THE PURPOSE OF THE COURSE & THE PURPOSE OF THE TEXT TO SHOW THAT MARKETING IS ESSENTIAL PROVIDE AN UNDERSTANDING OF THE BASIC MARKETING CONCEPTS. Marketing is for Everybody. All Business is International Business.
TO SHOW THAT MARKETING IS ESSENTIAL
PROVIDE AN UNDERSTANDING OF THE BASIC MARKETING CONCEPTSMarketing is for Everybody
Therefore a “Global-Marketing Approach” is indeed a very appropriate sub-title for the text
“Canada’s ability to retain its high standard of living depends on our skills at competing efficiently on a global and local scale”The Good Life
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 stuffWhat is Marketing ?
“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)
Marketing should begin with the customer needs - NOT with the production process. Mktg should anticipate needs.
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.
This Formal Definition is used by other texts
Planning and executing N= 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 J people
people = individuals and organizational objectives.
Marketing - the formal definition
This Formal Definition is used by other texts
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 moneyWhy should we know about Mktg
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)Why should we know about Mktg
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.)The Importance of Marketing
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 spendingThe Importance of Marketing
“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 RelationsWhy should we know about Mktg
“It is both a set of activities performed by organizations, and a social process”Marketing
Micro - marketing for a company
Macro - the whole economy
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
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.
Micro Mktg is the main focus
of this text
eg. It would be cheaper to make cars without airbags and seatbelts - but gov’t insists they must - so it has to be donMicro-Macro Dilemma
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 pollutionMicro-Macro Dilemma
These 8 functions are the same in several textbooks, and important for you to learn
Nickels, McHugh & Berman
Business2nd Edition as used in GNED 119
Beckman, Kurtz & Boone
Foundations of Marketing6th Edition as used in MKTG 116
Risk TakingRisk Bearing
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
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
- environmental problems
- social responsibility conflicts with profit objective(raises ?, is mktg concept desirable)Marketing Concept - Social Responsibility
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 loyaltyMarketing Concept - Social Responsibility