Chapter 1 Overview of marketing: developing customer value, satisfaction, relationships and experiences through marketing Marketing is the process

s of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing Mix = 4Ps Product, price, place, promotion The concept of satisfaction Products are solutions to consumer needs and wants Basic requirements for successful marketing to occur Two or more parties with unsatisfied needs A desire and ability on their parts to satisfy these needs A way for the parties to communicate Something to exchange Marketing discovers and satisfies consumer needs and wants - Discover consumer needs but scrutinizing consumers o To understand what they need o To study industry trends o To examine competitors products o To analyze the needs of a customers customer - Satisfy consumer needs by finding the right marketing mix (4Ps) - Cannot satisfy all consumer needs so focus on target markets Five different orientations in the history of North American business

1. 2. 3. 4.

Market orientations focus on creating customer value, satisfaction, and customer relationships by: - Continuously collecting data about consumers needs and competitors capabilities - Sharing this information throughout the organization - Using the information to create value, ensure customer satisfaction and develop customer relationships

Chapter 1 Overview of marketing: developing customer value, satisfaction, relationships and experiences through marketing

Why build a relationship with customers? To retain customers over time (cost effective way for firms to grow in competitive markets) How to build customer relationships? Who are your customers? What do your customers value? What do your consumers want to buy? How do they prefer to interact? Examples of customer relationship strategies The process of building and developing long-term relationships with customers by delivering customer value and satisfaction is called customer relationship management (CRM). eCRM a Web-centric, personalized approach to managing long term customer relationships electronically: 1) Interactive marketing - Involves 2-way buyer-seller electronic communication in which the buyer can control the kind and amount of information received from the seller - For it to be effective, companies need to listen, understand and respond to their customers needs - Marketers must treat customers as individuals and empower them to o Influence the timing and extent of the buyer-seller interaction o Have a say in the kind of products and services they buy, the info they receive and, in some cases, even the prices they pay 2) Customer experience management - Managing the customers' interactions with the organization at all levels and at all touchpoints (direct and indirect contacts of the customer with an organization) so that the customer has a positive impression of the organization, is satisfied with the experience, and will remain loyal to the organization. In essence, it is about experience-based differentiation

Chapter 2 Strategic Marketing

1. 2. 3. 4.

Describe strategic planning and strategic marketing process Describe why business, mission, culture, and goals are important in organizations. Explain how organizations set strategic directions by assessing where they are- SWOT. Explain how the marketing mix elements are blended into a cohesive marketing program. Understand BCG portfolio matrix, and product-market growth strategies. Strategic Marketing Process whereby an organization allocates its marketing mix resources to reach its target mix. The objective is to maintain a fit between the organizations objectives and resources and evolving market opportunities. Strategic Marketing Process

SWOT Analysis Internal: Strengths things the company does well Weaknesses things the company does poorly Area for internal analysis: Production costs Marketing skills Employee capabilities Financial resources Company/brand image Equipment used

External: Opportunities conditions in the external environment that favor strengths. (Not strategies!) Threats conditions in the external environment that do not relate to existing strengths or favor areas of current weakness and may hinder the strategy/organization Area for external analysis (environmental scanning):

Chapter 2 Strategic Marketing

Current marketing mix Customer loyalty/retention Level of expertise and knowledge

Examination of macro-environments Social Demographic Economic Technological Political/legal Competitive

BCG Matrix

Chapter 2 Strategic Marketing

Ansoff theory (Market-product growth strategies)

Chapter 3 Marketing environment and marketing ethics Influences on marketing strategies Trends in external environment will justify your marketing strategies External environments Competition o Monopoly one firm serves the market (e.g. SAQ) o Oligopoly a few firms serve most of the market and control part of the mix of the smaller competitor (e.g. Esso) o Monopolistic competition many firms offer different products that answer similar need (e.g. McDonalds vs. Burger King, Zara vs. H&M) o Pure competition no firm has power over the other (stock market, free software) Examples of barriers to entry: Product: Place Unknown brand No manufacturing capacity Need to change consumer Difficult to convince retailers to behavior carry product Suppliers reluctant to change Established suppliers Price Cannot buy in bulk no economy of scale Competition has a low cost strategy High costs (variable and fixed) Low margin per item Promotion - Large advertising is required (car and cosmetic industries)

Oligopolistic competitive environment Market is saturated Industry standards are too high Highly regulated industry Specialized workforce Economy o Shift from the secondary to service sector o of Canadians earn a middle class income (37 000) o Canadian consumer debt level 148% o More discretionary income for high-end goods and services o Scarcity of natural resources o Intensity of natural disasters: earthquakes, tsunami, ice storm

Chapter 3 Marketing environment and marketing ethics o o o o o o o

Low interest rates High unemployment Stagnant GDP Low market growth in NA High variation in stock market valuations (facebook) Changes in the value of the Canadian dollar Consumers reactions to inflation: search for lowest prices, rely on coupons and sales, delay large purchases, buy smaller quantities at one time, seek higher quality products, look for substitutes

Technology o Influence Database management Direct distribution channels, e-marketing and e-commerce Online and other interactive communications (blog, twitter, RSS) Increase of product obsolescence Miniaturization of computing technology Growth of wireless technology security issues Decrease of government funding in R&D, increase of private funding Socio-demographic and cultural o Demography = study of characteristics of the population Size and age, location, spending power and wealth, level of education, family formation, multiculturalism, lifestyle and values, social concerns o Growing social trends Rural life in mega cities: trees, access to local markets Increase donation, philanthropy managed as business Personal branding Facebook keeps growing revealing personal information to people we dont really know Clothing vintage, unique, recyclable Pay for what used to be free dog walking, sleep next to me, give me a hug

Chapter 3 Marketing environment and marketing ethics o All cultures will include:

o North American changing values From 1970s and 1980s Environmentally aware, trusting, indulgent, image driven, conspicuous consumption, brand loyal, traditional marriage To 2000s and 2010s Socially responsible, skeptical, health and wellness, pessimistic, value driven, strategic consumption, brand disloyal, non-traditional marriage o Socio-demographic Aging population Rising affluence Changes in ethnic composition Disparities in income levels More women in the workforce Increase in temporary workers Greater concern for fitness, health and the environment Postponement in family formation Various family types (DINKS, nuclear, multigenerations, reconstructed) o Generation X, Y, boomers, traditionals Generation Y: 1979-1994 Techno friendly, optimist, personalization Generation X: 1965-1978 Pessimist, savvy, cynical consumers Baby boomers Realistic, seek convenience, youth, individualism Traditionalist: born prior to 1945 Political and legal o Protection of certain industries (oil, culture, location of head office) Aboriginal land claims settlements Deregulation Labour laws (wages, health/safety)

Chapter 3 Marketing environment and marketing ethics

Legislation on corporate governance Political stability Increase in local taxation policies Foreign trade regulations Social welfare policies - funding Canadian competitive act (10$) o Example of laws that impact No smoking in public area Import quota limits on clothing industry were removed Lobbying toward the elected political party (sugar, tobacco, fast food, gasoline) No phosphate in detergents NAFTA, EU, tariffs and non-tariff barriers

Chapter 9 Segmentation, Targeting and Positioning 1) Market = group of individual or organizations with needs, wants, ability to buy and desire to buy 2) Segmentation = dividing a large market (mass market) into smaller homogeneous markets (segments) based on commonalities What are some approaches to segmenting a consumer market? (p232 table) Demographic Age, gender, family size, era (baby boomer, generation x), income, family status, ethnicity, education, occupation, home ownership Geographical Region, city, census, density, climate Behavioural Benefits sought low price, high quality, environmental safety, convenience Usage/loyalty light/medium/heavy user, user status (gold, silver, bronze) Decision making individual, family, group; product knowledge Type of buy first time, re-buy, high or low involvement Psychographic Based on personalities, lifestyles, activities, interests, opinions E.g. conservative and liberal, variety of products at gym (interested in fitness, will also be interested in eating healthy for e.g.) Targeting strategies Evaluating the attractiveness of each segment and selecting one or more segments to serve

How to decide which segments to target? 3) Positioning = refers to the place an offering occupies in the consumers minds on important attributes relative to competitive products Most common positioning strategies Brand leadership (visa- all you need) Head-on challenger (Burger King challenges McDonalds) Innovation (red bull) Product or market differentiation (maytag- no servicing required)

Chapter 3 Marketing environment and marketing ethics

Lifestyle (apple) Perceptual Map = tool to display the location of the brands in the minds of the consumers 2 axes labeled with attributes that are relevant to the consumer Plot your product and competition

Chapter 5 Consumer behaviour