Marketing Fundamentals Chapter 1

Chapter 1 Learning Objectives

1. Explain the role of marketing in an organization and the

importance of meeting customer needs

2. Define and analyze elements of the marketing mix

3. Outline the steps in the marketing process

4. Differentiate between goods, services, and ideas

5. Describe the evolution of different business

philosophies
What is marketing?` https://www.youtube.com/watch?
v=qQQMygivn0g
Discussion

1.What needs and wants did

the customers have?
2.What was Intermarché’s
value proposition? (i.e.,
how did Intermarché create
value?)
3.What trends or forces
shaped this market offering?
4.What was the market for this
campaign?
5.Which elements of the
marketing mix added
value?
 The Role of Marketing

“We take our job seriously, not ourselves. Our

brand expression of personality has changed over
the past 23 years to meet the changing needs of
our customers.”
– Richard Bartrem, former Vice President, Marketing Communications, WestJet

• Link between business success and carefully

designed product, pricing, distribution, and
promotional strategies that meet current
consumer needs, trends, and expectations
 The Role of Marketing

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The Role of Marketing
• Needs: Occurs when a person feels
deprived of basic necessities

• Wants: A need that is shaped by a

person’s knowledge, culture, and
personality
Focusing on Customer Needs and Wants
• Customers do not always know what they
need or want
• Digital world adds to that complexity:
– Initial point of contact with a brand is often
online
– Consumers have unlimited opportunities to
become informed or distracted
– Product review, manufacturers’, and retailer
websites
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 Focusing on Customer Needs and Wants

• Customer
interaction with a
website can be
seamless providing
reviews, price
comparisons, and
comprehensive
product details

© 2005-2023 Costco Wholesale Canada Ltd. All Rights

Reserved.

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Customer Value
Proposition

• Customer Value
Proposition – unique
combination of benefits
received by targeted buyers
that will satisfy their needs;
this includes quality, price,
convenience, delivery, and
both before-sale and after-
sale service

• Often achieved through a

combination of:
1) Product design
2) Pricing strategies
3) Service elements
Target Market

The specific group (or

segment) of existing and
potential consumers to
which marketers direct
their marketing efforts.
 Coordinating the Marketing Mix
• Marketing Mix (4Ps) – product, price, place,
and promotion
• Controllable factors that need to be carefully
managed to ensure that they are well-
coordinated and appeal to the distinct
characteristics of the target market
“Marketers need to
understand what makes
their consumers tick.”
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12
Coordinating the Marketing Mix
• It is important to note that, over time, marketers
gather extensive information on their target
markets, being able to identify purchase motivation
that goes beyond age and gender into behavioural
and psychological motivation, which are important
determinants in many purchases

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The Marketing Process

1 2 3

Identify Manage the Reach potential

consumer needs marketing mix to consumers or
meet these the market to
needs realize profits
(or objectives)
The Marketing Process
Figure 1–2 The marketing process

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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.

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Exchange

• The value that is

traded between
buyers and sellers
so that each benefits

• Value is, in essence,

what you get for
what you give up.
Capturing Value

• Equity
• Profit
What Can Be
Marketed?
Good

A product that is tangible—you

can touch it and own it
Service

An intangible product you cannot

touch
Idea

A concept that typically looks for

support
Markets

• Market – is used to describe

potential groups of
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 balance

the various groups to target
with their programs
The Evolution of Business Philosophies

Figure 1–3 The evolution of business philosophies

Three elements of relationship marketing:

1) Social Media
2) Customer Relationship Management (CRM)
3) Corporate Social Responsibility (CSR)
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The Evolution of Business Philosophies

• Customer Relationship Management

– Share-of-wallet
– Customer lifetime value
• Corporate social responsibility

Benevity Inc.

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The Evolution of Business Philosophies

• Corporate social responsibility initiatives:

1) sponsorship and/or spearheading of
community programs
2) sponsorship and/or involvement in
fundraising initiatives for charitable
organizations
3) business philosophy that implements
socially responsible business practices

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New and Evolving Marketing Practices
• Marketing today focuses on:
– meeting short-term consumer needs and
generating immediate company profits, as
well as
– long-term viability and sustainability of a
business through the transparent
connections it makes with its business
partners, and
– by creating meaningful customer
relationships and community initiatives
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New and Evolving Marketing Practices
• Evolving areas including:
1) digital marketing, including content marketing,
mobile marketing, and social media marketing;
2) augmented reality;
3) experiential marketing;
4) influencer marketing;
5) partnership marketing;
6) metrics and analytics; and
7) new marketing regulations and ethical
considerations
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New and Evolving Marketing Practices

• Digital marketing campaign may include:

– Content Marketing
• Integral part of any campaign
– Mobile Marketing
• Display and search
– Social Media Marketing
• Consumers can interact with marketing
messages

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New and Evolving Marketing Practices
• Augmented Reality - combining things in the
real world with computer-generated
information
• Experiential Marketing - create opportunities
for consumers to directly interact face-to-face
with a brand
• Influencer Marketing – no longer limited to
major celebrities
– Micro-influencers

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New and Evolving Marketing Practices

• Partnership Marketing
– Affinity marketing
– Create formal
associations between
brands
– Brand partnerships
– Strategic alliance

Used with permission of Bank of Nova Scotia

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New and Evolving Marketing Practices

• Metrics and Analytics

– Improve programs and deliver better results
online and offline
– Metrics – numerical data collected and
grouped to track performance
• Dashboards
– Analytics – process

©triloks/iStock/Getty Images
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New and Evolving Marketing Practices
• Marketing Regulations and Ethical Considerations
– Regulations safeguard people, communities,
and the environment from businesses
– Consumer privacy is a growing concern
– Evolution of digital technology has forced
marketing associations and government bodies
to revise and update legislation and implement
new guidelines
– Greenwashing

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New and Evolving Marketing Practices
• Marketing Regulations and
Ethical Considerations (cont’d)
– Many companies,
industries, and
professional associations
have guidelines and codes
of ethics
– Canada’s anti-spam
legislation Used with permission of Canadian Marketing
Association

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Marketing/Professional Services Careers
• Starting point is to get an education and create
a network of business professionals
– Develop a portfolio of your work
• Develop a personal marketing strategy
– Conduct a SWOT and develop your 4Ps

Used with permission of Canadian Marketing

Association

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Questions?
How to connect

• [email protected]