Chapters 1-7 Marketing Principles PDF

Chapter 1 The Role of Marketing Link between business success and carefully designed product, pricing, distribution, and promotional strategies that meet current consumer needs, trends, and expectations Focusing on Customer Needs and Wants Successful marketing is focused on custom...

Chapter 1 The Role of Marketing Link between business success and carefully designed product, pricing, distribution, and promotional strategies that meet current consumer needs, trends, and expectations Focusing on Customer Needs and Wants Successful marketing is focused on customer needs and wants, and developing programs that engage consumers and inspire customer loyalty ○ Need: Occurs when a person feels deprived of basic necessities ○ Want: Is a need that is shaped by a person’s knowledge, culture, and personality A principal activity is to research consumers to understand what they need and want, and the forces that shape those needs and wants Customers do not always know what they need or want Digital world adds to that complexity ○ Initial point of contact with a brand is often online ○ Consumers have unlimited opportunities to become informed or distracted ○ Product review, manufacturers’, and retailer websites Customer interaction with a website can be seamless providing reviews, price comparisons, and comprehensive product details Creating Customer Value Customer Value Proposition - Unique combination of benefits received by targeted buyers that will satisfy their needs; this includes quality, price, convenience, delivery, and both before-sale and after-sale service Often achieved through a combination of: ○ Product design ○ Pricing strategies ○ Service elements Appealing to Target Markets With limited funds, it is better to channel resources to a specific group of consumers who are most interested in purchasing a product, rather than target everyone and squander funds Target Market - specific group (or segment) of existing and potential consumers to which marketers direct their marketing efforts Coordinating the Market Mix  Marketing Mix (4P’s) Product, Price, Place, and Promotion Controllable factors that need to be carefully managed to ensure that they are well-coordinated and appeal to the distinct characteristics of the target market It is important to note that, over time, marketers gather extensive information on their target markets, being able to identify purchase motivation that goes beyond age and gender into behavioural and psychological motivation, which are important determinants in many purchases The Marketing Process Marketing Process involves: ○ Identifying consumer needs ○ Managing the marketing mix to meet these needs ○ Reaching potential consumers or the market Marketing - process through which goods and services move from concept to the customer. It includes the coordination of 4 P’s of marketing ○ To identify, select, and develop a product ○ Determine its price ○ Select a distribution channel to reach a customer’s place ○ Develop and implement a promotional strategy  What can be Marketed? Product encompasses goods, services and ideas What is a Market? Market - is used to describe potential groups of consumers who have both the willingness and ability to buy a product Sometimes the market, target market, and consumers are different groups of people Marketers need to balance the various groups to target with their programs The Evolution of Business Philosophies Three elements of relationship marketing: ○ Social Media ○ Customer Relationship Management (CRM) ○ Corporate Social Responsibility (CSR) Customer Relationship Management ○ Share-of-wallet ○ Customer lifetime value Corporate social responsibility initiatives: ○ Sponsorship and/or spearheading of community programs ○ Sponsorship and/or involvement in fundraising initiatives for  ○ charitable organizations ○ Business philosophy that implements socially responsible business practices New and Evolving Marketing Practices Marketing today focuses on: ○ Meeting short-term consumer needs and generating immediate company profits, as well as ○ Long-term viability and sustainability of a business through the transparent connections it makes with its business partners, and ○ By creating meaningful customer relationships and community initiatives Evolving areas including: ○ Digital marketing, including content marketing, mobile marketing, mobile marketing, and social media marketing ◆ Using digital technology to reach consumers through computers, gaming devices, out-of-home electronic screens, or mobile devices ◆ Widespread use of digital technology in Canada is the most important trend impacting how marketers do business ◆ Changed the path to purchase and drives how consumers gather information, connect with each other and businesses, and purchase products ◆ Digital marketing campaign may include: ◇ Content Marketing Integral part of any campaign ◇ Mobile Marketing Display and Search ◇ Social Media Marketing Consumers can interact with marketing messages ○ Augmented reality ◆ Combining things in the real world with computer-generated information ○ Experiential marketing ◆ Create opportunities for consumers to directly interact face-to- face with a brand ○ Influencer marketing ◆ No longer limited to major celebrities ◇ Micro-influencers ○ Partnership marketing ◆ Affinity marketing ◆ Create formal associations between brands  ◆ Brand partnership ◆ Strategic alliance ○ Metrics and analytics ◆ Improve programs and deliver better results online and offline ◆ Metrics - numerical data collected and grouped to track performance ◇ Dashboards ◆ Analytics - Process ○ New marketing regulations and ethical considerations ◆ Regulations safeguard people, communities, and the environment from businesses ◆ Consumer privacy is a growing concern ◆ Evolution of digital technology has forced marketing associations and government bodies to revise and update legislation and implement new guidelines ◆ Greenwashing ◆ Many companies, industries, and professional associations have guidelines and codes of ethics ◆ Canada’s anti-spam legislation Marketing Careers Starting point is to get an education and create a network of business professionals ○ Develop a portfolio of your work Develop a personal marketing strategy ○ Conduct a SWOT and develop you 4Ps Chapter 2 - The Marketing Environment Marketers constantly monitor the marketing environment “Successful marketing programs much reach out and address changes and new opportunities in the marketplace” Situation (SWOT) Analysis Situational Analysis - Taking stock of a firm’s or product’s past performance, where it is now, and where it is headed SWOT analysis - The assessment of how well an organization or brand is servicing its businesses and market markets ○ Identify changes and trends in the industry ○ Analyze current and potential competitors ○ Assess the organization itself, including resources ○ Research present and prospective customers Ultimate Goal -> Identify the crucial strategy-related factors that impact the firm and then build on vital strengths, correct glaring weaknesses, exploit significant opportunities, and avoid disaster-laden threats An Environmental Scan An environmental scan is the process of continually acquiring information on events occurring outside an organization to identify external trends,  that are opportunities or threats to a business Often the first step of developing a more extensive SWOT Social Forces Social Forces - include the demographic characteristics of the population and its culture ○ Demographics is the statistical data on a population according to characteristics such as gender, age, ethnicity, income, education, and occupation Changes here can have a dramatic impact on marketing strategy Democratic Forces Statistics Canada 2021 Census: ○ Aging population ○ Diverse generations ○ Big-city growth ○ Ethnic Diversity ○ World markets ○ Changing household composition An Aging Population  Significant growth in the population >65 yo ○ 19% of population (16.9% in 2016) Government agencies and marketers note changes and determine needs ○ Health care industry ◆ Areas of specialization ◆ Home support services ◆ Personal care items Diverse Generations Generation - group of people who are bound together by similar events that they experiences as they grew up ○ Different tastes, consumption patterns, and attitudes Baby boomers Generation X Generation Y (Millennials) Generation Z Big-City Growth Since the pandemic ○ Population growth has rebounded Growth primarily immigration Big cities grow faster than rural areas 73.7% of Canadians live in big urban centres Urban spread during pandemic Ethnic Diversity Between 2016 and 2021, 71.1% of Canadas growth was due to the arrival  of immigrants and nonpermanent residents ○ 62% from Asia and Middle East 450 mother-tongue languages reported other than English and French Multicultural mix creates an interesting array of opportunities for marketers World Markets Over 7.9 billion people ○ Canada ranks number 39 Opportunities for expansion to foreign markets Changing Household Composition Dominant household structure is one-person household ○ Driven by aging population, economic independence, and increase in separation/divorce rates Increase in: ○ Couples without children ○ Common-law relationships ○ Same-sex couples ○ Multigenerational families Culture Within social forces, along with demographics, one must look at culture: ○ Media ○ Food consumption  ○ Gender and attitude roles ○ Healthy living for an aging population ○ Ethical consumption Media Device connectivity ○ Widespread use of interned numerous times per day on multiple devices ○ Changes way marketers relate and communicate with consumers; less face-to-face ○ Showrooming Social media ○ About 31.8M Canadians use 6 platforms