Marketing Is For Everybody


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Marketing Is For Everybody

  2. 2. All Business is International Business
  3. 3. <ul><li>Canada has a very high amount of imports and exports per capita - therefore a lot of our business/marketing has to involve international aspects </li></ul><ul><li>Therefore a “Global-Marketing Approach” is indeed a very appropriate sub-title for the text </li></ul>
  4. 4. The Good Life <ul><li>We have a very high standard of living in Canada, according to the United Nations, we have the #1 most desirable place to live </li></ul><ul><li>“ Canada’s ability to retain its high standard of living depends on our skills at competing efficiently on a global and local scale” </li></ul>
  5. 5. So, if we want to keep things good We have to have a good understanding of marketing, here locally, and globally
  6. 6. What is Marketing ? <ul><li>Selling ? </li></ul><ul><li>Advertising ? </li></ul>Page 4
  7. 7. What is Marketing ? <ul><li>We use the word Marketing to describe such things as </li></ul><ul><li>analyzing the needs of the people </li></ul><ul><li>trying to guess what types of products they want </li></ul><ul><li>estimate how much they will buy </li></ul><ul><li>predict when they will want to buy </li></ul><ul><li>determine where they go to buy the stuff </li></ul>Page 5
  8. 8. What is Marketing ? <ul><li>… . And, </li></ul><ul><li>figure out the best price to sell it at - and can you still make a profit selling it at that price </li></ul><ul><li>decide on promotional things to create awareness about the product </li></ul><ul><li>look at the competition to see what they are doing with pricing, features etc. </li></ul>Page 5
  9. 9. <ul><li>Introduction </li></ul><ul><li>“ Marketing is concerned with anticipating customer demand and directing the flow of goods from producers to consumers” </li></ul><ul><li>Marketing has to do with matching producer’s outputs to consumer’s activities (wants, needs) </li></ul>
  10. 10. <ul><li>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. </li></ul><ul><li>Marketing should begin with the customer needs - NOT with the production process. Mktg should anticipate needs. </li></ul>
  11. 11. 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 Formal Definition is used by other texts Page 8
  12. 12. 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
  13. 13. Complaints about Mktg <ul><li>Now that we know why Marketing is important, and a bit about what it is, let us look at some of the complaints people have about marketing </li></ul>
  14. 14. Complaints about Mktg <ul><li>Advertising is annoying </li></ul><ul><li>They lie </li></ul><ul><li>Advertising is wasteful </li></ul><ul><li>Products aren’t really safe </li></ul><ul><li>Quality is not as good as they say </li></ul><ul><li>Marketing makes people too materialistic </li></ul><ul><li>Credit too easy to get - ppl buy stuff they don’t need </li></ul>
  15. 15. Complaints about Mktg <ul><li>Packaging is not strong </li></ul><ul><li>Labelling is deceptive </li></ul><ul><li>Middlemen add to the price </li></ul><ul><li>Middlemen are seen as not adding anything of value </li></ul><ul><li>Products pollute, or their packaging pollutes </li></ul><ul><li>Too much unnecessary stuff offered </li></ul><ul><li>Serves the wealth, exploits the poor </li></ul>
  16. 16. How Marketing Relates to the Production of stuff Marketing fills the “Gap” between producer and consumer Page 6
  17. 17. “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6
  18. 18. <ul><li>F </li></ul><ul><li>T </li></ul><ul><li>T </li></ul><ul><li>P </li></ul><ul><li>P </li></ul>“ Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6
  19. 19. <ul><li>Form </li></ul><ul><li>Task </li></ul><ul><li>Time </li></ul><ul><li>Place </li></ul><ul><li>Possession </li></ul>“ Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6
  20. 20. <ul><li>Form - is when somebody makes something </li></ul><ul><li>Task - is when someone does something for another person </li></ul><ul><li>Time - having it when you need it </li></ul><ul><li>Place - having it where you need it </li></ul><ul><li>Possession - having it, being able to use it, ride it, drink it, wear it </li></ul>“ Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6
  21. 21. Why should we know about Mktg <ul><li>Cause,,,,,,,,,,,,,,,,,, it effects a lot of what you do </li></ul><ul><li>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 </li></ul>Page 8
  22. 22. Why should we know about Mktg <ul><li>Also, Cause,,,,,,,,,,,,,,,,,, marketing people in a company bring in the money - so their jobs are important, so they get paid a lot. </li></ul><ul><li>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) </li></ul>
  23. 23. The Importance of Marketing <ul><li>Why study Marketing - ‘cause you can get a JOB in Marketing !! </li></ul><ul><li>Canada is a very multi-cultural country </li></ul><ul><li>We can buy products from all over the world </li></ul><ul><li>Selling new products to Canadians requires new marketing approaches - THEREFORE there will be many new job opportunities </li></ul>Page 8
  24. 24. The Importance of Marketing <ul><li>Marketing is a core business discipline </li></ul><ul><li>The study of marketing is important to the basics of running a business, big or small </li></ul><ul><li>When you buy a product - the cost of marketing amounts to 40 ~ 60% of the total eg. If we buy shoes for $70, $35 of that 70 has been spent on marketing (including advertising, market research, development etc.) </li></ul>
  25. 25. The Importance of Marketing <ul><li>Getting a JOB in Marketing !! </li></ul><ul><li>Personal selling </li></ul><ul><li>Advertising </li></ul><ul><li>Package Design </li></ul><ul><li>Transportation </li></ul><ul><li>Storage </li></ul><ul><li>Marketing Research </li></ul><ul><li>Product Development </li></ul><ul><li>Wholesaling </li></ul><ul><li>Retailing </li></ul>
  26. 26. The Importance of Marketing <ul><li>Importance to Companies </li></ul><ul><li>When you work in the marketing department of a company you are part of LINE personnel </li></ul><ul><li>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 </li></ul>
  27. 27. Why should we know about Mktg <ul><li>You can get to be C.E.O. and Chairman of the Board </li></ul><ul><li>“ Marketing is often the route to the top” </li></ul><ul><li>Almost always the C.E.O. comes from the V.P. Marketing, not V.P. Human Resources or V.P. Government Relations </li></ul>
  28. 28. The Importance of Marketing <ul><li>Getting a JOB in Marketing !! </li></ul><ul><li>In addition, many people working with NPO’s also do marketing </li></ul><ul><li>Promoting political parties </li></ul><ul><li>Cultural groups </li></ul><ul><li>Religious organizations </li></ul><ul><li>Civic organizations eg. Kiwanas, Shriners </li></ul><ul><li>Charitable organizations eg. Red Cross, Salvation Army </li></ul>
  29. 29. Marketing <ul><li>Marketing is something companies do, and it is also a characteristic of our society </li></ul><ul><li>“ It is both a set of activities performed by organizations, and a social process” </li></ul>
  30. 30. Micro Marketing Macro Marketing Page 9
  31. 31. Micro Marketing Macro Marketing Page9 Micro - marketing for a company Macro - the whole economy
  32. 32. Micro Marketing Macro Marketing 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
  33. 33. Micro Marketing Macro Marketing 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
  34. 34. Micro Marketing Macro Marketing Page 10 Micro Mktg is the main focus of this text
  35. 35. Micro-Macro Dilemma <ul><li>Government has to step in cause not everything would be produced fairly by companies - so regulation needed </li></ul><ul><li>eg. It would be cheaper to make cars without airbags and seatbelts - but gov’t insists they must - so it has to be done </li></ul><ul><li>(p. 591 Chpt 22) </li></ul>
  36. 36. Micro-Macro Dilemma <ul><li>Government has to step in cause not everything would be produced fairly by companies - so regulation needed </li></ul><ul><li>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 </li></ul>
  37. 37. Stages of Economic Development <ul><li>Self-supporting agriculture </li></ul><ul><li>Pre-industrial Commercial </li></ul><ul><li>Primary manufacturing </li></ul><ul><li>Consumer products manufacturing </li></ul><ul><li>Capital equipment manufacturing </li></ul><ul><li>Exporting manufactured products </li></ul>Page 11
  38. 38. Mass Production <ul><li>Economies of Scale - as a company makes more and more of some product, the production cost per unit decreases - therfore each unit has a lower cost and can then be sold at a lower price </li></ul><ul><li>therefore becoming more competitive </li></ul>
  39. 39. Mass Production <ul><li>Mass production, achieving economies of scale is good to lower the price BUT this does not always solve the problem of satisfying consumer’s needs </li></ul><ul><li>Just because you can make 10 million of some thing, doesn’t mean you can sell it - what you need is effective mktg </li></ul>
  40. 40. The 8 Marketing Functions <ul><li>Buying </li></ul><ul><li>Selling </li></ul><ul><li>Transporting </li></ul><ul><li>Storing </li></ul><ul><li>Grading </li></ul><ul><li>Financing </li></ul><ul><li>Risk Taking </li></ul><ul><li>Market Information </li></ul>Page 26
  41. 41. The 8 Marketing Functions These 8 functions are the same in several textbooks, and important for you to learn
  42. 42. The Marketing Functions Buying Buying Selling Selling Transporting Transportation Storing Storage Grading Standardization Financing Finance (Credit) Risk Taking Risk Bearing Information 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
  43. 43. WHO does the marketing functions ? <ul><li>From a Macro-point of view </li></ul><ul><li>Centrally planned economy (communism) - its done mostly by the government </li></ul><ul><li>Market-direct economy (capitalism) - its done by various companies, middlemen, brokers etc. Page 27 </li></ul>
  44. 44. Innovation 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
  45. 45. “ ..The Marketing Concept means that an organization aims ALL its efforts at satisfying its customers...” Marketing Concept Page 13 “… give the customers what they need/want seems so obvious”
  46. 46. All of the people in the company aim all efforts to satisfy the customer. 1. Customer satisfaction 2. A total company effort 3. Profit (not just Sales) as an objective the Marketing Concept Page 13 in Shapiro
  47. 47. Organization-wide focus on providing chosen groups of customers with products that bring (optimal) the best satisfaction so as to achieve long-run profits. Marketing Concept Page 6 Beckman, Boone & Kurtz Customer Satisfaction is the major focus of the Marketing Concept. Page 8. Pride, Ferrell, Mackenzie and Snow A guiding focus …high level objective-customer satisfaction Shapiro
  48. 48. Organization-wide - means the WHOLE company involved focus on providing chosen groups - specific segments - not everybody of customers with products that bring optimal satisfaction - designed to give them exactly what they want so as to achieve long-run profits - not short term - you also have to watch your competition Marketing Concept Page 6 Beckman, Boone & Kurtz
  49. 49. The Marketing Concept is NOT a second definition of marketing. It is a management philosophy guiding an organization’s overall activities Marketing Concept Page 9 in Pride, Ferrell, Mackenzie and Snow “… a philosophy to guide the whole firm…” Shapiro text
  50. 50. You have to first accept that it is necessary to find out “what the customer really wants”. You have to establish an information system to do surveys, questionnaires, etc. in order to “know” what to create that is really satisfying to the customer. Applying the Marketing Concept Page 10 in Pride, Ferrell, Mackenzie and Snow
  51. 51. “… the fences come down…” “… guided by what customer’s want - instead of what each dept would like to do…” Because everybody sees they have a responsibility - relates to TQM - continuous improvement - empowerment the Marketing Concept in Shapiro
  52. 52. What the text is trying to emphasize is that the people on the selling side, and the people in production, and the people in the middle - ALL have to be “ in sync” so that they are all aware of how each other has to do things in order to ultimately satisfy the final customer. The marketing concept “provides a guiding focus that all depts should adopt” the Marketing Concept in Shapiro
  53. 53. Advocacy Advertising <ul><li>You are not trying to sell a product, you are trying to get people to believe in something, or behave in a certain way eg. - Don’t drink and drive - Canadian Cancer Society - recycle - use the TTC, save gas </li></ul>
  54. 54. <ul><li>NPO’s also need marketing people, eg Heart & Stroke Foundation, Canadian Cancer Society, Ducks Unlimited, Canadian Wildlife Federation, Outward Bound </li></ul>Nonprofit organizations Page 20
  55. 55. Marketing for NPO’s Non Profit Organizations <ul><li>Churches </li></ul><ul><li>Associations </li></ul><ul><li>Art groups </li></ul><ul><li>Music groups </li></ul><ul><li>Dance and performance groups (eg. Caribana) </li></ul><ul><li>Government services (eg. Police, fire) all of these groups need marketing to get participants </li></ul>
  56. 56. NPO marketing , example
  57. 57. Marketing Concept applied in NonProfit Organizations - NPO’s <ul><li>The purpose is Advocacy advertising </li></ul><ul><li>Some NPO’s have to “market” in order to maintain their position in the community otherwise they will cease to exist </li></ul><ul><li>Some NPO’s operate businesses that sell products or services in order to raise money </li></ul>Page 22
  58. 58. Marketing Concept - NPO’s <ul><li>In the text it mentions “… a shelter for the homeless may fail if supporters focus on AIDS education…” </li></ul><ul><li>This is one reason who health related NPO’s market aggressively since their donations usually come from the same audience eg. Some people say Cancer research has faltered due to the popularity of raising money for AIDS </li></ul>
  59. 59. Marketing Concept - NPO’s <ul><li>Profit is not measured the same way </li></ul><ul><li>Profit can be in terms of money raised for research - or the number of people that quit smoking - of the number of people that give blood page 45 </li></ul>Bottom Line
  60. 60. Marketing Concept - NPO’s <ul><li>Volunteers are necessary to perform the services - but there are problems with having non-professional, non-permanent staff Volunteers do what they want to do, and this may not fit with the objectives eg. Fashion show </li></ul>Volunteers
  61. 61. ETHICS 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
  62. 62. Marketing Concept - Social Responsibility <ul><li>- “improve positive effects on Society and reduce negative effects…” </li></ul><ul><li>- environmental problems </li></ul><ul><li>- social responsibility conflicts with profit objective (raises ?, is mktg concept desirable) </li></ul>Ethics
  63. 63. Marketing Concept - Social Responsibility <ul><li>-? Of social responsibility cutting into profits </li></ul><ul><li>- some companies have been very successful at dealing with this eg. BODY SHOP </li></ul><ul><li>- they realize it is a way to endear themselves to trendy customers </li></ul>Ethics
  64. 64. Marketing Concept - Social Responsibility <ul><li>-? What if it cuts into profits </li></ul><ul><li>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 </li></ul>Ethics
  65. 65. Marketing Concept - Social Responsibility <ul><li>Written Codes of Ethics </li></ul><ul><li>page 25 AMA </li></ul>Ethics