mos 2320 Chapter 01 Introduction

7/27/2019 mos 2320 Chapter 01 Introduction

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Chapter 1

verview

Marketin

Ajax Persaud Sh

Dhruv Grewal Mi

Copyright 2012 McGraw-Hill Ryerson Limited


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LO1 Define marketin and ex lain its co

L E A R N I N G O B J E C T I V E S

concepts

LO2 Illustrate how marketers create valproduct or service

LO3 Summarize the four orientations ofmarketing

LO4 Identify the role of customer relatiomanagement in creating value

LO5 Explain the importance of marketinw n an ou s e e rm


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z ac erry aunc2000

z in over 175 coun

z sales of over $19outs e or

America

information in reaz fierce competition

Apple, Android an


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Marketing is a set of business

present an organizations produ

services in ways that build effec

customer relationships.


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Just about buyers andsellers exchan in monefor goods and services

or about makinga rofit


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Marketers must address the ethical impliof their actions on society in genera


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The fundamental purpose omar e ng s o crea e va u

both the firm and custome

Value is in essence what yo.


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A) Marketing entails an exchange.B) Marketing is simply about making a

D) Because marketing costs money, goo

carefully seek potential customers wan interest in the product and an abi


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Core One:

Begins withunderstanding their

needs and wants Developing productsand services


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Satisfying Customer NeedWants

How does a company address the diveneeds and wants of consumers for denroducts?


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Case in Point:Crest

Challengeress t e verse

wants of consumercare products.

Answer

Develop a deep unwhat benefits consuseekin in their denproducts and develdesigned to deliverbenefits.

ResultsCrest provides a widental care product


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Case in Point:Crest


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Core Two:Marketing Entails Excha

between any tw

Not simply a buseller exchangior a goo or se

information forconvenience


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ar e ng n a s an xc a

Communications/Delivery

CHAPTERS.ca

Money/InformationCustCons

oo s erv ces

Producers(Sellers)


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A) Sellers provide products or services.B) Sellers communicate and facilitate de

advertising.

D) Buyers complete the exchange by giand information to the seller.


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Core Three:

Place, and Promotion Dec


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Product


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Price

time

Price is everythingthe buyer gives upin exchange for themoneypro uc .


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Place

All activities necessary to

right customer when thatcustomer wants it.

Supply chainmanagement is the fieldthat examines theseactivities.

Where would you find

this product in the store?


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Place: Marketing ChannDistribution Strategy

How compthe the rigcusto

wherewant


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Case in Point:Country Grocer

Challengeo expan str ut

Ottawa area.

AnswerUsing an online dissystem to allow cusover Canada to ordfrom its store in Ott

Canadian FederatIndependent Groce

merit for 8 consecu Awarded the Natio

in the small surface


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Case in Point: Countr Gro


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Promotion

The communicationactivities of marketing

Used to inform,persuade and remind

potential buyerstheir opinions or elicit a


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____________ persuades, and reminds potential buyers about a pservice to influence their opinions or elicit a respon

- -B) coercion

C) teasingD) communication


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Core Four:

Individuals and OrganizatB2B: Wholesaling is often only Business to Business

B2C:All retailing is Busines

Consumer selling

C2C: S

EBay, y


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Core Five:Marketing Occurs in Many S

z Both rofit and non- rofitentities

z Developing economies

z Entire industries


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Facebook social utility

or marketing tool?

> 46 million members

,

Molson, AOL Canada,Boston Pizza, LouLoumagazine to reachtarget audiences


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Core Six:Marketing Helps Create V

Production-oriented era Market-orient

Sales-oriented era Value-based m


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-

Firms must offer customers something in that bein offered b the com etitors.

Firms must understand how each aspect


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Value is in the E e of the Be

That moviewas a wasteof money.

was so worthseeing!

Discussion

movie, what

account for t

difference in

derived from

experience?


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How Firms Compete othe Basis of Value

Constantly changingconsumer perceptions

Firms must constantlymonitor the

marketplace in order tocreate value


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A) Share information, balance benefits

and build customer relationships.

effective marketing strategies.

C) Make logistics a priority, expand globalways offer new goods and services

D) Keep a vigilant eye on the market-plundercut competitors, and provide cosalaries.


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ntrepreneur a ar et n

armen ree ourmeMeats based in Calgary

specializes in grade ACanadian bison

distributes in Canada, USand Euro e

brings value toconsumers, retailers and


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Becoming Value DrivenSharing Information

Information technology such

Management (CRM) programare increasingly used bymarketers to ensure that datatransmitted throughout the fir


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Sharing Information

y s s ar ng an coor na ng n ormsuch a critical success factor for any fir


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Case in Point:Zara

How does the flags

ChallengeEuropes fastest groretailer keep up wittrends?

AnswerBy implementing soinformation technolcustomer trackin achain functions.

Zara now has over

Results clothing stores in 7

Products move fromthrough the supply

weeks.


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Becoming Value Driven: Bala

Benefits and Cost

benefits Focus on ke b

Eliminate cost strategic benef


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Becoming Value Driven: Bu

Relationships With Customz Take a lon term view of customer relationsh

z Use data to assist in maintaining the relation


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Why is Marketing Importa


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Marketing Expands Firm

Global PresenceStarbucks often promotes the same product incountries. What products do you see in comm

Starbucks Canada Starbucks Ge

Starbucks TStarbucks Australia


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Marketing As Pervasive Acthe Supply Chain

Each ste in the su l chain involves ma

All members in the chain must ultimately fcreating value for their customer and the econsumer


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supply chain?

A) consumer

C) manufacturer

D) customer service representative


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Marketing Makes Life Easierov es mp oymen ppor

z Choices of roducts andservices choices as wellas information about

z mp oymen n vfields such asresearch, sales,promotions, globa

marketing


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Marketing Enriches Socie

Discussion question

Why do you think breast

cancer is a good cause

for Avon Foundation tosupport?


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Marketing Can Be Entrepre

,equally important to the success of smventuresespecially new ventures.


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8/17/20

Chapter 1

Overview of

Copyright 2012 McGraw-Hill Ryerson Limited

Ajax Persaud Shirley Lichti

Dhruv Grewal Michael Levy

Marketing

Chapter Objectives

LO1 Define marketing and explain its coreconcepts

LO2 Illustrate how marketers create value for aproduct or service

L E A R N I N G O B J E C T I V E S

1-2

LO3 Summarize the four orientations ofmarketing

LO4 Identify the role of customer relationshipmanagement in creating value

LO5 Explain the importance of marketing bothwithin and outside the firm

Chapter Roadmap

1-3

Building Value

z BlackBerry launched in2000

z available on 595 networksin over 175 countries

LO1,02

1-4

z sales of over $19.9 billion,53% outside NorthAmerica

z satisfies demand forinformation in real time

z fierce competition from

Apple, Android and others

What is Marketing?

Marketing is a set of business

practices designed to plan for and

LO1

1-5

present an organizations products or

services in ways that build effective

customer relationships.

Just about buyers andsellers exchanging money

for goods and services

Marketing is NOT

LO1

1-6

or about makinga profit


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Marketers Responsibility

LO1

1-7

Marketers must address the ethical implicationsof their actions on society in general.

Value

The fundamental purpose ofmarketing is to create value for

LO2

1-8

o e rm an cus omer.

Value is in essence what you getfor what you give up.

Which of the following statements about marketing is NOT true?A) Marketing entails an exchange.B) Marketing is simply about making a profit.C) Good marketing requires thoughtful planning.D) Because marketing costs money, good marketers

Test Your Knowledge

1-9

care u y see po en a cus omers w o ave oan interest in the product and an ability to buy.

Marketings Core Aspects

LO1

1-10

Begins withunderstanding their

needs and wants

Core One:Satisfying Customer Needs and Wants

LO1

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Developing productsand services

Satisfying Customer Needs andWants

How does a company address the diverseneeds and wants of consumers for dental careproducts?

LO1

1-12


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Case in Point:Crest

Challenge

Address the diverse needs andwants of consumers for dentalcare products.

Develop a deep understanding of

LO1

1-13

Answer

Results

what benefits consumer areseeking in their dental careproducts and develop brandsdesigned to deliver thosebenefits.

Crest provides a wide variety ofdental care products to deliverthe desired benefits.

Case in Point:Crest

LO1

1-14

Core Two:Marketing Entails Exchange

The exchange can occurbetween any two parties

Not simply a buyer and

LO1

1-15

seller exchanging moneyfor a good or service

Can be an exchange ofinformation forconvenience

Marketing Entails an Exchange

Communications/Delivery

CHAPTERS.ca

LO1

1-16

Money/InformationCustomers/Consumers (Buyers)

Goods/ServicesProducers(Sellers)

Which of the following is NOT part of a marketing exchange?A) Sellers provide products or services.B) Sellers communicate and facilitate delivery.C) Marketers assess the effectiveness of their

advertising.

Test Your Knowledge

1-17

uyers comp e e e exc ange y g v ng moneyand information to the seller.

Core Three:Marketing Requires Product, Price,

Place, and Promotion Decisions

LO2

1-18


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Product

LO2

1-19

Price is everythingthe buyer gives up

Price

money energy

time

LO2

1-20

n exc ange or t eproduct.

Place

All activities necessary toget the product to theright customer when thatcustomer wants it.

Supply chain

LO2

1-21

management is the fieldthat examines theseactivities.

Where would you findthis product in the store?

Place: Marketing ChannelsDistribution Strategy

How does acompany getthe product tothe right

LO2

1-22

customerwhen andwhere theywant it?

Case in Point:Country Grocer

ChallengeTo expand distribution beyond theOttawa area.

Using an online distribution

LO2

1-23

Results

system to allow customers allover Canada to order directlyfrom its store in Ottawa.

Canadian Federation ofIndependent Grocers award ofmerit for 8 consecutive years Awarded the National SilverAward as the best store in Canadain the small surface category.

Case in Point: Country Grocer

LO2

1-24


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Promotion

The communication

activities of marketing Used to inform,persuade and remind

LO2

1-25

po en a uyers Used to influencetheir opinions or elicit aresponse

Promotion is ____________ by a marketer that informs,persuades, and reminds potential buyers about a product orservice to influence their opinions or elicit a response.

A) smoke-and-mirrorsB) coercion

Test Your Knowledge

1-26

eas ngD) communication

Marketing Shaped by External Forces

LO2

1-27

Core Four:Marketing Can Be Performed by Both

Individuals and Organizations

B2B: Wholesaling is often only Business to Business

B2C:All retailing is Business toConsumer sellin

LO2

1-28

C2C: Swap Meets,EBay, yard sales, etc.

ETSYWebsite

Core Five:Marketing Occurs in Many Settings

z Both profit and non-profitentities

z Developing economies

z Entire industries

LO2

1-29

Social Media Marketing

Facebook social utility

or marketing tool?

> 46 million members

used by TD Bank,

Molson AOL Canada

LO2

1-30

Boston Pizza, LouLoumagazine to reachtarget audiences

privacy concerns?


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Core Six:Marketing Helps Create Value

LO2,03

1-31

Production-oriented era

Sales-oriented era

Market-oriented era

Value-based marketing era

Value-Based Marketing

Firms must offer customers something in excess ofthat being offered by the competitors.

LO2,03

1-32

Firms must understand how each aspect of theirproduct/service creates value for customers.

Value is in the Eye of the Beholder

That moviewas a wasteof money.

That moviewas so worthseeing!

LO2,03

1-33

scuss on ques on

If they saw the same

movie, what could

account for the

difference in value

derived from the

experience?

How Firms Compete onthe Basis of Value

Constantly changingconsumer perceptions

Firms must constantlymonitor the

LO2,03

1-34

create value

What must firms do to become value driven?A) Share information, balance benefits and costs,

and build customer relationships.B) Set low prices, put profit above service, and use

effective marketing strategies.

Test Your Knowledge

1-35

a e ogs cs a pro r y, expan go a y, analways offer new goods and services.

D) Keep a vigilant eye on the market-place,undercut competitors, and provide competitivesalaries.

Entrepreneurial Marketing

Carmen Creek GourmetMeats based in Calgary

specializes in grade ACanadian bison

LO2

1-36

s r u es n ana a,and Europe

brings value toconsumers, retailers andfood service businesses


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8/17/20

Becoming Value Driven:Sharing Information

Information technology such asCustomer RelationshipManagement (CRM) programs

LO4

1-37

are increasingly used bymarketers to ensure that data istransmitted throughout the firm.

Sharing Information

Why is sharing and coordinating information

such a critical success factor for any firm?

LO4

1-38

Case in Point:Zara

Challenge

How does the flagship brand ofEuropes fastest growing apparelretailer keep up with the latesttrends?

By implementing sophisticated

LO4

1-39

Answer

Results

information technology into itscustomer tracking and supplychain functions.

Zara now has over 1500 womensclothing stores in 78 countries.Products move from designthrough the supply chain and ontothe stores shelves in about twoweeks.

Zara: Conquering Fashion with IT

LO4

1-40

Becoming Value Driven: BalancingBenefits and Cost

Understand keybenefits

Focus on key benefits

Eliminate cost of less

LO4

1-41

strategic benefits

Becoming Value Driven: BuildingRelationships With Customers

z Take a long term view of customer relationships

z Use data to assist in maintaining the relationship

LO4

1-42


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Why is Marketing Important?LO5

1-43

Marketing Expands FirmsGlobal Presence

Starbucks often promotes the same product in differentcountries. What products do you see in common?

Starbucks Canada Starbucks Germany

LO5

1-44

Starbucks TaiwanStarbucks Australia

Marketing As Pervasive Acrossthe Supply Chain

Each step in the supply chain involves marketing

All members in the chain must ultimately focus oncreating value for their customer and the end userconsumer

LO5

1-45

Which of the following would NOT be considered part of asupply chain?

A) consumerB) retailerC) manufacturer

Test Your Knowledge

1-46

cus omer serv ce represen a ve

Marketing Makes Life Easier andProvides Employment Opportunities

z Choices of products andservices choices as wellas information aboutthose choices

LO5

1-47

z Employment in diversefields such asresearch, sales,promotions, globalmarketing

Marketing Enriches Society

Discussion question

Why do you think breast

cancer is a good cause

for Avon Foundation to

LO5

1-48

support?


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8/17/20

Marketing Can Be Entrepreneurial

Though important to large firms, marketing is

equally important to the success of smallventuresespecially new ventures.

LO5

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Documents

mos 2320 Chapter 01 Introduction