intro tomarketing

From Basic Marketing, Shapiro, 9th Cdn Ed. ppt slides created by Prof. Tim Richardson

An intro to Marketing Slide 1

Marketing is for Everybody

THE PURPOSE OF THE COURSE & THE PURPOSE OF THE TEXT

• TO SHOW THAT MARKETING IS ESSENTIAL

• PROVIDE AN UNDERSTANDING OF THE BASIC MARKETING CONCEPTS



• Canada has a very high amount of imports and exports per capita - therefore a lot of our business/marketing has to involve international aspects

• Therefore a “Global-Marketing Approach” is indeed a very appropriate sub-title for the text



The Good Life

• We have a very high standard of living in Canada, according to the United Nations, we have the #1 most desirable place to live

• “Canada’s ability to retain its high standard of living depends on our skills at competing efficiently on a global and local scale”



So, if we want to keep things good

We have to have a good understanding of marketing,

here locally, and globally



What is Marketing ?

Selling ?

Advertising ?

Page 4



What is Marketing ?We use the word Marketing to describe

such things as

• analyzing the needs of the people

• trying to guess what types of products they want

• estimate how much they will buy

• predict when they will want to buy

• determine where they go to buy the stuffPage 5



What is Marketing ?

…. And,

• figure out the best price to sell it at - and can you still make a profit selling it at that price

• decide on promotional things to create awareness about the product

• look at the competition to see what they are doing with pricing, features etc.



Introduction

• “Marketing is concerned with anticipating customer demand and directing the flow of goods from producers to consumers”

• Marketing has to do with matching producer’s outputs to consumer’s activities (wants, needs)



Serving the needs of customers is what business should be all about …

Marketing is the business function that interprets customer needs to the rest of the organization.

Marketing should begin with the customer needs - NOT with the production process. Mktg should anticipate needs.



Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives.

Marketing - the formal definition

This F

ormal

Def

initi

on is u

sed b

y oth

er te

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Process of …………….

Planning and executing = carrying out actions

the conception, = (creation of the idea)

pricing, promotion, and

distribution of “STUFF” stuff = ideas, goods, and services

to create exchanges = customer gets the product, mfg. gets the $$

that satisfy people

people = individuals and organizational objectives.

Marketing - the formal definition

This Formal Definition is used by other texts



Why should we know about Mktg

• Cause,,,,,,,,,,,,,,,,,, it effects a lot of what you do

• In some cases, the COST of marketing a product makes it very expensive, soooooo, if you know where to buy it without the marketing costs included (ie. Wholesale) you can save a lot of money

Page 8




• Also, Cause,,,,,,,,,,,,,,,,,, marketing people in a company bring in the moneybring in the money - so their jobs are important, so they get paid a lot.

• If you get involved in the marketing side, you are being involved in the INCOME side of the company and your job is very critical (ie. - hard to ever fire you or lay you off)



The Importance of Marketing

• Why study Marketing - ‘cause you can get a JOB in Marketing !!

• Canada is a very multi-cultural country• We can buy products from all over the world• Selling new products to Canadians requires

new marketing approaches - THEREFORE there will be many new job opportunities



The Importance of Marketing

• Marketing is a core business discipline

• The study of marketing is important to the basics of running a business, big or small

• When you buy a product - the cost of marketing amounts to 40 ~ 60% of the totaleg. If we buy shoes for $70, $35 of that 70 has been spent on marketing (including advertising, market research, development etc.)



The Importance of MarketingGetting a JOB in Marketing !!• Personal selling• Advertising• Package Design• Transportation• Storage• Marketing Research• Product Development• Wholesaling• Retailing



The Importance of MarketingImportance to Companies

• When you work in the marketing department of a company you are part of LINE personnel

• LINE personnel are always more critical than STAFF personnel because LINE personnel “bring in the money” - therefore your job is revenue earning, not revenue spending




• You can get to be C.E.O. and Chairman of the Board

• “Marketing is often the route to the top”

• Almost always the C.E.O. comes from the V.P. Marketing, not V.P. Human Resources or V.P. Government Relations



The Importance of MarketingGetting a JOB in Marketing !!In addition, many people working with NPO’s also

do marketing• Promoting political parties• Cultural groups• Religious organizations• Civic organizations eg. Kiwanas, Shriners• Charitable organizations eg. Red Cross, Salvation

Army



Marketing

• Marketing is something companies do, and it is also a characteristic of our society

• “It is both a set of activities performed by organizations, and a social process”



Page 9



Page9

Micro - marketing for a company

Macro - the whole economy



Micro - marketing for a company, things you do to accomplish the organizations objectives (companies and NPO’s)

Macro - the whole economy and its flow of goods and services from producers to consumers

Page 10



Micro - Its not just selling stuff, but also looking at what the customers want

Macro - Looking at how everybody in the country can have access to things they need. Government has to make sure everybody has fair access. Page 10



Micro-Macro Dilemma

• Government has to step in cause not everything would be produced fairly by companies - so regulation needed

• eg. It would be cheaper to make cars without airbags and seatbelts - but gov’t insists they must - so it has to be don



Micro-Macro Dilemma

• Government has to step in cause not everything would be produced fairly by companies - so regulation needed

• eg #2. It would be cheaper to make beer cans from raw material cause the price of mineral ore is low - but the gov’t insists a certain % must be recycled to reduce waste and pollution



The 8 Marketing Functions

• Buying•Selling•Transporting•Storing•Grading•Financing•Risk Taking•Market Information

Page 26



The 8 Marketing Functions

These 8 functions are the same in several textbooks, and important for

you to learn


An intro to Marketing Slide 31The Marketing Functions

Buying BuyingSelling SellingTransporting TransportationStoring StorageGrading StandardizationFinancing Finance (Credit)Risk Taking Risk BearingInformation Collection Research

Beckman, Kurtz & Boone

Foundations of Marketing 6th Edition as used in MKTG 116

Nickels, McHugh & Berman

Understanding Canadian

Business 2nd Edition as used in GNED 119



WHO does the marketing functions ?

From a Macro-point of view

• Centrally planned economy (communism)- its done mostly by the government

• Market-direct economy (capitalism)- its done by various companies, middlemen, brokers etc. Page 27



Innovation is encouraged by a market-directed economy (capitalism) because people who come up with new ideas are free to try and market them and make a fortune. In a communist country, government has strict controls on the “means of production” so there is a limit to what people can manufacture.

In a capitalist economy, people are always trying think of new ways to satisfy un-met needs, and, this encourage new thinking

Page 29



Advocacy Advertising

• You are not trying to sell a product, you are trying to get people to believe in something, or behave in a certain wayeg.- Don’t drink and drive- Canadian Cancer Society- recycle- use the TTC, save gas



One of the big complaints about marketing is that ppl act unethical in order to make a sale.

Sometimes it is easy to forget that morals are based on your own cultural standards and in different cultures, people have different opinions about what is ethical.

Eg. Bribery is perfectly acceptable in some parts of Asia and Latin America, but unacceptable in USA and Canada page 22



Marketing Concept - Social Responsibility

- “improve positive effects on Society and reduce negative effects…”

- environmental problems

- social responsibility conflicts with profit objective(raises ?, is mktg concept desirable)


An intro to Marketing Slide 37Marketing Concept - Social Responsibility

-? Of social responsibility cutting into profits

- some companies have been very successful at dealing with this eg. BODY SHOP

- they realize it is a way to endear themselves to trendy customers



-? What if it cuts into profits

Answer - increasing quality may cost more in production, but you may make this money back in increased sales which come about as the customers realize you have a very good quality product - this will reduce the advertising costs and customer service/warranty costs and ensure customer satisfaction re: brand loyalty



Written Codes of Ethics

page 25 AMA