Marketing is for Everybody

1. THE PURPOSE OF THE COURSE & THE PURPOSE OF THE TEXT TO SHOW THAT MARKETING IS ESSENTIAL PROVIDE AN UNDERSTANDING OF THE BASIC MARKETING CONCEPTS Marketing is for Everybody

2. All Business is International Business

3. 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

4. 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” The Good Life

5. So, if we want to keep things good We have to have a good understanding of marketing, here locally, and globally

6. Selling ? Advertising ? What is Marketing ? Page 4

7. 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 stuff What is Marketing ? Page 5

8. …. 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. What is Marketing ? Page 5

9. 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)

10. 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.

11. Marketing - the formal definition 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. This Formal Definition is used by other texts Page 8

12. Marketing - the formal definition Process of ……………. Planning and executing N= 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 J people people = individuals and organizational objectives. This Formal Definition is used by other texts

13. 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 Complaints about Mktg

14. Advertising is annoying They lie Advertising is wasteful Products aren’t really safe Quality is not as good as they say Marketing makes people too materialistic Credit too easy to get - ppl buy stuff they don’t need Complaints about Mktg

15. Packaging is not strong Labelling is deceptive Middlemen add to the price Middlemen are seen as not adding anything of value Products pollute, or their packaging pollutes Too much unnecessary stuff offered Serves the wealth, exploits the poor Complaints about Mktg

16. How Marketing Relates to the Production of stuffMarketing fills the “Gap” between producer and consumer Page 6

17. “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6

18. F T T P P “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6

19. Form Task Time Place Possession “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6

20. Form - is when somebody makes something Task - is when someone does something for another person Time - having it when you need it Place - having it where you need it Possession - having it, being able to use it, ride it, drink it, wear it “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6

21. 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 Why should we know about Mktg Page 8

22. Also, Cause,,,,,,,,,,,,,,,,,, marketing people in a company bring 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) Why should we know about Mktg

23. 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 Page 8

24. 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 Marketing

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

26. Importance 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 The Importance of Marketing

27. 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 Why should we know about Mktg

28. Getting 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 The Importance of Marketing

29. 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” Marketing

30. Micro Marketing Macro Marketing Page 9

31. Micro Marketing Macro Marketing Micro - marketing for a company Macro - the whole economy Page9

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. 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. Micro Marketing Macro Marketing Page 10 Micro Mktg is the main focus of this text

35. 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 done (p. 591 Chpt 22) Micro-Macro Dilemma

36. 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 Micro-Macro Dilemma

37. Self-supporting agriculture Pre-industrial Commercial Primary manufacturing Consumer products manufacturing Capital equipment manufacturing Exporting manufactured products Stages of Economic Development Page 11

38. 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 therefore becoming more competitive Mass Production

39. 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 Just because you can make 10 million of some thing, doesn’t mean you can sell it - what you need is effective mktg Mass Production

40. The 8 Marketing Functions • Buying • Selling • Transporting • Storing • Grading • Financing • Risk Taking • Market Information Page 26

41. The 8 Marketing Functions These 8 functions are the same in several textbooks, and important for you to learn

42. The Marketing Functions Nickels, McHugh & Berman Understanding Canadian Business2nd Edition as used in GNED 119 Beckman, Kurtz & Boone Foundations of Marketing6th Edition as used in MKTG 116 BuyingBuying Selling Selling TransportingTransportation Storing Storage Grading Standardization FinancingFinance (Credit) Risk TakingRisk Bearing Information CollectionResearch

43. 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 WHO does the marketing functions ?

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. Marketing Concept Page 13 “..The Marketing Concept means that an organization aims ALL its efforts at satisfying its customers...” “… give the customers what they need/want seems so obvious”

46. the Marketing Concept 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 Page 13 in Shapiro

47. Marketing Concept Page 6 Beckman, Boone & Kurtz Organization-wide focus on providing chosen groups of customers with products that bring (optimal)the best satisfaction so as to achieve long-run profits. Customer Satisfaction is the major focus of the Marketing Concept. Page 8. Pride, Ferrell, Mackenzie and Snow A guiding focus …high level objective-customer satisfactionShapiro

48. Marketing Concept 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 wantso as to achieve long-run profits - not short term- you also have to watch your competition Page 6 Beckman, Boone & Kurtz

49. Marketing Concept The Marketing Concept is NOT a second definition of marketing. It is a management philosophy guiding an organization’s overall activities Page 9 in Pride, Ferrell, Mackenzie and Snow “… a philosophy to guide the whole firm…”Shapiro text

50. Applying the Marketing Concept 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. Page 10 in Pride, Ferrell, Mackenzie and Snow