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Chapter 1 - What is Marketing: The World of
Marketing - BMI3C
WHAT IS MARKETING?
CHAPTER 1: THE WORLD OF
MARKETING
MARKETING DEFINITION
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
Marketing is the total of all
activities involved in the process of
planning, pricing, promoting,
placing/distributing and selling
goods, services and events to
satisfy both consumer needs
and wants and
business/organizational wants
and needs for profit.
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IMPORTANCE OF MARKETING

No business/organization can survive
without marketing
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
Manufacturers market their products to
potential customers
 Services market their expertise to potential
customers
 Not-for-Profit organizations market their
cause to potential donors and their benefits
to potential clients
 Politicians market their ideas to voters

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CORE MARKETING CONCEPTS
Needs, Wants
& Demands
Core
Marketing
Concepts
Exchange,
Transactions &
Relationships
Products &
Services
Value,
Satisfaction &
Quality
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
Markets
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EVOLUTION OF THE
MARKETING CONCEPT –
3 STEPS TO THE PROCESS
Marketing Concept: the idea that a
business or an organization must consider
both its potential customers and its
competitors in every important business
decision
1. Identify an opportunity in a specific
industrial or consumer market
2. Ensure opportunity has not already been
met in the competitive market place
3. Use appropriate marketing strategies to
organize plan and to sell the product/service
successfully

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CREATING: PRODUCT OR SERVICE OR
EVENT – TO DO LIST








market research
samples
observations
polls,
databases
statistics
customer inquiries, and
customer service data
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
To design a product or service or event
 Understanding customers needs, wants and
demands through:
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NEEDS, WANTS AND DEMANDS

Need - are part of the human makeup.


Want - are formed by culture and individual
personality


e.g., you may need food, but you want a hamburger
and fries. But a person who lives in China may need
food, but wants mango, rice and noodles.
Demand - are human wants that are backed by
buying power.

pick products that provide value and satisfaction for
their money.
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C

Physical needs such as food, water, shelter; social
needs for belonging and affection and individual
needs for knowledge and self-expression
Think – Maslow’s Hierarchy of Needs
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CREATING VALUE, SATISFACTION, AND VALUE
DEFINING PRODUCTS

Intangible Products - can include items such as
experiences, entertainment/concerts, travel/places,
services/organizations, information, and ideas. As
consumers we might have our haircut, we pay for
that service, but we don’t actually go around
carrying it in a bag.

You actually leave the store with less than when
you came in!!!
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C

Tangible Product- something you can hold, feel,
taste and play. Examples – desk, chair, iPhone,
car, video games, clothes, running shoes etc.
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EXCHANGE, TRANSACTION AND
RELATIONSHIP

Relationship - Organizations must also create a
relationship with that customer to create a
transaction or exchange that will develop a
market for that particular product or service.
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C

Exchange - is the trading of something of value
between a buyer and seller so that each is better
off after the trade. Marketers must offer value,
satisfaction and quality in their product or
service to create an exchange.
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PURPOSE OF MARKETING
GOODS AND SERVICES AND EVENT
PLACEMENT/DISTRIBUTION

Two categories of goods and services:
INDUSTRIAL GOODS AND SERVICES
CONSUMER GOODS AND SERVICES
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C

Object/Purpose of marketing is to
place/distribute goods and services
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INDUSTRIAL GOODS
business goods
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
Also called
:
Raw materials: oil, forestry products, mining ore,
fish, agriculture products, farm products – raw
materials are marketed to businesses who process
the raw materials
Processed goods: example - apples to apple juice,
trees to hardwood flooring, milk to butter/cheese,
tomatoes to tomato juice, wheat to flour, sugar cane to
sugar, potatoes to frozen French fries, iron ore to steel
Finished goods: intended for industrial market and
are products that are no longer require processing –
example – fan belts, spark plugs, circuit boards for
automobile manufacturing

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CONSUMER GOODS
 Non
 Retail
stores sell consumer goods
 In some cases, consumer goods can be
marketed to industry; example: Ottawa
company, Original Maple Bat Company SAM BATS – are sold to professional
baseball teams (industrial market) and to
individual consumers (consumer market)
(different marketing distribution plans)
Chapter 1 - What is Marketing: The World
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industrial products intended for
personal use by the general public
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INDUSTRIAL SERVICES AND CONSUMER
SERVICES



Example:
advertising services focus on marketing their
services to industrial/business sector
hotel and restaurant services focus on marketing
their services to both the industrial/business
sector and to the personal consumer/general
public
Chapter 1 - Windisuhat is Marketing: The
World of Marketing - BMI3C

Services are activities performed for others
and can be marketed to both
industry/businesses and to general public
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THE RULE OF SUPPLY AND DEMAND
THE ECONOMIC PRINCIPLE

When supply of a product that consumers want
or need is high, marketing is a major factor in
an organization’s success = high product
supply means low consumer demand
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C

When the supply of a product that consumers
want or need is low, marketing is not as
important a business activity = low product
supply means high consumer demand
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MARKETING AND THE ORGANIZATION
REACHING THE “RIGHT” MARKET

Regional Market: within a community, within a
city, within a region, within a province, within a
group of province
 International Market: with a foreign country –
what marketing strategy appeals in one country
may not appeal the same way in another country

Chapter 1 - What is Marketing: The World
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Depending on the product or the service,
companies can organize their marketing
plans differently
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BRAND MANAGEMENT IN
MARKETING


Brand Awareness: the potential consumer
realization that a specific brand is on the market
Brand Management: a form of organization in
a company that sell a variety of products;
Example: Kellogg’s – Corn Flakes, Rice
Krispies, Frosted Flakes, Vector
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C

Brand: name, slogan, term, symbol, design, or a
combination of several of these that are used to
identify the product or service
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DISTRIBUTION MANAGEMENT
the
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
way in which a
company organizes the
distribution of its
products: sampling,
promotions, discounts,
displays, vending
machines
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MARKETING ACTIVITIES

16-17
Very important to the success of business and
not-for profit organizations
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
Examples of activities:
Research
Product Development
Packaging
Pricing
Branding
Sales
Physical Distribution
Inventory Management
Storage
Promotion

PAGES
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NOT-FOR-PROFIT (NONPROFIT)
ORGANIZATIONS
ACTIVITY - TEXT PAGE 18

Read text page together
From the list of marketing activities listed on
pages 16-17, what would be three marketing
activities that would benefit a not-for-profit
organization? Explain.
2.
How would a the marketing concept of a
nonprofit organization be different from that of
a for-profit organization
Chapter 1 - What is Marketing: The World
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1.
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CONSUMER AND COMPETITIVE
MARKETS
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Consumer: consumer market refers to all
consumers who are or may become
interested in a particular product or service
and have the means to purchase it.
Marketing efforts are directed at this specific
target group
Aggregate target market: everyone
Differentiated target market: specific
categories differentiated by income, geographic
location, personal values, gender, education, age
Chapter 1 - What is Marketing: The World
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
Markets are composed of two parts:
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CONSUMER AND COMPETITIVE
MARKETS (CONTINUED)

Products/services in a competitive market
compete with each other for the consumer
$$$
Chapter 1 - What is Marketing: The World
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
Competitive: competitive markets
comprises all products and services that
compete with one another for consumer’s
money within a specific category of product
or service – DVDs, cell phones, entertainment,
travel, soft drinks, pizza, cars/trucks, video
games, toys
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THE MARKETING MIX –
THE 4PS OF MARKETING MODEL
Involves:
PROMOTING
PRICING
PLACING
(Distributing)
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PRODUCT
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PRODUCT MIX

Page 21 – Discuss –
Expanding PRODUCT MIX

McDonalds adding Mc to products line brand
McNuggets, McCoffee, Egg McMuffin
What about McPizza? CASE STUDY
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Involves product research, product
development, product packaging and
product branding.
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CASE STUDY: INTRODUCING
MCPIZZA INTO THE MARKET PLACE
the 4 Ps model how
would McDonalds introduce
the McPizza into the market
place?
Chapter 1 - What is Marketing: The World
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Using
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MCPIZZA CASE STUDY ASSIGNMENT
Chapter 1 - What is Marketing: The World
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You are members of the Marketing Department
of McDonalds responsible for introducing
McPizza, the companies new product into the
market place in all of McDonalds Restaurant
 Prepare a PowerPoint of Prezi presentation to
the Board of Directors containing your 4P plan
PRODUCT, PROMOTION, PRICING,
PLACING
 Text reference: Pages 21-23 - The Marketing
Mix

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MCPIZZA: PRODUCT MIX
Packaging : standard pizza box – protected
pizza, established pizza look for consumer, fit the
product
 Research: McDonalds research showed
 pizza was the companies biggest competitor,
 provided for the technology to make pizza
quickly
 matched McDonalds image of fast food,
 development of new pizza ovens and for pizza
recipe
 Consumer taste testing showed positive reaction
 Needed change in consumer perception of
restaurant

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MCPIZZA: PROMOTION MIX
 Advertising, sales promotion,
publicity
magazines, social media,
radio, television, news reports,
newspaper articles, free samples,
launch parties, store banners consider $$$$$ vs free promotion
Chapter 1 - What is Marketing: The World
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 Business
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MCPIZZA – PRICING MIX
Competitive
Chapter 1 - What is Marketing: The World
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pricing – same as
hamburger and fries and that of
other competitors: Domino’s.
Pizza Hut
 Sustainable product sales for
profit
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MCPIZZA – PLACE MIX (DISTRIBUTION)
 Includes
 Channel
“Drive-thru” – would it work
for consumer?
Chapter 1 - What is Marketing: The World
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physical distribution, storage,
inventory management, employee
training, and channel selection (path
of distribution to consumer purchase)
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MARKETING STRATEGIESDEVELOPING A MARKETING PLAN
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
GOALS
TARGET MARKETS
RESEARCH
PRICE STRATEGY
DISTRIBUTION
PROMOTION
Chapter 1 - What is Marketing: The World
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
Structured Action Plan to achieve goal – “how”
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BRAND STRATEGIES – VALUE EQUATION
Once goals established, brand strategies are
developed to communicate the value of product
or service
 Value is the difference between the perceived
cost of the product/service and the perceived
satisfaction/benefits
 VALUE EQUATION adds together all the
benefits of a product both real and
imagined
Cost + satisfaction/benefits = value
$+ = 

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CASE STUDY –
BRAND STRATEGY/VALUE EQUATION

March Break Trip to Barbados
• Other
Costs:
Personal
Benefits
VALUE
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Costs
• $
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PLACING/DISTRIBUTION
STRATEGIES

Application of PUSH/PULL strategies
1. push the product/service to the consumer
 2. pull (attract) the consumer to the
product/service
 3. combine push/pull strategies

Chapter 1 - What is Marketing: The World
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
Focus on the best way to deliver a product or a
service to the target market
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PUSH MARKETING STRATEGY
 Sells
product to retailers, importers, or
wholesalers and NOT to end consumers
strategy focuses on the reason that if
the product is available, then the
consumer will see it and buy it
 Focuses
on the promotional activities of
the retailer/distributor: advertising, $$
discounts, prizes, displays
 Example of Push strategy:
candles/candle manufacturers Why?
Chapter 1 - What is Marketing: The World
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 The
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PULL MARKETING STRATEGY
Used to convince consumers to buy their
product by convincing them that they need the
product and that nothing else will do.
 Requires major advertising and promotional
strategies

Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
Examples:
Apple IPhone, IPad, I Watch
Levis, Ford truck, Caribbean cruise
Disneyworld vacation, Harley Davidson
motorcycle, Under Armor/ OBEY hoodie,
NIKE
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COMBO PUSH/PULL MARKETING
STRATEGIES
Pull
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
strategies are difficult to
use alone - they require
distributors/retailers to
create a demand for the
product/service and a
partnership with the
consumer
Effective marketing requires
both push and pull strategies
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CASE STUDY – THE PROS AND CONS
OF E-COMMERCE
Text page 31 Questions 1 and 2
1. Consumer web site: Amazon.com
What information is on the web site that
would benefit the consumer?
What information is on the web site that
would benefit the company?
2. Survey the class – why are consumers
reluctant to shop online?

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CHAPTER 1 REVIEW PAGES 32-33
Knowledge and Understanding
Questions 1, 2, 3, 4
Application
Review the Employability Skills 2000+chart on page 387 in text
1.
What identify what 3 competencies in each of the three skills dimensions –
fundamental, personal and teamwork that you believe would be required in a
career in Business Marketing.
2.
What skills do you think you need to build upon to be successful in a career in
Business Marketing?
Chapter 1 - What is Marketing: The World
of Marketing - BMI3C
Thinking and Inquiry
Question 7, 8 – Individual work
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