Transcript MARKET

Chapter
1
Marketing
Fundamentals
Marketing
Fundamentals
Learning Objectives
1. Understand the essence of marketing and explain the marketing
process
2. Define and analyze elements of the marketing mix
3. Differentiate between goods, services, and ideas
4. Describe the evolution of different business philosophies
5. Discuss the latest marketing approaches
6. Summarize careers that exist in marketing
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LO 1
The Customer is Central
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LO 1
The Essence of Marketing
Satisfying consumers and providing
them with value through products and
services that meet their needs.
“… delight consumers and
encourage customer loyalty.”
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LO 1
Customer Value
•Loyalty comes from providing added value:
• Product design
• Pricing strategies
• Service elements
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LO 1
Marketers Need Focus
 A single product will not satisfy everyone.
 Marketers focus their efforts on the group most likely to
purchase.
 The group  Target market
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LO 2
The Marketing Mix or “The 4 Ps”
•A well-coordinated program that appeals to the target market. The
Marketing Mix:
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Product
Place
Price
Promotion
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LO 2
Two Unique Marketing Programs for Two
Different Nestlé Products
“… to appeal to its specific
target group.”
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LO 1
A Continuous Process
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LO 1
Key Points
• Marketing is more than just advertising and selling.
• Marketers manage all the elements of the marketing mix.
• Marketers use research to support activities.
• Marketing creates exchanges between buyers and sellers.
• Profits are realized when needs are met and exchange takes place.
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LO 3
What Can Be Marketed?
Goods
Services
Ideas
Product
An idea that worked:
>1 billion people in
>134 countries and
4,000 cities and towns
supported Earth Hour.
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LO 1
What is a Market?
•MARKET (money and means to purchase)
• Parents with children ages 3-6 years
•TARGET MARKET (decision-makers and influencers)
• Parents and children
•CONSUMERS (users of the product)
• Children
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LO 4
Relationship Marketing
• Often starts before an exchange (or sale) occurs.
• Focus on customer retention.
• Focus on ongoing customer satisfaction.
Strong customer relationships can result in
increased customer loyalty and greater profits.
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LO 4
Relationship Marketing
•Technology has enabled the capture of information on your customer
•– CRM
•– Social media
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LO 5
CRM: Customer Relationship
Management
•CRM
•– Who are the most valued customers?
•– What are the best programs to meet their needs?
•– How can we retain them?
Loyalty program data:
- Shoppers Optimum Card
- HBC Rewards
- Air Miles
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LO 5
Corporate Social Responsibility
•An organization’s consideration for society’s well-being.
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LO 5
Societal Marketing Concept
•Marketers can have a significant impact on the well-being of
society and the environment.
•– Cadbury Bicycle Program
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LO 5
Partnership Marketing
•– Brands with similar customers but
different distribution channels (and
products) can collaborate.
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LO 5
Ethics: Not All Companies are
on Board
•Canadian government regulations:
– pollution
– food and safety
– advertising and telemarketing
– water safety
•Canadian Marketing Association (CMA) code of ethics.
•Consumer Groups also exert pressure.
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LO 6
Careers
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Do your research.
Landing a good job may take work.
Keep up to date on consumer and societal trends.
Networking is key!
– Meet as many people as possible, stay in touch, and
never burn a bridge.
– Have a network in place before you graduate.
– Get work experience through summer jobs and
volunteering.
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LO 6
Careers
Succeeding in the job:
 Passion, creativity, and
the desire for knowledge
 Change and lifelong
learning are the norm
 Keep informed!
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Customer Value
•The unique combination of benefits received by
targeted buyers that includes quality, price,
convenience, on-time delivery, and both before-sale
and after-sale service.
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Target Market
•The specific group of existing and potential
consumers to which a marketer targets its marketing
efforts.
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Product
•All the attributes that make up a good, a service,
such as:
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Product design
Product features
Colour
Packaging
Warrantee
Service levels
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Price
•The expected retail-shelf-price and sale-price of the
product.
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Promotion
•The communication tools needed to communicate to
consumers, such as:
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Advertising
Sales promotion
Public relations
Direct marketing
Personal selling
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Place
•The distribution channels and retailers required to
sell the product.
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Marketing
•The process of planning goods, services, or ideas to
meet consumer needs and organizational objectives.
•It includes the conception of these products and the
pricing, promotion, and distribution programs
designed to make a profit.
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Exchange
•The trade of things of value between buyers and
sellers so that each benefits.
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Product
•A good, service, or idea.
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Good
•A product you can touch and own.
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Service
•A good that is intangible, that you cannot touch.
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Idea
•A concept which typically looks for your support.
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Market
•Potential consumers with both the willingness and
ability to buy.
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Marketing Orientation
•Focusing organizational efforts to collect and use
information about consumers’ needs to create
customer value.
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Marketing Concept
•The idea that an organization should strive to satisfy
the needs of consumers while also trying to achieve
organizational goals.
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Relationship Marketing
•When organizations create long-term links with
customers, employees, suppliers, and other partners
to increase loyalty and customer retention.
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Customer Relationship
Management
•The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction.
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Experiential Marketing
•Creating opportunities for consumers to directly
interact with brands.
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CSR – Corporate Social
Responsibility
•When organizations voluntarily consider the wellbeing of society by taking responsibility for how their
businesses impact consumers, customers, suppliers,
employees, shareholders, communities, the
environment, and society in general.
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