Week 1 Ch 1 Notes: Overview of Marketing

Examples of Successes
- Awake bar- laurier graduate invention. Strategically placed it in gas stations then tried to
get in with the big retailers
- Iron man legs- invented by 2 students from the University of Waterloo. Robotic therapy
for those who don’t have legs
- Phone holder cup
- Metal detector sandals

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.

Core Aspects of Marketing

Building Value
- Build & maintain a loyal customer base
- Distinguish from competitors
- How do Tim Hortons & Starbucks do it?
- Tim hortons attracts a lot of customers through their roll up the rim marketing
campaign
- Starbucks provides consistent good service and high quality beverages
- Strong brand, customer appeal
- Constantly need to protect the brand

Satisfying Customer Needs and Wants

 - Need:​ basic necessities
- Want: ​how to fulfill that need

Entails a Marketing 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
- Class example- katy perry and lady gaga wear crazy outfits to stand out from the
competitors and market themselves

Marketing Requires Marketing Mix Decisions

- Customer is the focus and everything comes after that!
 -

Creating Value
- Goods
- Services
- Ideas
- Class example- olay pro x
- Launched before Obama came into power
- In 2008, came up with new level of olay (x) at $150 for 4 products
- Launched in grocery store- many ppl were poor at this time before Obama
- Too expensive, in wrong place and during recession
- Became #1 face cream in one year bc it did what it claimed to do- reduce
wrinkles
- Product, place was important

Price: Transacting Value

- Price:​ is everything the buyer gives up in exchange for the product
- Class markup examples:
- Pharmaceuticals is 1000%
- Canadian diamonds 100%
- 20% on fruit
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?
- Unusual place strategy class example- calvin klein vending machine

Place: Marketing Channel Distribution Strategy

- How does a company get the product to the right customer when and where they want
it?

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
- Communication can be in the form of direct marketing, packaging, tv, posters
- Unique communication strategy- wheat thins on twitter- showed up at ppls door when
you post about the snack on twitter- put them on tv

Marketing can be Performed by 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.
- During covid 2000 visitors increased daily through buy and sell on facebook during
quartentine
- Ppl were bored, wanted things they couldn’t get a hold of, lost jobs, not going to stores,
make money
- Kijiji 10,000 increase in daily listings

Social Media and Marketing

- The use of digital tools to easily & quickly create & share content to foster dialogue,
social relationships & personal identities.

Marketing Impacts Many Stakeholders

- Both profit and non-profit entities
- Developing economies
- Entire industries

The Four Orientations of Marketing

 -
- Product orientation, market orientation, sales orientation and value-based orientation

Product Orientation
- Product-oriented companies focus on developing and distributing innovative products
with little concern about whether the products best satisfy customers’ needs
- Only care about producing
- Demand for baby products after war- didn’t need marketing just producing

Sales Orientation
- View marketing as a selling function where companies try to sell as many of their
products as possible rather than focus on making products consumers really want.
- Company can’t produce if customers aren’t having it, need to focus on selling it
- Use buy 1 get one free
- Provide incentives to get salespeople to sell and customers to buy

Market Orientation
- Market-oriented companies start out by focusing on what consumers want and need
before they design, make, or attempt to sell their products and services
- In order to become Marketing Oriented …Changes must occur…
- 1. Changes in the management attitudes- toward customer
- 2. Changes in the firm's organizational structure
- 3. Changes in the policies and procedures.
-

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)
- Think about environment, then customers then 4 ps
- Less than 30% of companies are value based
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

Sharing Information
- Why is sharing and coordinating information such a critical success factor for any firm?-
With information the firm can understand what are the key benefits the customers seek,
focus on those and eliminate the cost of providing other less strategic benefits.

Case in Point- Zara

Balancing Benefits With Costs

- Understand key benefits.
- Focus on key benefits.
- Eliminate cost of less strategic benefits.

Building Customer Relationships

- Take a long term view of customer relationships
- Use data to assist in maintaining the relationship
Customer Relationships With 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

Why is Marketing Important?

-

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

Marketing is Pervasive Across Channel Members

- 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

Marketing Enriches Society

- Canadian companies recognize that a strong social orientation is in both their and their
customers’ best interests. It shows the consumer that the firm can be trusted with their
business

Marketing can be Entrepreneurial

- Though important to large firms, marketing is equally important to the success of small
ventures—especially new ventures