1. Marketing

2. What is marketing?
It is the process of determining customer needs and wants and then developing goods and services that meet or exceed these expectations.

3. The Marketing Concept There are three parts to the marketing concept:
A customer orientation
A service orientation
A profit orientation
Customer Relationship Management (CRM) is the process of learning as much as possible about customers and doing everything you can to satisfy them- or even exceed their expectations- with goods and services over time.

4. The Marketing mix Product -designing a want satisfying product
The ingredients that go into a marketing program.
Product -designing a want satisfying product
Price -setting a price for the product
Place -placing the product where people will buy it
Promotion -promoting of the product

5. Applying the Marketing Process
Applying the marketing process is a more complete version of the marketing mix.
Find
Conduct research
Identify a target market
Product
Design a product to meet the need based on research and then conduct product testing
Determine a brand name and design a package

6. Continued... Price Set a price Place Select a distribution system
Promotion
Design a promotional program
Build a relationship with customers

7. Designing your Product to Meet Needs
No matter what the product is, you need to take certain steps to make sure it meets your potential consumer’s needs.
Classify it on the service continuum -classes a good by its tangibility or intangibility.
Test marketing -test your product among potential users while extracting their feedback.
Brand name -combination of designs, shapes, sounds, or colors to distinguish your product from those of competitors.

8. Setting an Appopriate Price
Price -the money or other consideration exchanged for the ownership or use of a good or service.

9. Getting your product to the right place:
Method of distribution
Critical to market success

10. Developing an Effective Promotional Strategy
Promotion -All of the techniques sellers use to motivate customers to buy their products.
Promotional strategies may include:
Building relationships with the customers.
Allowing them to have their money refunded if they were not satisfied.
Using rating cards and systems to acquire customer opinions.
Constant adaptation to a changing market.

11. Providing Marketers with Information
Marketing Research is the analysis of markets to determine opportunities and challenges and to find the information to make good decisions.
Marketers also research global trends and ecological impacts to further their predictions.

12. The Marketing Process
Contains 4 steps
Defining the question and determining the present situation
Collecting data
Analyzing the research data
Choosing the best solution and implementing it

13. Secondary Data
Information that has already been compiled by others and published in journals and books or made available online.

14. Primary Data
Data that you gather yourself (not from secondary sources such as books and magazines).

15. Product Development and the Total Product Offer
Value is the quality at a fair price.
Customers look at the benefits and then subtract the cost, to see if the benefits exceed the cost.
Total Product Offer is what the consumer evaluates when deciding whether to buy something.

16. Potential Components of a Total Product Offer
Price
Brand Name
Convenience
Package
Store Surroundings
Service
Internet Access
Buyer’s Past Experience
Guarantee
Speed of Delivery
Image Created by Advertising
Reputation of Producer

17. Product Lines and the Product Mix
Product line is when a company sells products that are physically similar or of a similar market.
Product mix is the combination of different product lines by a manufacturer.
Ex: Procter & Gamble's product line include shampoos and toothpastes.
Their product mix would include Cheer, Tide, Gain, Solo, and Ivory Snow.

18. Product Differentiation
The creation of real or percieved product differences.
Companies use a mix of pricing, advertising, and packaging (value enhancers) to make their product more appealing.
Product differences are actually small or non-existent.
Ex: Aquafina bottled water VS. tap water
Mr. Clean VS. Generic brand cleaner

19. Packaging Changes the Product
Makes the product more attractive to retailers. (ex. Universal Product Codes) Changes the product by changing it's visibilty, usefulness, or attractiveness.
It communicates information about the contents and benefits of the product.
Gives indication of price, value, and use.
Services can be packaged. (ex. Virgin Airlines includes door to door limousine services and inflight massages in its total package.)

20. Branding and Brand Equity
For a buyer, a brand name assures quality, reduces search time, and adds prestige to purchases.
For the seller, brand names facilitate new product introductions, help promotional efforts, add to repeat purchases, and differentiate products so that prices can be set higher.
A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design. (ex. The Nike swoosh is widely recognized.)

21. Generating Brand Equity and Loyalty
A major goal in a company is to leverage their brand equity.
Brand equity is the combination of factors- such as awareness, loyalty, percieved quality, images, and emotions- that people associate with a given brand name.
Brand loyalty is the degree to which customers are satisfied, enjoy the brand, and are commited to further purchase.
Adds value to the firm.
Brand awareness refers to how quickly or easily a brand comes to mind when a product category is mentioned.

22. Competitive Pricing
Competitive pricing is when a company will price their products at a certain price in order to compete with their competitors.

23. Pricing Objectives
There are several objectives involved in pricing an item.
Some examples are:
to achieving a profit
to entice customer to shop at your store
to get a larger market share
to create an image

24. Break-Even Analysis
The break-even analysis is an important part of competitive pricing. It will tell you what you profit will be based on what you sell.
Break-Even Analysis equation
BEP=___________Total fixed costs__________
Price per 1 unit – variable costs of 1 unit
Total fixed costs- cost to a company that never changes—ex. Rent, power
Variable costs- costs that change based on how many units are sold—ex. Supplies

25. Non-Price Competition
In the market today it is hard to have an advantage based on price alone. Many marketers today of promote the advantages of their product in order to sell it.
Some strategies of non-price competition include:
Value added- Adding some extra benefit to the product ex. Free home delivery
Consumer education- Teaching the consumer how to use a certain product.
Consumer relationships- People will be more likely to pay for better service.

26. Approaches to Pricing Cost-Based Pricing Demand-Based Pricing
Cost based pricing-choosing a price based on the fixed and production costs allowing some room for profit
Demand-Based Pricing
Demand based pricing-pricing determined by the demand of the product
Competition-Based Pricing
Price leadership- few dominant companies set the standard for what other companies will price their products at. An example of this would be oil prices

27. The Importance of Channels of Distribution
Channel of Distribution - A set of marketing intermediaries, such as agents, brokers, wholesalers and retailers, that join together to transport and store goods in their path(or channel) from producers to consumers.
Agents/Brokers are marketing intermediaries that bring buyers and sellers together to work out a deal for the exchange of goods. They never take ownership to the goods they deal with.
A Wholesaler is a business intermediary that sells to other organizations, such as retailers, manufacturers, and institutions.

28. continued...
A Retailer is an organization that sells to consumers, people like you and me, who buy for their own use.
Various organizations must work together to ensure the smooth flow of goods and services to the customer, and also that the consumer receives the maximum benefit from the intermediaries.

29. Why Marketing Needs Intermediaries: Creating Exchange Efficiency
They are needed to perform tasks such as transporting, storing, selling and advertising faster and cheaper than most manufacturers are capable.
Ex: You could deliver packages in person to people anywhere in the world, but usually you don’t. Because it’s usually cheaper and faster to have them delivered by Canada Post or a private firm such as Purolator.
Selling or buying a home, you wouldn’t usually sell your home by yourself but rather with the assistance of a real-estate agent.

30. Retailing
To us, the most important marketing intermediary is the retailer.
They deal directly with the consumer, they are the ones who make goods and services available in our cities and neighborhoods.
Retail organizations also employ 1.7 million Canadians.

31. Retail Distribution Strategy
Intensive Distribution - Puts products into as many outlets as possible (candy, popular magazine, cigarettes etc.)‏
Selective Distribution - sends products to only a preferred group of retailers in an area.
Exclusive Distribution - sends products to only one retail outlet in a given geographic area.

32. Non-Store Retailing
Electronic Retailing is when a product is sold over the internet. This can be a difficult way to sell goods, because you have to make sure that you have a sufficient inventory and deliver goods on time.
Telemarketing is the sale of products by telephone. Many telemarketer’s send a catalogue to customers and let them order by calling a toll-free number. But many people prefer to do the same thing but online.
Vending Machines have the benefit of location and can be placed pretty much anywhere, spreading the producers product everywhere.
Direct Selling involves selling in homes and in workplaces (Ex. Avon).

33. Choosing the Right Distribution Mode
The primary concern for supply-chain managers is to select the right transportation mode that will minimize costs and ensure a certain level of service.
Generally speaking the faster the mode of transportation the higher the cost.

34. Below is a table comparing transportation modes:

35. Promotion and the Promotion Mix
Promotion mix is the combination of promotional tools an organization uses.
Such tools include:
Advertising
Personal Selling
Public Relations
Sales Promotion

36. Advertising

37. Personal Selling: Providing Personal Attention
Personal Selling is the face-to-face presentation and promotion of goods and services.
It is costly to provide customers with personal attention.
Companies need to train salespeople to be especially effective, efficient, and helpful

38. The Business-to-Consumer (B2C) Sales Process
Approach
Ask Questions
Makes Presentation
Close Sale
Follow Up

39. Public Relations: Building Relationships
Public Relations (PR) is the management function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance.
Publicity is any information about an idividual, product, or organization that's distributed to the public through the media and that's not paid for or controlled by the seller.

40. Sales Promotion: Getting a Good Deal
Sales Promotion is the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Sampling is a promotional tool in which a company lets consumers have a small sample of a product for no charge.