CHAPTER 01

MARKETING
FUNDAMENTALS

© 2021 McGraw-Hill Education Limited Prepared by: Maria Vincenten, Red River College
The Role of Marketing
Figure 1–1 A marketing department relates to many people, organizations,
and forces. Note that the marketing department both shapes and is shaped
by its relationship with these internal and external groups.

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 Focusing on Customer
Needs and Wants
• Successful marketing is focused on customer
needs and wants and developing programs that
engage consumers and inspire customer loyalty
– Need – occurs when a person feels deprived of
basic necessities
– Want – a need that is shaped by a person’s
knowledge, culture, and personality
• A principal activity is to research consumers to
understand what they need and want, and the
forces that shape those needs and wants
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Creating Customer Value

• Customer Value Proposition

– unique combination of
benefits received by targeted
buyers that will satisfy their
needs
1) Product design
2) Pricing strategies
3) Service elements

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 Appealing to Target Markets
• With limited funds, it is better to channel
resources to a specific group of consumers who
are most interested in purchasing a product,
rather than target everyone and squander
funds
• Target Market – specific group (or segment) of
existing and potential consumers to which
marketers direct their marketing efforts

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Coordinating the Marketing Mix
“Marketers need to understand what
makes their consumers tick.”
• Marketing Mix (4Ps) –
product, price, place, and
promotion
– Carefully managed to
ensure that they are well-
coordinated and appeal to
the distinct characteristics
of the target market
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The Marketing Process
• Marketing Process involves:
1) Identifying consumer needs,
2) Managing the marketing mix to meet these
needs, and
3) Reaching potential consumers or the
market

“The marketing process requires marketers to

understand their customers and apply strategic,
analytical, and creative-thinking skills.”
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 The Marketing Process
•Marketing – process through which goods and
services move from concept to the customer. It
includes the coordination of 4 Ps of marketing:
• to identify, select, and develop a product;
• determine its price;
• select a distribution channel to reach a customer’s
place; and
• develop and implement a promotional strategy.
• Exchange – the trade of things of value between
buyers and sellers so that each benefits
– More than just money
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What Can Be Marketed?
• Product encompasses goods, services, and
ideas

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What Is a Market?

• Market – is used to describe potential

consumers who have both the
willingness and ability to buy a product
– Sometimes the market, target market, and
consumers are different groups of people
– Marketers need to decide on a balance of
who should be targeted for their programs

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The Evolution of
Business Philosophies

Three elements of relationship marketing:

1) Social Media
2) Customer Relationship Management (CRM)
3) Corporate Social Responsibility
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The Evolution of
Business Philosophies
• Customer Relationship Management
– Share-of-wallet
– Customer lifetime value
– Corporate social responsibility (CSR)

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New and Evolving
Marketing Practices

• Digital Marketing
– Content Marketing
– Mobile Marketing
– Social Media Marketing

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New and Evolving
Marketing Practices
• Augmented Reality
• Experiential Marketing
• Influencer Marketing
• Partnership Marketing
– Promotional
partnerships
– Strategic alliance

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New and Evolving
Marketing Practices
• Marketing Regulations and
Ethical Considerations
– Regulations safeguard
people, communities, and
the environment
• Consumer privacy is a
growing concern

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CHAPTER 02

THE
MARKETING
ENVIRONMENT

© 2021 McGraw-Hill Education Limited Prepared by: Maria Vincenten, Red River College
The Marketing Environment
• Six
Environmental Demogra-
phic
forces
Socio-
Regulatory
cultural

Marketing
Environment

Competitive Economic

Technolo-
gical

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 Situation (SWOT) Analysis
• The essence involves taking stock of
organization’s marketing plans and the external
forces and trends affecting it.
– Strengths
– Weaknesses
– Opportunities
– Threats
• Translate the results from a SWOT into specific
marketing actions ! identify critical factor
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An Environmental Scan
An environmental scan is the process of
continually acquiring information on events
occurring outside an organization to identify
external trends, that are opportunities or threats
to a business.

Often the first step of developing a more

extensive SWOT

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Demographic Forces
Demographics is the “statistical study of
populations according to characteristics
such as gender, age, ethnicity, income,
education and occupation.”
Statistics Canada 2016 Census findings:
– Aging population
– Diverse generations
– Big-city growth
– Ethnically diverse
– World market expansion
– Changing household composition

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Demographic Forces
– Diverse Generations

1) Baby
Boomers
2) Generation X
3) Generation Y
(Millennials)
4) Generation Z

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 Socio-Cultural Forces
Socio-Cultural Forces include cultural values,
ideas, and attitudes, as well as society’s morals
and beliefs.
Marketers are currently responding to socio-
cultural changes in areas related to:
• Media
• Food consumption
• Attitude and roles of men and women
• Ethical consumption

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Economic Forces
The Economy is defined as the “collective
income, expenditures and resources that affect
the cost of running a business or a household.”

Macroeconomic Forces and Microeconomic

Forces are both important to study!

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 Economic Forces
Macroeconomic Forces
• State of a country’s economy as a whole
• Key economic indicators are Growth Rate (GDP), Inflation
Rate, Interest Rates and the Unemployment Rate
• Consumer confidence levels are measured to assess the
outlook of consumers in relation to the economy
Microeconomic Forces
• Directly refers to the supply and demand of goods and
services and how this impacts the buying power of
individuals, households and companies
• Key economic indicators are Gross Income, Disposable
Income and Discretionary Income
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 Technological Forces
Technological forces refers to the “inventions or
innovations that stem from scientific or
engineering research.”
• Global Innovation Index
• Fast Company Ranking

“Marketers need to know how consumers are

integrating technology into their lives.”

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 Competitive Forces
Competitive Forces refers to alternative products
that can satisfy a specific market’s needs

Direct
Competition
Indirect

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Types of Competition
Marketers need to have a clear understanding of
the competitive nature of the industry in which
they function

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Regulatory Forces
Regulations are defined as the “restrictions
place on marketing practices by government
and industry associations.”
– Protect consumers from unscrupulous business
practices,
– Set acceptable standards of practice, and
– Encourage fair competition

Ethical business practices should be followed to avoid

consumer backlash and negative publicity

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Regulatory Forces
• Competition Bureau
• Advertising Standards Canada (ASC)
• Canadian Radio-Television and
Telecommunications Commission (CRTC)
• Canadian Marketing Association (CMA)
• Canadian Wireless Telecommunications
Association (CWTA)
• Mobile Marketing Association (MMA)
• Personal Information Protection and
Electronic Documents Act (PIPEDA)
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Steps in an
Environmental Scan
Brainstorm,
Determine the
evaluate, and
Collect the impact that this
implement
facts and fact/trend will
ideas to meet
identify trends have on the
business
business
objectives

• Gather data and • Set business • Brainstorm

information objectives • Evaluate and
• Conduct • Analyze the implement
competitive external trends to alternatives
reviews determine their
• Cluster impact
information into
facts and trends
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