Marketing Fundamentals PDF

CHAPTER 01 MARKETING FUNDAMENT ALS Prepared by: Maria Vincenten, Red © 2021 McGraw-Hill Education Limit ed River...

CHAPTER 01 MARKETING FUNDAMENT ALS Prepared by: Maria Vincenten, Red © 2021 McGraw-Hill Education Limit ed River College  Learning Objectives 1. Explain the role of marketing in an organization and the importance of meeting customer needs 2. Define and analyze elements of the marketing mix 3. Outline the steps in the marketing process 4. Differentiate between goods, services, and ideas © 2021 McGraw-Hill Education Lim 2  Learning Objectives (continued) 5. Describe the evolution of different business philosophies 6. Describe new and evolving marketing practices 7. Summarize careers that exist in marketing © 2021 McGraw-Hill Education Lim 3  WestJet! Expanded the travel market launching the LCC segment in Canada in 1996 Today they focus on ULCC and premium and business international travellers © 2021 McGraw-Hill Education Lim 4  What Is Marketing? The good news is that you are already a marketing expert! The bad news is that good marketing isn’t always easy Marketing affects all individuals, all organizations, all industries, and all countries © 2021 McGraw-Hill Education Lim 5 The Role of Marketing Brands need to be differentiated and marketers are challenged to stay current to ensure their strategies and messages resonate with customers MARKETING TIP “We take our job seriously, not ourselves. Our brand expression of personality has changed over the past 23 years to meet the changing needs of our customers.” – Richard Bartrem, Vice President, Marketing Communications, WestJet © 2021 McGraw-Hill Education Limited 6  The Role of Marketing (continued) Figure 1–1 A marketing department relates to many people, organizations, and forces. Note that the marketing department both shapes and is shaped by its relationship with these internal and external groups. © 2021 McGraw-Hill Education Lim 7  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 – 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 © 2021 McGraw-Hill Education Lim 8  Focusing on Customer Needs and Wants (continued) 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 – Must be able to quickly find the site through search engines © 2021 McGraw-Hill Education Lim 9  Focusing on Customer Needs and Wants (continued) “Successful marketing is focused on customer needs and wants and on developing programs that engage consumers and inspire customer loyalty.” © 2021 McGraw-Hill Education Lim 10  Creating Customer Value Customer Value Proposition – unique combination of benefits received by targeted buyers that will satisfy their needs 1) Product design 2) Pricing strategies 3) Service elements © 2021 McGraw-Hill Education Lim 11  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 © 2021 McGraw-Hill Education Lim 12  Coordinating the Marketing Mix “Marketers need to understand what makes their consumers tick.” Marketing Mix (4Ps) – product, price, place, and promotion – Carefully managed to ensure that they are well- coordinated and appeal to the distinct characteristics of the target market © 2021 McGraw-Hill Education Lim 13  Coordinating the Marketing Mix (continued) 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. © 2021 McGraw-Hill Education Lim 14  The Marketing Process Marketing Process involves: 1)Identifying consumer needs, 2)Managing the marketing mix to meet these needs, and 3)Reaching potential consumers or the market “The marketing process requires marketers to understand their customers and apply strategic, analytical, and creative-thinking © 2021 McGraw-Hill Education Lim skills.” 15  The Marketing Process (continued) © 2021 McGraw-Hill Education Lim 16  The Marketing Process (continued) Marketing – process through which goods and services move from concept to the customer. It includes the coordination of 4 Ps of marketing: to identify, select, and develop a product; determine its price; select a distribution channel to reach a customer’s place; and develop and implement a promotional strategy. Exchange – the trade of things of value between buyers and sellers so that each benefits – More than just money © 2021 McGraw-Hill Education Lim 17  What Can Be Marketed? Product encompasses goods, services, and ideas © 2021 McGraw-Hill Education Lim 18  What Is a Market? Market – is used to describe potential 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 decide on a balance of who should be targeted for their programs © 2021 McGraw-Hill Education Lim 19  The Evolution of Business Philosophies Three elements of relationship marketing: 1) Social Media 2) Customer Relationship Management (CRM) © 2021 McGraw-Hill Education Lim 20  The Evolution of Business Philosophies (continued) Customer Relationship Management – Share-of-wallet – Customer lifetime value – Corporate social responsibility (CSR) © 2021 McGraw-Hill Education Lim 21  The Evolution of Business Philosophies (continued) CSR Initiatives: 1) sponsorship and/or spearheading of community programs 2) sponsorship and/or involvement in fundraising initiatives for charitable organizations 3) business philosophy that implements socially responsible business practices © 2021 McGraw-Hill Education Lim 22  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 © 2021 McGraw-Hill Education Lim 23  New and Evolving Marketing Practices (continued) Evolving areas: 1)digital marketing, including content marketing, mobile marketing, and social media marketing; 2)augmented reality; 3)experiential marketing; 4)influencer marketing; 5)partnership marketing; 6)metrics and analytics; and 7)new marketing regulations and ethical considerations. © 2021 McGraw-Hill Education Lim 24  New and Evolving Marketing Practices (continued) Digital Marketing – Content Marketing – Mobile Marketing – Proximity Marketing – Social Media Marketing © 2021 McGraw-Hill Education Lim 25  New and Evolving Marketing Practices (continued) Augmented Reality Experiential Marketing Influencer Marketing Partnership Marketing – Promotional partnerships – Strategic alliance © 2021 McGraw-Hill Education Lim 26  New and Evolving Marketing Practices (continued) Metrics and Analytics © 2021 McGraw-Hill Education Lim 27  New and Evolving Marketing Practices (continued) Marketing Regulations and Ethical Considerations – Regulations safeguard people, communities, and the environment Consumer privacy is a growing concern © 2021 McGraw-Hill Education Lim 28  Marketing Careers Starting point is to get an education and create a network of business professionals Develop a personal marketing strategy © 2021 McGraw-Hill Education Lim 29