Marketing

Marketing

1. 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.
     • Offerings of Goods, services, and ideas marketed to Customers.

2. Definition

3. Seeks

   • 1. To discover the needs and wants of prospective customers.
   • 2. To satisfy them.

4. Requirements

   • 1. Two or more parties with Unsatisfied needs
     • 2. Desire and ability to satisfy these needs
       • 3. A way for the parties to communicate
         • 4. Something to exchange

5. MARKET

   • Definition
     • A market is people with the desire and ability to buy a specific product
       • Individual and organizations buy and use goods and services that are marketed.
         • Ultimate Consumers: People-whether 80 years or 8 months old- who use the goods and services purchased for a household.
         • Organizational Buyers: These are units, such as Manufacturers, retailers, or government agencies, that buy goods and services for their own use or for resale
         • Consumers/Buyers/Customers are used for both.
         • Three groups that benefits from effective marketing
           • Consumers: who buy
           • Organizations: who sells
           • Society as a whole
       • Social Marketing: is designed to influence the behaviour of individuals.
   • Target Market
     • Marketing concentrated its efforts on certain needs of a specific group of potential consumers.

6. THE FOUR TOOLS (Ps)

   • Definition
     • Marketing program that creates, communicates and delivers value to a Target Market
       • Product Offering
         • A good, service, or idea to satisfy the consumer's needs.
         • The best!
       • Price
         • What is exchanged for the product.
       • Promotion
         • A means of communication between the seller and buyer
         • Second best!
       • Place
         • A means of getting the product into the consumer's hands.
   • ELEMENTS OF THE MARKETING MIX
   • Controllable factors

7. ENVIRONMENTAL FORCES

   • Uncontrollable factors
     • Definition
       • Beyond the control of the marketing department and its organizations (CREST)
         • Social
           • The demographic characteristics of the population and its values.
             • Demographics is the study of the characteristics.
               • Baby boomers: 1946-1964.
               • Generation X: 1965-1976
               • Generation Y: 1977-1994
               • Generation X: 1995 and On
             • The population is over 80% urban.
               • 10 mayor urban areas: 50% population.
             • 65% dual income families
             • We are becoming more: Health conscious, value conscious, eco-conscious and seeking new experiences.
         • Economic
           • Pertains to the income, expenditures and resources that affect the cost of running a business and household.
             • Business Cycle Stages
               • 1. Recession: The economy slows down (production decreases, unemployment rises
               • 2. Depression: hits bottom (sales and production are at a low point
               • 3. Recovery: economy regains momentum (business picks up, production starts to increase)
             • 4. Prosperity: boom time (sales and production peak, unemployment is at low levels.
             • Macroeconomic
               • The inflation or recessionary state of the economy.
                 • Concepts
                   • Inflation: if prices rise faster than consumer incomes do, the number of items consumers can buy decrease.
                   • Consumer Income: The consumer's ability to buy related to its income, which consists of gross, disposable and discretionary components.
                     • Gross Income: The total amount of money made in one year by a person, household or family unit.
                       • Disposable Income: the money a consumer has left after paying taxes to use for such necessities as food, etc.
                         • Discretionary Income: the money that remains after paying for taxes and necessities.
                   • Unemployment: people without jobs who want to work.
         • Technological
           • Inventions or innovations from applied science of engineering research.
             • 1. New and improved products.
               • Tesla's electric car---driverless vehicles
             • 2. Improves business efficiencies
               • Intranets---internally
               • Extranets---externally
             • 3. Empowers customers
               • Apple pay.
         • Regulatory Forces
           • restrictions that provincial, federal and municipal laws place on business with respect to the conduct of its activities.
             • THE COMPETITION ACT
               • To maintain and encourage competition in Canada in order to promote the efficiency and adaptability of the Canadian Economy, in order to expand opportunities for Canadian participation in world markets.
                 • Criminal Offences
                   • Conspiracy
                     • Price fixing where two or more firms work together to keep prices higher.
                   • Predatory Pricing
                     • Large firms enter the market with extremely low prices to knock out the competition
                   • Misleading and Deceptive Marketing Practices
                     • Their advertising is false or misleading
                 • Self-Regulation
                   • Where an industry attempts to police itself.
                 • Consumerism
                   • A movement to increase the influence, power and rights of consumers.
         • Competitive
           • The alternative firms that could provide a product to satisfy a target market.
             • 4 Basis forms of competition
               • Pure Competition
                 • Every Company has the same product.
               • Monopolistic Competition
                 • Many sellers compete with their products on a substitutable basis.
               • Oligopoly
                 • When a few companies control the majority of industry sales.
               • Monopoly
                 • When only one firm sells the product. Ex. Lethbridge Transit.
           • 3 types of competition
             • Direct
               • Fast Food Restaurants compete each other. Ex. Mc donalds vs. Taco Bell
             • Indirect
               • Fast Food Restaurants compete with any other food establishment or grocery store. Ex. Mcdonalds vs. Quality Food.
             • Any business that competes for the consume'rs money.
               • Fast Food Restaurants compete with any other business that sells food. Ex. Mcdonalds vs. Galaxy Cinema.
     • High-technology or new-to-world products no have market at the time of invention. ex. Ford-horses.
   • Environmental Scanning: The process of continually acquiring info on events occurring outside the organization to identify, and interpret potential trends.

8. Evolution of North America Business

   • Production Era
     • Goods were scarce, and so buyers were willing to accept virtually any goods.
     • 1929's
     • Companies concentrated on producing/manufacturing goods and did not concern themselves in their customers
   • Sales Era
     • Many firms discover that they could produce more goods than their regular buyers could consume.
       • Hire more salespeople to find new buyers.
     • 1920's - early 1950's
   • Marketing Concept Era
     • Late 1950's
     • The idea that a firm should strive to satisfy the needs of consumers, while also trying to achieve the organization's goals.
   • Marketing Orientation Era
     • Focus their effort on
       • 1. Continuously collecting info about customer's needs and competitors' capabilities.
       • 2. Sharing this info throughout the organization, and
       • 3. Using the info to create value, ensure customer's satisfaction, and develop customer relationships.
         • Customer value is defined as the unique combination of benefits received by the customer that include
           • Quality
           • Price
           • Convenience on-time delivery
           • and before-sale and after-sale service
         • Customer satisfation is the match between customer expectations of the product and the product's actual performance.
     • 1990's
     • Organization with a market orientation engage in Customer Relationship Management CRM
       • CRM: The process of building and developing long-term relationships with customers by delivering customer value and satisfaction. ex: car salesperson, Hair stylist, Personal Trainer.
         • eCRM: Interactive Marketing. Ex: Improved relationships by being efficient like one-click ordering, and suggestive e-selling
       • Customer Lifetime Value (CLV): The profit generated by the customer's purchase of an organization's product or service over the customer's lifetime.
     • It is the experience that counts, not the product or service per se.
     • Ex. Disneyland trains its maintenance personnal on how to handle interactions with their customers: Attitude.
   • Social Media Marketing Era
     • 1. It is about consumer-generated online-marketing efforts to promote brands and companies for which they are fans.
     • 2. It is the use by marketers of online tools and platforms to promote their brands or organizations.
     • 2004's
     • Ex. GroupOn. E-Harmony.
   • Customer Experience Management Era
     • CRM must include a customer experience management (CEM) strategy.
       • CEM is managing the customer's interactions with the organization at all levels and at all touchpoints.
     • Customer-Centric Marketing Organization (CCMO): The customer is the focus and the company's brands, products and services, finances leaders, and marketers are in tune and in time with the customers' needs, expectations, aspirations, and budgets.
     • 2000's
     • All touchpoints with customers should be positive, and loyalty building. Ex. Mr. Lube, Chapters.

9. Ethics and Social Responsibility

   • The Social Marketing Concept: The view that a firm should discover satisfy the needs of its consumers in a way that also provides for society's well being. Ex. Westjet Xmas miracles.
   • Ethics are the moral principles and values that govern the actions and decisions of an individual or group.
   • Social Responsibility means that individuals and organizations are part of a larger society and are accountable to that society for their actions.
   • Macromarketing
     • Looks at how the aggregate flow of a nation's goods and services benefits society.
   • Micromarketing
     • Is how an individual organization directs its marketing activities (4Ps) and allocates its resources to benefit its customers.