to pursue with its marketing efforts
LO4 Describe how the marketing mix increases
customer value
LO5 Describe how firms grow their businesses
1-53
Chapter Roadmap
1-54
LO1,02
Disney Goes Digital
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Global positioning
satellites
Smart sensors
Wireless
technology
Mobile devices
Pal Mickey
1-55
LO1
The Strategic Marketing Planning
Process
1-56
LO1
Step 1: Defining the Mission and/or
Vision
Defining the Mission
Heart & Stroke Foundation mission statement:
The Heart and Stroke Foundation, a volunteer-based
health charity, leads in eliminating heart disease and
stroke and reducing their impact through the
advancement of research and its application, the
promotion of healthy living and advocacy.
1-57
LO1
Heart & Stroke Promotion
1-58
LO2
Step 2: Conduct a Situation Analysis
Using SWOT
1-59
LO3
Step 3: Identifying and Evaluating
Opportunities Using STP
Segmentation
Targeting
Positioning
1-60
Hertz:
Market Segmentation
1-61
LO3
Disney:
Segmentation, Targeting, Positioning
Magic Kingdom
Pleasure Island
Families w/younger kids
Singles and Couples
Epcot
Adults, families w/older kids
1-62
Test Your Knowledge
Which of the following refers to a group that responds similarly
to a firm’s marketing efforts?
A)
Segment
B)
Following the leader
C)
Targeting
D)
Positioning
1-63
LO4
Step 4: Implement Marketing Mix and
Allocate Resources
1-64
LO4
Product and Value Creation
Discussion question
How does satellite radio deliver value?
1-65
LO4
Price and Value for Money
• Customer perception of
value.
• Price is only a part of
value.
1-66
LO4
Place and Value Delivery
• Product must be
readily accessible
• Why is this retailer
growing?
1-67
Test Your Knowledge
One of the keys in place and value delivery is to provide the
consumer _______________.
A)
a wide product selection
B)
merchandise they want at the time they want it
C)
a variety of media communication methods
D)
accessible management personnel to handle
complaints
1-68
LO4
Promotion and Value Communication
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Television
Radio
Magazines
Sales force
New Media
1-69
LO5
Step 5: Evaluate Performance and
Make Adjustments
P&G Website
1-70
LO5
Growth Strategies
1-71
Test Your Knowledge
Which of the
strategy?
A)
B)
C)
D)
following is NOT considered a marketing growth
Market penetration
Diversification
Product development
Sequential planning
1-72
LO5
Market Penetration


Existing marketing mix
Existing customers
Discussion question
In what way is a sale a market
penetration strategy?
1-73
LO5
Market Development Strategy
What can a company
do to continue to grow
in a difficult retail
environment?
1-74
LO5
Case in Point: Tim Hortons
Challenge
Answer
Results
To continue to grow in a
competitive retail environment.
Continue an international
expansion strategy while also
expanding menu options.
2724 Canadian outlets, 340 US
outlets. Total 2006 Revenue of
$1.66 Billion up 12% from 2005.
1-75
LO5
Product Development
New product or service
Current target market
1-76
LO5
Diversification
New product or service
New market segment
1-77
Test Your Knowledge
A diversification strategy introduces a new product or service to
a market segment that _______________.
A)
is currently not served
B)
includes many ethnicities
C)
already exists
D)
does not traditionally respond to mixed media
1-78
LO5
Entrepreneurial Marketing 2.1
Cupcakes by Heather and Lori



Store vision to be a “magic
cupcake factory”
High quality cupcakes
decorated in whimsical colours
Now franchising this popular
store concept
1-79
LO5
Sustainable Competitive Advantage
1-80
LO5
Sustainable Competitive Advantage
Discussion question
What do you think are the keys to
McDonald’s sustainable advantage?
1-81
Test Your Knowledge
What is sustainable competitive advantage?
A)
A broad description of the firms objectives and
scope of its activities.
B)
Tool used to evaluate marketing performance.
C)
Something the firm can consistently do better
than its competitors.
D)
Written document that discusses competitor
strengths and weaknesses, and the firms
advantages over them.
1-82
LO5
Customer Excellence
Retaining loyal
customers
Customer service
1-83
LO5
Operational Excellence
Efficient
operations
Excellent
supply chain
management
1-84
LO5
Product Excellence
Achieving effective branding and positioning
Discussion question
How are these two firms positioned in
the market place?
1-85
LO5
Locational Excellence
The three most important
things in retailing are
location, location, location.
Photo by Tim Boyle/Getty Images
1-86