marketing ch 1

Marketing is a set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships.

Brands need to be differentiated and marketers are challenged to stay current to ensure their strategies and messages resonate with customers

specific group or segment(s) of existing and potential consumers to which marketers direct their marketing efforts

begins with understanding their needs and wants. developing products and services

good, service, idea

used to describe potential consumers who have both the willingness and ability to buy a product

1)Social Media

2)Customer Relationship Management (CRM)

3)Corporate Social Responsibility

the total system of business activities designed to: plan, price, promote, distribute something of value (ideas, products and services to achieve organizational objectives. To make a profit.

oAnything that can be offered for

oAcquisition, attention, use, or consumption

oThat might satisfy a need or want

oActivities or benefits offered

oEssentially intangible

oDo not result in ownership of anything

oCreate, stage, and market brand experiences

oAttending live theatre, music concert

narrow-minded approach to marketing wherein businesses focus excessively on their products or services rather than understanding and catering to the needs and desires of their customers.

product, price, place & promotion

goods, services, idea

money, time, energy

all activities required to get product to right customer when that customer wants it

•The communication
activities of marketing

•Used to inform,
persuade and remind
potential buyers

•Used to influence
their opinions or elicit a
response

competitors, political, economic, technology, social/cultural trends, demographics

density, location, age, sex, race, occupation, etc. Idea – people do and buy certain things at certain ages

oChanging age structure of population

oChanging Canadian households

§Divorce rates

§Single parent families

§Extended families

oBetter educated population

oIncreasing cultural diversity

•Income, cost of living, interest rates, savings and borrowing all affect consumer buying power and spending patterns

•Stage of economic cycle – Recession, Depression, Recovery and Prosperity.

•Unemployment or fear of it impacts purchasing

oMost dramatic force shaping our future

oChanges rapidly with r&d

oCreates new markets and opportunities

oEg: CD’s - Casettes – 8 Track

oIncreasing legislation to protect:

§companies from each other

§consumers from unfair business practices

oEmphasis on ethics and social responsibility – “do the right thing”

oPrivacy of information a key issue

oCommon Sense Electric Belt - 1881

•Production Era < 1920 – Quality sells itself. Eg: Ford Model T

•2. Sales Era < 1950’s – Creative, economy of scale.

•3. Marketing Concept Era > 1950’s – Consumer is King

4. Relationship Era > 2000’s – Long term relationships lead to success (VALUE