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Marketing 11
Chapter 1: Contemporary Marketing
What is Marketing?
p. 1-10
2007 Pearson Education Canada
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Marketing Definition
“A process that identifies a need and then
offers a means (a good or service) of
satisfying it.”
All marketing is focused on a kind of transaction
or exchange between the organization and the customer.
2007 Pearson Education Canada
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In Other Words…
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What do people need (want)?
How can I come up with a unique
way of filling that need?
– Unique! If you are going to introduce a
new product, you had better make sure
it’s not already been done by somebody
else!
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Tim Horton’s:
Ranked Canada’s Best-Managed Brand
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The reasons are all marketing related:
– Strong customer service
– Popular products
– Prolific community involvement
– A large number of locations
– Implementation of an efficient business
system to deliver products
– Consistent delivery of brand promise
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Dell Computer Inc.
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Prior to Dell, all computer companies
marketed computers the same way
Dell markets custom-designed computers
(made to customer specifications) directly to
the customer
Expensive distributions costs are eliminated
Provides savings and convenience to
customers
Dell introduced a new form of exchange
and new benefits
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Task of Marketing
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Collect, analyze, and apply information about
customers.
Develop marketing programs that respond to the
changing needs & preferences of customers,
including:
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products,
prices,
placement (or distribution), and
promotion.
“The goal of the company is to stay one step ahead of
the competition by offering goods & services that
provide customers with value, all the time.”
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Market-Driven Success
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A company requires knowledge of its
competitors’ products and how
customers view them.
This is how McDonald’s remains
number one in fast-food retailing, Nike
number one in athletic shoes, and
Wal-Mart number one in department
store.
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The 4 P’s of Marketing
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Product
Price
Placement
Promotion
This will be on every marketing test you
will ever take! So remember it!
2007 Pearson Education Canada
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Marketing Past and
Present
Over time the orientation of business has changed:
Production
Sales
Marketing
Social Responsibility
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Production Orientation
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Sell what you can produce
Limited or no choice for customer
Profit from production efficiency
“They can have any colour of car as long as
it’s black”
- Henry Ford
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Selling Orientation
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Products matched to customer needs
(e.g. quality, variety, etc.)
Choices more readily available
Profits based on expanded sales
More variety meant that companies
had to “sell” their goods
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Marketing Orientation
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All activity revolves around customers
and their satisfaction
Extremely competitive because of wide
choice of goods and services
Make what you can sell, instead of
selling what you can make
“Have it your way”
- Burger King
2007 Pearson Education Canada
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The Marketing Concept
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The Marketing Orientation embodies
the Marketing Concept:
“The essential task of the organization is
to determine the needs and wants of a
target market and then to deliver a set of
satisfactions in such a way that the
organization’s product is perceived to be
a better value than a competing product”
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Marketing Concept
Applied
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Harley-Davidson
– Image & reputation are legendary
– Refocused on a more specific target
market to fend off Japanese competitors
(Honda, Suzuki, Yamaha)
– Targets CEOs, lawyers, doctors, etc.
– Got to know it’s core customers and
changed it’s marketing & product to suit
their needs
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Socially Responsible
Marketing Orientation
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Fulfill society’s expectations (e.g. for a safe
environment)
Be a good corporate citizen
Higher short-term costs accepted in return for longterm profit
Both efficient production and marketing to an
informed consumer in a rapidly changing
environment contribute to profit.
Relationship between marketer and customer
crucial to profit (implement customer relationship
management programs).
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SRM in Action
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Toyota : developed the first mass-produced
and mass-marketed hybrid vehicle
– Toyota Prius is the first hybrid vehicle that
provides the comfort, features, and performance
of a mid-sized sedan
– Competes effectively with conventional 4cylinder mid-sized sedans (the marketing
concept)
– Prius sedan is in a class by itself when it comes
to fuel efficiency & emissions performance
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Socially Responsible
Marketing
SRM can be divided into two main areas:
1. Programs that conserve, preserve, and protect
the environment
2. Programs that support causes (a.k.a. cause
marketing)
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Cause Marketing
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Allows companies to meet both social
responsibility and business goals
Aligning business activities with
consumer cause concerns has sales
potential
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Cause Marketing in Action
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KitchenAid Canada has formed a
partnership with the Canadian Breast
Cancer Society
Encourages consumers to host cooking
parties at home to raise funds
Instead of bringing a hostess gift,
people donate money
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Cause Marketing in Action
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Toyota has joined with Earth Day
Canada
Provides entry scholarships to students
who have demonstrated outstanding
achievement in academics and
environmental community service
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Assignment:
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Read p. 1-10
Complete WSH 1.1
Study for the Quiz tomorrow
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