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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.

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Presentation on theme: "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."— Presentation transcript:

1 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

2 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 2 of 65

3 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 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

4 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 4 of 65 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”

5 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 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

6 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 6 of 65 What is Marketing ? Selling ? Advertising ? Page 4

7 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 7 of 65 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 stuff Page 5

8 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 8 of 65 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

9 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 9 of 65 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 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 10 of 65 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 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 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 Formal Definition is used by other texts Page 8

12 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 12 of 65 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

13 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 13 of 65 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

14 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 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

15 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 15 of 65 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

16 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 16 of 65 How Marketing Relates to the Production of stuff Marketing fills the “Gap” between producer and consumer Page 6

17 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 17 of 65 “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6

18 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 18 of 65 FTTPPFTTPP “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6

19 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 19 of 65 Form Task Time Place Possession “Production and Marketing supply 5 kinds of utility that are needed to provide consumer satisfaction” Page 6

20 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 20 of 65 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 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 21 of 65 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 Page 8

22 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 22 of 65 Why should we know about Mktg bring in the moneyAlso, 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)

23 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 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 Page 8

24 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 24 of 65 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 total eg. If we buy shoes for $70, $35 of that 70 has been spent on marketing (including advertising, market research, development etc.)

25 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 25 of 65 The Importance of Marketing Getting a JOB in Marketing !! Personal selling Advertising Package Design Transportation Storage Marketing Research Product Development Wholesaling Retailing

26 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 26 of 65 The Importance of Marketing 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

27 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 27 of 65 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

28 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 28 of 65 The Importance of Marketing 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

29 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 29 of 65 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”

30 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 30 of 65 Page 9

31 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 31 of 65 Page9 Micro - marketing for a company Macro - the whole economy

32 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 32 of 65 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 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 33 of 65 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 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 34 of 65 Page 10

35 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 35 of 65 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)

36 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 36 of 65 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

37 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 37 of 65 Stages of Economic Development Self-supporting agriculture Pre-industrial Commercial Primary manufacturing Consumer products manufacturing Capital equipment manufacturing Exporting manufactured products Page 11

38 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 38 of 65 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

39 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 39 of 65 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

40 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 40 of 65 The 8 Marketing Functions Buying Selling Transporting Storing Grading Financing Risk Taking Market Information Page 26

41 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 41 of 65 The 8 Marketing Functions These 8 functions are the same in several textbooks, and important for you to learn

42 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 42 of 65 The Marketing FunctionsBuyingSelling TransportingTransportation StoringStorage GradingStandardization FinancingFinance (Credit) Risk TakingRisk Bearing Information 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

43 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 43 of 65 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

44 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 44 of 65 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 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 45 of 65 “..The Marketing Concept means that an organization aims ALL its efforts at satisfying its customers...” Marketing Concept Page 13 “… give the customers what they need/want seems so obvious”

46 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 46 of 65 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

47 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 47 of 65 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 Concept Page 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 satisfaction Shapiro

48 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 48 of 65 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

49 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 49 of 65 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

50 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 50 of 65 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

51 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 51 of 65 “… 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

52 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 52 of 65 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

53 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 53 of 65 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 way eg. - Don’t drink and drive - Canadian Cancer Society - recycle - use the TTC, save gas

54 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 54 of 65 NPO’s also need marketing people, eg Heart & Stroke Foundation, Canadian Cancer Society, Ducks Unlimited, Canadian Wildlife Federation, Outward Bound Page 20

55 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 55 of 65 Marketing for NPO’s Non 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

56 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 56 of 65 NPO marketing, example

57 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 57 of 65 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 Page 22

58 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 58 of 65 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 audience eg. Some people say Cancer research has faltered due to the popularity of raising money for AIDS

59 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 59 of 65 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

60 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 60 of 65 Marketing Concept - NPO’s Volunteers are necessary to perform the services - but there are problems with having non-professional, non-permanent staff Volunteers do what they want to do, and this may not fit with the objectives eg. Fashion show

61 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 61 of 65 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

62 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 62 of 65 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)

63 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 63 of 65 Marketing 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

64 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 64 of 65 Marketing 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

65 From Basic Marketing, Shapiro, Ninth Canadian Edition ppt slides created and Copyright by Tim Richardson Chapter 1 MKTG 106 Slide 65 of 65 Marketing Concept - Social Responsibility Written Codes of Ethics page 25 AMA


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