Pp tuck mktg 8e_ch01 (1)


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Pp tuck mktg 8e_ch01 (1)

  1. 1. Copyright © 2010 PearsonEducation Canada1Chapter 1: Contemporary MarketingImportance of MarketingMarketing helps lead an organization into thefuture by:•Providing a means of keeping pace withchange•Offering a means of connecting withcustomers•Ensuring an organization offers the rightgoods and services1
  2. 2. Copyright © 2010 PearsonEducation Canada2Chapter 1: Contemporary MarketingMarketing Defined“An organizational function and a set ofprocesses for creating, communicating anddelivering value to customers and for managingcustomer relationships in ways that benefit theorganization and its stakeholders.”2
  3. 3. Copyright © 2010 PearsonEducation Canada3Chapter 1: Contemporary MarketingMarketing Past and PresentProductionOrientationSociallyResponsibleMarketingOrientationSellingOrientationMarketingOrientation3
  4. 4. Copyright © 2010 PearsonEducation Canada4Chapter 1: Contemporary MarketingSocially Responsible MarketingSociallyResponsibleMarketingDeliver satisfactionBetter than thecompetitionIdentify andsatisfy customerneedsEnhance societythrough goodcorporatecitizenship4
  5. 5. Copyright © 2010 PearsonEducation Canada5Chapter 1: Contemporary MarketingSocially Responsible MarketingSRM can be divided into two main areas:1. Programs that conserve, preserve, andprotect the environment2. Programs that support causes (causemarketing)Companies that demonstrate corporate social responsibilitymust make the public aware of its doings.5
  6. 6. Copyright © 2010 PearsonEducation Canada6Chapter 1: Contemporary MarketingThe Marketing ProcessAssess CustomerNeedsIdentify and Selecta TargetDevelop MarketingStrategyDevelop CustomerRelationship StrategyEvaluation andControl6
  7. 7. Copyright © 2010 PearsonEducation Canada7Chapter 1: Contemporary MarketingAssessing Customer NeedsAn organization collects information aboutneeds to determine if a market is worthpursuing.1. Market Analysis2. Consumer Analysis7
  8. 8. Copyright © 2010 PearsonEducation Canada8Chapter 1: Contemporary MarketingTarget Identification and SelectionA target market is a group of people that havesomething in common. They may be in the sameage range, have similar educational backgrounds,live in the same area, or share an interest oractivity.Generation YGeneration XBaby BoomersSeniorsCanada’s population isaging; this poses a challengefor marketers currentlyappealing to older targetsbut wanting to attractyounger targets.8
  9. 9. Copyright © 2010 PearsonEducation Canada9Chapter 1: Contemporary MarketingDeveloping a Marketing StrategyProductPriceMarketingCommunicationsDistributionMarketingMixConsumerorBusinessCustomer9
  10. 10. Copyright © 2010 PearsonEducation Canada10Chapter 1: Contemporary MarketingProduct StrategyA product may possess tangible and intangiblecharacteristics. Product decisions are numerousand embrace: Quality Features Brand Name Image Size Format Service Guarantees10
  11. 11. Copyright © 2010 PearsonEducation Canada11Chapter 1: Contemporary MarketingProduct Differentiation“A strategy that focuses marketing activity on theunique attributes or differential advantages of abrand to distinguish it from other brands.Wal-Mart…..Save money. Live better.Tim Hortons…..Always fresh.Visa…..All you need.11
  12. 12. Copyright © 2010 PearsonEducation Canada12Chapter 1: Contemporary MarketingPrice StrategyEstablishing a fair and equitable price for customerswhile being profitable for the organization. Pricedecisions consider the following factors: Cost of manufacturing a good Desired profit level Location of customers Degree of competition12
  13. 13. Copyright © 2010 PearsonEducation Canada13Chapter 1: Contemporary MarketingDistribution StrategyThe selection and management of marketingchannels and the physical distribution of products.Producers ofGoodsDistributors ofGoodsUsers ofGoodsA marketing channel is a series of firmsthat participate in the flow of goods andservices from producers to final users.13
  14. 14. Copyright © 2010 PearsonEducation Canada14Chapter 1: Contemporary MarketingMarketing Communications StrategyCompanies now focus on an “integrated marketingcommunications” strategy. The intent is to delivera consistent message regardless of the method ofcommunication.Due to technology and shifting consumer behaviour,organizations now place more emphasis on digitalcommunications. A company must follow theircustomers’ eyeballs wherever they may be and adjusttheir budget allocations accordingly.14
  15. 15. Copyright © 2010 PearsonEducation Canada15Chapter 1: Contemporary MarketingIMC MixAdvertisingDirect ResponseInteractiveSales PromotionEvent MarketingPublic RelationsPersonal SellingConsumer orBusinessCustomerCoordination and integrationgenerates more impact on theaudience.15
  16. 16. Copyright © 2010 PearsonEducation Canada16Chapter 1: Contemporary MarketingPublic ImageA good reputation is an important asset andreputation is earned through good marketing.An organization must:Be sensitive to customer needs and interestsSupport communities they operate inBe socially responsible marketers16
  17. 17. Copyright © 2010 PearsonEducation Canada17Chapter 1: Contemporary MarketingCustomer Relationship Management17Marketing today is about building relationships;relationships with channel members and consumers.CRM refers to strategies that optimize profitability,revenue, customer retention, and customer satisfaction.Successful CRM programs rely on a strong internal datamanagement system.
  18. 18. Copyright © 2010 PearsonEducation Canada18Chapter 1: Contemporary MarketingCustomer Retention Strategies18Loyalty ProgramsAn incentive offered to customers to encouragerepeat purchases.Customer Relationship Management ProgramsA system that collects and analyzes information forthe purpose of devising unique marketing offers toindividual customers. It encourages more purchasesof same product or new purchases of complementaryproducts.
  19. 19. Copyright © 2010 PearsonEducation Canada19Chapter 1: Contemporary MarketingPartnership Marketing19Building relationships with other companies canpay dividends.Supplier Manufacturer Distributors ConsumersIn partnerships common objectives amongmembers are established, and teamwork andcooperation replace competition and conflict.
  20. 20. Copyright © 2010 PearsonEducation Canada20Chapter 1: Contemporary MarketingPartnership Marketing20Another partnership option is a strategic alliance.In a strategic alliance two firms combine theirresources for the purpose of satisfying thecustomers they share.Laura Secord Hallmark CardsMac’ Milk Subway
  21. 21. Copyright © 2010 PearsonEducation Canada21Chapter 1: Contemporary MarketingEvaluating Marketing Activity21Marketing strategies must be periodically reviewedfor effectiveness. A typical review may include anassessment of:Market conditions (external influences)Competitor activity (their success or failure)Brand performance to date (are objectives beingachieved?)Potential changes in marketing strategy areaddressed in the review process.