marketing is for everybody
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
Chapter 1
MKTG 106
Slide 1 of 65
Marketing is for Everybody
THE PURPOSE OF THE COURSE & THE PURPOSE OF THE TEXT
• TO SHOW THAT MARKETING IS ESSENTIAL
• PROVIDE AN UNDERSTANDING OF THE BASIC MARKETING CONCEPTS
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
Chapter 1
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
Chapter 1
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Slide 3 of 65
• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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The Good Life
• 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”
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 5 of 65
So, if we want to keep things good
We have to have a good understanding of marketing,
here locally, and globally
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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What is Marketing ?
Selling ?
Advertising ?
Page 4
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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What is Marketing ?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 stuffPage 5
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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What is Marketing ?
…. 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.
Page 5
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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)
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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.
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 11 of 65
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.
Marketing - the formal definition
This F
ormal
Def
initi
on is u
sed b
y oth
er te
xts
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Process of …………….
Planning and executing = 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 people
people = individuals and organizational objectives.
Marketing - the formal definition
This Formal Definition is used by other texts
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Complaints about Mktg
• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
Chapter 1
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Slide 14 of 65
Complaints about Mktg• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Complaints about Mktg• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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How Marketing Relates to the Production of stuff
Marketing fills the “Gap” between producer and consumer
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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“Production and Marketing supply 5 kinds of utility that are
needed to provide consumer satisfaction”
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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F
T
T
P
P
“Production and Marketing supply 5 kinds of utility that are needed to provide consumer
satisfaction”
Page 6
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Form
Task
Time
Place
Possession
“Production and Marketing supply 5 kinds of utility that are needed to provide consumer
satisfaction”
Page 6
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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”
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Why should we know about Mktg
• 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
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Why should we know about Mktg
• Also, Cause,,,,,,,,,,,,,,,,,, marketing people in a company bring in the moneybring 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)
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 23 of 65
The Importance of Marketing
• 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
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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The Importance of Marketing
• 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.)
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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The Importance of MarketingGetting a JOB in Marketing !!• Personal selling• Advertising• Package Design• Transportation• Storage• Marketing Research• Product Development• Wholesaling• Retailing
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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The Importance of MarketingImportance 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Why should we know about Mktg
• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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The Importance of MarketingGetting 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Marketing
• 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”
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Page 9
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Page9
Micro - marketing for a company
Macro - the whole economy
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Micro-Macro Dilemma
• 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)
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Micro-Macro Dilemma
• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Stages of Economic Development
• Self-supporting agriculture
• Pre-industrial Commercial
• Primary manufacturing
• Consumer products manufacturing
• Capital equipment manufacturing
• Exporting manufactured productsPage 11
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Mass Production
• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Mass Production
• 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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 40 of 65
The 8 Marketing Functions
• Buying•Selling•Transporting•Storing•Grading•Financing•Risk Taking•Market Information
Page 26
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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The 8 Marketing Functions
These 8 functions are the same in several textbooks, and important for
you to learn
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
Chapter 1
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Slide 42 of 65The Marketing Functions
Buying BuyingSelling SellingTransporting TransportationStoring StorageGrading StandardizationFinancing Finance (Credit)Risk Taking Risk BearingInformation Collection Research
Beckman, Kurtz & Boone
Foundations of Marketing 6th Edition as used in MKTG 116
Nickels, McHugh & Berman
Understanding Canadian
Business 2nd Edition as used in GNED 119
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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WHO does the marketing functions ?
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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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“..The Marketing Concept means that an organization aims ALL its efforts at satisfying its customers...”
Marketing ConceptPage 13
“… give the customers what they need/want seems so obvious”
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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
the Marketing Concept
Page 13 in Shapiro
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Organization-wide focus on providing chosen groups of customers with products that bring (optimal) the best satisfaction so as to achieve long-run profits.
Marketing ConceptPage 6 Beckman, Boone & Kurtz
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
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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 want
so as to achieve long-run profits - not short term
- you also have to watch your competition
Marketing Concept
Page 6 Beckman, Boone & Kurtz
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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The Marketing Concept is NOT a second definition of marketing. It is a management philosophy guiding an organization’s overall activities
Marketing Concept
Page 9 in
Pride, Ferrell, Mackenzie and Snow
“… a philosophy to guide the whole firm…”
Shapiro text
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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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.
Applying the Marketing Concept
Page 10 in Pride, Ferrell, Mackenzie and Snow
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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“… the fences come down…”
“…guided by what customer’s want - instead of what each dept would like to do…”
Because everybody sees they have a responsibility
- relates to TQM
- continuous improvement
- empowerment
the Marketing Concept
in Shapiro
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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What the text is trying to emphasize is that the people on the selling side, and the people in production, and the people in the middle - ALL have to be
“in sync” so that they are all aware of how each other has to do things in order to ultimately satisfy the final customer.The marketing concept “provides a guiding focus that all depts should adopt”
the Marketing Concept
in Shapiro
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Advocacy Advertising
• You are not trying to sell a product, you are trying to get people to believe in something, or behave in a certain wayeg.- Don’t drink and drive- Canadian Cancer Society- recycle- use the TTC, save gas
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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• NPO’s also need marketing people, eg Heart & Stroke Foundation, Canadian Cancer Society, Ducks Unlimited, Canadian Wildlife Federation, Outward Bound
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 55 of 65Marketing for NPO’sNon Profit Organizations
• Churches• Associations• Art groups• Music groups• Dance and performance groups (eg. Caribana)• Government services (eg. Police, fire)
all of these groups need marketing to get participants
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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NPO marketing, example
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Marketing Concept applied in NonProfit Organizations - NPO’s• The purpose is Advocacy advertising• Some NPO’s have to “market” in order to
maintain their position in the community otherwise they will cease to exist
• Some NPO’s operate businesses that sell products or services in order to raise money
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From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Marketing Concept - NPO’s• In the text it mentions “… a shelter for
the homeless may fail if supporters focus on AIDS education…”
• This is one reason who health related NPO’s market aggressively since their donations usually come from the same audienceeg. Some people say Cancer research has faltered due to the popularity of raising money for AIDS
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Marketing Concept - NPO’s
Profit is not measured the same way• Profit can be in terms of money raised for
research- or the number of people that quit smoking- of the number of people that give blood
page 45
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Marketing Concept - NPO’s
Volunteers are necessary to perform the services - but there are problems with having non-professional, non-permanent staffVolunteers do what they want to do, and this may not fit with the objectiveseg. Fashion show
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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One of the big complaints about marketing is that ppl act unethical in order to make a sale.
Sometimes it is easy to forget that morals are based on your own cultural standards and in different cultures, people have different opinions about what is ethical.
Eg. Bribery is perfectly acceptable in some parts of Asia and Latin America, but unacceptable in USA and Canada page 22
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Marketing Concept - Social Responsibility
- “improve positive effects on Society and reduce negative effects…”
- environmental problems
- social responsibility conflicts with profit objective(raises ?, is mktg concept desirable)
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 63 of 65Marketing Concept - Social Responsibility
-? Of social responsibility cutting into profits
- some companies have been very successful at dealing with this eg. BODY SHOP
- they realize it is a way to endear themselves to trendy customers
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 64 of 65Marketing Concept - Social Responsibility
-? What if it cuts into profits
Answer - increasing quality may cost more in production, but you may make this money back in increased sales which come about as the customers realize you have a very good quality product - this will reduce the advertising costs and customer service/warranty costs and ensure customer satisfaction re: brand loyalty
From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson
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Slide 65 of 65Marketing Concept - Social Responsibility
Written Codes of Ethics
page 25 AMA