CHAPTER 1

STUDENT VERSION SLIDES

MacEwan University
Chapter 1 Overview

 What is Marketing?

 4 Factors for Marketing to Occur

 The Breadth and Depth of Marketing

 The Marketing Mix (The Four Ps)

 Evolution of North American Businesses

Marketing Myths

 Marketing ≠ Advertising

 Marketing ≠ Selling

 Marketing ≠ Common Sense

Marketing Myths

 Marketing is always expensive – Not Always

 Marketing is inherently evil – Not Inherently
 What is Marketing?
 Marketing is the activity for Creating, Communicating,
Delivering and Exchanging offerings that benefit the
organization, it’s stakeholders, and society at large.

 Marketing serves both Buyers and Sellers by

 Discovering the needs and wants of consumers
 and satisfying them
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Four Factors for Marketing to Occur

1. Two or more parties with Unsatisfied Needs

2. A Desire and Ability be satisfied
3. A way for the parties to communicate
4. Something to Exchange

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 The Breadth and Depth of Marketing

 What is a Market?
 Anyone with the Desire and Ability to buy a specific
product.

 What is a Target Market?

A Specific Group of potential consumers
toward which an organization
directs its marketing program

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The Breadth and Depth of Marketing

 Who Markets?
 Every organization!

 What is Marketed?
 Goods, Services, Ideas and Experiences
 Idea Marketing  Social Marketing
Social Marketing
 Social Marketing is designed to influence the behaviour of
individuals in which the benefits of the behaviour accrue to
those individuals or to the society in general and not to the
marketer.
 Examples: MADD, Health Canada

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 The Breadth and Depth of Marketing

 Who Buys and Uses What is Marketed?

 Both individuals and organizations
 UltimateConsumers
 Organizational Buyers

 Who Benefits from Marketing?

 Consumers/Customers

 Organizations

 Society

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 Discovering Consumer Needs
 Consumers may not always know what they need/want

 Consumers may not understand how they would benefit

from a new product

 Focuson the customer benefit

 Learn from the past

© 2017 McGraw-Hill Education. All rights reserved.

The Four Ps - Controllable Marketing Mix Factors

 Marketing Mix – The marketing manager’s controllable

factors; the marketing actions of product, price, promotion
and place that he or she can take to create, communicate
and deliver value (page 10).

© 2017 McGraw-Hill Education. All rights reserved.

The Four Ps - Controllable Marketing Mix Factors

 Product
A Good, Service or Idea to satisfy the consumer’s needs.
 Place
A means of getting the product into the consumers hands.
(Logistics/Distribution)
 Price
 What is exchanged for the product.
 Promotion
A means of Communication between the seller and buyer.
Professor E. Jerome McCarthy
© 2017 McGraw-Hill Education. All rights reserved.
Environmental Forces (Uncontrollable)

 Social
 Economic
 Technological
 Competitive
 Regulatory

 Key is to learn to anticipate and respond to

these environmental forces

© 2017 McGraw-Hill Education. All rights reserved.

Evolution of North American Business

© 2017 McGraw-Hill Education. All rights reserved.

Production Era
 Sales Era

• Firms produced more than they could sell

• Competition increased
• Firms Hired Salespeople

© 2017 McGraw-Hill Education. All rights reserved.

Marketing Concept Era

 Shifted focus to satisfying needs of consumers

while achieving goals
 Integrate marketing into all phases of business

© 2017 McGraw-Hill Education. All rights reserved.

 Market Orientation Era
 CRM – The process of building and developing long-term relationships
with customers by delivering customer value and satisfaction (page 16).

 eCRM –Web-based CRM Approach

 Interactive Marketing two-way communication which the buyer can

control the kind and amount of information they receive.

© 2017 McGraw-Hill Education. All rights reserved.

Customer Experience Management Era

 CRM necessary but not sufficient

 Experienced-based differentiation
 Positive end-to-end experience

© 2017 McGraw-Hill Education. All rights reserved.

Social Media Marketing Era
 Empowered Customers
 Consumer-generated Content